DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS
FOR BUYERS AND SELLERS
THIS IS NOT A CONTRACT
New YorkStateLaw (Section443of Article12-Aof the RealPropertyLaw)requiresrealestatelicensees
who are actingas agentsof buyersand sellersof propertyto advisethe potentialbuyersand sellerswith
whomthey workof the natureof theiragencyrelationship
it creates.This
and the rightsand obligations
disclosurewill helpyou to makeinformedchoicesaboutyourrelationship
withthe realestatebrokerand its
salesassociates.
Throughoutthe transactionyou may receivemorethan one disclosureform.The law requireseach agent
assistingin the transaction
to presentyou withthisdisclosure
form.A realestateagentis a personqualified
to adviseaboutrealestate.
lf you needlegal,tax or otheradvice,consultwitha professional
in thatfield.
Seller's Agent
Broker's Agent
A seller'sagentis an agentwho is engagedby a A broker'sagent is an agent that cooperatesor is
sellerto representthe seller'sinterest.The seller's engagedby a listingagentor a buyer'sagent(butdoes
agentdoesthisby securinga buyerfor the seller's not work for the same firm as the listing agent or
home at a price and on terms acceptableto the buyer'sagent)to assistthe listingagent or buyer's
seller.A seller'sagenthas,withoutlimitation,
the agentin locatinga propertyto sell or buy,respectively,
following
fiduciarydutiesto the seller:reasonable for the listingagent'sselleror the buyeragent'sbuyer.
care, undivided loyalty, confidentiality,full The broker'sagentdoes not havea directrelationship
disclosure,obedienceand duty to account.A withthe buyeror sellerandthe buyeror sellercan not
seller'sagentdoes not representthe interestsof provideinstructions
or directiondirectlyto the broker's
the buyer.The obligationsof a seller'sagentare agent.The buyerand the sellerthereforedo not have
also subjectto any specificprovisionsset forth in vicariousliabilityfor the actsof the broker'sagent.The
an agreement
betweenthe agentandthe seller.In listingagentor buyer'sagentdo providedirection
and
dealingswiththe buyer,a seller'sagentshould(a) instructionto the broker'sagent and thereforethe
exercisereasonable
skilland care in performance listingagentor buyer'sagentwill have liabilityfor the
of the agent'sduties;(b)dealhonestly,
fairlyand in broker'sagent.
goodfaith;and (c) discloseall factsknownto the
agentmateriallyaffectingthe valueor desirability Dual Agent
providedby law.
of property,exceptas othenryise
A realestatebrokermay representboththe buyerand
sellerif boththe buyerand sellergive their informed
Buyer's Agent
consentin writing.In sucha dual agencysituation,the
A buyer'sagentis an agentwho is engagedby a agent will not be able to providethe full range of
buyer to representthe buyer's interest.The fiduciary
dutiesto the buyerandseller.Theobligations
buyer's agent does this by negotiatingthe of an agentare also subjectto any specificprovisions
purchaseof a home at a price and on terms set forthin an agreementbetweenthe agent,and the
acceptableto the buyer. A buyer'sagent has, buyerandseller.An agentactingas a dualagentmust
withoutlimitation,
the followingfiduciarydutiesto explaincarefullyto both the buyerand sellerthat the
the buyer: reasonablecare; undividedloyalty, agentis actingfor the otherpartyas well. The agent
full disclosure,
confidentiality,
obedience
andduty should also explain the possible effects of dual
to account.A buyer'sagent does not represent representation,
including
thatby consenting
to thedual
the interestof the seller. The obligationsof a agencyrelationship
the buyerand sellerare givingup
buyer's agent are also subject to any specific theirrightto undividedloyalty.
provisionsset forth in an agreementbetweenthe A buyer or seller should carefully consider the
agentand the buyer.In dealingswiththe seller,a possible consequences of a dual agency
buyer'sagentshould(a) exercisereasonable
skill relationship before
agreeing
to
such
and carein performance
of the agent'sduties;(b) representation.
deal honestly,fairly and in good faith; and (c)
discloseall facts known to the agent materially
affectingthe buyer'sabilityand/orwillingnessto
performa contractto acquireseller'spropertythat
yviththe agent'sfiQuqiary
are not inconsistent
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dutiesto the buyer.
Dual Agent with DesignatedSales Agents
lf the buyer and seller providetheir informed
consentin writing,the principalsand the real
estate brokerwho representsboth partiesas a
dual agent may designatea sales agent to
representthe buyer and anothersales agent to
representthe sellerto negotiatethe purchaseand
saleof realestate.A salesagentworksunderthe
supervisionof the real estate broker.With the
informedconsentof the buyerand the sellerin
writing,the designated
salesagentfor the buyer
will functionas the buyer'sagentrepresenting
the
interestsof and advocating
on behalfof the buyer
and the designatedsalesagentfor the sellerwill
function as the seller's agent representingthe
interestsof and advocating
on behalfof the leller
in the negotiations
betweenthe buyerandseller.
A designated
salesagentcannotprovidethe full
rangeof fiduciary
dutiesto the buyeror seller.The
designated
salesagentmustexplainthat likethe
dualagentunderwhosesupervision
theyfunction,
they cannotprovideundividedloyalty.A buyeror
seller should carefully consider the possible
consequences
of a dual agencyrelationship
with
designatedsalesagentsbeforeagreeingto such
representation.
Thisformwas providedto me by
(printnameof licensee)
of
(printnameof company,firmor brokerage),
a licensedrealestatebrokeractingin the interestof the:
( ) Selleras a (checkretationship
below)
( ) Selle/sagent
( ) Broker'sagent
(
( ) Buyeras a (checkretationship
betow)
( ) Buyer'sagent
( ) Broke/sagent
( ) Dual agent
Dual
agent
with designatedsales agents
)
lf dual agent with designatedsales agents is checked:
is appointed
to represent
thebuyer;and
is appointed
to represent
thesellerin thistransaction.
(l , (We)acknowledge
receiptof a copyof thisdisclosure
form:
Signatureof
( ) Buyer(s)andlor( )Seiler(s):
Date:
Revisedl/1/08
Date:
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