Preview
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
EXHIBIT P-10
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
MODERN
W ESTATE SG EER
P Å Ï CE ÏN NnW5VD
R ON 4
Sam Irlander
Dearberri
Real Estate Education
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
Modern
REAL ESTATE
Practice in New York
for Salespersons esseo o
Sam Irlander
Dearbent
Real Estate Education
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
This publication is designedto provide accurate and authoritative information in regard
to thesubject matter covered. Itis soldwith the understanding that the publisher is not
engaged in rendering legal,accounting, or other professionaladvice. Iflegal advice or
other expert assistance is required,the services of a competent professionalshould be
sought.
President:Dr. Andrew Temte
Executive Director, Real Estate Education: Melissa Kleeman-Moy
Development Editor:JuliaMarti
MODERN REAL ESTATE PRACTICE IN NEW YORK FOR SALESPERSONS
TWELFTH EDITION
©2016 Kaplan, Inc.
Published by DF Institute,Inc.,d/b/a Dearborn Real Estate Education
332 FrontSt. S.,Suite 501
La Crosse, WI 54601
All rights reserved. The text of this publication, or any part thereof, may not be
reproduced in any manner whatsoever without written permission from the publisher.
Printed in the United States of America
ISBN: 978-1-4754-3249-7
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
gency Relationships
and Disclosure
B LEARNING OBJECTIVES when you have completed this unit, you willbe able to
m describe a licensee's duty to disclose agency relationships, including the
forms used and how and when the disclosures are to take place;
a identify and describe cooperative sales,subagency, and broker's agent,
and describe how individuals generally earn commissions and disclosures
required in these arrangements;
describe single agency and why a brokerage might choose to or not to
practice it;
a describe dual agency, how itmight arise,the disclosures required, and its
impact on in-house sales, identify situations in which dual agency exists,
and describe the importance of company policy and a designated agent with
respect to in-house sales;
identify and describe seller agency, itsresponsibilities, how itis created or
exclusive-right-to-sell open list-
terminated, listing,exclusive-agency listing,
ing,information needed forlisting agreements, disclosures and other items
required in taking a listing, and identify various provisions of selleragency
agreements; and
identify and describe buyer agency, itsresponsibilities, how itis created or
how an agent is compensated, exclusive-right-to-rep-
terminated, generally
resent, exclusive-agency, open-buyer-agency, and identify various provisions
of buyer agency agreements.
63
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
64 Modern Real EstatePractice in New York forSalespersons TwelfthEdition
I
KEY TERMS
advance consent to dual commission split exclusive-right-to-sell
agency designated sales agent listing
advance consent to dual dual net iisting
agency
agency with designated buyer-
exclusive-agency open-buyer-agency
sales associate agreement
agency agreement
automatic extension open
exclusive-agency listing listing
clause
exclusive rightto lease seller'sagent
agency disclosure form exclusive-right-to- subagency
Bedbug Disclosure Law Law
represent buyer-agency Truth-in-Heating
broker's agent agreement dual
undisclosed agency
buyer's agent
vicarious liability
NEW YORK AGENCY DISCLOSURE REQUIREMENTS
In New York, principal real estate brokers and the licensees who work for them are
always required to disclose for whom they are working to clients and customers.
Department of State (DOS) Regulation 175.7 states, "A real estate broker shall
make itclear for which party he isacting and he shall not receive compensation
from more than one party except with the full knowledge and consent of allpar
ties."
This requirement applies to real estate transactions involving all types of
property. Although the regulation does not specify how this agency-relationship
disclosure is to be done, a written document signed by both the agent and the
client or customer should always be utilized in order to best protect everyone's
interests.
The NY RPL, Section 443 requires that brokers and salespersons give prospective
sellersand buyers (or landlords and tenants), upon firstsubstantive contact, a
sellers'
precisely-worded agency disclosure form that describes the roles of agents,
buyers' brokers'
agents, listing agents, and dual agents. (See Figure 3.1 and Figure
3.2.)This requirement applies in the following transactions:
m Any transaction involving a sale or lease ofor within a building containing
four or fewer units intended for purposes (the license law's defini-
dwelling
tion of a residential transaction)
m Any transaction involving a cooperative or condominium unit even in a
building containing more than four dwelling units (thisbecome a require
ment January 1, 2011)
Buyers or sellers are asked to sign an acknowledgment certifying that they have
read the disclosure form and understand the role of the particular agent in the
transaction. The written disclosure is intended, among other things, to warn
members of the public not to reveal to the other party's agent any information
they would prefer to keep confidential or that would damage their position of
bargaining.
In 2006, the New York legislature passed a bill replacing the agency disclosure
form that then existed with separate forms for sales and lease transactions and
further defining allowable dual agency. The law took effectJanuary 1, 2007, and
revisions went into effect on January 1, 2008.
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
Unit3 Agency Relationshipsand Disclosure 65
.( The 2011 changes, signed into law then-Governor David Paterson, also con-
by
tain a provision permitting consumers to now give their advance consent to dual
agency representation. The advance consent to a dual agency iswhere the party
agrees in advance to allow the agent to act in a dual agent capacity.
It isimportant to note that in addition to the advanced consent to a dualagency,
the broker isobligated to provide a laterdisclosure when the dual relation-
agency
ship has been actually created. Failure to provide thisfollow-up disclosure would
be treated as a violation of the broker's fiduciary duties of
full disclosure, and
providing reasonable care to the consumer.
cy Furthermore, the aforementioned would be a direct demonstration of the broker's
untrustworthiness in the transaction; a violation pursuant to Section 441-c of the
RPL
Some consumers are prepared to consent to dual agency but would still prefer
having a specific agent within the firm represent only them. These consumers can
give advanced consent to such an arrangement in what is calledadvance consent
to dual agency with designated sales associate.
ers
The amendments also eliminate a prior requirement that another disclo-
agency
ion
sure form be signed prior to a contract signing.
Signed Acknowledgments
p
the A agent should obtain the seller'ssigned acknowledgment before
listing entering
ne's into a agreement for a residential transaction. a buyer's agent
listing Likewise,
should obtain the buyer's signed acknowledgment before entering an agreement
to represent the buyer.
ive
t,a A seller'sagent must provide the disclosure and obtain the acknowledgment from
nts, all prospective buyers or their buyer agents at the time of the firstsubstantive
ure
contact. Firstsubstantive contact with a buyer occurs when the buyer walks into
the agent's office and begins discussing the buyer's real estate needs or financial
18 situation, or when the buyer meets the agent at the advertised listed with
property
the intent to inspect the property for purchase. Disclosure should be made to the
buyer prior to entering the property being shown.
buyers'
Similarly, agents must provide the disclosure to the seller or the seller's
agent at the time of firstsubstantive contact. That might occur when the seller
begins explaining the reasons for selling or simply,greets an agent who isshowing
ave someone through the property. A of the required disclosure is shown in Fig-
copy
the ure 3.1. A similar form isused for xlandlord-tenant disclosures (see Figure
agency
arn 3.2).
ion
of Section 175.23a of the rules for guidance of real estate brokers and salespersons
promulgated by the New York secretary of state-titled, "Records of transactions
to be maintained"-requires each licensed broker to maintain transaction records
ure obtained in of
the course a broker's business, which would include copies of the
and three
signed agency disclosure forms, for no less than years from conclusion of
and business. would
This apply to closed (completed) transactions as well as those that
failed to close.
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
66 Modern Real EstatePracticein New York forSalespersons TwelfthEdition
FIGURE 3. I: Agency Disclosure Form for Buyer and Seller
|Ÿ + New York State
i* *i DEPARTMENT OF STATE
R/ Divisionof Licensing Services
h P.O. Box 22001 Customer Service:(518) 474-4429
Albany, NY 12201-2001 www.dos.state.ny.us
New York State Disclosure Form for Buyer aracI Seller
THIS IS NOT A CONTRACT on terms acceptable to the buyer. A buyer's agent has,
without limitation,the following fiduciaryduties to the
New York State law requires realestate licensees who
are as buyer: reasonable care,undivided loyalty,confidentiality,
acting agents ofbuyers or sellersof property to
advise the potentialbuyers or sellers with whom fulldisclosure,obedience and dutyto account. A buyer's
they
work of thenature oftheir and the agent does not representthe interest
of the seller.
The ob-
agency relationship
rightsand Obligaticñsit creates.
This disclosure will
help ligationsof a buyer'sagent arealso subjectto any specif-
you to make informed choices about your relaticñship icprovisions setforthin an agreement between theagent
with therealestate broker and itssales agents. and the buyer.In dealingswith the a buyer's
seller, agent
Throughout the transactionyou receive more than should (a)exercise reasonable skilland care in perfor-
may
one disclosure form. The law may require each agent mance of theagent's duties;(b) deal honestly,fairlyand
assistingin the transaction topresent you with thisdis- ingood and discloseallfactsknown to the agent
faith; (c)
closure form. A realestate agent isa person qualifiedto thebuyer's and/orwillingness
materiallyaffecting ability
advise about realestate· toperform a contractto acquire seller's
property thatare
Ifyou need legal,tax or other advice, consult with a not inconsistentwith the agent's dutiesto the
fiduciary
professionalin thatfield. buyer.
Broker's Agents
Disclosure Regarding Real Estate
A broker's agent is an agentthatcooperates or is engaged
Agency Relationships
by a listingagent or a buyer's agent (butdoes notwork
Seller's Agent forthe same firm as thelistingagentor buyer's agent)to
A seller's
agent isan agent who isengaged by a seller
to assistthe listingagent or buyer's agent in locating a
represent theseller'sinterests.
The seller'sagent does this property tosellor buy,respectively,forthe listing
agent's
by securing a buyerfor theseller'shome at a price
and on sellerorthe buyer agent's buyer.The broker'sagent does
terms acceptable to theseller.A seller'sagent has, with- not have a directrelationshipwith thebuyer or sellerand
out the
limitation, following duties to theseller: the buyer or sellercan not provide instructionsor direc-
fiduciary
reasonable care, undivided loyalty, conñdêñtiality,full tiondirectlyto the broker'sagent. The buyer and the sel-
disclosure, obedience and duty to account. A seller's lertheref0re do not have vicarious for
liability theacts of
agent does not representthe interestsof the buyer. The the broker's agent. The listingagent or buyer's agentdo
obligationsof a seller's
agent are alsosubject to spe- provide direction and instruction to the broker's agent
any
cificprovisions set forth in an agreement between the and therefore thelistingagent or buyer'sagent will have
> agentand the In
seller. dealings with thebuyer, a seller's for
liability the actsof thebroker's agent.
agent should (a)exercise reasonable skilland care inper-
formance of the agent's duties;(b) deal honestly,fairly Dual Agent
and in good faith;and (c)discloseall factsknown to the A real estatebroker representboth the buyerand sel-
may
agent materially affectingthe value or desirabilityof lerif both the buyer and sellergive theirinformed con-
property,except as otherwise provided by law. sent inwriting. In such a dual the agent
agency situation,
will not be able toprovide the fullrange of du-
fiduciary
Buyer's Agent tiesto the buyer and seller.
The obligationsof an agent
A buyer's agent is an agentwho isengaged by a buyer to are alsosubject to any specificprGvisicas setforth inan
represent the buyer's interests.The buyer's agent does agreement between the agent, and the buyer and seller.
thisby negotiating the purchase of a home ata priceand An agent actingas a dualagent must explain to
carefully
DOS-1736-a(Rev. 11/10)
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018
Unit3 Agency Relationshipsand Disclosure 67
3d (continued): Agency Disclosure Form for Buyer and Seller
E
thebuyer and sellerthat theagent isacting forthe of therealestate broker.With the informed consent ofthe
both
as well. The agent should also explain the buyer and the sellerin writing,thedesignated sales agent
other party
effectsofdual that for thebuyer will functionas the buyer's agentrepresent-
possible representation, including by
tothe dual agency relationshipthe buyer and ing the interests
of and advocating on behalf of thebuyer
consenting
are theirright to undivided loyalty. A and the designated salesagent for the sellerwillfunction
seller giving up
consider possiblecon- as the seller's
agent the interestsofand ad-
buyer should
or seller carefully the representing
on behalf of the sellerin the negotiations be-
sequences of a dual agency relationshipbefore agreeing vocating
" ad- tween the buyer seller.
A designated salesagent can-
& repmentãtiüñ. A sellerorbuyer provide and
to such may
informed consent todual the not provide the fullrange of fiduciaryduties tothe buyer
vance agency by indicating
form. or seller.The designated sales agent must explainthat
same on this
like the dual agent under whose supervision func-
they
tion,they cannot provide undivided loyalty.A buyer or
. Dual Agent with Designated Sales Agents
seller should consider the possible conse-
the buyer and sellerprovide their informed consent in carefully
If
quences of a dual agency relationshipwith designated
writing,the principals and the real estate broker who
salesagents before tosuch representation.A sel-
representsboth parties as a dual agent designate a agreeing
may
ler or buyer may provide advance mformed consent to
sales agenttorepresent the buyer and another salesagent
dual agency with desigña ed sales agents by indicating
to representthe sellertonegotiate the purchase and sale
the same on thisform.
of realestate.A sales agent works under the supervision
This form wasprovidedto me by (print
name of ___
of licensee)
(print name of company,
firm or brokerage), real estate
a licensed brokeractingin the interest
of the:
(___) Selleras a (checkrelationship
below) (___) Buyer as a (checkrelationship
below)
(__) Seller's
agent ( ) Buyer'sagent
(_) Broker'sagent ( ) Broker'sagent
(___) Dual agent
) Dualagent withdesignated salesagent
For advanceinformed consentto either
dualagency or dualagency withdesignated salesagents complete sectionbelow:
(_) Advance informed consentdual agency
(_) Advance infe-ed consent to dual
agency withdesignated salesagents
If dual agent with
designatedsalesagents above:
is indicated isappointed to
represent
the buyer;and is appe!nted
to representthe seller
in this
transaction.
(1) (We). acknowledge receiptof a copy
of this disclosure
form: signature
of { and/or
} Buyer(s) { } Se!!er(s):
Date: Date:
. DOS-1736-a(Rev.11/10)
Preview
FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 EXHIBIT P-10 FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 MODERN W ESTATE SG EER P Å Ï CE ÏN NnW5VD R ON 4 Sam Irlander Dearberri Real Estate Education FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 Modern REAL ESTATE Practice in New York for Salespersons esseo o Sam Irlander Dearbent Real Estate Education FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 This publication is designedto provide accurate and authoritative information in regard to thesubject matter covered. Itis soldwith the understanding that the publisher is not engaged in rendering legal,accounting, or other professionaladvice. Iflegal advice or other expert assistance is required,the services of a competent professionalshould be sought. President:Dr. Andrew Temte Executive Director, Real Estate Education: Melissa Kleeman-Moy Development Editor:JuliaMarti MODERN REAL ESTATE PRACTICE IN NEW YORK FOR SALESPERSONS TWELFTH EDITION ©2016 Kaplan, Inc. Published by DF Institute,Inc.,d/b/a Dearborn Real Estate Education 332 FrontSt. S.,Suite 501 La Crosse, WI 54601 All rights reserved. The text of this publication, or any part thereof, may not be reproduced in any manner whatsoever without written permission from the publisher. Printed in the United States of America ISBN: 978-1-4754-3249-7 FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 gency Relationships and Disclosure B LEARNING OBJECTIVES when you have completed this unit, you willbe able to m describe a licensee's duty to disclose agency relationships, including the forms used and how and when the disclosures are to take place; a identify and describe cooperative sales,subagency, and broker's agent, and describe how individuals generally earn commissions and disclosures required in these arrangements; describe single agency and why a brokerage might choose to or not to practice it; a describe dual agency, how itmight arise,the disclosures required, and its impact on in-house sales, identify situations in which dual agency exists, and describe the importance of company policy and a designated agent with respect to in-house sales; identify and describe seller agency, itsresponsibilities, how itis created or exclusive-right-to-sell open list- terminated, listing,exclusive-agency listing, ing,information needed forlisting agreements, disclosures and other items required in taking a listing, and identify various provisions of selleragency agreements; and identify and describe buyer agency, itsresponsibilities, how itis created or how an agent is compensated, exclusive-right-to-rep- terminated, generally resent, exclusive-agency, open-buyer-agency, and identify various provisions of buyer agency agreements. 63 FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 64 Modern Real EstatePractice in New York forSalespersons TwelfthEdition I KEY TERMS advance consent to dual commission split exclusive-right-to-sell agency designated sales agent listing advance consent to dual dual net iisting agency agency with designated buyer- exclusive-agency open-buyer-agency sales associate agreement agency agreement automatic extension open exclusive-agency listing listing clause exclusive rightto lease seller'sagent agency disclosure form exclusive-right-to- subagency Bedbug Disclosure Law Law represent buyer-agency Truth-in-Heating broker's agent agreement dual undisclosed agency buyer's agent vicarious liability NEW YORK AGENCY DISCLOSURE REQUIREMENTS In New York, principal real estate brokers and the licensees who work for them are always required to disclose for whom they are working to clients and customers. Department of State (DOS) Regulation 175.7 states, "A real estate broker shall make itclear for which party he isacting and he shall not receive compensation from more than one party except with the full knowledge and consent of allpar ties." This requirement applies to real estate transactions involving all types of property. Although the regulation does not specify how this agency-relationship disclosure is to be done, a written document signed by both the agent and the client or customer should always be utilized in order to best protect everyone's interests. The NY RPL, Section 443 requires that brokers and salespersons give prospective sellersand buyers (or landlords and tenants), upon firstsubstantive contact, a sellers' precisely-worded agency disclosure form that describes the roles of agents, buyers' brokers' agents, listing agents, and dual agents. (See Figure 3.1 and Figure 3.2.)This requirement applies in the following transactions: m Any transaction involving a sale or lease ofor within a building containing four or fewer units intended for purposes (the license law's defini- dwelling tion of a residential transaction) m Any transaction involving a cooperative or condominium unit even in a building containing more than four dwelling units (thisbecome a require ment January 1, 2011) Buyers or sellers are asked to sign an acknowledgment certifying that they have read the disclosure form and understand the role of the particular agent in the transaction. The written disclosure is intended, among other things, to warn members of the public not to reveal to the other party's agent any information they would prefer to keep confidential or that would damage their position of bargaining. In 2006, the New York legislature passed a bill replacing the agency disclosure form that then existed with separate forms for sales and lease transactions and further defining allowable dual agency. The law took effectJanuary 1, 2007, and revisions went into effect on January 1, 2008. FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 Unit3 Agency Relationshipsand Disclosure 65 .( The 2011 changes, signed into law then-Governor David Paterson, also con- by tain a provision permitting consumers to now give their advance consent to dual agency representation. The advance consent to a dual agency iswhere the party agrees in advance to allow the agent to act in a dual agent capacity. It isimportant to note that in addition to the advanced consent to a dualagency, the broker isobligated to provide a laterdisclosure when the dual relation- agency ship has been actually created. Failure to provide thisfollow-up disclosure would be treated as a violation of the broker's fiduciary duties of full disclosure, and providing reasonable care to the consumer. cy Furthermore, the aforementioned would be a direct demonstration of the broker's untrustworthiness in the transaction; a violation pursuant to Section 441-c of the RPL Some consumers are prepared to consent to dual agency but would still prefer having a specific agent within the firm represent only them. These consumers can give advanced consent to such an arrangement in what is calledadvance consent to dual agency with designated sales associate. ers The amendments also eliminate a prior requirement that another disclo- agency ion sure form be signed prior to a contract signing. Signed Acknowledgments p the A agent should obtain the seller'ssigned acknowledgment before listing entering ne's into a agreement for a residential transaction. a buyer's agent listing Likewise, should obtain the buyer's signed acknowledgment before entering an agreement to represent the buyer. ive t,a A seller'sagent must provide the disclosure and obtain the acknowledgment from nts, all prospective buyers or their buyer agents at the time of the firstsubstantive ure contact. Firstsubstantive contact with a buyer occurs when the buyer walks into the agent's office and begins discussing the buyer's real estate needs or financial 18 situation, or when the buyer meets the agent at the advertised listed with property the intent to inspect the property for purchase. Disclosure should be made to the buyer prior to entering the property being shown. buyers' Similarly, agents must provide the disclosure to the seller or the seller's agent at the time of firstsubstantive contact. That might occur when the seller begins explaining the reasons for selling or simply,greets an agent who isshowing ave someone through the property. A of the required disclosure is shown in Fig- copy the ure 3.1. A similar form isused for xlandlord-tenant disclosures (see Figure agency arn 3.2). ion of Section 175.23a of the rules for guidance of real estate brokers and salespersons promulgated by the New York secretary of state-titled, "Records of transactions to be maintained"-requires each licensed broker to maintain transaction records ure obtained in of the course a broker's business, which would include copies of the and three signed agency disclosure forms, for no less than years from conclusion of and business. would This apply to closed (completed) transactions as well as those that failed to close. FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 66 Modern Real EstatePracticein New York forSalespersons TwelfthEdition FIGURE 3. I: Agency Disclosure Form for Buyer and Seller |Ÿ + New York State i* *i DEPARTMENT OF STATE R/ Divisionof Licensing Services h P.O. Box 22001 Customer Service:(518) 474-4429 Albany, NY 12201-2001 www.dos.state.ny.us New York State Disclosure Form for Buyer aracI Seller THIS IS NOT A CONTRACT on terms acceptable to the buyer. A buyer's agent has, without limitation,the following fiduciaryduties to the New York State law requires realestate licensees who are as buyer: reasonable care,undivided loyalty,confidentiality, acting agents ofbuyers or sellersof property to advise the potentialbuyers or sellers with whom fulldisclosure,obedience and dutyto account. A buyer's they work of thenature oftheir and the agent does not representthe interest of the seller. The ob- agency relationship rightsand Obligaticñsit creates. This disclosure will help ligationsof a buyer'sagent arealso subjectto any specif- you to make informed choices about your relaticñship icprovisions setforthin an agreement between theagent with therealestate broker and itssales agents. and the buyer.In dealingswith the a buyer's seller, agent Throughout the transactionyou receive more than should (a)exercise reasonable skilland care in perfor- may one disclosure form. The law may require each agent mance of theagent's duties;(b) deal honestly,fairlyand assistingin the transaction topresent you with thisdis- ingood and discloseallfactsknown to the agent faith; (c) closure form. A realestate agent isa person qualifiedto thebuyer's and/orwillingness materiallyaffecting ability advise about realestate· toperform a contractto acquire seller's property thatare Ifyou need legal,tax or other advice, consult with a not inconsistentwith the agent's dutiesto the fiduciary professionalin thatfield. buyer. Broker's Agents Disclosure Regarding Real Estate A broker's agent is an agentthatcooperates or is engaged Agency Relationships by a listingagent or a buyer's agent (butdoes notwork Seller's Agent forthe same firm as thelistingagentor buyer's agent)to A seller's agent isan agent who isengaged by a seller to assistthe listingagent or buyer's agent in locating a represent theseller'sinterests. The seller'sagent does this property tosellor buy,respectively,forthe listing agent's by securing a buyerfor theseller'shome at a price and on sellerorthe buyer agent's buyer.The broker'sagent does terms acceptable to theseller.A seller'sagent has, with- not have a directrelationshipwith thebuyer or sellerand out the limitation, following duties to theseller: the buyer or sellercan not provide instructionsor direc- fiduciary reasonable care, undivided loyalty, conñdêñtiality,full tiondirectlyto the broker'sagent. The buyer and the sel- disclosure, obedience and duty to account. A seller's lertheref0re do not have vicarious for liability theacts of agent does not representthe interestsof the buyer. The the broker's agent. The listingagent or buyer's agentdo obligationsof a seller's agent are alsosubject to spe- provide direction and instruction to the broker's agent any cificprovisions set forth in an agreement between the and therefore thelistingagent or buyer'sagent will have > agentand the In seller. dealings with thebuyer, a seller's for liability the actsof thebroker's agent. agent should (a)exercise reasonable skilland care inper- formance of the agent's duties;(b) deal honestly,fairly Dual Agent and in good faith;and (c)discloseall factsknown to the A real estatebroker representboth the buyerand sel- may agent materially affectingthe value or desirabilityof lerif both the buyer and sellergive theirinformed con- property,except as otherwise provided by law. sent inwriting. In such a dual the agent agency situation, will not be able toprovide the fullrange of du- fiduciary Buyer's Agent tiesto the buyer and seller. The obligationsof an agent A buyer's agent is an agentwho isengaged by a buyer to are alsosubject to any specificprGvisicas setforth inan represent the buyer's interests.The buyer's agent does agreement between the agent, and the buyer and seller. thisby negotiating the purchase of a home ata priceand An agent actingas a dualagent must explain to carefully DOS-1736-a(Rev. 11/10) FILED: WESTCHESTER COUNTY CLERK 11/20/2018 11:34 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 359 RECEIVED NYSCEF: 11/20/2018 Unit3 Agency Relationshipsand Disclosure 67 3d (continued): Agency Disclosure Form for Buyer and Seller E thebuyer and sellerthat theagent isacting forthe of therealestate broker.With the informed consent ofthe both as well. The agent should also explain the buyer and the sellerin writing,thedesignated sales agent other party effectsofdual that for thebuyer will functionas the buyer's agentrepresent- possible representation, including by tothe dual agency relationshipthe buyer and ing the interests of and advocating on behalf of thebuyer consenting are theirright to undivided loyalty. A and the designated salesagent for the sellerwillfunction seller giving up consider possiblecon- as the seller's agent the interestsofand ad- buyer should or seller carefully the representing on behalf of the sellerin the negotiations be- sequences of a dual agency relationshipbefore agreeing vocating " ad- tween the buyer seller. A designated salesagent can- & repmentãtiüñ. A sellerorbuyer provide and to such may informed consent todual the not provide the fullrange of fiduciaryduties tothe buyer vance agency by indicating form. or seller.The designated sales agent must explainthat same on this like the dual agent under whose supervision func- they tion,they cannot provide undivided loyalty.A buyer or . Dual Agent with Designated Sales Agents seller should consider the possible conse- the buyer and sellerprovide their informed consent in carefully If quences of a dual agency relationshipwith designated writing,the principals and the real estate broker who salesagents before tosuch representation.A sel- representsboth parties as a dual agent designate a agreeing may ler or buyer may provide advance mformed consent to sales agenttorepresent the buyer and another salesagent dual agency with desigña ed sales agents by indicating to representthe sellertonegotiate the purchase and sale the same on thisform. of realestate.A sales agent works under the supervision This form wasprovidedto me by (print name of ___ of licensee) (print name of company, firm or brokerage), real estate a licensed brokeractingin the interest of the: (___) Selleras a (checkrelationship below) (___) Buyer as a (checkrelationship below) (__) Seller's agent ( ) Buyer'sagent (_) Broker'sagent ( ) Broker'sagent (___) Dual agent ) Dualagent withdesignated salesagent For advanceinformed consentto either dualagency or dualagency withdesignated salesagents complete sectionbelow: (_) Advance informed consentdual agency (_) Advance infe-ed consent to dual agency withdesignated salesagents If dual agent with designatedsalesagents above: is indicated isappointed to represent the buyer;and is appe!nted to representthe seller in this transaction. (1) (We). acknowledge receiptof a copy of this disclosure form: signature of { and/or } Buyer(s) { } Se!!er(s): Date: Date: . DOS-1736-a(Rev.11/10)