Brokers with false titles must now toe the line, regulators say

New York /
Apr.April 30, 2013 08:30 AM

Brokers with inflated business titles are now prohibited by state regulators from identifying themselves by titles that they haven’t actually received, the Wall Street Journal reported.

According to a letter sent Friday by New York’s Department of State to the Real Estate Board of New York, brokers using titles such as vice president or executive vice president may no longer use them unless they have actually been appointed to those positions. In many cases, brokers were arbitrarily using those titles, and the letter termed their actions “dishonest” and “misleading.”

“Agents [are] prohibited from falsely advertising that they hold such a position within the brokerage,” according to the letter written by Whitney Clark, an attorney with the department.

REBNY’s legal counsel Neil Garfinkel told the Journal that the letter was drafted in response to an earlier inquiry by the board. “It is an opinion that affects the industry in a widespread way,” he said. “I’d say there are many, many brokers this affects.”

“I think there are some agents who are going to be upset but, at the end of the day, the law is the law,” he added.

Some brokers have expressed their disappointment with the decision. “A title to a broker is very important,” one brokerage spokesman told the Journal. “Even though they’re not voting titles, it designates a sort of level of achievement. How would you present yourself in the industry without a title?” [WSJ]Hiten Samtani


Related Articles

arrow_forward_ios
John Banks
High expectations: A look at John Banks’ 4 years at REBNY
High expectations: A look at John Banks’ 4 years at REBNY
John Banks
John Banks to step down as REBNY president
John Banks to step down as REBNY president
REBNY Awards
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
(iStock)
Landlords seek up to 5% rent hike on stabilized apartments
Landlords seek up to 5% rent hike on stabilized apartments
Gov. Andrew Cuomo, Andrea Stewart-Cousins and Carl Heastie (Getty; iStock/Illustration by Kevin Rebong for The Real Deal)
Landlords’ building emissions workaround is dead
Landlords’ building emissions workaround is dead
From left: Assembly member Harvey Epstein, State Sen. Julia Salazar,  MBA's Mike Flood and REBNY's James Whelan (Getty, Anuja Shakya/Whelan, MBA/Flood)
Real estate makes last-minute push to kill proposed preferred equity tax
Real estate makes last-minute push to kill proposed preferred equity tax
Compass' Robert Reffkin and REBNY's James Whelan. (Getty, Whelan ph: Anuja Shakya)
Compass slams REBNY with antitrust suit
Compass slams REBNY with antitrust suit
(iStock)
Broker confidence rebounds after challenging year: REBNY
Broker confidence rebounds after challenging year: REBNY
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...