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.
Preview
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 210 RECEIVED NYSCEF: 10/01/2018
EXHIBIT 37
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 210 DEAI TAno EIALITIkIA AIEtAf mi
RECEIVEDII EO The
NYSCEF: 1Afank:--4-n
10/01/2018 mane
e ashington Post
REALTORS FIGHTING NEW
RULES
By Elizabeth Lesly May 26, 1990
Harvey Heino has been selling residential real estate in Brooklyn for the last
incidents. To hear him tell it, the former Wall Street clerk, who owns his own
thoroughly unremarkable member of his trade.
"We're not working for the buyer or the seller. The truth is, we're working fo
deal."
said of a real estate agent's approach to a sale. "We're trying to make a
But if New York Secretary of State Gail S. Shaffer succeeds in pushing through
rights,"
regulations that she tags a "consumer's bill of Heino's view of who a
would become so clearly illegal that he would either have to change his ways
Much of Shaffer's proposal restates existing laws, most significantly the centu
agents'
of agency, which defines fiduciary responsibilities to their clients.
CONTENT FROM WELLS FARGO
startup."
-
"It takes a village to raise a Mary Wenz
Sustainability at Wells Fargo
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
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The \A/nak:-n4^-
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NYSCEF DOC. NO. 210 RECEIVED NYSCEF: 10/01/2018
hand down such far-reaching rules for the 180,000 real estate license holders her agency regulates,
that she doesn't understand their business and that the rules would be a death knell to residential
real estate sales in the state.
A state legislature oversight committee agreed, saying it was the legislature's job to make such
rules, not Shaffer's. But the committee's word is not legally binding; Shaffer can issue the rules,
and the real estate groups can challenge them at the agency level before taking their fight to a state
court. A spokesman for the Realtors said the court challenge could come before the final draft is
issued, expected sometime this year.
Shaffer's proposal would:
Require written disclosure to buyers of an agent's fiduciary responsibility to the seller. The Federal
Trade Commission in 1983 concluded that 71 percent of all buyers assumed wrongly that the
selling broker represented their interests.
Ban sub-agency relationships. Under current practice in New York and most other states, brokers
who show properties listed by another broker on the Multiple Listing Service automatically act as
sub-agents to that broker -- and represent the seller.
they ultimately
Make dual-agency relationships clearly illegal. An agent would be barred from representing both
the buyer and the seller in a transaction, since he can't serve both under the law of agency.
Make self-dealing illegal, because the agent cannot fulfill fiduciary duties to the client ifhe is
seeking the best deal for his own interests, Shaffer said. The common example is that of a broker
offering to buy the property he lists.
codifying,"
"Most of what we have here is current existing law that we are Shaffer said. "The
industry has gotten away from these laws {of agency} to such a degree now that they don't even
understand what is legal and illegal anymore... . The violations are so widespread, and not always
is."
even intentional. They truly do not understand in many cases what a fiduciary's responsibility
None of this sits well with broker Heino, who said he should not have to let the buyer know that he
is representing the seller because the buyer "is not paying {my fee}, so why should it be explained?
life},"
"Why does it all have to be in black and white? There are certain chances {you take in he
said.
The New York State Association of Realtors, which represents about 25 percent of the state's real
estate licensees, contends that agents like Heino are not the norm, and not members of the
association.
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 210 RECEIVED NYSCEF: 10/01/2018
FILED: WESTCHESTER COUNTY CLERK EI/10/01/2018 05:13 PM INDEX NO. 60767/2018
7/O/G/"1
4O DE AI TADO I-ITIhl/
AIE\A/ DI II EC
The \A/nak:nn4^-
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NYSCEF DOC. NO. 210 RECEIVED NYSCEF: 10/01/2018
In California, where fiduciary disclosure is now the law, 96 percent of buyers elect to go with a
buyer's broker, Lyons said.
scared?"
Amid all the debate, one of the few unworried brokers is Heino. "Me, he said. "No. I've
this."
been around too long. They can't pass most of
S O Comments
The story
must be told.
Your subscription supports journalism that matters.
Try 1 month for $1
https://www.washingtonpost.com/archive/realestate/1990/05/26/realtors-fighting-new-rules/40a67226-2f52-4045-aa95-dc6938da3aed/?noredirect=on...
4/4
Document Filed Date
October 01, 2018
Case Filing Date
July 14, 2018
Category
Commercial Division
For full print and download access, please subscribe at https://www.trellis.law/.
Preview
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 210 RECEIVED NYSCEF: 10/01/2018 EXHIBIT 37 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 210 DEAI TAno EIALITIkIA AIEtAf mi RECEIVEDII EO The NYSCEF: 1Afank:--4-n 10/01/2018 mane e ashington Post REALTORS FIGHTING NEW RULES By Elizabeth Lesly May 26, 1990 Harvey Heino has been selling residential real estate in Brooklyn for the last incidents. To hear him tell it, the former Wall Street clerk, who owns his own thoroughly unremarkable member of his trade. "We're not working for the buyer or the seller. The truth is, we're working fo deal." said of a real estate agent's approach to a sale. "We're trying to make a But if New York Secretary of State Gail S. Shaffer succeeds in pushing through rights," regulations that she tags a "consumer's bill of Heino's view of who a would become so clearly illegal that he would either have to change his ways Much of Shaffer's proposal restates existing laws, most significantly the centu agents' of agency, which defines fiduciary responsibilities to their clients. CONTENT FROM WELLS FARGO startup." - "It takes a village to raise a Mary Wenz Sustainability at Wells Fargo FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 7/O/G/"1 4O DE AI T/"NDOEI/I-ITIhl/ AIE\A/ DI II EC The \A/nak:-n4^- n^n4 NYSCEF DOC. NO. 210 RECEIVED NYSCEF: 10/01/2018 hand down such far-reaching rules for the 180,000 real estate license holders her agency regulates, that she doesn't understand their business and that the rules would be a death knell to residential real estate sales in the state. A state legislature oversight committee agreed, saying it was the legislature's job to make such rules, not Shaffer's. But the committee's word is not legally binding; Shaffer can issue the rules, and the real estate groups can challenge them at the agency level before taking their fight to a state court. A spokesman for the Realtors said the court challenge could come before the final draft is issued, expected sometime this year. Shaffer's proposal would: Require written disclosure to buyers of an agent's fiduciary responsibility to the seller. The Federal Trade Commission in 1983 concluded that 71 percent of all buyers assumed wrongly that the selling broker represented their interests. Ban sub-agency relationships. Under current practice in New York and most other states, brokers who show properties listed by another broker on the Multiple Listing Service automatically act as sub-agents to that broker -- and represent the seller. they ultimately Make dual-agency relationships clearly illegal. An agent would be barred from representing both the buyer and the seller in a transaction, since he can't serve both under the law of agency. Make self-dealing illegal, because the agent cannot fulfill fiduciary duties to the client ifhe is seeking the best deal for his own interests, Shaffer said. The common example is that of a broker offering to buy the property he lists. codifying," "Most of what we have here is current existing law that we are Shaffer said. "The industry has gotten away from these laws {of agency} to such a degree now that they don't even understand what is legal and illegal anymore... . The violations are so widespread, and not always is." even intentional. They truly do not understand in many cases what a fiduciary's responsibility None of this sits well with broker Heino, who said he should not have to let the buyer know that he is representing the seller because the buyer "is not paying {my fee}, so why should it be explained? life}," "Why does it all have to be in black and white? There are certain chances {you take in he said. The New York State Association of Realtors, which represents about 25 percent of the state's real estate licensees, contends that agents like Heino are not the norm, and not members of the association. i supo.,,vvvvvv.vvuouisiustvi uµvot.vvi suui visivu,ivaiuotatu, ivov,vv,£..v,u vaitvi o-sisi mun is-sivvv-i uguo,-rvuv, : iiviuusi vvt-vii... ......v-...uv£..--rv-rv-auaw-uvvovvuavuvu, FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 210 RECEIVED NYSCEF: 10/01/2018 FILED: WESTCHESTER COUNTY CLERK EI/10/01/2018 05:13 PM INDEX NO. 60767/2018 7/O/G/"1 4O DE AI TADO I-ITIhl/ AIE\A/ DI II EC The \A/nak:nn4^- n^n4 NYSCEF DOC. NO. 210 RECEIVED NYSCEF: 10/01/2018 In California, where fiduciary disclosure is now the law, 96 percent of buyers elect to go with a buyer's broker, Lyons said. scared?" Amid all the debate, one of the few unworried brokers is Heino. "Me, he said. "No. I've this." been around too long. They can't pass most of S O Comments The story must be told. Your subscription supports journalism that matters. Try 1 month for $1 https://www.washingtonpost.com/archive/realestate/1990/05/26/realtors-fighting-new-rules/40a67226-2f52-4045-aa95-dc6938da3aed/?noredirect=on... 4/4