NEW YORK STATE DISCLOSURE FORM FOR BUYER AND SELLER
THIS IS NOT A CONTRACT
New York state law requires real estate licensees who
are acting as agents of buyers or sellers of property to
advise the potential buyers or sellers with whom they
work of the nature of their agency relationship and
the rights and obligations it creates. This disclosure
will help you to make informed choices about your
relationship with the real estate broker and its sales
agents.
Throughout the transaction you may receive more
than one disclosure form. The law may require each
agent assisting in the transaction to present you with
this disclosure form. A real estate agent is a person
qualified to advise about real estate.
If you need legal, tax or other advice, consult with a
professional in that field.
DISCLOSURE REGARDING REAL ESTATE
AGENCY RELATIONSHIPS
SELLER'S AGENT
A seller's agent is an agent who is engaged by a seller
to represent the seller's interests. The seller's agent
does this by securing a buyer for the seller's home at
a price and on terms acceptable to the seller. A seller's
agent has, without limitation, the following fiduciary
duties to the seller: reasonable care, undivided
loyalty, confidentiality, full disclosure, obedience and
duty to account. A seller's agent does not represent
the interests of the buyer. The obligations of a seller's
agent are also subject to any specific provisions set
forth in an agreement between the agent and the seller.
In dealings with the buyer, a seller's agent should
(a) exercise reasonable skill and care in performance
of the agent's duties; (b) deal honestly, fairly and in
good faith; and (c) disclose all facts known to the
agent materially affecting the value or desirability of
property, except as otherwise provided by law.
BUYER'S AGENT
A buyer's agent is an agent who is engaged by a buyer
to represent the buyer's interests. The buyer's agent
does this by negotiating the purchase of a home at a
price and on terms acceptable to the buyer. A buyer's
agent has, without limitation, the following fiduciary
duties to the buyer: reasonable care, undivided loyalty,
confidentiality, full disclosure, obedience and duty
to account. A buyer's agent does not represent the
interests of the seller. The obligations of a buyer's
agent are also subject to any specific provisions set
forth in an agreement between the agent and the buyer.
In dealings with the seller, a buyer's agent should
(a) exercise reasonable skill and care in performance
of the agent's duties; (b) deal honestly, fairly and in
good faith; and (c) disclose all facts known to the
agent materially affecting the buyer's ability and/or
willingness to perform a contract to acquire seller's
property that are not inconsistent with the agent's fiduciary
duties to the buyer.
BROKER'S AGENTS
A broker's agent is an agent that cooperates or is engaged
by a listing agent or a buyer's agent (but does
not work for the same firm as the listing agent or
buyer's agent) to assist the listing agent or buyer's
agent in locating a property to sell or buy, respectively,
for the listing agent's seller or the buyer agent's
buyer. The broker's agent does not have a direct relationship
with the buyer or seller and the buyer or seller
cannot provide instructions or direction directly to
the broker's agent. The buyer and the seller therefore
do not have vicarious liability for the acts of the broker's
agent. The listing agent or buyer's agent do provide
direction and instruction to the broker's agent
and therefore the listing agent or buyer's agent will
have liability for the acts of the broker's agent.
DUAL AGENT
A real estate broker may represent both the buyer and
the seller if both the buyer and seller give their informed
consent in writing. In such a dual agency situation,
the agent will not be able to provide the full
range of fiduciary duties to the buyer and seller. The
obligations of an agent are also subject to any specific
provisions set forth in an agreement between the
agent, and the buyer and seller. An agent acting as a
dual agent must explain carefully to both the buyer
and seller that the agent is acting for the other party
as well. The agent should also explain the possible
effects of dual representation, including that by consenting
to the dual agency relationship the buyer and
seller are giving up their right to undivided loyalty. A
buyer or seller should carefully consider the possible
consequences of a dual agency relationship before
agreeing to such representation. A seller or buyer
may provide advance informed consent to dual agency
by indicating the same on this form.
DUAL AGENT WITH DESIGNATED SALES
AGENTS
If the buyer and the seller provide their informed
consent in writing, the principals and the real estate
broker who represents both parties as a dual agent
may designate a sales agent to represent the buyer
and another sales agent to represent the seller to negotiate
the purchase and sale of real estate. A sales
agent works under the supervision of the real estate
broker. With the informed consent of the buyer and
the seller in writing, the designated sales agent for the
buyer will function as the buyer's agent representing
the interests of and advocating on behalf of the buyer
and the designated sales agent for the seller will function
as the seller's agent representing the interests of
and advocating on behalf of the seller in the negotiations
between the buyer and seller. A designated sales
agent cannot provide the full range of fiduciary duties
to the buyer or seller. The designated sales agent
must explain that like the dual agent under whose
supervision they function, they cannot provide undivided
loyalty. A buyer or seller should carefully consider
the possible consequences of a dual agency relationship
with designated sales agents before agreeing
to such representation. A seller or buyer may
provide advance informed consent to dual agency
with designated sales agents by indicating the same
on this form
.
