The General Business Law requires that automobile brokers maintain a surety bond in the amount of $75,000 and that the bond is filed with the Department of State. The requirement becomes effective December 22, 2011.
Definition of an Automobile Broker Business:
Any person who, for a fee, commission, or other valuable consideration paid by a consumer offers to provide, provides, or represents that he will provide a service of purchasing, arranging, assisting or effecting the purchase of an automobile as agent, broker or intermediary for a consumer.
An Auto Broker Business does not include any person registered as a dealer pursuant to article sixteen of the vehicle and traffic law or any person who sells, offers for sale or acts as agent, broker or intermediary in effecting the purchase of three of less automobile in any calendar year.