STATE OF NEW YORK ________________________________________________________________________ 9686 IN SENATE May 20, 2024 ___________ Introduced by Sen. MYRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property law, in relation to prohibiting single-agent dual agency, requiring representation agreements, allow- ing buyers and tenants to negotiate brokers' fees, and prohibiting landlords, lessors, sub-lessors, and grantors from requiring a tenant to pay brokers' fees as a condition of entering into a lease agreement The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (a) of subdivision 1 of section 238-a of the real 2 property law, as amended by chapter 789 of the laws of 2021, is amended 3 to read as follows: 4 (a) Except in instances where statutes or regulations provide for a 5 payment, fee or charge, no landlord, lessor, sub-lessor or grantor may 6 demand any payment, fee, or charge for the processing, review or accept- 7 ance of an application, or demand any other payment, fee or charge 8 before or at the beginning of the tenancy, including but not limited to 9 brokers' fees, except background checks and credit checks as provided by 10 paragraph (b) of this subdivision, provided that this subdivision shall 11 not apply to entrance fees charged by continuing care retirement commu- 12 nities licensed pursuant to article forty-six or forty-six-A of the 13 public health law, assisted living providers licensed pursuant to arti- 14 cle forty-six-B of the public health law, adult care facilities licensed 15 pursuant to article seven of the social services law, senior residential 16 communities that have submitted an offering plan to the attorney gener- 17 al, or not-for-profit independent retirement communities that offer 18 personal emergency response, housekeeping, transportation and meals to 19 their residents. Nothing in this paragraph shall prohibit a cooperative 20 housing corporation, other than a cooperative housing corporation 21 subject to the provisions of article two, article four, article five or 22 article eleven of the private housing finance law, from demanding from a 23 prospective tenant any payment, fee or charge which is necessary to 24 compensate a managing agent and/or transfer agent for the processing, 25 review or acceptance of such prospective tenant's application where such EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14491-01-4
S. 9686 2 1 prospective tenant would become a dwelling unit owner or shareholder of 2 such cooperative housing corporation. 3 § 2. The real property law is amended by adding a new section 443-b to 4 read as follows: 5 § 443-b. Agency relationships. 1. Definitions. For the purposes of 6 this section: 7 (a) "Dual agent" means an agent who is acting as a buyer's agent and a 8 seller's agent or a tenant's agent and a landlord's agent in the same 9 transaction. 10 (b) "Designated sales agent" means a licensed real estate salesperson 11 or associate broker, working under the supervision of a real estate 12 broker, who has been assigned to represent a client when a different 13 client is also represented by such real estate broker in the same trans- 14 action. 15 (c) "Representation agreement" means a written contract between a 16 buyer or tenant of residential real property and a licensee, by which 17 the licensee has been authorized to act as an agent on behalf of the 18 buyer or tenant to locate residential real property, present an offer to 19 purchase or lease to the seller, seller's agent, landlord or landlord's 20 agent, and negotiates on behalf of the buyer or tenant. 21 2. Application. The agency relationships and requirements as specified 22 in this section or in rules or regulations promulgated by the secretary 23 of state shall supersede any agency relationships and requirements 24 between a licensee and a party to a residential real estate transaction 25 which are based upon common law principles of agency to the extent that 26 those common law principles are inconsistent with those specified in 27 this section. This section shall apply only to transactions involving 28 residential real property. 29 3. Individual dual agency prohibited. No individual real estate 30 broker, associate real estate broker or real estate salesperson may act 31 as a buyer's agent and seller's agent in the same transaction. No real 32 estate broker, associate real estate broker or real estate salesperson 33 may act as a tenant's agent and landlord's agent in the same trans- 34 action. However, a real estate broker may assign a separate real estate 35 salesperson or associate broker working under their supervision to act 36 as a designated sales agent to represent a client when a different 37 client is also represented by such real estate broker in the same trans- 38 action. 39 4. Buyer or tenant representation agreements. (a) A representation 40 agreement shall: 41 (i) Be written in clear and unambiguous language. 42 (ii) Fully set forth all material terms, including the terms of licen- 43 see compensation. 44 (iii) Have a definite duration or expiration date, showing dates of 45 inception and expiration. 46 (iv) Be signed by all parties to the agreement. 47 (b) No real estate broker, associate real estate broker or real estate 48 salesperson shall locate residential real property for a tenant and/or 49 negotiate on behalf of the tenant unless the real estate broker, associ- 50 ate real estate broker or real estate salesperson has entered into a 51 representation agreement to represent the tenant as a tenant's agent. 52 The representation agreement must be entered into prior to or immediate- 53 ly after a licensee shows any property to a tenant for the first time. 54 (c) No real estate broker, associate real estate broker or real estate 55 salesperson shall present an offer to purchase residential real property 56 to a seller or seller's agent and negotiate on behalf of the buyer
S. 9686 3 1 unless the real estate broker, associate real estate broker, or real 2 estate salesperson has entered into a written representation agreement 3 to represent the buyer as a buyer's agent. The representation agreement 4 must be entered into no later than the presentation of the offer to 5 purchase to the seller or seller's agent. 6 5. Agent compensation from buyer or tenant. (a) No real estate broker, 7 associate real estate broker or real estate salesperson shall collect or 8 demand compensation from a tenant in connection with a residential real 9 property transaction unless the real estate broker, associate real 10 estate broker or real estate salesperson has entered into a signed 11 representation agreement with the tenant to act as a tenant's agent in 12 the transaction. 13 (b) No real estate broker, associate real estate broker or real estate 14 salesperson shall collect or demand compensation from a buyer in 15 connection with a residential real property transaction unless the real 16 estate broker, associate real estate broker or real estate salesperson 17 has entered into a signed representation agreement with the buyer to act 18 as the buyer's agent in the transaction. 19 6. No discrimination. No real estate broker, associate real estate 20 broker, real estate salesperson, or landlord may discriminate or take 21 adverse action against a potential tenant or buyer based on their repre- 22 sentation status. 23 7. Written permission or authorization to offer or advertise property 24 for sale or lease required. (a) No real estate broker, associate real 25 estate broker or real estate salesperson shall offer or advertise resi- 26 dential real property for sale or lease unless the real estate broker, 27 associate real estate broker or real estate salesperson has the written 28 permission or authorization of the owner or the owner's authorized 29 representative. 30 (b) If a real estate broker, associate real estate broker or real 31 estate salesperson offers or advertises residential real property for 32 lease with the written permission or authorization of the owner or the 33 owner's authorized representative under this section and does not have a 34 listing agreement with the owner or the owner's authorized represen- 35 tative, the real estate broker, associate real estate broker or real 36 estate salesperson shall not enter into a representation agreement with 37 and/or be compensated by any tenant in connection with the residential 38 real property offered or advertised for lease. 39 § 3. Section 443 of the real property law, as amended by chapter 549 40 of the laws of 2007, paragraphs a and f of subdivision 1 and paragraphs 41 a and b of subdivision 4 as amended and paragraphs p and q of subdivi- 42 sion 1 and paragraph f of subdivision 3 as added by chapter 443 of the 43 laws of 2010, and paragraph j of subdivision 1 as amended by chapter 529 44 of the laws of 2022, is amended to read as follows: 45 § 443. Disclosure regarding real estate agency relationship; form. 1. 46 Definitions. As used in this section, the following terms shall have the 47 following meanings: 48 a. "Agent" means a person who is licensed as a real estate broker, 49 associate real estate broker or real estate salesperson under section 50 four hundred forty-a of this article and is acting in a fiduciary capac- 51 ity. 52 b. "Buyer" means a transferee in a residential real property trans- 53 action and includes a person who executes an offer to purchase residen- 54 tial real property from a seller through an agent, or who has engaged 55 the services of an agent with the object of entering into a residential 56 real property transaction as a transferee.
S. 9686 4 1 c. "Buyer's agent" means an agent who contracts to locate residential 2 real property for a buyer or who finds a buyer for a property and 3 presents an offer to purchase to the seller or seller's agent and nego- 4 tiates on behalf of the buyer. 5 d. "Listing agent" means a person who has entered into a listing 6 agreement to act as an agent of the seller or landlord for compensation. 7 e. "Listing agreement" means a contract between an owner or owners of 8 residential real property and an agent, by which the agent has been 9 authorized to sell or lease the residential real property or to find or 10 obtain a buyer or lessee therefor. 11 f. "Residential real property" means real property used or occupied, 12 or intended to be used or occupied, wholly or partly, as the home or 13 residence of one or more persons improved by (i) a one-to-four family 14 dwelling or (ii) condominium or cooperative apartments but shall not 15 refer to unimproved real property upon which such dwellings are to be 16 constructed. 17 g. "Seller" means the transferor in a residential real property trans- 18 action, and includes an owner who lists residential real property for 19 sale with an agent, whether or not a transfer results, or who receives 20 an offer to purchase residential real property. 21 h. "Seller's agent" means a listing agent who acts alone, or an agent 22 who acts in cooperation with a listing agent, acts as a seller's suba- 23 gent or acts as a broker's agent to find or obtain a buyer for residen- 24 tial real property. 25 i. ["Dual agent" means an agent who is acting as a buyer's agent and a 26 seller's agent or a tenant's agent and a landlord's agent in the same 27 transaction.] "Representation agreement" means a written contract 28 between a buyer or tenant of residential real property and a licensee, 29 by which the licensee has been authorized to act as an agent on behalf 30 of the buyer or tenant to locate residential real property, present an 31 offer to purchase or lease to the seller, seller's agent, landlord or 32 landlord's agent, and negotiates on behalf of the buyer or tenant. 33 j. "Designated sales agent" means a licensed real estate salesperson 34 or associate broker, working under the supervision of a real estate 35 broker, who has been assigned to represent a client when a different 36 client is also represented by such real estate broker in the same trans- 37 action. 38 k. "Broker's agent" means an agent that cooperates or is engaged by a 39 listing agent, buyer's agent or tenant's agent (but does not work for 40 the same firm as the listing agent, buyer's agent or tenant's agent) to 41 assist the listing agent, buyer's agent or tenant's agent in locating a 42 property to sell, buy or lease respectively, for the listing agent's 43 seller or landlord, the buyer agent's buyer or the tenant's agent 44 tenant. The broker's agent does not have a direct relationship with the 45 seller, buyer, landlord or tenant and the seller, buyer, landlord or 46 tenant can not provide instructions or direction directly to the 47 broker's agent. Therefore, the seller, buyer, landlord or tenant do not 48 have vicarious liability for the acts of the broker's agent. The listing 49 agent, buyer's agent or tenant's agent do provide direction and instruc- 50 tion to the broker's agent and therefore the listing agent, buyer's 51 agent or tenant's agent will have liability for the broker's agent. 52 l. "Tenant" means a lessee in a residential real property transaction 53 and includes a person who executes an offer to lease residential real 54 property from a landlord through an agent, or who has engaged the 55 services of an agent with the object of entering into a residential real 56 property transaction as a lessee.
S. 9686 5 1 m. "Landlord" means the lessor in a residential real property trans- 2 action, and includes an owner who lists residential real property for 3 lease with an agent, whether or not a lease results, or who receives an 4 offer to lease residential real property. 5 n. "Tenant's agent" means an agent who contracts to locate residential 6 real property for a tenant or who finds a tenant for a property and 7 presents an offer to lease to the landlord or landlord's agent and nego- 8 tiates on behalf of the tenant. 9 o. "Landlord's agent" means a listing agent who acts alone, or an 10 agent who acts in cooperation with a listing agent, acts as a landlord's 11 subagent or acts as a broker's agent to find or obtain a tenant for 12 residential real property. 13 p. ["Advance consent to dual agency" means written informed consent 14 signed by the seller/landlord or buyer/tenant that the listing agent 15 and/or buyer's agent may act as a dual agent for that seller/landlord 16 and a buyer/tenant for residential real property which is the subject of 17 a listing agreement. 18 q.] "Advance consent to dual agency with designated sales agents" 19 means written informed consent signed by the seller/landlord or 20 buyer/tenant that indicates the name of the agent appointed to represent 21 the seller/landlord or buyer/tenant as a designated sales agent for 22 residential real property which is the subject of a listing agreement. 23 2. This section shall apply only to transactions involving residential 24 real property. 25 3. a. A listing agent shall provide the disclosure form set forth in 26 subdivision four of this section to a seller or landlord prior to enter- 27 ing into a listing agreement with the seller or landlord and shall 28 obtain a signed acknowledgment from the seller or landlord, except as 29 provided in paragraph e of this subdivision. 30 b. A seller's agent or landlord's agent shall provide the disclosure 31 form set forth in subdivision four of this section to a buyer, buyer's 32 agent, tenant or tenant's agent at the time of the first substantive 33 contact with the buyer or tenant and shall obtain a signed acknowledge- 34 ment from the buyer or tenant, except as provided in paragraph e of this 35 subdivision. 36 c. A buyer's agent or tenant's agent shall provide the disclosure form 37 to the buyer or tenant prior to entering into an agreement to act as the 38 buyer's agent or tenant's agent and shall obtain a signed acknowledgment 39 from the buyer or tenant, except as provided in paragraph e of this 40 subdivision. A buyer's agent or tenant's agent shall provide the form to 41 the seller, seller's agent, landlord or landlord's agent at the time of 42 the first substantive contact with the seller or landlord and shall 43 obtain a signed acknowledgment from the seller, landlord or the listing 44 agent, except as provided in paragraph e of this subdivision. 45 d. The agent shall provide to the buyer, seller, tenant or landlord a 46 copy of the signed acknowledgment and shall maintain a copy of the 47 signed acknowledgment for not less than three years. 48 e. If the seller, buyer, landlord or tenant refuses to sign an 49 acknowledgment of receipt pursuant to this subdivision, the agent shall 50 set forth under oath or affirmation a written declaration of the facts 51 of the refusal and shall maintain a copy of the declaration for not less 52 than three years. 53 f. A seller/landlord or buyer/tenant may provide advance informed 54 consent to [dual agency and] dual agency with designated sales agents by 55 indicating the same on the form set forth in subdivision four of this 56 section.
S. 9686 6 1 4. a. For buyer-seller transactions, the following shall be the 2 disclosure form: 3 NEW YORK STATE DISCLOSURE FORM 4 FOR 5 BUYER AND SELLER 6 THIS IS NOT A CONTRACT 7 New York state law requires real estate licensees who are acting as 8 agents of buyers or sellers of property to advise the potential buyers 9 or sellers with whom they work of the nature of their agency relation- 10 ship and the rights and obligations it creates. This disclosure will 11 help you to make informed choices about your relationship with the real 12 estate broker and its sales agents. 13 Throughout the transaction you may receive more than one disclosure 14 form. The law may require each agent assisting in the transaction to 15 present you with this disclosure form. A real estate agent is a person 16 qualified to advise about real estate. 17 If you need legal, tax or other advice, consult with a professional in 18 that field. 19 DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS 20 SELLER'S AGENT 21 A seller's agent is an agent who is engaged by a seller to represent 22 the seller's interests. The seller's agent does this by securing a buyer 23 for the seller's home at a price and on terms acceptable to the seller. 24 A seller's agent has, without limitation, the following fiduciary duties 25 to the seller: reasonable care, undivided loyalty, confidentiality, full 26 disclosure, obedience and duty to account. A seller's agent does not 27 represent the interests of the buyer. The obligations of a seller's 28 agent are also subject to any specific provisions set forth in an agree- 29 ment between the agent and the seller. In dealings with the buyer, a 30 seller's agent should (a) exercise reasonable skill and care in perform- 31 ance of the agent's duties; (b) deal honestly, fairly and in good faith; 32 and (c) disclose all facts known to the agent materially affecting the 33 value or desirability of property, except as otherwise provided by law. 34 BUYER'S AGENT 35 A buyer's agent is an agent who is engaged by a buyer to represent the 36 buyer's interests. The buyer's agent does this by negotiating the 37 purchase of a home at a price and on terms acceptable to the buyer. A 38 buyer's agent has, without limitation, the following fiduciary duties to 39 the buyer: reasonable care, undivided loyalty, confidentiality, full 40 disclosure, obedience and duty to account. A buyer's agent does not 41 represent the interests of the seller. The obligations of a buyer's 42 agent are also subject to any specific provisions set forth in [an] the 43 representation agreement between the agent and the buyer. A represen- 44 tation agreement must be entered into prior to the presentation of the 45 offer to purchase to the seller or seller's agent. In dealings with the 46 seller, a buyer's agent should (a) exercise reasonable skill and care in 47 performance of the agent's duties; (b) deal honestly, fairly and in good 48 faith; and (c) disclose all facts known to the agent materially affect- 49 ing the buyer's ability and/or willingness to perform a contract to 50 acquire seller's property that are not inconsistent with the agent's 51 fiduciary duties to the buyer. 52 BROKER'S AGENTS 53 A broker's agent is an agent that cooperates or is engaged by a list- 54 ing agent or a buyer's agent (but does not work for the same firm as the 55 listing agent or buyer's agent) to assist the listing agent or buyer's 56 agent in locating a property to sell or buy, respectively, for the list-
S. 9686 7 1 ing agent's seller or the buyer agent's buyer. The broker's agent does 2 not have a direct relationship with the buyer or seller and the buyer or 3 seller can not provide instructions or direction directly to the 4 broker's agent. The buyer and the seller therefore do not have vicarious 5 liability for the acts of the broker's agent. The listing agent or 6 buyer's agent do provide direction and instruction to the broker's agent 7 and therefore the listing agent or buyer's agent will have liability for 8 the acts of the broker's agent. 9 [DUAL AGENT 10 A real estate broker may represent both the buyer and the seller if 11 both the buyer and seller give their informed consent in writing. In 12 such a dual agency situation, the agent will not be able to provide the 13 full range of fiduciary duties to the buyer and seller. The obligations 14 of an agent are also subject to any specific provisions set forth in an 15 agreement between the agent, and the buyer and seller. An agent acting 16 as a dual agent must explain carefully to both the buyer and seller that 17 the agent is acting for the other party as well. The agent should also 18 explain the possible effects of dual representation, including that by 19 consenting to the dual agency relationship the buyer and seller are 20 giving up their right to undivided loyalty. A buyer or seller should 21 carefully consider the possible consequences of a dual agency relation- 22 ship before agreeing to such representation. A seller or buyer may 23 provide advance informed consent to dual agency by indicating the same 24 on this form.] 25 DUAL AGENT 26 WITH 27 DESIGNATED SALES AGENTS 28 If the buyer and the seller provide their informed consent in writing, 29 the principals and the real estate broker who represents both parties as 30 a dual agent may designate a sales agent to represent the buyer and 31 another sales agent to represent the seller to negotiate the purchase 32 and sale of real estate. A sales agent works under the supervision of 33 the real estate broker. With the informed consent of the buyer and the 34 seller in writing, the designated sales agent for the buyer will func- 35 tion as the buyer's agent representing the interests of and advocating 36 on behalf of the buyer and the designated sales agent for the seller 37 will function as the seller's agent representing the interests of and 38 advocating on behalf of the seller in the negotiations between the buyer 39 and seller. A designated sales agent cannot provide the full range of 40 fiduciary duties to the buyer or seller. The designated sales agent must 41 explain that like the dual agent under whose supervision they function, 42 they cannot provide undivided loyalty. A buyer or seller should careful- 43 ly consider the possible consequences of a dual agency relationship with 44 designated sales agents before agreeing to such representation. A seller 45 or buyer may provide advance informed consent to dual agency with desig- 46 nated sales agents by indicating the same on this form. 47 This form was provided to me by ____________________ (print name of 48 licensee) of ____________________________ (print name of company, firm 49 or brokerage), a licensed real estate broker acting in the interest of 50 the: 51 ( ) Seller as a ( ) Buyer as a 52 (check relationship below) (check relationship below) 53 ( ) Seller's agent ( ) Buyer's agent 54 ( ) Broker's agent ( ) Broker's agent
S. 9686 8 1 ( ) Dual agent with ( ) Dual agent with designated sales agents 2 designated sales 3 agent 4 For advance informed consent to [either dual agency or] dual agency 5 with designated sales agents complete section below: 6 [( ) Advance informed consent dual agency.] 7 ( ) Advance informed consent to dual agency with designated sales 8 agents. 9 If dual agent with designated sales agents is indicated above: 10 ____________________ is appointed to represent the buyer; and 11 ____________________ is appointed to represent the seller in this 12 transaction. 13 (I)(We) acknowledge receipt of a copy of this disclosure form: 14 Signature of { } Buyer(s) and/or { } Seller(s): 15 ____________________ ____________________ 16 ____________________ ____________________ 17 Date:_______________ Date:_______________ 18 b. For landlord-tenant transactions, the following shall be the 19 disclosure form: 20 NEW YORK STATE DISCLOSURE FORM 21 FOR 22 LANDLORD AND TENANT 23 THIS IS NOT A CONTRACT 24 New York state law requires real estate licensees who are acting as 25 agents of landlords and tenants of real property to advise the potential 26 landlords and tenants with whom they work of the nature of their agency 27 relationship and the rights and obligations it creates. This disclosure 28 will help you to make informed choices about your relationship with the 29 real estate broker and its sales agents. 30 Throughout the transaction you may receive more than one disclosure 31 form. The law may require each agent assisting in the transaction to 32 present you with this disclosure form. A real estate agent is a person 33 qualified to advise about real estate. 34 If you need legal, tax or other advice, consult with a professional in 35 that field. 36 DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS 37 LANDLORD'S AGENT 38 A landlord's agent is an agent who is engaged by a landlord to repre- 39 sent the landlord's interest. The landlord's agent does this by securing 40 a tenant for the landlord's apartment or house at a rent and on terms 41 acceptable to the landlord. A landlord's agent has, without limitation, 42 the following fiduciary duties to the landlord: reasonable care, undi- 43 vided loyalty, confidentiality, full disclosure, obedience and duty to 44 account. A landlord's agent does not represent the interests of the 45 tenant. The obligations of a landlord's agent are also subject to any 46 specific provisions set forth in an agreement between the agent and the 47 landlord. In dealings with the tenant, a landlord's agent should (a) 48 exercise reasonable skill and care in performance of the agent's duties; 49 (b) deal honestly, fairly and in good faith; and (c) disclose all facts
S. 9686 9 1 known to the agent materially affecting the value or desirability of 2 property, except as otherwise provided by law. 3 TENANT'S AGENT 4 A tenant's agent is an agent who is engaged by a tenant to represent 5 the tenant's interest. The tenant's agent does this by negotiating the 6 rental or lease of an apartment or house at a rent and on terms accepta- 7 ble to the tenant. A tenant's agent has, without limitation, the follow- 8 ing fiduciary duties to the tenant: reasonable care, undivided loyalty, 9 confidentiality, full disclosure, obedience and duty to account. A 10 tenant's agent does not represent the interest of the landlord. The 11 obligations of a tenant's agent are also subject to any specific 12 provisions set forth in [an] the representation agreement between the 13 agent and the tenant. A representation agreement must be entered into 14 prior to or immediately after the tenant's agent shows any property to 15 the tenant for the first time. In dealings with the landlord, a tenant's 16 agent should (a) exercise reasonable skill and care in performance of 17 the agent's duties; (b) deal honestly, fairly and in good faith; and (c) 18 disclose all facts known to the tenant's ability and/or willingness to 19 perform a contract to rent or lease landlord's property that are not 20 inconsistent with the agent's fiduciary duties to the buyer. 21 BROKER'S AGENTS 22 A broker's agent is an agent that cooperates or is engaged by a list- 23 ing agent or a tenant's agent (but does not work for the same firm as 24 the listing agent or tenant's agent) to assist the listing agent or 25 tenant's agent in locating a property to rent or lease for the listing 26 agent's landlord or the tenant agent's tenant. The broker's agent does 27 not have a direct relationship with the tenant or landlord and the 28 tenant or landlord can not provide instructions or direction directly to 29 the broker's agent. The tenant and the landlord therefore do not have 30 vicarious liability for the acts of the broker's agent. The listing 31 agent or tenant's agent do provide direction and instruction to the 32 broker's agent and therefore the listing agent or tenant's agent will 33 have liability for the acts of the broker's agent. 34 [DUAL AGENT 35 A real estate broker may represent both the tenant and the landlord if 36 both the tenant and landlord give their informed consent in writing. In 37 such a dual agency situation, the agent will not be able to provide the 38 full range of fiduciary duties to the landlord and the tenant. The obli- 39 gations of an agent are also subject to any specific provisions set 40 forth in an agreement between the agent, and the tenant and landlord. An 41 agent acting as a dual agent must explain carefully to both the landlord 42 and tenant that the agent is acting for the other party as well. The 43 agent should also explain the possible effects of dual representation, 44 including that by consenting to the dual agency relationship the land- 45 lord and tenant are giving up their right to undivided loyalty. A land- 46 lord and tenant should carefully consider the possible consequences of a 47 dual agency relationship before agreeing to such representation. A 48 landlord or tenant may provide advance informed consent to dual agency 49 by indicating the same on this form.]
S. 9686 10 1 DUAL AGENT 2 WITH 3 DESIGNATED SALES AGENTS 4 If the tenant and the landlord provide their informed consent in writ- 5 ing, the principals and the real estate broker who represents both 6 parties as a dual agent may designate a sales agent to represent the 7 tenant and another sales agent to represent the landlord. A sales agent 8 works under the supervision of the real estate broker. With the informed 9 consent in writing of the tenant and the landlord, the designated sales 10 agent for the tenant will function as the tenant's agent representing 11 the interests of and advocating on behalf of the tenant and the desig- 12 nated sales agent for the landlord will function as the landlord's agent 13 representing the interests of and advocating on behalf of the landlord 14 in the negotiations between the tenant and the landlord. A designated 15 sales agent cannot provide the full range of fiduciary duties to the 16 landlord or tenant. The designated sales agent must explain that like 17 the dual agent under whose supervision they function, they cannot 18 provide undivided loyalty. A landlord or tenant should carefully consid- 19 er the possible consequences of a dual agency relationship with desig- 20 nated sales agents before agreeing to such representation. A landlord 21 or tenant may provide advance informed consent to dual agency with 22 designated sales agents by indicating the same on this form. 23 This form was provided to me by _____________________ (print name of 24 licensee) of __________________ (print name of company, firm or broker- 25 age), a licensed real estate broker acting in the interest of the: 26 ( ) Landlord as a ( ) Tenant as a 27 (check relationship below) (check relationship below) 28 ( ) Landlord's agent ( ) Tenant's agent 29 ( ) Broker's agent ( ) Broker's agent 30 ( ) Dual agent with ( ) Dual agent with designated sales agents 31 designated sales 32 agent 33 For advance informed consent to [either dual agency or] dual agency 34 with designated sales agents complete section below: 35 [( ) Advance informed consent dual agency.] 36 ( ) Advance informed consent to dual agency with designated sales 37 agents. 38 If dual agent with designated sales agents is indicated above: 39 _________________________ is appointed to represent the tenant; and 40 _________________________ is appointed to represent the landlord in 41 this transaction. 42 (I) (We) _____________________________________________ acknowledge 43 receipt of a copy of this disclosure form: 44 Signature of { } Landlord(s) and/or { } Tenant(s): 45 ______________________________________________________ 46 _______________________________________________________
S. 9686 11 1 Date: _______________ Date: ________________ 2 5. This section shall not apply to a real estate licensee who works 3 with a buyer, seller, tenant or landlord in accordance with terms agreed 4 to by the licensee and buyer, seller, tenant or landlord and in a capac- 5 ity other than as an agent, as such term is defined in paragraph a of 6 subdivision one of this section. 7 6. [Nothing] Except as outlined in section four hundred forty-three-b 8 of this article, nothing in this section shall be construed to limit or 9 alter the application of the common law of agency with respect to resi- 10 dential real estate transactions. 11 § 4. This act shall take effect on the one hundred eightieth day after 12 it shall have become a law.