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New York State
REAL PROPERTY LAW (RPL)
Laws 1909, Chap. 52
ARTICLE 12-A
REAL ESTATE BROKERS AND REAL ESTATE SALESMEN
Section 440. Definitions.
440a. License required for real estate
brokers and salesmen.
440b. Licenses in Putnam county.
441. Application for license.
441a. License and pocket card.
441b. License fees.
441c. Revocation and suspension of
licenses.
441d. Salesman's license suspended by
revocation of employer's license.
441e. Denial of license; complaints;
notice of hearing.
441f. Judicial review.
442. Splitting commissions.
442a. Compensation of salesmen;
restrictions.
442b. Discontinuance of salesman's
employment; report.
442c. Violations by salesmen; broker's
responsibility.
442d. Actions for commissions; license
prerequisite.
442e. Violations.
442f. Saving clause.
442g. Nonresident licensees.
442h. Rules of the secretary of state.
442i. Repealed.
442j. Enforcement; advisory committee of
real estate brokers; employees.
442k. Effect of invalid provision.
443. Disclosure regarding real
estate agency relationship; form.
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Sec. 440. Definitions.
1. Whenever used in this article "real estate broker" means any
person, firm or corporation, who, for another and for a fee,
commission or other valuable consideration, lists for sale,
sells, at auction or otherwise, exchanges, buys or rents, or
offers or attempts to negotiate a sale, at auction or
otherwise, exchange, purchase or rental of an estate or
interest in real estate, or collects or offers or attempts
to collect rent for the use of real estate, or negotiates or
offers or attempts to negotiate, a loan secured or to be
secured by a mortgage, other than a residential mortgage
loan, as defined in section five hundred ninety of the
banking law, or other incumbrance upon or transfer of real
estate, or is engaged in the business of a tenant relocator,
or who, notwithstanding any other provision of law, performs
any of the above stated functions with respect to the resale
of condominium property originally sold pursuant to the
provisions of the general business law governing real estate
syndication offerings. In the sale of lots pursuant to the
provisions of article nine-a of this chapter, the term "real
estate broker" shall also include any person, partnership,
association or corporation employed by or on behalf of the
owner or owners of lots or other parcels of real estate, at
a stated salary, or upon a commission, or upon a salary and
commission, or otherwise, to sell such real estate, or any
parts thereof, in lots or other parcels, and who shall sell
or exchange, or offer or attempt or agree to negotiate the
sale or exchange, of any such lot or parcel of real estate.
For purposes of this subdivision the term, "interest in real
estate" shall include the sale of a business wherein the
value of the real estate transferred as part of the business
is not merely incidental to the transaction, and shall not
include the assignment of a lease, and further, the
transaction itself is not otherwise subject to regulation
under state or federal laws governing the sale of
securities. In connection with the sale of a business the
term "real estate broker" shall not include a person, firm
or corporation registered pursuant to the provisions of
article twenty-three-A of the general business law or
federal securities laws.
2. "Associate real estate broker" means a licensed real estate
broker who shall by choice elect to work under the name and
supervision of another individual broker or another broker
who is licensed under a partnership, trade name or
corporation. Such individual shall retain his or her license
as a real estate broker as provided for in this article;
provided, however, that the practice of real estate sales
and brokerage by such individual as an associate broker
shall be governed exclusively by the provisions of this
article as they pertain to real estate salesmen. Nothing
contained herein shall preclude an individual who elects to
be licensed as an associate broker from also retaining a
separate real estate broker's license under an individual,
partnership, trade name or corporation.
3. "Real estate salesman" means a person associated with a
licensed real estate broker to list for sale, sell or offer
for sale, at auction or otherwise, to buy or offer to buy or
to negotiate the purchase or sale or exchange of real
estate, or to negotiate a loan on real estate other than a
mortgage loan as defined in section five hundred ninety of
the banking law, or to lease or rent or offer to lease, rent
or place for rent any real estate, or collects or offers or
attempts to collect rent for the use of real estate for or
in behalf of such real estate broker, or who,
notwithstanding any other provision of law, performs any of
the above stated functions with respect to the resale of a
condominium property originally sold pursuant to the
provisions of the general business law governing real estate
syndication offerings.
4. "Tenant relocator" means any person, firm, corporation,
partnership, or any legal entity whatsoever, which, for
another and for a fee, commission or other valuable
consideration, supervises, organizes, arranges, coordinates,
handles or is otherwise in charge of or responsible for the
relocation of commercial or residential tenants from
buildings or structures that are to be demolished,
rehabilitated, remodeled or otherwise structurally altered.
5. "Association, associated; or associated with" whenever used
in this article shall be deemed to make reference to a
salesman's relationship with his or her broker. Nothing in
this article shall be deemed or construed to be indicative
or determinative of the legal relationship of a salesperson
to a broker nor shall any provision of this article be
deemed or construed to alter or otherwise affect the legal
responsibility of a real estate broker to third parties for
the acts of anyone associated with such broker pursuant to
this article.
Sec. 440-a. License required for real estate brokers and
salesmen.
No person, co-partnership or corporation shall engage in or
follow the business or occupation of, or hold himself or itself
out or act temporarily or otherwise as a real estate broker or
real estate salesman in this state without first procuring a
license therefor as provided in this article. No person shall be
entitled to a license as a real estate broker under this article,
either as an individual or as a member of a co-partnership, or as
an officer of a corporation, unless he or she is nineteen years
of age or over, a citizen of the United States or an alien
lawfully admitted for permanent residence in the United States.
No person shall be entitled to a license as a real estate
salesman under this article unless he or she is over the age of
eighteen years. No person shall be entitled to a license as a
real estate broker or real estate salesman under this article who
has been convicted in this state or elsewhere of a felony, and
who has not subsequent to such conviction received executive
pardon therefor or a certificate of good conduct from the parole
board, to remove the disability under this section because of
such conviction.
Notwithstanding the above, tenant associations, and not-for-
profit corporations authorized in writing by the commissioner of
the department of the city of New York charged with enforcement
of the housing maintenance code of such city to manage
residential property owned by such city or appointed by a court
of competent jurisdiction to manage residential property owned by
such city shall be exempt from the licensing provisions of this
section with respect to the properties so managed.
Sec. 440-b. Licenses in Putnam county.
On and after the first day of July, nineteen hundred thirty-four,
no person, copartnership or corporation shall engage in or follow
the business or occupation of, or hold himself or itself out
temporarily or otherwise as a real estate broker or real estate
salesman in the county of Putnam, without first procuring a
license therefor as provided in this article, except that such
license in such county shall be granted and issued, without the
written examination provided in this article, to a person,
copartnership or corporation who was engaged in business as a
real estate broker or real estate salesman in such county prior
to the first day of January, nineteen hundred thirty-four.
Sec. 441. Application for license.
1. Form. Any person, copartnership or corporation desiring to
act as a real estate broker or any person desiring to act as
a real estate salesman on or after the first day of October,
nineteen hundred and twenty-two, shall file with the
department of state at its office in Albany an application
for the kind of license desired in such form and detail as
the department shall prescribe, setting forth the following,
if the application be for a broker's license:
(a) The name and residence address of the applicant, and if
an individual the name under which he intends to
conduct business.
If the applicant be a copartnership the name and
residence address of each member thereof and the name
under which the business is to be conducted; or, if the
applicant be a corporation, the name of the corporation
and the name and residence address of each of its
officers.
(b) The place or places, including the city, town or
village, with the street and number, where the business
is to be conducted.
(c) The business or occupation theretofore engaged in by
the applicant, or, if a copartnership, by each member
thereof, or, if a corporation, by each officer thereof,
for a period of two years, immediately preceding the
date of such application, setting forth the place or
places where such business or occupation was engaged in
and the name or names of employers, if any.
(d) Such further information as the department may
reasonably require shall be furnished by the applicant
including sufficient proof of having taken and passed a
written examination and answered such questions as may
be prepared by the department to enable it to determine
the trustworthiness of the applicant if an individual,
or of each member of a co-partnership or each officer
of a corporation for whom a license as a broker is
asked, and his or their competency to transact the
business of real estate broker in such a manner as to
safeguard the interests of the public. In determining
competency, the department shall require proof that the
person being tested to qualify to apply for a broker's
license has a fair knowledge of the English language, a
fair understanding of the general purposes and general
legal effect of deeds, mortgages, land contracts of
sale, and leases, a general and fair understanding of
the obligations between principal and agent, as well as
of the provisions of this act. The applicant must also
furnish proof that he has attended for at least ninety
hours and has successfully completed a real estate
course or courses approved by the secretary of state as
to method and content and supervision which approval
may be withdrawn if in the opinion of the secretary of
state said course or courses are not being conducted
properly as to method, content and supervision, and
that either the applicant has actively participated in
the general real estate brokerage business as a
licensed real estate salesman under the supervision of
a licensed real estate broker for a period of not less
than one year or has had the equivalent experience in
general real estate business for a period of at least
two years, the nature of which experience shall be
established by affidavit duly sworn to under oath
and/or other and further proof required by the
department of state.
In the event the applicant shall be a licensed salesman
under this article and shall have submitted acceptable proof
pursuant to the provisions of either paragraph (f) of
subdivision one-A of this section or paragraph (a) of
subdivision three of this section of having attended and
successfully completed forty-five hours of an approved real
estate course or courses within four years of the date of
the application, the department may accept and credit same
against the ninety hours required hereunder.
1-a. Every application for a real estate salesman's license shall
set forth:
(a) The name and residence address of the applicant.
(b) The name and principal business address of the broker
with whom he is to be associated.
(c) The business or occupation engaged in for the two years
immediately preceding the date of the application,
setting forth the place or places where such business
or occupation was engaged in, and the name or names of
employers if any.
(d) The length of time he has been engaged in the real
estate business.
(e) Each applicant for a salesman's license shall provide
such further information as the department may
reasonably require, appearing at such time and place as
may be designated by the department, to take a written
examination and answer such questions as may be
prepared by the department to enable it to determine
the trustworthiness of the applicant and the
applicant's competence to transact the business of real
estate salesman in such a manner as to safeguard the
interests of the public, including the applicant's
working knowledge of the basic concepts of law
pertaining to contracts, real property, agency and this
article which govern conduct of such business, mastery
of basic skills needed to perform the applicant's
duties, working knowledge of the ethical obligations of
a real estate salesman, and knowledge of the provisions
of the general obligations law pertaining to
performance of the applicant's duties.
Each application for either a broker's or salesman's license
under this article shall be subscribed by the applicant; or
if made by a co-partnership it shall be subscribed by a
member thereof, or if made by a corporation it shall be
subscribed by an officer thereof. Each application shall
contain an affirmation by the person so subscribing that the
statements therein are true under the penalties of perjury.
An application for a license shall be accompanied by the
appropriate license fee, as hereinafter prescribed in this
article.
(f) Anything to the contrary herein notwithstanding, on and
after the effective date of this paragraph, no
salesman's license or conditional license shall be
issued by the department unless the application
therefor has been accompanied by proof that prior to
such application the applicant has attended at least
forty-five hours and successfully completed a real
estate course or courses approved by the secretary of
state as to method and content and supervision, which
approval may be withdrawn if in the opinion of the
secretary of state said course or courses are not
properly conducted as to method, content and
supervision.
2. Renewals. Any license granted under the provision hereof may
be renewed by the department upon application therefor by
the holder thereof, in such form as the department may
prescribe, and payment of the fee for such license. In case
of application for renewal of license, the department may
dispense with the requirement of such statements as it deems
unnecessary in view of those contained in the original
application for license. A renewal period within the meaning
of this act is considered as being a period of two years
from the date of expiration of a previously issued license.
The department shall require any applicant, who does not
apply for renewal of license within such period, to qualify
by passing the written examination as provided herein, and
may require any licensee who has not yet passed the written
examination, and who cannot reasonably prove to the
satisfaction of the department, that he can meet the
competency requirements, to pass the written examination
before a renewal of license shall be granted; provided,
however, that a person who failed or was unable to renew his
license by reason of his induction or enlistment in the
armed forces of the United States shall not be required to
take or pass such examination.
3. (a) No renewal license shall be issued any licensee
under this article for any license period commencing
November first, nineteen hundred ninety-five unless
such licensee shall have within the two year period
immediately preceding such renewal attended at least
twenty-two and one-half hours and successfully
completed a continuing education real estate course or
courses approved by the secretary of state as to
method, content and supervision, which approval may be
withdrawn if in the opinion of the secretary of state
such course or courses are not being conducted properly
as to method, content and supervision. The licensee
shall provide an affidavit, in a form acceptable to the
department of state, establishing the nature of the
continuing education acquired and shall provide such
further proof as required by the department of state.
The provisions of this paragraph shall not apply to any
licensed real estate broker who is engaged full time in
the real estate business and who has been licensed
under this article for at least fifteen consecutive
years immediately preceding such renewal.
(b) Notwithstanding the provisions of section four hundred
one of the state administrative procedure act, except
as provided in this paragraph, no license issued under
this article shall continue in effect beyond the period
for which it is issued if the proof of attendance
required hereunder is not submitted and accepted prior
to such expiration date. The department in its
discretion may however issue a temporary renewal
license for such period of time it deems appropriate to
permit the submission of the required proof of
attendance when the failure to submit such proof is not
due to the fault of the licensee.
(c) The secretary of state, no later than November first,
nineteen hundred seventy-nine, shall promulgate rules
establishing the method, content and supervision
requirements of the continuing education real estate
course or courses provided for in this section. In
establishing the requirements for the continuing
education course or courses, the secretary of state
shall permit alternatives with respect to content and
method of presentation in consideration of the type of
brokerage practiced and the availability of the sources
of such course or courses in different areas of the
state. Each course shall, however, be presented in an
appropriate class room setting, have an established
curriculum composed primarily of real estate practice
and professional responsibility and ethics and properly
prepared written materials of the subject matter which
shall be distributed as part of the course. It shall be
taught by a qualified faculty with attorneys presenting
legal subjects. Credit shall be awarded on the basis of
one hour for each sixty minutes of actual attendance
and records shall be maintained of attendance at each
session which shall be transmitted to the department at
the conclusion of the course.
4. The fees provided for by this section shall not be
refundable.
Sec. 441-a. License and pocket card.
1. The department of state, if satisfied of the competency and
trustworthiness of the applicant, shall issue and deliver to
him a license in such form and manner as the department
shall prescribe, but which must set forth the name and
principal business address of the licensee, and, in the case
of a real estate salesman, the name and business address of
the broker with whom the salesman is associated.
2. Terms. A license issued or reissued under the provisions of
this article shall entitle the person, co-partnership or
corporation to act as a real estate broker, or, if the
application is for a real estate salesman's license, to act
as a real estate salesman in this state up to and including
the thirty-first day of October of the year in which the
license by its terms expires.
3. Place of business; business sign required. Except as
otherwise provided in this article, each licensed real
estate broker shall have and maintain a definite place of
business within this state, and shall conspicuously post on
the outside of the building in which said office is
conducted a sign of a sufficient size to be readable from
the sidewalk indicating the name and the business of the
applicant as a licensed real estate broker, unless said
office shall be located in an office, apartment or hotel
building, in which event the name and the words "licensed
real estate broker" shall be posted in the space provided
for posting of names of occupants of the building, other
than the mail box. Where the applicant for a real estate
broker's license maintains more than one place of business,
the broker shall apply for and the department shall issue a
supplemental license for each branch office so maintained
upon payment to the department of state for each
supplemental license so issued the same fee prescribed in
this article for a license to act as a real estate broker.
Such fee shall accompany such application and shall be non-
refundable. For purposes of this subdivision, the principal
residence of a real estate broker or salesman shall not be
deemed a place of business solely because such broker or
salesman shall have included the residence telephone number
in his business cards.
4. Display of license. The license of a real estate broker
shall be conspicuously displayed in his principal place of
business at all times. Licenses issued for branch offices
shall be conspicuously displayed therein. The display of a
real estate broker's license, the term whereof has expired,
by any person, partnership or corporation not duly licensed
as a real estate broker for the current license term is
prohibited.
5. Change of address. Notice in writing in the manner and form
prescribed by the department shall be given the department
at its offices in Albany by a licensed real estate broker on
his own behalf and on behalf of each salesman associated
with him of any change in his or its principal business
address. The filing fee of ten dollars for each licensee
named therein shall accompany such notice. Such change by a
licensee without such notification shall operate to suspend
his license until such suspension shall be vacated by the
department.
6. Pocket card. The department shall prepare, issue and deliver
to each licensee a pocket card in such form and manner as
the department shall prescribe, but which shall contain the
name and business address of the licensee, and, in the case
of a real estate salesman, the name and business address of
the broker with whom he or she is associated and shall
certify that the person whose name appears thereon is a
licensed real estate broker or salesman, as may be. Such
cards must be shown on demand. In the case of loss,
destruction or damage, the secretary of state may, upon
submission of satisfactory proof, issue a duplicate pocket
card upon payment of a fee of ten dollars.
7. License term. From and after the date when this subdivision
shall take effect, the term for which a license shall be
issued or reissued under this article shall be a period of
two years.
8. Death of broker. A license issued to a real estate broker
who was, at the time of his death, the sole proprietor of a
brokerage office may be used after the death of such
licensee by his duly appointed administrator or executor in
the name of the estate pursuant to authorization granted by
the surrogate under the provisions of the surrogate's court
procedure act for a period of not more than one hundred
twenty days from the date of death of such licensee in order
to complete any unfinished realty transactions in the
process of negotiation by the broker or his salesmen
existing prior to his decease. There shall be endorsed upon
the face of the license, after the name of the decedent, the
words "deceased", the date of death and the name of the
administrator or executor under whose authority the license
is being used. The period of one hundred twenty days may be
extended upon application to the secretary of state, for
good cause shown, for an additional period not to exceed one
hundred twenty days. A license expiring during such period
or extension shall be automatically renewed and continued in
effect during such period or extension. No fee shall be
charged for any such license or renewal thereof.
9. Except for changes made on a renewal application, the fee
for changing an address on a license shall be ten dollars.
10. Except for changes made on a renewal application, the fee
for changing a name or for changing the status of a real
estate broker's license shall be one hundred fifty dollars.
The fee for changing a salesperson's name shall be fifty
dollars.
11. If a real estate salesperson shall leave the service of a
real estate broker, the real estate broker shall file a
termination of association notice on such form as secretary
may designate. The fee for terminating the record of
association shall be ten dollars. The salesperson's license
may be endorsed to a new sponsoring broker upon the
establishment of a new record of association filed with the
department of state. The fee for filing a record of
association shall be ten dollars.
Sec. 441-b. License fees.
1. The fee for a license issued or reissued under the
provisions of this article entitling a person, co-
partnership or corporation to act as a real estate broker
shall be one hundred fifty dollars. The fee for a license
issued or reissued under the provisions of this article
entitling a person to act as a real estate salesman shall be
fifty dollars. Notwithstanding the provisions of subdivision
seven of Section four hundred forty-one-a of this article,
after January first, nineteen hundred eighty-six, the
secretary of state shall assign staggered expiration dates
for outstanding licenses that have been previously renewed
on October thirty-first of each year from the assigned date
unless renewed. If the assigned date results in a term that
exceeds twenty-four months, the applicant shall pay an
additional prorated adjustment together with the regular
renewal fee. The secretary of state shall assign dates to
existing licenses in a manner which shall result in a term
of not less than two years.
1-a. The fee for a person to take an examination offered by the
secretary of state pursuant to this article shall be fifteen
dollars. Fees collected for written examinations shall be
paid into the licensing examinations services account
pursuant to section ninety-seven-aa of the state finance
law.
2. Corporations and co-partnerships. If the licensee be a
corporation, the license issued to it shall entitle the
president thereof or such other officer as shall be
designated by such corporation, to act as a real estate
broker. For each other officer who shall desire to act as a
real estate broker in behalf of such corporation an
additional license expiring on the same date as the license
of the corporation shall be applied for and issued, as
hereinbefore provided, the fee for which shall be the same
as the fee required by this section for the license to the
corporation. No license as a real estate salesman shall be
issued to any officer of a corporation nor to a member of a
co-partnership licensed as a real estate broker. If the
licensee be a co-partnership the license issued to it shall
entitle one member thereof to act as a real estate broker,
and for each other member of the firm who desires to act as
a real estate broker an additional license expiring on the
same date as the license of the co-partnership shall be
applied for and issued, as hereinbefore provided, the fee
for which shall be the same as the fee required by this
section for the license to the co-partnership. In case a
person licensed individually as a real estate broker
thereafter becomes an officer of a corporation or a member
of a co-partnership an application shall be made in behalf
of such corporation or co-partnership for a broker's license
for him as its representative for the remainder of the then
current license term, provided that the license and pocket
card previously issued to the licensee in his individual
capacity shall have been returned to the department
whereupon the department shall cause a properly signed
endorsement to be made without charge on the face of such
license and pocket card as to such change of license status
and return the license and pocket card to the licensee.
3. Disposition of fees. The department of state shall on the
first day of each month make a verified return to the
department of taxation and finance of all fees received by
it under this article during the preceding calendar month,
stating from what city or county received and by whom and
when paid. The department shall on or before the tenth day
of each month pay into the state treasury all monies to its
credit on account of fees under this article, at the close
of business on the last day of the preceding month.
Sec. 441-c. Revocation and suspension of licenses.
1. Powers of department. The department of state may revoke the
license of a real estate broker or salesman or suspend the
same, for such period as the department may deem proper, or
in lieu thereof may impose a fine not exceeding one thousand
dollars payable to the department of state, or a reprimand
upon conviction of the licensee of a violation of any
provision of this article, or for a material misstatement in
the application for such license, or if such licensee has
been guilty of fraud or fraudulent practices, or for
dishonest or misleading advertising, or has demonstrated
untrustworthiness or incompetency to act as a real estate
broker or salesman, as the case may be. In the case of a
real estate broker engaged in the business of a tenant
relocator, untrustworthiness or incompetency shall include
engaging in any course of conduct including, but not limited
to, the interruption or discontinuance of essential building
service, that interferes with or disturbs the peace,
comfort, repose and quiet enjoyment of a tenant.
2. Determination of department. In the event that the
department shall revoke or suspend any such license, or
impose any fine or reprimand on the holder thereof, its
determination shall be in writing and officially signed. The
original of such determination, when so signed, shall be
filed in the office of the department and copies thereof
shall be served personally or by registered mail upon the
broker or salesman and addressed to the principal place of
business of such broker or salesman, and to the complainant.
All brokers' and salesmen's licenses and pocket cards shall
be returned to the department of state within five days
after the receipt of notice of a revocation or suspension,
or in lieu thereof, the broker or salesman whose license has
been revoked or suspended shall make and file an affidavit
in form prescribed by the department of state, showing that
the failure to return such license and pocket card is due
either to loss or destruction thereof.
3. The display of a real estate broker's license after the
revocation or suspension thereof is prohibited.
4. Whenever the license of a real estate broker or real estate
salesman is revoked by the department, such real estate
broker or real estate salesman shall be ineligible to be
relicensed either as a real estate broker or real estate
salesman until after the expiration of a period of one year
from the date of such revocation.
Sec. 441-d. Salesman's license suspended by revocation or
suspension of employer's license.
The revocation or suspension of a broker's license shall operate
to suspend the license of each real estate salesman associated
with such broker, pending a change of association of the salesman
or the expiration of the period of suspension of the broker's
license. Such suspension of the salesman's license shall be
deemed to be a discontinuance of association with the broker
being suspended.
Sec. 441-e. Denial of license; complaints; notice of hearing.
1. Denial of license. The department of state shall, before
making a final determination to deny an application for a
license, notify the applicant in writing of the reasons for
such proposed denial and shall afford the applicant an
opportunity to be heard in person or by counsel prior to
denial of the application. Such notification shall be served
personally or by certified mail or in any manner authorized
by the civil practice law and rules. If the applicant is a
salesman or has applied to become a salesman, the department
shall also notify the broker with whom such salesman is
associated, or with whom such salesman or applicant is about
to become associated, of such proposed denial. If a hearing
is requested, such hearing shall be held at such time and
place as the department shall prescribe. If the applicant
fails to make a written request for a hearing within thirty
days after receipt of such notification, then the
notification of denial shall become the final determination
of the department. The department, acting by such officer or
person in the department as the secretary of state may
designate, shall have the power to subpoena and bring before
the officer or person so designated any person in this
state, and administer an oath to and take testimony of any
person or cause his deposition to be taken. A subpoena
issued under this section shall be regulated by the civil
practice law and rules. If, after such hearing, the
application is denied, written notice of such denial shall
be served upon the applicant personally or by certified mail
or in any manner authorized by the civil practice law and
rules, and if the applicant is a salesman, or has applied to
become a salesman, the department shall notify the broker
with whom such applicant is associated. 2. Revocation,
suspension, reprimands, fines. The department of state
shall, before revoking or suspending any license or imposing
any fine or reprimand on the holder thereof, and at least
ten days prior to the date set for the hearing, notify in
writing the holder of such license of any charges made and
shall afford such licensee an opportunity to be heard in
person or by counsel in reference thereto. Such written
notice may be served by delivery of same personally to the
licensee, or by mailing same by certified mail to the last
known business address of such licensee, or by any method
authorized by the civil practice law and rules. If said
licensee be a salesman, the department shall also notify the
broker with whom he is associated of the charges by mailing
notice by certified mail to the broker's last known business
address. The hearing on such charges shall be at such time
and place as the department shall prescribe. 3. Power to
suspend a license. The department, acting by such officer or
person in the department as the secretary of state may
designate, shall have the power to suspend a license pending
a hearing and to subpoena and bring before the officer or
person so designated any person in this state, and
administer an oath to and take testimony of any person or
cause his deposition to be taken. A subpoena issued under
this section shall be regulated by the civil practice law
and rules.
Sec. 441-f. Judicial review.
The action of the department of state in granting or refusing to
grant or to renew a license under this article or in revoking or
suspending such a license or imposing any fine or reprimand on
the holder thereof or refusing to revoke or suspend such a
license or impose any fine or reprimand shall be subject to
review by a proceeding brought under and pursuant to article
seventy-eight of the civil practice law and rules at the instance
of the applicant for such license, the holder of a license so
revoked, suspended, fined or reprimanded or the person aggrieved.
Sec. 442. Splitting commissions.
No real estate broker shall pay any part of a fee, commission or
other compensation received by the broker to any person for any
service, help or aid rendered in any place in which this article
is applicable, by such person to the broker in buying, selling,
exchanging, leasing, renting or negotiating a loan upon any real
estate including the resale of a condominium unless such a person
be a duly licensed real estate salesman regularly associated with
such broker or a duly licensed real estate broker or a person
regularly engaged in the real estate brokerage business in a
state outside of New York.
Furthermore, notwithstanding any other provision of law, it shall
be permissible for a broker properly registered pursuant to the
provisions of article twenty-three-A of the general business law
who earns a commission on the original sale of a cooperative or
homeowners association interest in real estate, including
condominium units to pay any part of a fee, commission or other
compensation received for bringing about such sale to a person
whose prinicipal business is not the sale or offering of
cooperatives or homeowners association interests in real
property, including condominium units in this state but who is
either: (i) a real estate salesman duly licensed under this
article who is regularly associated with such broker; (ii) a
broker duly licensed under this article; or a person regularly
engaged in the real estate brokerage business in a state outside
of New York.
Except when permitted pursuant to the foregoing provisions of
this Section no real estate broker shall pay or agree to pay any
part of a fee, commission, or other compensation received by the
broker, or due, or to become due to the broker to any person,
firm or corporation who or which is or is to be a party to the
transaction in which such fee, commission or other compensation
shall be or become due to the broker.
Sec. 442-a. Compensation of salesmen; restrictions.
No real estate salesman in any place in which this article is
applicable shall receive or demand compensation of any kind from
any person, other than a duly licensed real estate broker with
whom he associated, for any service rendered or work done by such
salesman in the appraising, buying, selling, exchanging, leasing,
renting or negotiating of a loan upon any real estate.
Sec. 442-b. Discontinuance or change of salesman's
association; report.
When the association of any real estate salesman shall have been
terminated for any reason whatsoever, his broker shall forthwith
notify the department of state thereof in such manner as the
department shall prescribe. Where change of such salesman's
association is the basis for such termination, the salesman's
successor broker shall forthwith notify the department of such
change in such manner as the department shall prescribe, such
notice to be accompanied by a fee of one dollar. No real estate
salesman shall perform any act within any of the prohibitions of
this article from and after the termination for any cause of his
association until he thereafter shall have become associated with
a licensed real estate broker.
Sec. 442-c. Violations by salesmen; broker's responsibility.
No violation of a provision of this article by a real estate
salesman or employee of a real estate broker shall be deemed to
be cause for the revocation or suspension of the license of the
broker, unless it shall appear that the broker had actual
knowledge of such violation or retains the benefits, profits or
proceeds of a transaction wrongfully negotiated by his salesman
or employee after notice of the salesman's or employee's
misconduct. A broker shall be guilty of a misdemeanor for having
any salesman associated with his firm who has not secured the
required license authorizing such employment.
Sec. 442-d. Actions for commissions; license prerequisite.
No person, copartnership or corporation shall bring or maintain
an action in any court of this state for the recovery of
compensation for services rendered, in any place in which this
article is applicable, in the buying, selling, exchanging,
leasing, renting or negotiating a loan upon any real estate
without alleging and proving that such person was a duly licensed
real estate broker or real estate salesman on the date when the
alleged cause of action arose.
Sec. 442-e. Violations.
1. Misdemeanors; triable in court of special sessions. Any
person who violates any provision of this article shall be
guilty of a misdemeanor. The commission of a single act
prohibited by this article shall constitute a violation
hereof. All courts of special sessions, within their
respective territorial jurisdictions, are hereby empowered
to hear, try and determine such crimes, without indictment,
and to impose the punishments prescribed by law therefor.
2. Attorney general to prosecute. Criminal actions for
violations of this article shall be prosecuted by the
attorney general, or his deputy, in the name of the people
of the state, and in any such prosecution the attorney
general, or his deputy, shall exercise all the powers and
perform all the duties which the district attorney would
otherwise be authorized to exercise or to perform therein.
The attorney general shall, upon a conviction for a
violation of any provision of this article, and within ten
days thereafter, make and file with the department of state
a detailed report showing the date of such conviction, the
name of the person convicted and the exact nature of the
charge.
3. Penalty recoverable by person aggrieved. In case the
offender shall have received any sum of money as commission,
compensation or profit by or in consequence of his violation
of any provision of this article, he shall also be liable to
a penalty of not less than the amount of the sum of money
received by him as such commission, compensation or profit
and not more than four times the sum so received by him, as
may be determined by the court, which penalty may be sued
for and recovered by any person aggrieved and for his use
and benefit, in any court of competent jurisdiction.
4. In any prosecution under this article, any person, firm or
corporation who, for another, performs or offers to perform
or attempts or offers to attempt, the performance of any one
of the acts set forth in Section four hundred forty of this
article, shall be presumed to do so for a fee, commission or
other valuable consideration, but such presumption shall not
arise out of a single transaction, except upon proof of
repeated and successive acts, offers or attempts of a like
nature.
5. The secretary of state shall have the power to enforce the
provisions of this article and upon complaint of any person,
or on his own initiative, to investigate any violation
thereof or to investigate the business, business practices
and business methods of any person, firm or corporation
applying for or holding a license as a real estate broker or
salesman, if in the opinion of the secretary of state such
investigation is warranted. Each such applicant or licensee
shall be obliged, on request of the secretary of state, to
supply such information as may be required concerning his or
its business, business practices or business methods, or
proposed business practices or methods.
6. For the purpose of enforcing the provisions of this article
and in making investigations relating to any violation
thereof, and for the purpose of investigating the character,
competency and integrity of the applicants or licensees
hereunder, and for the purpose of investigating the
business, business practices and business methods of any
applicant or licensee, or of the officers or agents thereof,
the department of state, acting by such officer or person in
the department as the secretary of state may designate,
shall have the power to subpoena and bring before the
officer or person so designated any person in this state and
require the production of any books or papers which he deems
relevant to the inquiry and administer an oath to and take
testimony of any person or cause his deposition to be taken
with the same fees and mileage and in the same manner as
prescribed by law for civil cases in a court of record,
except that any applicant or licensee or officer or agent
thereof shall not be entitled to such fees and/or mileage.
Any person, duly subpoenaed, who fails to obey such subpoena
without reasonable cause or without such cause refuses to be
examined or to answer any legal or pertinent question as to
the character or qualification of such applicant or licensee
or such applicant's or licensee's business, business
practices and methods or such violations, shall be guilty of
a misdemeanor.
7. In any criminal proceeding before any court or grand jury,
or upon any investigation before the department of state for
a violation of any of the provisions of this section, the
court or grand jury, or the secretary of state, his deputy
or other officer conducting the investigation, may confer
immunity, in accordance with the provisions of section 50.20
or 190.40 of the criminal procedure law.
Sec. 442-f. Saving clause.
The provisions of this article shall not apply to receivers,
referees, administrators, executors, guardians or other persons
appointed by or acting under the judgment or order of any court;
or public officers while performing their official duties, or
attorneys at law.
Sec. 442-g. Nonresident licensees.
1. A nonresident of this state may become a real estate broker
or a real estate salesman by conforming to all of the
provisions of this article, except that a nonresident broker
regularly engaged in the real estate business as a vocation
who is licensed and maintains a definite place of business
in another state, which offers the same privileges to the
licensed brokers of this state, shall not be required to
maintain a place of business within this state. Anything to
the contrary herein notwithstanding, if any state prohibits
or restricts the right of a resident of this state to become
a licensed nonresident real estate broker or salesman, then
the issuance of such a license to an applicant resident in
such state shall be similarly restricted. The department of
state shall recognize the license issued to a real estate
broker or salesman by another state as satisfactorily
qualifying him for license as broker or salesman, as the
case may be, under this Section; provided that the laws of
the state of which he is a resident require that applicants
for licenses as real estate brokers and salesmen shall
establish their competency by written examinations but
permit licenses to be issued to residents of the State of
New York duly licensed under this article, without
examination. If the applicant is a resident of a state which
has not such requirement then the applicant must meet the
examination requirement as provided herein and the
department of state shall issue a license to such
nonresident broker or salesman upon payment of the license
fee and the filing by the applicant with the department of a
certified copy of the applicant's license issued by such
other state.
2. Every nonresident applicant shall file with his application
or renewal application an irrevocable consent on a form
prescribed by the department of state submitting himself to
the jurisdiction of the courts of this state and designating
the secretary of state of the state of New York as his agent
upon whom may be served any summons, subpoena or other
process against him in any action or special proceeding.
Such process may issue in any court in this state having
jurisdiction of the subject matter, and the process shall
set forth that the action or special proceeding is within
the jurisdiction of the court.
3. Service of such process upon the secretary of state shall be
made by personally delivering to and leaving with him or his
deputy or with any person authorized by the secretary of
state to receive such service, at the office of the
department of state in the city of Albany, duplicate copies
of such process together with a fee of five dollars if the
action is solely for the recovery of a sum of money not in
excess of two hundred dollars and the process is so
endorsed, and a fee of ten dollars in any other action or
proceeding, which fee shall be a taxable disbursement. If
such process is served upon behalf of a county, city, town
or village, or other political subdivision of the state, the
fee to be paid to the secretary of state shall be five
dollars, irrespective of the amount involved or the nature
of the action on account of which such service of process is
made. If the cost of registered mail for transmitting a copy
of the process shall exceed two dollars, an additional fee
equal to such excess shall be paid at the time of the
service of such process. Proof of service shall be by
affidavit of compliance with this subdivision filed by or on
behalf of the plaintiff together with the process, within
ten days after such service, with the clerk of the court in
which the action or special proceeding is pending. Service
made as provided in this section shall be complete ten days
after such papers are filed with the clerk of the court and
shall have the same force and validity as if served on him
personally within the state and within the territorial
jurisdiction of the court from which the process issues.
4. The secretary of state shall promptly send one of such
copies by registered mail, return receipt requested, to the
nonresident broker or nonresident salesman at the post
office address of his main office as set forth in the last
application filed by him.
5. Nothing in this section shall effect the right to serve
process in any other manner permitted by law.
Sec. 442-h. Rules of the secretary of state.
1. The secretary of state shall adopt such rules and
regulations as the secretary of state may determine are
necessary for the administration and enforcement of this
article.
2. (a) If, after a public hearing and a reasonable
investigation, the secretary of state determines that
the owners of residential real property within a
defined geographic area are subject to intense and
repeated solicitations by real estate brokers and
salespersons to place their property for sale with such
real estate brokers or salespersons, and that such
solicitations have caused owners to reasonably believe
that property values may decrease because persons of
different race, ethnic, social, or religious
backgrounds are moving or are about to move into the
neighborhood or geographic area, the secretary of state
may adopt a rule, to be known as a nonsolicitation
order, directing all real estate brokers and
salespersons to refrain from soliciting residential
real estate listings within the subject area. Each area
subject to such an order shall be bounded or otherwise
specifically defined in the order. The nonsolicitation
order shall be subject to such terms and conditions as
the secretary of state may determine are, on balance,
in the best interest of the public, including but not
limited to the affected owners and licensees. A
nonsolicitation order may prohibit any or all types of
solicitation directed towards particular home-owners,
including but not limited to letters, postcards,
telephone calls, door-to-door calls, and handbills.
Every nonsolicitation order shall contain a provision
setting forth the day, month and year that the order
shall become effective, as well as the day, month and
year that the order shall expire. A nonsolicitation
order shall not be effective for more than five years.
However, a nonsolicitation order and the boundaries of
the area where it applies may be re-adopted or amended
from time to time in accordance with the procedures set
forth herein.
(b) No real estate broker shall establish a new principal
office or branch office within any geographic area
which is the subject of a nonsolicitation order without
prior approval from the secretary of state. The
secretary of state may deny any application for the
establishment or relocation of a principal office or
branch office if approval of the application would
cause the total number of principal and branch offices
within the subject area to exceed the total number of
principal and branch offices that were licensed within
the area on the date the nonsolicitation order became
effective.
3. (a) If the secretary of state determines that some
owners of residential real property within a defined
geographic area are subject to intense and repeated
solicitation by real estate brokers and salespersons to
place their property for sale with such real estate
brokers or salesperson, the secretary of state may
adopt a rule establishing a cease and desist zone,
which zone shall be bounded or otherwise specifically
defined in the rule. After the secretary of state has
established a cease and desist zone, the owners of
residential real property located within the zone may
file an owner's statement with the secretary of state
expressing their wish not to be solicited by real
estate brokers or salespersons. The form and content of
the statement shall be prescribed by the secretary of
state. After a cease and desist zone has been
established by the secretary of state, no real estate
broker or salesperson shall solicit a listing from any
owner who has filed a statement with the secretary of
state if such owner's name appears on the current cease
and desist list prepared by the secretary of state. The
prohibition on solicitation shall apply to direct forms
of solicitation such as the use of the telephone, the
mail, personal contact and other forms of direct
solicitation as may be specified by the secretary of
state.
(b) The secretary of state shall compile a cease and desist
list for each zone established pursuant to paragraph
(a) of this subdivision. In addition to such other
information as the secretary of state may deem
appropriate, each cease and desist list shall contain
the name of each owner who has filed an owner's
statement with the secretary, as well as the address of
the property within the zone to which the owner's
statement applies. The secretary of state shall print a
list for each zone. Each list shall be revised and
reprinted at least annually on or before December
thirty-first and shall be made available to the public
and to real estate brokers at a reasonable price to be
set by the secretary of state and approved by the
director of the division of the budget. Additions or
deletions shall be made to each list only at the time
the list is reprinted, and the secretary of state shall
not issue amendments or addenda to any printed list.
(c) No rule establishing a cease and desist zone shall be
effective for longer than five years. However, the
secretary of state may re-adopt the rule to continue
the cease and desist zone for additional periods not to
exceed five years each. Whenever a rule establishing a
cease and desist zone shall have expired or shall have
been repealed, all owner's statements filed with the
secretary of state pursuant to that rule shall also
expire. However, an owner may file a new statement with
the secretary of state if a new rule is adopted
establishing a cease and desist zone containing the
owner's property. Once the boundaries of a cease and
desist zone have been established by rule of the
secretary of state, the boundaries may not be changed
except by repeal of the existing rule and adoption of a
new rule establishing the new boundaries.
Sec. 442-j. Enforcement; advisory committee of real estate
brokers; employees.
The department of state shall enforce the provisions of this
article. The secretary of state may appoint an advisory committee
of seven duly licensed real estate brokers, to assist the
department in the administration and enforcement of this article.
The members of such committee shall serve without compensation
but shall be entitled to their reasonable traveling expenses
necessarily incurred in the performance of their duties. The
secretary may, subject to the civil service law and within the
amount of appropriations available therefor, employ and fix the
compensation of such employees as may be necessary for the
efficient administration of this article, who shall exercise such
of the powers and perform such of the duties conferred upon and
imposed upon the department by this article as he may delegate to
such employees.
Sec. 442-k. Effect of invalid provision.
Should the courts of this state declare any provision of this
article unconstitutional, or unauthorized, or in conflict with
any other Section or provision of this article, then such
decision shall affect only the section or provision so declared
to be unconstitutional or unauthorized and shall not affect any
other Section or part of this article.
Sec. 443. Disclosure regarding real estate agency
relationship; form.
1. Definitions. As used in this section, the following terms
shall have the following meanings:
a. "Agent" means a person who is licensed as a real estate
broker or real estate sales associate under section 440-
a of this article and is acting in a fiduciary
capacity.
b. "Buyer" means a transferee or lessee in a residential
real property transaction and includes a person who
executes an offer to purchase or to lease residential
real property from a seller through an agent, or who
has engaged the services of an agent with the object of
entering into a residential real property transaction
as a transferee or lessee.
c. "Buyer's agent" means an agent who contracts to locate
residential real property for a buyer or who finds a
buyer for a property and presents an offer to purchase
to the seller or seller's agent and negotiates on
behalf of the buyer.
d. "Listing agent" means a person who has entered into a
listing agreement to act as an agent of the seller for
compensation.
e. "Listing agreement" means a contract between an owner
or owners of residential real property and an agent, by
which the agent has been authorized to sell or lease
the residential real property or to find or obtain a
buyer or lessee therefor.
f. "Residential real property" means real property
improved by a one-to-four family dwelling used or
occupied, or intended to be used or occupied, wholly or
partly, as the home or residence of one or more
persons, but shall not refer to (i) unimproved real
property upon which such dwellings are to be
constructed or (ii) condominium or cooperative
apartments in a building containing more than four
units.
g. "Seller" means the transferor or lessor in a
residential real property transaction, and includes an
owner who lists residential real property for sale or
lease with an agent, whether or not a transfer or lease
results, or who receives an offer to purchase or lease
residential real property.
h. "Seller's agent" means a listing agent who acts alone,
or an agent who acts in cooperation with a listing
agent, acts as a seller's subagent or acts as a
broker's agent to find or obtain a buyer for
residential real property.
2. This section shall apply only to transactions involving
residential real property.
3. a. A listing agent shall provide the disclosure form
set forth in subdivision four of this section to a
seller prior to entering into a listing agreement with
the seller and shall obtain a signed acknowledgment
from the seller, except as provided in paragraph f of
this subdivision.
b. A seller's agent shall provide the disclosure form set
forth in subdivision four of this section to a buyer or
buyer's agent at the time of the first substantive
contact with the buyer and shall obtain a signed
acknowledgement from the buyer, except as provided in
paragraph f of this subdivision.
c. A buyer's agent shall provide the disclosure form to
the buyer prior to entering into an agreement to act as
the buyer's agent and shall obtain a signed
acknowledgment from the buyer, except as provided in
paragraph f of this subdivision. A buyer's agent shall
provide the form to the seller or seller's agent at the
time of the first substantive contact with the seller
and shall obtain a signed acknowledgment from the
seller or the seller's listing agent, except as
provided in paragraph f of this subdivision.
d. The parties to a contract of purchase and sale shall
sign the acknowledgment of the parties to the contract.
If attorneys for the buyer and seller arrange for the
preparation and execution of a contract, the real
estate licensees are not responsible for obtaining the
acknowledgement of the parties as required by this
paragraph.
e. The agent shall provide to the buyer or seller a copy
of the signed acknowledgment and shall maintain a copy
of the signed acknowledgment for not less than three
years.
f. If the seller or buyer refuses to sign an
acknowledgment of receipt pursuant to this subdivision,
the agent shall set forth under oath or affirmation a
written declaration of the facts of the refusal and
shall maintain a copy of the declaration for not less
than three years.
4. The following shall be the disclosure form:
DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS
Before you enter into a discussion with a real estate agent
regarding a real estate transaction, you should understand
what type of agency relationship you wish to have with that
agent.
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.
SELLER'S OR LANDLORD'S AGENT
If you are interested in selling or leasing real property,
you can engage a real estate agent as a seller's agent. A
seller's agent, including a listing agent under a listing
agreement with the seller, acts solely on behalf of the
seller. You can authorize a seller's or landlord's agent to
do other things including hire subagents, broker's agents or
work with other agents such as buyer's agents on a
cooperative basis. A subagent, is one who has agreed to work
with the seller's agent, often through a multiple listing
service. A subagent may work in a different real estate
office.
A seller's agent has, without limitation, the following
fiduciary duties to the seller: reasonable care, undivided
loyalty, confidentiality, full disclosure, obedience and a
duty to account.
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 OR TENANT'S AGENT
If you are interested in buying or leasing real property,
you can engage a real estate agent as a buyer's or tenant's
agent. A buyer's agent acts solely on behalf of the buyer.
You can authorize a buyer's agent to do other things
including hire subagents, broker's agents or work with other
agents such as seller's agents on a cooperative basis.
A buyer's agent has, without limitation, the following
fiduciary duties to the buyer: reasonable care, undivided
loyalty, confidentiality, full disclosure, obedience and a
duty to account.
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
As part of your negotiations with a real estate agent, you
may authorize your agent to engage other agents whether you
are a buyer/tenant or seller/landlord. As a general rule,
those agents owe fiduciary duties to your agent and to you.
You are not vicariously liable for their conduct.
AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent acting directly or through an associated
licensee, can be the agent of both the seller/landlord and
the buyer/tenant in a transaction, but only with the
knowledge and informed consent, in writing, of both the
seller/landlord and the buyer/tenant.
In such a dual agency situation, the agent will not be able
to provide the full range of fiduciary duties to the
buyer/tenant and seller/landlord.
The obligations of an agent are also subject to any specific
provisions set forth in an agreement between the agent and
the buyer/tenant and seller/landlord.
An agent acting as a dual agent must explain carefully to
both the buyer/tenant and seller/landlord 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/tenant and seller/landlord are giving up their
right to undivided loyalty.
A BUYER/TENANT OR SELLER/LANDLORD SHOULD CAREFULLY CONSIDER
THE POSSIBLE CONSEQUENCES OF A DUAL AGENCY RELATIONSHIP
BEFORE AGREEING TO SUCH REPRESENTATION.
GENERAL CONSIDERATIONS
You should carefully read all agreements to ensure that they
adequately express your understanding of the transaction. A
real estate agent is a person qualified to advise about real
estate. If legal, tax or other advice is desired, consult a
competent professional in that field.
Throughout the transaction you may receive more than one
disclosure form. The law requires each agent assisting in
the transaction to present you with this disclosure form.
You should read its contents each time it is presented to
you, considering the relationship between you and the real
estate agent in your specific transaction.
ACKNOWLEDGEMENT ACKNOWLEDGEMENT OF PROSPECT
OF PROSPECTIVE BUYER/TENANT SELLER/LANDLORD
(1) I have received and read this (1) I have received and read
disclosure notice. this disclosure notice.
(2) I understand that a seller's (2) I understand that a
/landlord's agent, including a seller's/landlord's agent,
listing agent, is the agent of the including a listing agent, is
seller/landlord exclusively, un- the agent of the seller/
less the seller/landlord and landlord exclusively, unless
buyer/tenant otherwise agree. the seller/landlord and
buyer/tenant otherwise agree.
(3) I understand that subagents, (3) I understand that subagents,
including subagents participating including subagents
in a multiple listing service, are participating in a multiple
agents of the seller/landlord listing service, are agents
exclusively. of the seller/landlord
exclusively.
(4) I understand that I may en- (4) I understand that a buyer's
gage my own agent to be my buy- /tenant's agent is the agent of
er's/tenant's broker. the buyer/tenant exclusively.
(5) I understand that the agent (5) I understand that the agent
presenting this form to me, presenting this form to me,
____________________________ of __________________________ of
(name of licensee) (name of licensee)
____________________________ is __________________________ is
(name of firm) (name of firm)
(check applicable relationship) (check applicable relationship)
____ an agent of the seller ____ my agent as a seller's/
/landlord landlord's
____ my agent as a buyer's ____ an agent of the buyer/
/tenant's agent tenant
Dated:___________ Dated:______________
Buyer/tenant:______________________
Seller/landlord:___________________
Dated:___________ Dated:_______________
Buyer/tenant:______________________
Seller/landlord:___________________
ACKNOWLEDGMENT OF PROSPECTIVE BUYER/TENANT
AND SELLER/LANDLORD TO DUAL AGENCY
(1) I have received and read this disclosure notice.
(2) I understand that a dual agent will be working for both the
seller/landlord and buyer/tenant.
(3) I understand that I may engage my own agent as a
seller's/landlord's agent or a buyer's/tenant's agent.
(4) I understand that I am giving up my right to the agent's
undivided loyalty.
(5) I have carefully considered the possible consequences of a
dual agency relationship.
(6) I understand that the agent presenting this form to me,
________________________________ of
(name of licensee)
________________________________ is
(name of firm)
a dual agent working for both the buyer/tenant and
seller/landlord, acting as such with the consent of both the
buyer/tenant and seller/landlord and following full disclosure to
the buyer/tenant and seller/landlord.
Dated:______________ Dated:_____________
Buyer/tenant:_____________ Seller/landlord:_______________
Dated:______________ Dated:_____________
Buyer/tenant:________ Seller/landlord:_______________
ACKNOWLEDGMENT OF THE PARTIES TO THE CONTRACT
(1) I have received, read and understand this disclosure notice.
(2) I understand that _________________________________ of
(name of real estate licensee)
_________________________________ is
(name of firm)
(check applicable) ____ an agent of the seller/landlord
relationship) ____ an agent of the buyer/tenant
____ a dual agent working for both
the buyer/tenant and
seller/landlord,
acting as such with the consent
of both buyer/tenant and seller/
landlord and following full
disclosure to the buyer/tenant
and seller/landlord.
I also understand that _____________________________________ of
(name of real estate licensee)
__________________________________ is
(name of firm)
(check applicable ) ____ an agent of the seller/landlord
relationship) ____ an agent of the buyer/tenant
____ a dual agent working for both
the buyer/tenant and
seller/landlord,
acting as such with the consent of
both buyer/tenant and
seller/landlord and
following full disclosure to the
buyer/tenant and seller/landlord.
Dated:_______________________ Dated:_________________________
Buyer/tenant:________________ Seller/landlord:_______________
Dated:_______________________ Dated:_________________________
Buyer/tenant:________________ Seller/landlord:_______________
5. This section shall not apply to a real estate licensee who
works with a buyer or a seller in accordance with terms
agreed to by the licensee and buyer or seller and in a
capacity other than as an agent, as such term is defined in
paragraph a of subdivision one of this section.
6. Nothing in this section shall be construed to limit or alter
the application of the common law of agency with respect to
residential real estate transactions.
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