Effective January 1, 2008 there will be a new Agency Disclosure Form for Buyer's and Seller's to be aware of and to sign. On January 1, 2007 a new and improved form was released this form clarifies that form. If you have been on the market to buy or sell residential property then your agent (broker) should have given you and explained this form to you. It clarifies your rights and what it is you can expect from your agent. What you can expect them to do and to say to protect your interests. If you haven't bought or sold property in a while you might want to take a moment to read the new form. This in important and can effect the outcome of negotiations that you have when buying or selling.
There are several clarifications on this new form. The first is a more concise and detailed definition of what a Broker's Agent is, and who they work for. Another is "Dual Agent with Designated Sales Agents" is also more detailed with the addition of "and advocating on behalf of". A designated agent may advocate on behalf of the party they have been assisgned.
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 associates.
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. 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 withthe 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 AGENT
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 can not 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.
DUAL AGENT WITH DESIGNATED SALES AGENTS
If the buyer and the seller provide their informed consent in writing, the principals or 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 buyeror 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.
This form was provided to me by _________________________________ (print name of licensee) of______________________________________________ (print name of company, firm or brokerage), a licensed real estate broker acting in the interest of the
Sample only: This form cannot be used until January 1, 2008
( )Seller as a (check relationship below) ( )Buyer as a (check relationship below
( )Seller’s agent ( )Buyer’s agent
( )Broker’s agent ( )Broker’s agent
( )Dual agent
( )Dual agent with designated sales agents
If dual agent with designated sales agents is checked:
______________________________is appointed to represent the buyer; and
_______________________________is appointed to represent the seller in this transaction.
(I)(We) ________________________________________________________________________
acknowledge receipt of a copy of this disclosure form:
Signature of [ ] Buyer(s) and/or [ ] Seller(s):
____________________________________ ____________________________________
____________________________________ ____________________________________
Date:________________________________ Date:________________________________
