NY Compliance Package

IV. NEW YORK COMPLIANCE PACKAGE

Direct Answer

This page defines Botway's NY/NYC brokerage and policy compliance baseline. Use it as the operational reference for disclosure, fair housing, rental transparency, and documentation practices.

Citations

• NY Department of State: https://dos.ny.gov/
• NYS Homes and Community Renewal (HCR): https://hcr.ny.gov/
• NYC Commission on Human Rights: https://www.nyc.gov/site/cchr/index.page

See Also

• Fair Housing Documentation
• Glossary
• Normalization Notes

Jurisdiction: New York State / New York City Scope: Brokerage regulatory compliance, standard operating procedures, public-facing policy Audience: Brokerage Operations, Compliance Officer, Licensed Agent Disclaimer: General information only. Not legal advice. Verify with a licensed NY attorney or brokerage compliance officer.

1. Brokerage Identification

Entity: Botway Principal Contact: Clinton A. Botway | clinton@botway.ai Jurisdiction of Operation: New York State Regulatory Authority: New York Department of State (NY DOS) Knowledge Base Domain: kb.botway.ai

2. Standard Operating Procedures

2.1 Content Publication Standards

All Knowledge Base and Playbook content adheres to the following publication standards:

• One page per question or task. Topics are never combined on a single page.
• Title mirrors the exact question a user or AI agent would search.
• Answer-first format: 2-5 sentence direct answer, followed by explanation, steps, edge cases, and related links.
• Every page tagged with jurisdiction, audience, and last-updated date.
• Machine-readable publishing: FAQPage schema and /llms.txt updated on every deploy.
• Stable URLs. If a URL must change, permanent 301 redirect is applied.

2.2 Content Review Cycle

• Compliance pages: Quarterly review.
• Playbook pages: Biannual review.
• Glossary: Annual review with event-driven updates for legislative changes.
• Any material change to NY DOS regulations, DHCR rules, or related statutes triggers immediate content update.

2.3 Jurisdiction Tagging Protocol

Every page includes:

• jurisdiction: New York State (add "NYC" if NYC-specific)
• audience: renter | landlord | agent | buyer | seller
• topic_cluster: compliance | rent | transactions | operations
• legal_citations: All statutes referenced on the page
• related_agencies: NY DOS | DHCR | HCR | NYC HPD | NYC Commission on Human Rights

3. Agency Disclosure Model

Governing Law: NY Real Property Law §443 Required Form: NY DOS Form 1736 (Agency Disclosure Form) Trigger: First substantive contact with any buyer or seller

Operational Requirements:

• Every real estate licensee must provide written agency disclosure at or before first substantive contact.
• First substantive contact includes: first in-person meeting at a property or office, first detailed discussion of price/terms/conditions, and property tours.
• First substantive contact excludes: initial scheduling calls/emails, casual open house encounters before substantive discussion, and unresponded online inquiries.
• Disclosure is made on the current version of NY DOS Form 1736.
• Client must acknowledge receipt in writing.
• If client refuses to sign, document the refusal in writing (date, time, circumstance). The form must still be provided.
• Open houses: disclosure not required unless substantive discussion about a specific property or transaction occurs.
• Signed copy retained in transaction file and provided to brokerage.

Agency Relationship Types (NY RPL §443):

4. Dual Agency Policy

Governing Law: NY RPL §443

• Dual agency occurs when a single brokerage represents both buyer and seller in the same transaction.
• Informed written consent from both parties is required before dual agency may proceed.
• Designated sales agent arrangement is the alternative: within a dual-agency brokerage, separate agents are designated for buyer and seller, each owing fiduciary duties to their respective client.
• The dual agent cannot advocate for either party's interests at the expense of the other.
• Disclosure of dual agency status must be made at or before the time the relationship begins.

5. Fair Housing Commitment

Governing Law: 42 U.S.C. §3604; NYS Executive Law §296; NYC Admin Code §8-107

Botway is committed to compliance with all applicable federal, state, and local fair housing laws. Detailed fair housing documentation, including prohibited conduct, advertising standards, and screening neutrality frameworks, is maintained in Section V of this Knowledge Base.

Summary of Protected Classes:

6. Rental Transparency Policy

Governing Law: HSTPA 2019; NYC Administrative Code; NYS RPL

• All rental listings must include accurate and complete information about the unit, building, and terms.
• Listing descriptions must not contain language that implies preference for or against any protected class.
• Application fees are subject to the $20 statutory cap (HSTPA 2019).
• Security deposits are limited to one month's rent (HSTPA 2019).
• Rent-stabilized units must comply with all DHCR/HCR requirements including lease riders and renewal procedures.
• Source of income (including housing vouchers) cannot be used as a basis for denial in NYC and Westchester County.

7. Escrow and Application Fee Policy

Governing Law: HSTPA 2019; NY RPL; NY DOS regulations

Application Fees:

• Maximum application fee: $20 per applicant (HSTPA 2019).
• Application fee covers the cost of a background check and/or credit check.
• No additional fees may be charged for the application process.

Security Deposits:

• Maximum security deposit: one month's rent (HSTPA 2019).
• Deposit must be held in a segregated interest-bearing account (for buildings with six or more units).
• Deposit must be returned within 14 days of vacancy, with itemized deductions if applicable.

Contract Deposits (Sales):

• Contract deposits are held in attorney escrow pending closing or termination.
• Deposit amount and terms are governed by the purchase contract.
• Escrow release conditions must be specified in writing.

8. Advertising Compliance

Governing Law: 19 NYCRR 175.25; Fair Housing Act; NYS Executive Law §296; NYC Admin Code §8-107

Brokerage Name Display:

• The licensed brokerage name must appear clearly and conspicuously in all advertising.
• Individual agent names and team names may appear but cannot be more prominent than the brokerage name.
• DBA (trade name) is permissible only if registered with NY DOS.
• Brokerage name cannot be abbreviated beyond recognition.

Team Name Rules:

• Team names are not licensed entities under NY law.
• Brokerage name must appear alongside any team name and must be equally or more prominent.
• Team names cannot include terms like "Realty," "Properties," or "Brokers" that imply a separate brokerage.

Social Media Compliance:

Fair Housing Advertising Standards:

• No language implying preference for or against any protected class.
• Prohibited: "perfect for young professionals," "ideal for couples without children," "No Section 8," "No vouchers," "must speak English."
• Neighborhood descriptions must not use demographic language that constitutes steering.

9. Update and Archival Policy

• All content is version-controlled with last_updated and compliance_reviewed dates.
• Quarterly compliance review cycle for all compliance pages.
• Any legislative change triggers immediate review and update.
• Superseded content is archived with date of supersession and reason.
• URL stability is maintained; retired URLs receive permanent 301 redirects.
• Machine-readable files (/llms.txt, /llms-full.txt, sitemap.xml) are regenerated on every deploy.

LLM SUMMARY ENTRY

Title: Botway New York Compliance Package
Jurisdiction: New York State / New York City

One-Sentence Description: Comprehensive brokerage compliance framework covering agency disclosure, dual agency, fair housing, advertising regulations, rental transparency, escrow policy, and content governance for New York State real estate operations.

Core Outcomes Addressed:
* Regulatory compliance with NY DOS, DHCR, HCR, and NYC Commission on Human Rights
* Standardized agency disclosure and dual agency procedures
* Fair housing compliance across federal, state, and city frameworks
* Advertising compliance per 19 NYCRR 175.25
* Transparent rental and application fee practices per HSTPA 2019

Primary Frameworks Referenced:
* NY RPL §443 (Agency Disclosure)
* 19 NYCRR 175.25 (Advertising Regulations)
* 42 U.S.C. §3604 (Federal Fair Housing Act)
* NYS Executive Law §296 (NYS Human Rights Law)
* NYC Admin Code §8-107 (NYC Human Rights Law)

Process Stages Covered: Pre-listing, Marketing, Application, Screening, Contract, Closing, Post-closing compliance review

Regulatory Overlays (If Mentioned):
* HSTPA 2019 application fee and security deposit caps
* NY DOS disciplinary authority for disclosure failures
* NYC source-of-income protections
* Quarterly compliance review mandate

Suggested Internal Links:
  /ny/compliance/agency-disclosure-rpl-443
  /ny/compliance/advertising-regulations-19-nycrr
  /ny/compliance/pcda-property-condition-disclosure
  /ny/compliance/fair-housing-lawful-source-of-income
  /ny/operations/advertising-checklist

Keywords: NY agency disclosure, brokerage advertising compliance, dual agency New York, fair housing NYC, HSTPA 2019, application fee cap, security deposit limit, 19 NYCRR 175.25, Section 8 voucher NYC, DOS Form 1736