NY S00087

Property managers of cooperatives and condominiums must obtain certification from the Secretary of State by filing a registration statement and completing an approved training program or demonstrating five years of prior property management experience.

The Secretary of State will issue certifications valid for up to two years for a $50 fee, and managers must notify the office within 45 days of material changes in employment or circumstances.

Cooperative and condominium boards may only employ certified property managers and cannot hire uncertified individuals or firms without certified managers.

Property managers must maintain segregated accounts for each building managed and turn over all building records and funds within ten business days (or 45 days for reconciliation) when terminating services.

Violations result in civil penalties ranging from $1,000 for a first violation to $5,000 for third and subsequent violations; failure to segregate funds is a misdemeanor punishable by up to $5,000 fine, and the exemption applies to properties with fewer than 25 residential units.