On July 14, 2018 a
Exhibit,Appendix
was filed
involving a dispute between
Ellyn Berk,
Pamela Goldstein,
Paul Benjamin,
Tony Berk,
and
Houlihan Lawrence Inc.,
for Commercial Division
in the District Court of Westchester County.
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 44 RECEIVED NYSCEF: 07/14/2018
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 44 RECEIVED NYSCEF: 07/14/2018
Federal Trade Commission
A Staff Report
by the Los Angeles Regional Omce
The Residential Real Estate
Brokerage Industry
Volume I
December, 1983
DfactmImer, The views expressed inthis document are those of individual stan members. They do not
necessarily reflect the views either of theFederal Trade Commission, of any individual Commissioner,
or of any Federal Trade Gommission Bureau.
For sateby the Superintendemof Documents.l!.S. Gorenunent Pnating Olfre
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 44 RECEIVED NYSCEF: 07/14/2018
- 69 -
are removed fran the sample, 41 percent of the remaining buyers responded that
rates are fixed either by law or by the Boards of Realtors
Buyer Question 53, a question identical to its counterpart sellers question,
asked buyers whether they agreed or disagreed with the statement "ccumission
law."
percentage rates are fixed by One-third (33%) of all buyers agreed or
agreed strongly with this statement. '1hree-fifths (60%) of this sample of recent
buyers failed to disagree with this false statement, a result identical to that
of the parallel sellers question.
(2) Buyer Knowledge of the
Bole of the Broker
Our Consumer Survey revealed that the level of buyer krowledge of the role
of the broker is also low.
Buyer Question 31 asked: "Sho (b you think the agent who handled the
purchase of your house was representing7=9___/8 A total of 57 percent of the buyers
believed that the broker with whom they were dealing was representing them. A
total of 66 percent of all buyers believed the broker was representing either the
buyer, or the buyer and the seller, in the transaction. Thus nearly two-thirds
of all buyers in our study believed that representation was being provided to the
buyer. .
bel'
Where a cooperating broker was involved, 72 percent of the buyers
belj
that the cooperating broker was representing the buyer and not the seller.
Even 31 percent of the buyers in transactions where eely ane broker was involved
believed that the broker represented the buyer.J00/ However, as in the case of
the sellers survey, there is no guarantee that buyers understand the term
"representation"
in the same way as brokers or attorneys.
(3) Broker Eble in Providing
Information
The results of the buyers survey also support the conclusion that brokers do
9...?./ Using the methodology outlined in note 33, supra.
About one-third of the buyers had participated in trans-
actions where only one broker was involved; about two-thirds
participated in transactions with a cooperating broker. See
FTC Consumer Survey Exhibit, Buyer Questions 46a and 46b.
In either case the buyers would be referring to a broker who
probably owed duties primarily to the seller.
FTC Consumer Survey Exhibit, buyer cross-tab comparing
Questions 31 and 46.
Id. The NAR view is that the cooperating broker, working
VITh the buyer, is nevertheless a subagent of the listing
broker and seller, owing duties primarily to the seller,
including the duty to sell the house for the highest price
possipbe. S e Ch. IV.F.
4)O
C.
Document Filed Date
July 14, 2018
Case Filing Date
July 14, 2018
Category
Commercial Division
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 44 RECEIVED NYSCEF: 07/14/2018 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 44 RECEIVED NYSCEF: 07/14/2018 Federal Trade Commission A Staff Report by the Los Angeles Regional Omce The Residential Real Estate Brokerage Industry Volume I December, 1983 DfactmImer, The views expressed inthis document are those of individual stan members. They do not necessarily reflect the views either of theFederal Trade Commission, of any individual Commissioner, or of any Federal Trade Gommission Bureau. For sateby the Superintendemof Documents.l!.S. Gorenunent Pnating Olfre FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 44 RECEIVED NYSCEF: 07/14/2018 - 69 - are removed fran the sample, 41 percent of the remaining buyers responded that rates are fixed either by law or by the Boards of Realtors Buyer Question 53, a question identical to its counterpart sellers question, asked buyers whether they agreed or disagreed with the statement "ccumission law." percentage rates are fixed by One-third (33%) of all buyers agreed or agreed strongly with this statement. '1hree-fifths (60%) of this sample of recent buyers failed to disagree with this false statement, a result identical to that of the parallel sellers question. (2) Buyer Knowledge of the Bole of the Broker Our Consumer Survey revealed that the level of buyer krowledge of the role of the broker is also low. Buyer Question 31 asked: "Sho (b you think the agent who handled the purchase of your house was representing7=9___/8 A total of 57 percent of the buyers believed that the broker with whom they were dealing was representing them. A total of 66 percent of all buyers believed the broker was representing either the buyer, or the buyer and the seller, in the transaction. Thus nearly two-thirds of all buyers in our study believed that representation was being provided to the buyer. . bel' Where a cooperating broker was involved, 72 percent of the buyers belj that the cooperating broker was representing the buyer and not the seller. Even 31 percent of the buyers in transactions where eely ane broker was involved believed that the broker represented the buyer.J00/ However, as in the case of the sellers survey, there is no guarantee that buyers understand the term "representation" in the same way as brokers or attorneys. (3) Broker Eble in Providing Information The results of the buyers survey also support the conclusion that brokers do 9...?./ Using the methodology outlined in note 33, supra. About one-third of the buyers had participated in trans- actions where only one broker was involved; about two-thirds participated in transactions with a cooperating broker. See FTC Consumer Survey Exhibit, Buyer Questions 46a and 46b. In either case the buyers would be referring to a broker who probably owed duties primarily to the seller. FTC Consumer Survey Exhibit, buyer cross-tab comparing Questions 31 and 46. Id. The NAR view is that the cooperating broker, working VITh the buyer, is nevertheless a subagent of the listing broker and seller, owing duties primarily to the seller, including the duty to sell the house for the highest price possipbe. S e Ch. IV.F. 4)O C.