Preview
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 375 RECEIVED NYSCEF: 05/14/2019
EXHIBIT 2
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
7/3/2018 NO. 375 a Home: Who Works RECEIVED
for Whom? NYSCEF:
- The 05/14/2019
New York Times
Buying
Ebe Nets Nork Ennes https://nyti.ms/29aV1vf
ARCHIVES 1992
Buying a Home: Who Works for Whom?
By PENNY SINGER
WHILE speaking of the rigors of house hunting, a young woman, whos
was recently transferred from Dallas to the Westchester home office o
said:
"The agent who took me around was terrific. She was so helpful i
us what we wanted and what we could afford. I
honestly felt she had
heart."
interests at
-- --
The woman although not cheated in any way perhaps naively
understand that the agent was representing the seller. But on Jan. 1,
disclosure law in New York State requiring prospective home buyers
read and sign forms, should dispel any doubts about whom a real estate
working for.
"Many home buyers really don't understand that the agent works
said P. Gilbert Mecurio, executive vice president of the Westchester B
Realtors. "They assume when they go out with a real estate agent and
them."
that the agent is
working for Common on West Coast
buyers'
The new law, Mr. Mecurio said, promotes the use of brokers,
agents retained buyers to represent their interests.
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
7/3/2018 Buying a Home: Who Works for Whom?- The New York Times
NYSCEF DOC. NO. 375 RECEIVED NYSCEF: 05/14/2019
overblown,"
"I feel the dual-agency issue is Mr. Mecurio said. "The practice has
always been illegal unless people were informed about it. Real estate brokers knew
that if they didn't inform both parties that they were working for both the buyer and
the seller, they would face loss of license or get fined. The dual-agency situation
best."
occurs infrequently at
Giving an example of the dual agency, Mr. Mecurio said, "It might happen under
certain circumstances, such as when a relative of the agent handling a house for a
fellow wants to buy the property; or perhaps a buyer and seller are friends but they
don't want to negotiate the deal themselves, so instead they hire an agent to help
terms."
then come to a price and No Major Changes Seen
After determining the effect of the real estate disclosure law in other states,
Edward I. Sumber, the lawyer for the Westchester County Board of Realtors, said the
New York law probably would not greatly change the way people buy and sell houses
in Westchester.
"Having people sign a formal disclosure document didn't change the real estate
law,"
industry in Connecticut or Maine when they put through this Mr. Sumber said.
four."
"Connecticut has had the law in place for two years now and Maine for
The movement gained impetus from consumer advocates, he added, "after a
Federal Trade Commission report made in the late 1970's found that 71 percent of
home buyers in California thought the agent who sold them a house was working for
them."
In New York, Mr. Sumber said, verbal disclosure was always required. "What
writing,"
the new law does is put itin he said, "Now, before agents work with clients,
they have to ask them to read and sign a disclosure form that clearly spells out the
agent."
duties of both a seller's and a buyer's
Will the new disclosure law hurt home sales? No, said Merritt Mitchell, head of
the 60-year-old real estate concern of Merritt Associates, with offices in Larchmont
and Rye. Fighting for the Buyer
"No, simply because real estate sales are dependent on the cooperation of
concerned,"
everyone he said.
"Law or no law, the common practice in the real world has always been that
agents have fought like dogs -- for the buyer. When an agent takes a client to see a
property, they forge a bond right in the car. And in Westchester we're dealing with
https://www.nytimes.com/1992/01/26/nyregion/buying-a-home-who-works-for-whom.html 2/4
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
7/3/2018 Buying a Home: Who Works for Whom?- The New York Times
NYSCEF DOC. NO. 375 RECEIVED NYSCEF: 05/14/2019
sophisticated people. I think most of them have always understood that the real
seller."
estate agent is paid by the
Mr. who is head of the Westchester Multiple Listings Service -- which
Mitchell,
publishes a booklet compiled by the Westchester Real Estate Board of properties for
sale -- said the new law also makes clear that a subagent represents the seller
exclusively.
"The subagent is the one who finds properties for a buyer in the Westchester
agent,"
multiple listings booklet and splits the commission with the listing Mr.
Mitchell explained. "Now, under the new law, what will happen is that the listing
agent will ask the seller to allow him to compensate the buyer's broker, with
gets."
probably the same amount as the subagent
buyers'
But Mr. Mitchell said he had no plans for installing a special broker
department in his offices. Who Pays the Commission
"What will happen is that when customers come in and we explain the
disclosure form, a customer may say, 'Iwant you to represent me as a buyer's
broker,'
and we'll take it from there. Also, our agents will work in cooperation with
buyers' brokers."
But who will pay the commission?
"I will assume that the sellers will be the ones who pay both sides of the
commission," buyers'
Mr. Mitchell said. "Why? Because discouraging brokers will
limit their supply of potential buyers. Realistically speaking, I think it will be pretty
deal."
much business as usual because everyone wants to make the
Overall, Mr. Mitchell said, the new law, despite some confusion at the
environment"
beginning, will result in "an improvement in the real estate because "it
professional."
makes it more
Nicholas R. Wolff, president of Wolff & Son Century 21 in White Plains, said he
expected that his office, for the most part, would still be representing more sellers.
interested,"
"But we also intend to represent buyers who are he said. How to Market
a Property
Mr. Wolff, who has prepared a booklet of 24 questions and answers explaining
the new law, which he is selling to brokers, buyers and sellers, emphasized that when
sellers now ask him about the best way to market a property, he advises them to
select a broker and give him exclusive rights to sell.
https://www.nytimes.com/1992/01/26/nyregion/buying-a-home-who-works-for-whom.html 3/4
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
7/3/2018 Buying a Home: Who Works for Whom?- The New York Times
NYSCEF DOC. NO. 375 RECEIVED NYSCEF: 05/14/2019
buyers'
"Allow them to compensate agents and give them the right to act as dual
agents.,"
Mr. Wolff said of the brokers.
"Dual agents, a single salesperson or two salespeople in the same office who are
working for the seller and who also have a customer interested in purchasing the
property,"
Mr. Wolff said, "is a fairly common occurrence in real estate transactions,
informed."
allowed only after the buyer and seller are
The commission offered to buyer's agents by sellers, Mr. Wolff said, should be
"Because,"
the same amount subagents receive. he said, "you want to encourage the
agents."
participation of buyer's
In cases where sellers refuse to compensate the buyer's agent, buyers may have
to arrange to compensate in advance the agents they hire, Mr. Wolff said.
The TimesMachine archive viewer is a subscriber-only feature.
We are continually improving the quality of our text archives. Please send feedback,
error reports, and suggestions to archive-feedback@nytimes.com.
A version of this articleappears in printon January 26, 1992, on Page WC12 of the National edition with
the headline: Buying a Home: Who Works for Whom?.
© 2018 The New York Times Company
https://www.nytimes.com/1992/01/26/nyregion/buying-a-home-who-works-for-whom.html 4/4
Preview
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 375 RECEIVED NYSCEF: 05/14/2019 EXHIBIT 2 FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 375 a Home: Who Works RECEIVED for Whom? NYSCEF: - The 05/14/2019 New York Times Buying Ebe Nets Nork Ennes https://nyti.ms/29aV1vf ARCHIVES 1992 Buying a Home: Who Works for Whom? By PENNY SINGER WHILE speaking of the rigors of house hunting, a young woman, whos was recently transferred from Dallas to the Westchester home office o said: "The agent who took me around was terrific. She was so helpful i us what we wanted and what we could afford. I honestly felt she had heart." interests at -- -- The woman although not cheated in any way perhaps naively understand that the agent was representing the seller. But on Jan. 1, disclosure law in New York State requiring prospective home buyers read and sign forms, should dispel any doubts about whom a real estate working for. "Many home buyers really don't understand that the agent works said P. Gilbert Mecurio, executive vice president of the Westchester B Realtors. "They assume when they go out with a real estate agent and them." that the agent is working for Common on West Coast buyers' The new law, Mr. Mecurio said, promotes the use of brokers, agents retained buyers to represent their interests. FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 7/3/2018 Buying a Home: Who Works for Whom?- The New York Times NYSCEF DOC. NO. 375 RECEIVED NYSCEF: 05/14/2019 overblown," "I feel the dual-agency issue is Mr. Mecurio said. "The practice has always been illegal unless people were informed about it. Real estate brokers knew that if they didn't inform both parties that they were working for both the buyer and the seller, they would face loss of license or get fined. The dual-agency situation best." occurs infrequently at Giving an example of the dual agency, Mr. Mecurio said, "It might happen under certain circumstances, such as when a relative of the agent handling a house for a fellow wants to buy the property; or perhaps a buyer and seller are friends but they don't want to negotiate the deal themselves, so instead they hire an agent to help terms." then come to a price and No Major Changes Seen After determining the effect of the real estate disclosure law in other states, Edward I. Sumber, the lawyer for the Westchester County Board of Realtors, said the New York law probably would not greatly change the way people buy and sell houses in Westchester. "Having people sign a formal disclosure document didn't change the real estate law," industry in Connecticut or Maine when they put through this Mr. Sumber said. four." "Connecticut has had the law in place for two years now and Maine for The movement gained impetus from consumer advocates, he added, "after a Federal Trade Commission report made in the late 1970's found that 71 percent of home buyers in California thought the agent who sold them a house was working for them." In New York, Mr. Sumber said, verbal disclosure was always required. "What writing," the new law does is put itin he said, "Now, before agents work with clients, they have to ask them to read and sign a disclosure form that clearly spells out the agent." duties of both a seller's and a buyer's Will the new disclosure law hurt home sales? No, said Merritt Mitchell, head of the 60-year-old real estate concern of Merritt Associates, with offices in Larchmont and Rye. Fighting for the Buyer "No, simply because real estate sales are dependent on the cooperation of concerned," everyone he said. "Law or no law, the common practice in the real world has always been that agents have fought like dogs -- for the buyer. When an agent takes a client to see a property, they forge a bond right in the car. And in Westchester we're dealing with https://www.nytimes.com/1992/01/26/nyregion/buying-a-home-who-works-for-whom.html 2/4 FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 7/3/2018 Buying a Home: Who Works for Whom?- The New York Times NYSCEF DOC. NO. 375 RECEIVED NYSCEF: 05/14/2019 sophisticated people. I think most of them have always understood that the real seller." estate agent is paid by the Mr. who is head of the Westchester Multiple Listings Service -- which Mitchell, publishes a booklet compiled by the Westchester Real Estate Board of properties for sale -- said the new law also makes clear that a subagent represents the seller exclusively. "The subagent is the one who finds properties for a buyer in the Westchester agent," multiple listings booklet and splits the commission with the listing Mr. Mitchell explained. "Now, under the new law, what will happen is that the listing agent will ask the seller to allow him to compensate the buyer's broker, with gets." probably the same amount as the subagent buyers' But Mr. Mitchell said he had no plans for installing a special broker department in his offices. Who Pays the Commission "What will happen is that when customers come in and we explain the disclosure form, a customer may say, 'Iwant you to represent me as a buyer's broker,' and we'll take it from there. Also, our agents will work in cooperation with buyers' brokers." But who will pay the commission? "I will assume that the sellers will be the ones who pay both sides of the commission," buyers' Mr. Mitchell said. "Why? Because discouraging brokers will limit their supply of potential buyers. Realistically speaking, I think it will be pretty deal." much business as usual because everyone wants to make the Overall, Mr. Mitchell said, the new law, despite some confusion at the environment" beginning, will result in "an improvement in the real estate because "it professional." makes it more Nicholas R. Wolff, president of Wolff & Son Century 21 in White Plains, said he expected that his office, for the most part, would still be representing more sellers. interested," "But we also intend to represent buyers who are he said. How to Market a Property Mr. Wolff, who has prepared a booklet of 24 questions and answers explaining the new law, which he is selling to brokers, buyers and sellers, emphasized that when sellers now ask him about the best way to market a property, he advises them to select a broker and give him exclusive rights to sell. https://www.nytimes.com/1992/01/26/nyregion/buying-a-home-who-works-for-whom.html 3/4 FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 7/3/2018 Buying a Home: Who Works for Whom?- The New York Times NYSCEF DOC. NO. 375 RECEIVED NYSCEF: 05/14/2019 buyers' "Allow them to compensate agents and give them the right to act as dual agents.," Mr. Wolff said of the brokers. "Dual agents, a single salesperson or two salespeople in the same office who are working for the seller and who also have a customer interested in purchasing the property," Mr. Wolff said, "is a fairly common occurrence in real estate transactions, informed." allowed only after the buyer and seller are The commission offered to buyer's agents by sellers, Mr. Wolff said, should be "Because," the same amount subagents receive. he said, "you want to encourage the agents." participation of buyer's In cases where sellers refuse to compensate the buyer's agent, buyers may have to arrange to compensate in advance the agents they hire, Mr. Wolff said. The TimesMachine archive viewer is a subscriber-only feature. We are continually improving the quality of our text archives. Please send feedback, error reports, and suggestions to archive-feedback@nytimes.com. A version of this articleappears in printon January 26, 1992, on Page WC12 of the National edition with the headline: Buying a Home: Who Works for Whom?. © 2018 The New York Times Company https://www.nytimes.com/1992/01/26/nyregion/buying-a-home-who-works-for-whom.html 4/4