Preview
FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022
HOULIHAN LAWRENCE
OPPOSITION TO MOTION TO CERTIFY
EXHIBIT 29
Plaintiffs’ Dep. Ex. 8
HL OPP. - EXHIBIT 29 - PAGE 1
FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022
a
DATE:
. ... . ..
MaryAgnesDrury
On August 30, 2010.the most recentrevi
includes condominiums and cooperative
to the showing (which disadvantagedthe
sions lo the agency disclosure law were
apartments. seller becausefewer buyerswere viewing
signedby thrmerGov.DavidPaterson.
This The Department of State Division of
the property).
LicensingServices(DOS) has alwayscon-
amendmentincludeschangesto the agency With the new changesto the agency
disclosureform asit relatesto dual agency disclosurelaw. consumerscan now con-
sidered dual agency to be transactional
and designatedagencyaswell as requiring sent to dual agencyand dual agencywith
in nature. As a result, clients could not
the agencydisclosureform to beusedfor all
consent to dual agency in advance of
designatedsalesagentsin advanceof dual
condominiumsandcooperativeapartments.
dual agencyactually occurring. In a legal
agencyactually arising. Dis
memorandumpublishedon the DOSweb-
As such, all licenseesare required to use
the new thrm after January 1,2011.This
site, it was clearly stated: "As soon as
Changes to the statute
guide will highhght the new changesand
the buyer'sagent introducesthe buyer to
not foundon the form
help to better clarify the role of a licensee
property in which the selleris represented
The first changeinvolvesthe definition
arises."
in complyingwith therequirementsof Real
by the seller'sagent,dual agency of "residential real property." The new
p
Property Law §443. (DOSLegalMemorandumL112).Foryears.definition
includes condominiums and
licenseeshavebeenhamperedby this nar-
cooperative apartments, and is defined
Changes to the row approachto dual agency.As a result,
as "real propert y used or occupied, or
Agency DisdosureLaw licenseeswho representedconsumersas a
intendedto be usedor occupied,wholly or
The lirst major changeis the require-
buyer'sagentwereunableto showproperties
partly, asthe homeor residenceof oneor
listedwith their brokerageunlessthebuyers
ment that the agencydisclosureform be morepersonsimprovedby (i) a one-to-four
usedin all transactionsinvolving condo.
agreedto changeagencyrelationshipsand
family dwelling or (ii) a condominium or
have the licenseeshow the property as a
miniumsandcooperativeapartments.Prior cooperativeapartments,busshallnot referto
seller'sagent,or the buyer and sellerboth
to January 1, 201L condominiums and unimprovedrealproperty uponwhichsuch
consentedto dual agencyandacknowledged
cooperativeapariments were specifically constructed."
dwelhugsareto be As can be
the sameby signing the agencydisclosure
exemptfrom the defmition of "residential seen,vacantland andcommercialproperty
property" form. Only thencouldthelicensceshowthe
real that would have required areexemptfrom the requirementof using
buyerproperty listed by their brokerage.As
the use of the agency disclosure form. the form, but there is still an obligation
Now, with a result,buyerswereforcedto changeagency
the passageof the new law, under19NYCRR§175.7to "makeit clearfor
"
the exemption has been removed. Afier whichparty he is acting."Althoughthis can
relationshipswith the licensee,therebylos- (B
ing the fiduciarydutiesowedby the buyer's
lanuary L 2011 agencydisclosure forms bedoneverbally,it is highly recommended
must be used in all transactions involv-
agentif the sellersdid not consentto dual
that disclosureof agencyrelationshipsbe
y."
agencyor wereunableto be reachedprior
MA
ing "residentialreal propert
which now acknowledgedin writing.
continuedonpage16
NewYorkStateREALTOR2 15 MA
CONFIDENTIAL HL00043257
HL OPP. - EXHIBIT 29 - PAGE 2
FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022
continuedfmm page 5 contact"
theissuewith "firstsubstantive
shall only applv to transactionsinvolving is
Thesecondchangenot loundon theform property." that the Departmentof State(DOS)provides
residentialreal "Residentialreal
property"
is theadditionof two newparagraphsdefin. no definition as to what would constitute
is definedas"realpropertyusedor
ing advancedconsentto dualanddesignated contact."
occupied,or intendedto beusedor occupied,
"first substantive In the past,DOS
agency.Real Property Law §443(1) now has usedshe"warm body" approachwhen
wholly or partly,asthehomeor residenceof
containsthe following definitions: contact."
Agency" oneor morepersonsimprovedby(i) a one-to-
addressing"first substantiveThe
p. "AdvancedConsentto Dual "warm body" approachis as simple as it
four familydwellingor (ii) acondominiumor
meanswritten consentsignedby the Seller/ sounds.If alicenseecomesinto contactwith
cooperativeapartments,butshallnot referto
Landlord or Buyer/Tenantthat the Listing aconsumerin oneof thescenariossetforth
unimprovedreal property upon whichsuch
Agentand/orbuyer'sagentmayactasa Dual in RPL§443(3)(a)-(c),
dwellingsareto beconstructed.The agency thedisclosuremustbe
Agentfor that Seller/Landlordand a Buyer/ presented.Thereareof coursesomeexcep-
disclosureform requiredunder RPL§443(4)
Tenantfor residentialreal pmperty whichis body"
tionsto the"warm
must be presentedand acknowledgedby approach;themost
thesubjectof a listing agreement prevalentof which beingopenhouses.DOS
a consumerpursuantto RPL§443(3)(a)-(c).
q. "AdvancedConsentto Dual Agency hasprovidedan opinionletterdatedAugust
Listing agentsare required to provide the
Agents"meanswritten
withDesignated
Sales 18,1995,that statesa seller'sagentdoesnot
form to aconsumerpursuantto RPL§443(3)
consent kmdlordorBuyer/
signedby theSeller/ haveto presenta disclosureform to every
(a),whichstates:"A listingagentshallprovide
msant that indicatesthe nameof the agent personwho attendsanopenhousewhereno
the disclosureform seiforth in subdivision
appointedto representtheSeller/kmdlordor "substantivecontact"hasbeenmade(broker
fourofthissectionto aselleror landlordprior
Buyer/Tenant SalesAgentfor
asa Designated to enteringinto a listing agreementwith the
greetingpeople,showing them the house,
residentialreal propertywhichis thesubject
providinggeneralinformationandanswering
selleror landlord and shall obtain a signed
of a listing agreement. acknowledgment questionsaboutthe property)."Substantive
from theselleror landlord,
Overall, the changesto the form and contact"
exceptas provided in paragraphe of this occursshoulda buyerexpressscri-
subdivision."Seller'sand
the addition of the definitionswill help to ous interestin discussingthe terms of an
landlord's agents
simplify the disclosureprocessfor licensces. to "provide
arerequiredunderRPL§443(3)(b) offer or wherea seller'sagentis helping a
The option to allow sellersand buyersto buyer identify suitableproperty.
the disclosureform setforth in subdivision
consenttodual agencyanddesignated
agency Another exceptionto the "warm hady"
four of this sectionto a buyer,buyer'sagent,
will benefitboth consumersandlicenseesas approach is one that is occurring with
tenantor tenant'sagentatthetime ofthe first
theyall nowhaveto fill outnumerousagency greaterfrequencyin the modern technol-
substantivecontactwith thebuyeror tenant
disclosureforms in dual agencysituations ogy driven market, consumerse-mailing.
andshallobtain a signedacknowledgement
faxing, telephoning or communicating
from thebuyeror tenant,exceptasprovided
When do you need to fill out subdivision." via the Internet with licensees.Through a
in paragraphc of this Likewise,
an agency disdosure
form? decisionby an administrativelaw judge,it
a buyer s or ienani's agent pursuant to
arerequiredbylaw andregula-
Licensees can be determinedwhat standardlicensees
must "providethe disclosure
RPL§443(3)(c)
tion to discloseto consumerswhat type of
form to the buyeror tenantprior to enter-
will beheldto in a situationwherethe only
agencyrelationshipthat licenseeis currentlY contactwith a consumeris through e-mail,
ing into an agreementto act as the buyer's
actingunder.Generally,alicenseeisrequired fax,telephoneor via theInternet.In thecase
agentor tenant'sagentand shall obtain a
. to "makeitclearfor whichparty heis acting." of DOS v. Holzbach,49 DOS02 (2002),a
signedacknowledgmentfrom the buyeror
19NYCRR§175.7.
This requirementapplies licenseehad been communicating with a
tenant,exceptasprovidedin paragraphe of
to all licenseesregardless
of the typeof real consumerto representthe consumeras a
this subdivision.A buyer'sagentor tenant's
property being sold or leased.Although buyer'sagent.On April 25,2001,thelicensee
agentshall provide the form to the seller,
§175.7doesnot requirea licenseeto utilize andtheconsumeragreedvia telephonethat
seller'sagent,landlord or landlord's agent
L a form to disclose the licensee'sagency thelicenseewouldrepmsenttheconsumeras
at the time of the first substantivecontact
relationship,licenscesshouldbe diligent in a buyer'sagent.No agencydisclosureform
with the selleror landlord and shall obtain
their disdosureto consumersexactlywhat wasprovidedin anymanneratthistime.On
a signedacknowledgmentfrom the seller,
type of agencyrelationshipthe licenseeis May 6,2001,thelicenseeandtheconsumer
landlordor listing agent,exceptasprovided
.w acting under in paragraphe of this subdivision."
metfor thefirst timeandabackdatedagency
Article 12-Aof theRealPmpertyLawsets disclosureform wasprovided.Theadminis-
As can be seen by RPL§443(3)(a)-(c),
forth mandatoryrequirementsrelatingto the trativelawjudgedeterminedthat "although
the agency disclosure form set forth
in
disclosureof agencyrelationships.Pursuant to aconsumer
musthepresented
RPL§443(4) the buyerswerenot presentin Rochesterat
to RealProperlyLaw§443(2)."This section contact." the time of that contact,theevidenceamply
at "first substantive
16 MARCH/APRIL
2011
CONFIDENTIAL HL00043258
HL OPP. - EXHIBIT 29 - PAGE 3
FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022
demonstrates
that theform couldhavebeen In discussionswith the Departmentof
fiduciary obligationsthey will be losing by
faxed to them and that they could have
State,NYSARbasclarifiedthe responsibility
agreeingto dual agencyas well Licensees
faxed back their acknowledgements.The
ofa licenseeoncedual agencyor dual agency
mustmakeit perfectlyclearwhat the client
dequated des
backdatingof the form, althoughintended
ah gms un.cs If dealis consentingto and how it will affectthe
to showwhen the first substantivecontact
agencyarisesas a result of a showing,the
representationthey are receivingfrom the
was,improperlymuddiedtheissueandwas
licenseeis nm requiredto nonfy the seller
licensee.Failureto do socanbeconsidereda
y."
a demonstrationof incompetenc
DOSv. immediatelysincethe sellershould reason-
violationof Article 12-Aofthe RealProperty
Holzbach,49 DOS02 (2002).As such,it is Law and may subjectthe licenseeto DOS
ably presumethat dual agencyshowings
foreseeable
that the samestandardshould
willcccur during the time of the usting.
disciplinaryaction.
be appliedin scenariosinvolving licensees
However, it is highly recommendedthatUponsigningthe agencydisclosureform,
the sellerbe informedasto all mstmes of
communicatingwith consumersvia e-mail, the licenseemust provide a copy of the
fax orvia theInternet.Theagencydisclosure
dual agencythat aretheresullof ashowing.
form to the consumer.19NYCRR §175.12
form can beprovidedto the consumervia
This notificatÎn can bedonevia telephone,
statesasfollows:"A real estatebrokershall
fax,e-mailorby downloadfromthe Internet
e-mail (using the addressprovided by the
immediately deliver a duplicate original
(DOShasthe form availablefor download
selley,fax (usingthe in
numberpmvided of any instrument to any party or parties
at its real estatebroker/salesperson
page). by the seller)or by letter.As always,NYSAR
executingthe same,wheresuchinstrument
Thedecisionclearlystatesthat the licensee
rmommendsall noticesbem wri&ng,sothe
hasbeenpreparedby suchbrokeror under
could have satisfied the requirementsof
licenseewill bavedmumentedproot of any
his supervisionand wheresuchinstrument
RPL§443(3)(c)by faxing the agency dis-
sm.hnotificaton. relatesto the employmentof the broker or
closure form to the consumer,have the to any matterspertaining to the consum-
After duai agency arises,if a potential
consumer sign the form and fax it back
purchaserbeginsnegotiatius of .my type,
mation of a lease,or the purchase,saleor
to the licensee.As such,the sameshould
it is regiired that the licenseecontactthe
exchangeof real property or any othertype
holdtrue for licensees with
communicating seUerand inthrm them that thereis a dual
of real estatetransactionin which he may
body"
consumerswhereno "warm meeting participateasa broker."
agencysituationwherethe buyeris showmg
occursat first substantivecontact.interestin the property. Again, this noti-
If at first substantivecontact with the
When dual agency is discussedwith
ficationcan be done via telephone.e-mail
consumer,a licenseeprovidesthe agency
the client, the client will have the option disclosureform to a consumerand the con-
(using the addresspmvided by the se3er),
to indicate their consent to dual agency
fax (using the fax numberprovidedby the
samerrefusesto sign the form, RPL§443(3)
in advanceby indicating the sameon the
seller)or by letter In orderto minimize the
(c) providesthe licenseewith a mechanism
agencydisclosureform. Advancedconsent
potentialfor liability,allnoticesshouldhein
by which the licenseecan document the
to dual agencywith designatedsalesagents
writing andmadeut thetime of negotiatNns
refusal. RPL§443(3)(e)
states:"If the seller,
can be donein the samemanner.Theonly
er unmediatelythereafter.If a dud agency
buyer,landlord or tenantrefusesto sign an
differenceis that the seller,landlord,buyer
showing results in the presentation of a
acknowledgment
of receiptpursuantto this
or tenantwill beableto designateaspecific
purchaseoffen it h, recommendedthat the
subdivision,the agentshall set forth under
licenseeasa designated
agentshouldit arise.
signedagencydisdosureforms be auached
oath or affirmationa written declarationof
It isnot requiredthatbothdesignated
agents to thepurchaseotfersoit isclearto thesaler
the factsof the refusaland shall maintain
arulbuyerthatthe transwhenis dual agency
arefilled in whenadvancedconsentisgiven. a copy of the declarationfor not lessthan
In other words, when a sellerconsentsto years."If a
in nature There is nothing prob biting a
three licenseeis involved in a
dual agencywith designatedsalesagents
licenseefrom bring situationwhereaconsumerrefuses
thrit client(s)emute to signthe
a newagency disclosureibrm at the time of
in advance,it is likely that the sellerwill agencydisclosureform, the liccÀseeshould
designatetheir listing agent (unless the
contractto memorializetheir undentanding
clearlystatethe name(s)of the consumer(s)
listing agentis the principal broker since
of a licensee's
agencystatus. and the factssurroundingthe refusalof the
principalbrokersareprohibitedfrom acting
hemecs should he aware that du.d
acknowledgement.
It should be noted that
as a designatedagent).Likewise, a buyer
agencymustbediscussed
with thesellerand/
RPL§443(3)(c)is only applicablein those
willmost likely
designatetheir
buyer's concern-
or buyerat theonsetof discussions situationswherea consumerrefusesto sign
agentas their designatedagent(exceptin
ing agency.The law specificallystatesthat
theform. It wouldbecontraryto the statute
the instancewherethe buyer'sagentis the
the clientis agreeingto "advancedinformed
if the licenseewereto follow the provisions
consent."Šhismeanstheclientmustbe
prmupal) Oncedualagencywith designated fully of RPI&443(3)(c)for any other reasonsuch
salesagentsarises,both sideswill know,the
informed asto all aspectsof dual agency.
as the licenseeforgot to bring the agency
identity of the other designatedagent.
Clientsneedto be fully informed asto the
disclosureform with them.
continuedonpage18
NewYorkStateREALTORS17
CONFIDENTIAL HL00043259
HL OPP. - EXHIBIT 29 - PAGE 4
FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022
. ..
n)medfrom page17
How to completethe agency disdosureform
Firture
A F
; Fiaure
Listingagentorsubagent
ofsellerdemonstrates
howa licensee
should ? i Buyers
fill outthe agentwithadvanced
informed
consent
todualagency
demonstrates
howa
disclosure
agency form
when
thelicensee
i
s thesellers
representing i
nterest
best i ilicensee
should
fill outtheagency
disclosure is represent-
formwhenthelicensee
asaseller's
agent.
Licensees utilizethismethod
should ofcompleting
theformwhen ingthebuyer's
bestinterest
asabuyer's
agentandthebuyerhasconsented
todual
thelicensee
isthelistingagent,
licensee·s
brokerage
isthelistingbrokerage,
orthei inadvance.
agency Licensees utilizethismethod
should ofcompleting
theformwhen
licensee
isesub-agent
oftheseller. thelicensee
isthebuyer's
agent
orthelicensee's
brokerage
istheagentofthebuyer
(X)Sellei
asa(cheek helow)
relationship ( ) Buyer
asa andthebuyerhasconsented
todualagency
inadvance.
(check below)
relationship ( ) Seller
asa(check below)
relationship (X)Buyer
asa
(X)Seller
sagent ( ) Duyers
agent (chock below)
relationship
agent
( }Urokers agent
( )Brokers () Sellers
agent (X)Buyers
agent
( ) Dual
agent agent
I )Drokers ( )Druke's
agent
( ) Dualwithdesignated
agent sales
agents ( ) Dual
agent
{ | Dual
agent
wilhdesignated
sales
agents
Foradvance
intermed
consent
toeither
dual ordualagency
agency withdesignated
agents
sales
Fiuute
B cmnplela
section
below
Brokers howa licensee
agentel sellerdemonstratesshould dis-
fill outtheagency (X)Advance
informed
consent
dualagency
closure
formwhenthelicensee
Preview
FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022 HOULIHAN LAWRENCE OPPOSITION TO MOTION TO CERTIFY EXHIBIT 29 Plaintiffs’ Dep. Ex. 8 HL OPP. - EXHIBIT 29 - PAGE 1 FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022 a DATE: . ... . .. MaryAgnesDrury On August 30, 2010.the most recentrevi includes condominiums and cooperative to the showing (which disadvantagedthe sions lo the agency disclosure law were apartments. seller becausefewer buyerswere viewing signedby thrmerGov.DavidPaterson. This The Department of State Division of the property). LicensingServices(DOS) has alwayscon- amendmentincludeschangesto the agency With the new changesto the agency disclosureform asit relatesto dual agency disclosurelaw. consumerscan now con- sidered dual agency to be transactional and designatedagencyaswell as requiring sent to dual agencyand dual agencywith in nature. As a result, clients could not the agencydisclosureform to beusedfor all consent to dual agency in advance of designatedsalesagentsin advanceof dual condominiumsandcooperativeapartments. dual agencyactually occurring. In a legal agencyactually arising. Dis memorandumpublishedon the DOSweb- As such, all licenseesare required to use the new thrm after January 1,2011.This site, it was clearly stated: "As soon as Changes to the statute guide will highhght the new changesand the buyer'sagent introducesthe buyer to not foundon the form help to better clarify the role of a licensee property in which the selleris represented The first changeinvolvesthe definition arises." in complyingwith therequirementsof Real by the seller'sagent,dual agency of "residential real property." The new p Property Law §443. (DOSLegalMemorandumL112).Foryears.definition includes condominiums and licenseeshavebeenhamperedby this nar- cooperative apartments, and is defined Changes to the row approachto dual agency.As a result, as "real propert y used or occupied, or Agency DisdosureLaw licenseeswho representedconsumersas a intendedto be usedor occupied,wholly or The lirst major changeis the require- buyer'sagentwereunableto showproperties partly, asthe homeor residenceof oneor listedwith their brokerageunlessthebuyers ment that the agencydisclosureform be morepersonsimprovedby (i) a one-to-four usedin all transactionsinvolving condo. agreedto changeagencyrelationshipsand family dwelling or (ii) a condominium or have the licenseeshow the property as a miniumsandcooperativeapartments.Prior cooperativeapartments,busshallnot referto seller'sagent,or the buyer and sellerboth to January 1, 201L condominiums and unimprovedrealproperty uponwhichsuch consentedto dual agencyandacknowledged cooperativeapariments were specifically constructed." dwelhugsareto be As can be the sameby signing the agencydisclosure exemptfrom the defmition of "residential seen,vacantland andcommercialproperty property" form. Only thencouldthelicensceshowthe real that would have required areexemptfrom the requirementof using buyerproperty listed by their brokerage.As the use of the agency disclosure form. the form, but there is still an obligation Now, with a result,buyerswereforcedto changeagency the passageof the new law, under19NYCRR§175.7to "makeit clearfor " the exemption has been removed. Afier whichparty he is acting."Althoughthis can relationshipswith the licensee,therebylos- (B ing the fiduciarydutiesowedby the buyer's lanuary L 2011 agencydisclosure forms bedoneverbally,it is highly recommended must be used in all transactions involv- agentif the sellersdid not consentto dual that disclosureof agencyrelationshipsbe y." agencyor wereunableto be reachedprior MA ing "residentialreal propert which now acknowledgedin writing. continuedonpage16 NewYorkStateREALTOR2 15 MA CONFIDENTIAL HL00043257 HL OPP. - EXHIBIT 29 - PAGE 2 FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022 continuedfmm page 5 contact" theissuewith "firstsubstantive shall only applv to transactionsinvolving is Thesecondchangenot loundon theform property." that the Departmentof State(DOS)provides residentialreal "Residentialreal property" is theadditionof two newparagraphsdefin. no definition as to what would constitute is definedas"realpropertyusedor ing advancedconsentto dualanddesignated contact." occupied,or intendedto beusedor occupied, "first substantive In the past,DOS agency.Real Property Law §443(1) now has usedshe"warm body" approachwhen wholly or partly,asthehomeor residenceof containsthe following definitions: contact." Agency" oneor morepersonsimprovedby(i) a one-to- addressing"first substantiveThe p. "AdvancedConsentto Dual "warm body" approachis as simple as it four familydwellingor (ii) acondominiumor meanswritten consentsignedby the Seller/ sounds.If alicenseecomesinto contactwith cooperativeapartments,butshallnot referto Landlord or Buyer/Tenantthat the Listing aconsumerin oneof thescenariossetforth unimprovedreal property upon whichsuch Agentand/orbuyer'sagentmayactasa Dual in RPL§443(3)(a)-(c), dwellingsareto beconstructed.The agency thedisclosuremustbe Agentfor that Seller/Landlordand a Buyer/ presented.Thereareof coursesomeexcep- disclosureform requiredunder RPL§443(4) Tenantfor residentialreal pmperty whichis body" tionsto the"warm must be presentedand acknowledgedby approach;themost thesubjectof a listing agreement prevalentof which beingopenhouses.DOS a consumerpursuantto RPL§443(3)(a)-(c). q. "AdvancedConsentto Dual Agency hasprovidedan opinionletterdatedAugust Listing agentsare required to provide the Agents"meanswritten withDesignated Sales 18,1995,that statesa seller'sagentdoesnot form to aconsumerpursuantto RPL§443(3) consent kmdlordorBuyer/ signedby theSeller/ haveto presenta disclosureform to every (a),whichstates:"A listingagentshallprovide msant that indicatesthe nameof the agent personwho attendsanopenhousewhereno the disclosureform seiforth in subdivision appointedto representtheSeller/kmdlordor "substantivecontact"hasbeenmade(broker fourofthissectionto aselleror landlordprior Buyer/Tenant SalesAgentfor asa Designated to enteringinto a listing agreementwith the greetingpeople,showing them the house, residentialreal propertywhichis thesubject providinggeneralinformationandanswering selleror landlord and shall obtain a signed of a listing agreement. acknowledgment questionsaboutthe property)."Substantive from theselleror landlord, Overall, the changesto the form and contact" exceptas provided in paragraphe of this occursshoulda buyerexpressscri- subdivision."Seller'sand the addition of the definitionswill help to ous interestin discussingthe terms of an landlord's agents simplify the disclosureprocessfor licensces. to "provide arerequiredunderRPL§443(3)(b) offer or wherea seller'sagentis helping a The option to allow sellersand buyersto buyer identify suitableproperty. the disclosureform setforth in subdivision consenttodual agencyanddesignated agency Another exceptionto the "warm hady" four of this sectionto a buyer,buyer'sagent, will benefitboth consumersandlicenseesas approach is one that is occurring with tenantor tenant'sagentatthetime ofthe first theyall nowhaveto fill outnumerousagency greaterfrequencyin the modern technol- substantivecontactwith thebuyeror tenant disclosureforms in dual agencysituations ogy driven market, consumerse-mailing. andshallobtain a signedacknowledgement faxing, telephoning or communicating from thebuyeror tenant,exceptasprovided When do you need to fill out subdivision." via the Internet with licensees.Through a in paragraphc of this Likewise, an agency disdosure form? decisionby an administrativelaw judge,it a buyer s or ienani's agent pursuant to arerequiredbylaw andregula- Licensees can be determinedwhat standardlicensees must "providethe disclosure RPL§443(3)(c) tion to discloseto consumerswhat type of form to the buyeror tenantprior to enter- will beheldto in a situationwherethe only agencyrelationshipthat licenseeis currentlY contactwith a consumeris through e-mail, ing into an agreementto act as the buyer's actingunder.Generally,alicenseeisrequired fax,telephoneor via theInternet.In thecase agentor tenant'sagentand shall obtain a . to "makeitclearfor whichparty heis acting." of DOS v. Holzbach,49 DOS02 (2002),a signedacknowledgmentfrom the buyeror 19NYCRR§175.7. This requirementapplies licenseehad been communicating with a tenant,exceptasprovidedin paragraphe of to all licenseesregardless of the typeof real consumerto representthe consumeras a this subdivision.A buyer'sagentor tenant's property being sold or leased.Although buyer'sagent.On April 25,2001,thelicensee agentshall provide the form to the seller, §175.7doesnot requirea licenseeto utilize andtheconsumeragreedvia telephonethat seller'sagent,landlord or landlord's agent L a form to disclose the licensee'sagency thelicenseewouldrepmsenttheconsumeras at the time of the first substantivecontact relationship,licenscesshouldbe diligent in a buyer'sagent.No agencydisclosureform with the selleror landlord and shall obtain their disdosureto consumersexactlywhat wasprovidedin anymanneratthistime.On a signedacknowledgmentfrom the seller, type of agencyrelationshipthe licenseeis May 6,2001,thelicenseeandtheconsumer landlordor listing agent,exceptasprovided .w acting under in paragraphe of this subdivision." metfor thefirst timeandabackdatedagency Article 12-Aof theRealPmpertyLawsets disclosureform wasprovided.Theadminis- As can be seen by RPL§443(3)(a)-(c), forth mandatoryrequirementsrelatingto the trativelawjudgedeterminedthat "although the agency disclosure form set forth in disclosureof agencyrelationships.Pursuant to aconsumer musthepresented RPL§443(4) the buyerswerenot presentin Rochesterat to RealProperlyLaw§443(2)."This section contact." the time of that contact,theevidenceamply at "first substantive 16 MARCH/APRIL 2011 CONFIDENTIAL HL00043258 HL OPP. - EXHIBIT 29 - PAGE 3 FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022 demonstrates that theform couldhavebeen In discussionswith the Departmentof fiduciary obligationsthey will be losing by faxed to them and that they could have State,NYSARbasclarifiedthe responsibility agreeingto dual agencyas well Licensees faxed back their acknowledgements.The ofa licenseeoncedual agencyor dual agency mustmakeit perfectlyclearwhat the client dequated des backdatingof the form, althoughintended ah gms un.cs If dealis consentingto and how it will affectthe to showwhen the first substantivecontact agencyarisesas a result of a showing,the representationthey are receivingfrom the was,improperlymuddiedtheissueandwas licenseeis nm requiredto nonfy the seller licensee.Failureto do socanbeconsidereda y." a demonstrationof incompetenc DOSv. immediatelysincethe sellershould reason- violationof Article 12-Aofthe RealProperty Holzbach,49 DOS02 (2002).As such,it is Law and may subjectthe licenseeto DOS ably presumethat dual agencyshowings foreseeable that the samestandardshould willcccur during the time of the usting. disciplinaryaction. be appliedin scenariosinvolving licensees However, it is highly recommendedthatUponsigningthe agencydisclosureform, the sellerbe informedasto all mstmes of communicatingwith consumersvia e-mail, the licenseemust provide a copy of the fax orvia theInternet.Theagencydisclosure dual agencythat aretheresullof ashowing. form to the consumer.19NYCRR §175.12 form can beprovidedto the consumervia This notificatÎn can bedonevia telephone, statesasfollows:"A real estatebrokershall fax,e-mailorby downloadfromthe Internet e-mail (using the addressprovided by the immediately deliver a duplicate original (DOShasthe form availablefor download selley,fax (usingthe in numberpmvided of any instrument to any party or parties at its real estatebroker/salesperson page). by the seller)or by letter.As always,NYSAR executingthe same,wheresuchinstrument Thedecisionclearlystatesthat the licensee rmommendsall noticesbem wri&ng,sothe hasbeenpreparedby suchbrokeror under could have satisfied the requirementsof licenseewill bavedmumentedproot of any his supervisionand wheresuchinstrument RPL§443(3)(c)by faxing the agency dis- sm.hnotificaton. relatesto the employmentof the broker or closure form to the consumer,have the to any matterspertaining to the consum- After duai agency arises,if a potential consumer sign the form and fax it back purchaserbeginsnegotiatius of .my type, mation of a lease,or the purchase,saleor to the licensee.As such,the sameshould it is regiired that the licenseecontactthe exchangeof real property or any othertype holdtrue for licensees with communicating seUerand inthrm them that thereis a dual of real estatetransactionin which he may body" consumerswhereno "warm meeting participateasa broker." agencysituationwherethe buyeris showmg occursat first substantivecontact.interestin the property. Again, this noti- If at first substantivecontact with the When dual agency is discussedwith ficationcan be done via telephone.e-mail consumer,a licenseeprovidesthe agency the client, the client will have the option disclosureform to a consumerand the con- (using the addresspmvided by the se3er), to indicate their consent to dual agency fax (using the fax numberprovidedby the samerrefusesto sign the form, RPL§443(3) in advanceby indicating the sameon the seller)or by letter In orderto minimize the (c) providesthe licenseewith a mechanism agencydisclosureform. Advancedconsent potentialfor liability,allnoticesshouldhein by which the licenseecan document the to dual agencywith designatedsalesagents writing andmadeut thetime of negotiatNns refusal. RPL§443(3)(e) states:"If the seller, can be donein the samemanner.Theonly er unmediatelythereafter.If a dud agency buyer,landlord or tenantrefusesto sign an differenceis that the seller,landlord,buyer showing results in the presentation of a acknowledgment of receiptpursuantto this or tenantwill beableto designateaspecific purchaseoffen it h, recommendedthat the subdivision,the agentshall set forth under licenseeasa designated agentshouldit arise. signedagencydisdosureforms be auached oath or affirmationa written declarationof It isnot requiredthatbothdesignated agents to thepurchaseotfersoit isclearto thesaler the factsof the refusaland shall maintain arulbuyerthatthe transwhenis dual agency arefilled in whenadvancedconsentisgiven. a copy of the declarationfor not lessthan In other words, when a sellerconsentsto years."If a in nature There is nothing prob biting a three licenseeis involved in a dual agencywith designatedsalesagents licenseefrom bring situationwhereaconsumerrefuses thrit client(s)emute to signthe a newagency disclosureibrm at the time of in advance,it is likely that the sellerwill agencydisclosureform, the liccÀseeshould designatetheir listing agent (unless the contractto memorializetheir undentanding clearlystatethe name(s)of the consumer(s) listing agentis the principal broker since of a licensee's agencystatus. and the factssurroundingthe refusalof the principalbrokersareprohibitedfrom acting hemecs should he aware that du.d acknowledgement. It should be noted that as a designatedagent).Likewise, a buyer agencymustbediscussed with thesellerand/ RPL§443(3)(c)is only applicablein those willmost likely designatetheir buyer's concern- or buyerat theonsetof discussions situationswherea consumerrefusesto sign agentas their designatedagent(exceptin ing agency.The law specificallystatesthat theform. It wouldbecontraryto the statute the instancewherethe buyer'sagentis the the clientis agreeingto "advancedinformed if the licenseewereto follow the provisions consent."Šhismeanstheclientmustbe prmupal) Oncedualagencywith designated fully of RPI&443(3)(c)for any other reasonsuch salesagentsarises,both sideswill know,the informed asto all aspectsof dual agency. as the licenseeforgot to bring the agency identity of the other designatedagent. Clientsneedto be fully informed asto the disclosureform with them. continuedonpage18 NewYorkStateREALTORS17 CONFIDENTIAL HL00043259 HL OPP. - EXHIBIT 29 - PAGE 4 FILED: WESTCHESTER COUNTY CLERK 03/22/2022 04:19 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1101 RECEIVED NYSCEF: 03/22/2022 . .. n)medfrom page17 How to completethe agency disdosureform Firture A F ; Fiaure Listingagentorsubagent ofsellerdemonstrates howa licensee should ? i Buyers fill outthe agentwithadvanced informed consent todualagency demonstrates howa disclosure agency form when thelicensee i s thesellers representing i nterest best i ilicensee should fill outtheagency disclosure is represent- formwhenthelicensee asaseller's agent. Licensees utilizethismethod should ofcompleting theformwhen ingthebuyer's bestinterest asabuyer's agentandthebuyerhasconsented todual thelicensee isthelistingagent, licensee·s brokerage isthelistingbrokerage, orthei inadvance. agency Licensees utilizethismethod should ofcompleting theformwhen licensee isesub-agent oftheseller. thelicensee isthebuyer's agent orthelicensee's brokerage istheagentofthebuyer (X)Sellei asa(cheek helow) relationship ( ) Buyer asa andthebuyerhasconsented todualagency inadvance. (check below) relationship ( ) Seller asa(check below) relationship (X)Buyer asa (X)Seller sagent ( ) Duyers agent (chock below) relationship agent ( }Urokers agent ( )Brokers () Sellers agent (X)Buyers agent ( ) Dual agent agent I )Drokers ( )Druke's agent ( ) Dualwithdesignated agent sales agents ( ) Dual agent { | Dual agent wilhdesignated sales agents Foradvance intermed consent toeither dual ordualagency agency withdesignated agents sales Fiuute B cmnplela section below Brokers howa licensee agentel sellerdemonstratesshould dis- fill outtheagency (X)Advance informed consent dualagency closure formwhenthelicensee