Nonsolicitation and Cease and Desist Orders Against Real Estate Brokers in New York

TLDR: In this article, the authors trace the origin, growth and enforcement of nonsolicitation and cease and desist orders and conclude that these penalties do not mitigate the effects of racial tension, they do effectively target local brokers who victimize neighborhoods.

Abstract: This Article will trace the origin, growth and enforcement of nonsolicitation and cease and desist orders. Part II outlines the federal framework for dealing with discriminatory practices by real estate brokers. Section A focuses on “steering” the target of cease and desist orders-and illustrates the dilemma of both the victims and the brokers. Section B details blockbusting-the target of nonsolicitation orders. In discussing its genesis, financial operation, and sociological implications, this section also considers whether solicitation by brokers constitutes ”commercial speech” protected by the first amendment. Section C briefly explores the effectiveness of section 1982 of the Civil Rights Act of 1866 as a remedy against racial discrimination in housing. Section D examines whether subtle behavior, language, and mannerisms employed by brokers in steering and blockbusting are elements that establish intent to discriminate. Part III considers the New York response to steering and blockbusting. Section A outlines the various applicable laws, rules, and codes and demonstrates the difficulty in pursuing a cause of action or complaint. Section B discusses hearings, license suspensions, and revocations by the Secretary of State, and examines Article 78 proceedings that provide judicial review of the determination of the Secretary of State. Section C reviews Article 15 (the Human Rights Law) of the Executive Law, which is New York’s comprehensive counterpart to the federal Fair Housing Act. Section D examines the Secretary’s statutory authority to impose penalties. This Section compares the effectiveness of these penalties with that of nonsolicitation and cease and desist orders. This Article concludes that while nonsolicitation and cease and desist orders do not mitigate the effects of racial tension, they do effectively target local brokers who victimize neighborhoods.