23. Fraud in Procurement of License

6 DOS 94 Matter of DOS v. Eagle Financial Services - motion to amend complaint; procedural due process; motion for severance; motion for stay of proceedings; adjournment; once issued, license is valid even if procured by fraud and voidable only in quasi-judicial proceeding; negotiating of mortgage loan requires real estate license; corporate licensee vicariously liable for conduct of unlicensed salesperson; failure to return and conversion of deposits

42 DOS 95 Matter of Hayes - applicant who was previously licensed fails to prove trustworthiness; convicted for sexual abuse, second degree (contact with a minor); material misstatement in application for license; evidence of character must establish reputation; no conditional license for commercial property only; unfavorable inference drawn from failure to call witnesses with knowledge about a material issue

120 DOS 98 Matter of DOS v. Resil -- due process; accounting to clients; deposits; ex parte hearing is permissible upon proof of proper service; notice of hearing may be served by sending it certified mail to the last known business address; violation of 19 NYCRR 175.1 and 175.2 for commingling broker’s and client’s funds and failure to account for trust funds; accepting deposit monies under pretext that it would be applied to purchase of real property and then applying it differently constitutes fraudulent practices; failure to pay judgment without showing an inability to do so is demonstration of untrustworthiness; salesperson’s licensed revoked; relicensure conditioned upon proof of satisfaction of judgment and return of deposit monies with interest

869 DOS 08 Matter of Pitts – broker; false claim of being member of bar; availing of license; failure of proof re: RPL §443 disclosure form; failure of proof of no escrow account; no jurisdiction over unlicensed individuals; revocation and fine of $5,775 with interest if reapply

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Fourth quarter Legal Lines now available

The fourth quarter 2019 edition of NYSAR’s Legal Lines is now available online at This edition covers new DOS proposed regulations, emotional support animals in housing, Landlord discrimination and more. Learn more