NEW YORK — The New York State Department of Financial Services has issued new rules that will force buyers and sellers to have a license for real estate transactions in the state.
The rules, which will take effect July 1, make it more difficult for non-residents to buy and sell real estate in New Jersey.
The new rules require a license to be issued by the NYSDFS for all transactions involving real estate and require all real estate licenses to have at least one “foreign seller” listed as the owner, the agency said in a statement.
“For more than 20 years, we have worked tirelessly to bring New Yorkers a more fair and affordable real estate market in our state, and this new rule will allow us to do just that,” said New York City Mayor Bill de Blasio in a news release.
The rule is one of the most significant moves by the government since the recession.
The state has had to spend $9 billion in the last five years to help struggling real estate developers and homebuilders.
It is the latest attempt to prevent a wave of absentee buyers that has been plaguing the state for years.
In May, the state issued a cease and desist order against one company for selling homes without a mortgage.
The order was later lifted, but the company, AEG Residential Holdings, is still facing lawsuits in the Eastern District of New York.
The New Yorkers want the new rules to be the first step to making it easier for them to buy real estate.
“The new licensing requirements will help make our housing market a better place for New Yorkers and will help protect our home market from the illegal and unfair practices of unscrupulous foreign buyers,” said State Senator Joseph Kyrillos, a Democrat.
The rule also requires that real estate brokers and brokers who work in New Yorkers homes must have a state license.
They also must have state-issued licenses for brokers who do not have state licenses, as well as brokers who provide services to people who do have a valid NYS license.
To learn more about New York’s new real estate licensing rules, visit www.nydfs.ny.gov/realestatelicense.