STATE OF NEW YORK ________________________________________________________________________ 5499 2025-2026 Regular Sessions IN ASSEMBLY February 14, 2025 ___________ Introduced by M. of A. JACKSON, COLTON, STECK, EPSTEIN -- read once and referred 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 broker fees, and prohibiting land- lords, 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 broker's 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06536-01-5
A. 5499 2 1 prospective tenant any payment, fee or charge which is necessary to 2 compensate a managing agent and/or transfer agent for the processing, 3 review or acceptance of such prospective tenant's application where such 4 prospective tenant would become a dwelling unit owner or shareholder of 5 such cooperative housing corporation. 6 § 2. The real property law is amended by adding a new section 443-b to 7 read as follows: 8 § 443-b. Agency relationships. 1. Application. The agency relation- 9 ships and requirements specified in this section or in rules or regu- 10 lations promulgated by the secretary of state shall supersede any agency 11 relationships and requirements between a licensee and a party to a resi- 12 dential real estate transaction which are based upon common law princi- 13 ples of agency if such common law principles are inconsistent with those 14 specified in this section. This section shall apply only to transactions 15 involving residential real property. 16 2. Definitions. For the purposes of this section, the following terms 17 shall have the following meanings: 18 (a) "Dual agent" shall mean an agent who is acting as a buyer's agent 19 and a seller's agent or a tenant's agent and a landlord's agent in the 20 same transaction. 21 (b) "Designated sales agent" shall mean a licensed real estate sales- 22 person or associate broker, working under the supervision of a real 23 estate broker, who has been assigned to represent a client when a 24 different client is also represented by such real estate broker in the 25 same transaction. 26 (c) "Representation agreement" shall mean a written contract between a 27 buyer or tenant of residential real property and a licensee, by which 28 the licensee has been authorized to act as an agent on behalf of the 29 buyer or tenant to locate residential real property, present an offer to 30 purchase or lease to the seller, seller's agent, landlord or landlord's 31 agent, and negotiates on behalf of the buyer or tenant. 32 3. Individual dual agency prohibited. No individual real estate 33 broker, associate real estate broker, or real estate salesperson shall 34 act as a buyer's agent and seller's agent in the same transaction, or 35 act as a tenant's agent and landlord's agent in the same transaction; 36 provided, however that a real estate broker may assign a separate real 37 estate salesperson or associate broker working under their supervision 38 to act as a designated sales agent to represent a client when a differ- 39 ent client is also represented by such real estate broker in the same 40 transaction. 41 4. Buyer or tenant representation agreements. (a) A representation 42 agreement shall: 43 (i) be written in clear and unambiguous language; 44 (ii) fully set forth all material terms, including the terms of licen- 45 see compensation; 46 (iii) have a definite duration or expiration date, including dates of 47 inception and expiration; and 48 (iv) be signed by all parties to the agreement. 49 (b) No real estate broker, associate real estate broker, or real 50 estate salesperson shall locate residential real property for a tenant 51 and/or negotiate on behalf of such tenant unless such real estate 52 broker, associate real estate broker, or real estate salesperson has 53 entered into a representation agreement to represent such tenant as such 54 tenant's agent. Such representation agreement must be entered into prior 55 to or immediately after a licensee shows any property to a tenant for 56 the first time.
A. 5499 3 1 (c) No real estate broker, associate real estate broker, or real 2 estate salesperson shall present an offer to purchase residential real 3 property to a seller or seller's agent and negotiate on behalf of the 4 buyer unless such real estate broker, associate real estate broker, or 5 real estate salesperson has entered into a written representation agree- 6 ment to represent such buyer as such buyer's agent. Such representation 7 agreement must be entered into no later than when the offer to purchase 8 is made to the seller or seller's agent. 9 5. Agent compensation from buyer or tenant. (a) No real estate broker, 10 associate real estate broker, or real estate salesperson shall collect 11 or demand compensation from a tenant in connection with a residential 12 real property transaction unless such real estate broker, associate real 13 estate broker, or real estate salesperson has entered into a signed 14 representation agreement with such tenant to act as such tenant's agent 15 in the transaction. 16 (b) No real estate broker, associate real estate broker, or real 17 estate salesperson shall collect or demand compensation from a buyer in 18 connection with a residential real property transaction unless such real 19 estate broker, associate real estate broker, or real estate salesperson 20 has entered into a signed representation agreement with such buyer to 21 act as such buyer's agent in the transaction. 22 6. No discrimination. No real estate broker, associate real estate 23 broker, real estate salesperson, or landlord may discriminate or take 24 adverse action against a potential tenant or buyer based on their repre- 25 sentation status. 26 7. Written permission or authorization to offer or advertise property 27 for sale or lease required. (a) No real estate broker, associate real 28 estate broker, or real estate salesperson shall offer or advertise resi- 29 dential real property for sale or lease unless such real estate broker, 30 associate real estate broker, or real estate salesperson has the written 31 permission or authorization of the owner of such residential real prop- 32 erty or such owner's authorized representative. 33 (b) If a real estate broker, associate real estate broker, or real 34 estate salesperson offers or advertises residential real property for 35 lease with the written permission or authorization of the owner of such 36 residential real property or the owner's authorized representative 37 pursuant to paragraph (a) of this subdivision and does not have a list- 38 ing agreement with such owner or such owner's authorized representative, 39 such real estate broker, associate real estate broker, or real estate 40 salesperson shall not enter into a representation agreement with and/or 41 be compensated by any tenant in connection with such residential real 42 property. 43 § 3. Paragraphs i, p, and q of subdivision 1, paragraph f of subdivi- 44 sion 3, and subdivisions 4 and 6 of section 443 of the real property 45 law, paragraph i of subdivision 1, subdivision 4 and subdivision 6 as 46 amended by chapter 549 of the laws of 2007, and paragraphs p and q of 47 subdivision 1 and paragraph f of subdivision 3 as added and paragraphs a 48 and b of subdivision 4 as amended by chapter 443 of the laws of 2010, 49 are amended to read as follows: 50 i. ["Dual agent"] "Representation agreement" means [an agent who is 51 acting as] a [buyer's agent] written contract between a buyer or tenant 52 of residential real property and a [seller's] licensee, by which such 53 licensee has been authorized to act as an agent on behalf of such buyer 54 or [a tenant's agent and a] tenant to locate residential real property, 55 present an offer to purchase or lease to the seller, such seller's
A. 5499 4 1 agent, the landlord, or such landlord's agent [in the same transaction], 2 and negotiates on behalf of such buyer or tenant. 3 p. ["Advance consent to dual agency" means written informed consent 4 signed by the seller/landlord or buyer/tenant that the listing agent 5 and/or buyer's agent may act as a dual agent for that seller/landlord 6 and a buyer/tenant for residential real property which is the subject of 7 a listing agreement. 8 q.] "Advance consent to dual agency with designated sales agents" 9 means written informed consent signed by the seller/landlord or 10 buyer/tenant that indicates the name of the agent appointed to represent 11 the seller/landlord or buyer/tenant as a designated sales agent for 12 residential real property which is the subject of a listing agreement. 13 f. A seller/landlord or buyer/tenant may provide advance informed 14 consent to [dual agency and] dual agency with designated sales agents by 15 indicating the same on the form set forth in subdivision four of this 16 section. 17 4. a. For buyer-seller transactions, the following shall be the 18 disclosure form: 19 NEW YORK STATE DISCLOSURE FORM 20 FOR 21 BUYER AND SELLER 22 THIS IS NOT A CONTRACT 23 New York state law requires real estate licensees who are acting as 24 agents of buyers or sellers of property to advise the potential buyers 25 or sellers with whom they work of the nature of their agency relation- 26 ship and the rights and obligations it creates. This disclosure will 27 help you to make informed choices about your relationship with the real 28 estate broker and its sales agents. 29 Throughout the transaction you may receive more than one disclosure 30 form. The law may require each agent assisting in the transaction to 31 present you with this disclosure form. A real estate agent is a person 32 qualified to advise about real estate. 33 If you need legal, tax or other advice, consult with a professional in 34 that field. 35 DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS 36 SELLER'S AGENT 37 A seller's agent is an agent who is engaged by a seller to represent 38 the seller's interests. The seller's agent does this by securing a buyer 39 for the seller's home at a price and on terms acceptable to the seller. 40 A seller's agent has, without limitation, the following fiduciary duties 41 to the seller: reasonable care, undivided loyalty, confidentiality, full 42 disclosure, obedience and duty to account. A seller's agent does not 43 represent the interests of the buyer. The obligations of a seller's 44 agent are also subject to any specific provisions set forth in an agree- 45 ment between the agent and the seller. In dealings with the buyer, a 46 seller's agent should (a) exercise reasonable skill and care in perform- 47 ance of the agent's duties; (b) deal honestly, fairly and in good faith; 48 and (c) disclose all facts known to the agent materially affecting the 49 value or desirability of property, except as otherwise provided by law. 50 BUYER'S AGENT 51 A buyer's agent is an agent who is engaged by a buyer to represent the 52 buyer's interests. The buyer's agent does this by negotiating the 53 purchase of a home at a price and on terms acceptable to the buyer. A 54 buyer's agent has, without limitation, the following fiduciary duties to 55 the buyer: reasonable care, undivided loyalty, confidentiality, full 56 disclosure, obedience and duty to account. A buyer's agent does not
A. 5499 5 1 represent the interests of the seller. The obligations of a buyer's 2 agent are also subject to any specific provisions set forth in [an] the 3 representation agreement between the agent and the buyer. Such represen- 4 tation agreement must be entered into prior to when the offer to 5 purchase is made to the seller or seller's agent. In dealings with the 6 seller, a buyer's agent should (a) exercise reasonable skill and care in 7 performance of the agent's duties; (b) deal honestly, fairly and in good 8 faith; and (c) disclose all facts known to the agent materially affect- 9 ing the buyer's ability and/or willingness to perform a contract to 10 acquire seller's property that are not inconsistent with the agent's 11 fiduciary duties to the buyer. 12 BROKER'S AGENTS 13 A broker's agent is an agent that cooperates or is engaged by a list- 14 ing agent or a buyer's agent (but does not work for the same firm as the 15 listing agent or buyer's agent) to assist the listing agent or buyer's 16 agent in locating a property to sell or buy, respectively, for the list- 17 ing agent's seller or the buyer agent's buyer. The broker's agent does 18 not have a direct relationship with the buyer or seller and the buyer or 19 seller can not provide instructions or direction directly to the 20 broker's agent. The buyer and the seller therefore do not have vicarious 21 liability for the acts of the broker's agent. The listing agent or 22 buyer's agent do provide direction and instruction to the broker's agent 23 and therefore the listing agent or buyer's agent will have liability for 24 the acts of the broker's agent. 25 [DUAL AGENT 26 A real estate broker may represent both the buyer and the seller if 27 both the buyer and seller give their informed consent in writing. In 28 such a dual agency situation, the agent will not be able to provide the 29 full range of fiduciary duties to the buyer and seller. The obligations 30 of an agent are also subject to any specific provisions set forth in an 31 agreement between the agent, and the buyer and seller. An agent acting 32 as a dual agent must explain carefully to both the buyer and seller that 33 the agent is acting for the other party as well. The agent should also 34 explain the possible effects of dual representation, including that by 35 consenting to the dual agency relationship the buyer and seller are 36 giving up their right to undivided loyalty. A buyer or seller should 37 carefully consider the possible consequences of a dual agency relation- 38 ship before agreeing to such representation. A seller or buyer may 39 provide advance informed consent to dual agency by indicating the same 40 on this form.] 41 DUAL AGENT 42 WITH 43 DESIGNATED SALES AGENTS 44 If the buyer and the seller provide their informed consent in writing, 45 the principals and the real estate broker who represents both parties as 46 a dual agent may designate a sales agent to represent the buyer and 47 another sales agent to represent the seller to negotiate the purchase 48 and sale of real estate. A sales agent works under the supervision of 49 the real estate broker. With the informed consent of the buyer and the 50 seller in writing, the designated sales agent for the buyer will func- 51 tion as the buyer's agent representing the interests of and advocating 52 on behalf of the buyer and the designated sales agent for the seller 53 will function as the seller's agent representing the interests of and 54 advocating on behalf of the seller in the negotiations between the buyer 55 and seller. A designated sales agent cannot provide the full range of 56 fiduciary duties to the buyer or seller. The designated sales agent must
A. 5499 6 1 explain that like the dual agent under whose supervision they function, 2 they cannot provide undivided loyalty. A buyer or seller should careful- 3 ly consider the possible consequences of a dual agency relationship with 4 designated sales agents before agreeing to such representation. A seller 5 or buyer may provide advance informed consent to dual agency with desig- 6 nated sales agents by indicating the same on this form. 7 This form was provided to me by ____________________ (print name of 8 licensee) of ____________________________ (print name of company, firm 9 or brokerage), a licensed real estate broker acting in the interest of 10 the: 11 ( ) Seller as a ( ) Buyer as a 12 (check relationship below) (check relationship below) 13 ( ) Seller's agent ( ) Buyer's agent 14 ( ) Broker's agent ( ) Broker's agent 15 [( ) Dual agent] ( ) Dual agent with designated sales agents 16 For advance informed consent to [either dual agency or] dual agency 17 with designated sales agents complete section below: 18 [( ) Advance informed consent dual agency.] 19 ( ) Advance informed consent to dual agency with designated sales 20 agents. 21 If dual agent with designated sales agents is indicated above: 22 ____________________ is appointed to represent the buyer; and 23 ____________________ is appointed to represent the seller in this 24 transaction. 25 (I)(We) acknowledge receipt of a copy of this disclosure form: 26 Signature of { } Buyer(s) and/or { } Seller(s): 27 ____________________ ____________________ 28 ____________________ ____________________ 29 Date:_______________ Date:_______________ 30 b. For landlord-tenant transactions, the following shall be the 31 disclosure form: 32 NEW YORK STATE DISCLOSURE FORM 33 FOR 34 LANDLORD AND TENANT 35 THIS IS NOT A CONTRACT 36 New York state law requires real estate licensees who are acting as 37 agents of landlords and tenants of real property to advise the potential 38 landlords and tenants with whom they work of the nature of their agency 39 relationship and the rights and obligations it creates. This disclosure 40 will help you to make informed choices about your relationship with the 41 real estate broker and its sales agents. 42 Throughout the transaction you may receive more than one disclosure 43 form. The law may require each agent assisting in the transaction to 44 present you with this disclosure form. A real estate agent is a person 45 qualified to advise about real estate. If you need legal, tax or other 46 advice, consult with a professional in that field. 47 DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS 48 LANDLORD'S AGENT
A. 5499 7 1 A landlord's agent is an agent who is engaged by a landlord to repre- 2 sent the landlord's interest. The landlord's agent does this by securing 3 a tenant for the landlord's apartment or house at a rent and on terms 4 acceptable to the landlord. A landlord's agent has, without limitation, 5 the following fiduciary duties to the landlord: reasonable care, undi- 6 vided loyalty, confidentiality, full disclosure, obedience and duty to 7 account. A landlord's agent does not represent the interests of the 8 tenant. The obligations of a landlord's agent are also subject to any 9 specific provisions set forth in an agreement between the agent and the 10 landlord. In dealings with the tenant, a landlord's agent should (a) 11 exercise reasonable skill and care in performance of the agent's duties; 12 (b) deal honestly, fairly and in good faith; and (c) disclose all facts 13 known to the agent materially affecting the value or desirability of 14 property, except as otherwise provided by law. 15 TENANT'S AGENT 16 A tenant's agent is an agent who is engaged by a tenant to represent 17 the tenant's interest. The tenant's agent does this by negotiating the 18 rental or lease of an apartment or house at a rent and on terms accepta- 19 ble to the tenant. A tenant's agent has, without limitation, the follow- 20 ing fiduciary duties to the tenant: reasonable care, undivided loyalty, 21 confidentiality, full disclosure, obedience and duty to account. A 22 tenant's agent does not represent the interest of the landlord. The 23 obligations of a tenant's agent are also subject to any specific 24 provisions set forth in [an] the representation agreement between the 25 agent and the tenant. Such representation agreement must be entered into 26 prior to or immediately after the tenant's agent shows any property to 27 the tenant for the first time. In dealings with the landlord, a tenant's 28 agent should (a) exercise reasonable skill and care in performance of 29 the agent's duties; (b) deal honestly, fairly and in good faith; and (c) 30 disclose all facts known to the tenant's ability and/or willingness to 31 perform a contract to rent or lease landlord's property that are not 32 inconsistent with the agent's fiduciary duties to the buyer. 33 BROKER'S AGENTS 34 A broker's agent is an agent that cooperates or is engaged by a list- 35 ing agent or a tenant's agent (but does not work for the same firm as 36 the listing agent or tenant's agent) to assist the listing agent or 37 tenant's agent in locating a property to rent or lease for the listing 38 agent's landlord or the tenant agent's tenant. The broker's agent does 39 not have a direct relationship with the tenant or landlord and the 40 tenant or landlord can not provide instructions or direction directly to 41 the broker's agent. The tenant and the landlord therefore do not have 42 vicarious liability for the acts of the broker's agent. The listing 43 agent or tenant's agent do provide direction and instruction to the 44 broker's agent and therefore the listing agent or tenant's agent will 45 have liability for the acts of the broker's agent. 46 [DUAL AGENT 47 A real estate broker may represent both the tenant and the landlord if 48 both the tenant and landlord give their informed consent in writing. In 49 such a dual agency situation, the agent will not be able to provide the 50 full range of fiduciary duties to the landlord and the tenant. The obli-
A. 5499 8 1 gations of an agent are also subject to any specific provisions set 2 forth in an agreement between the agent, and the tenant and landlord. An 3 agent acting as a dual agent must explain carefully to both the landlord 4 and tenant that the agent is acting for the other party as well. The 5 agent should also explain the possible effects of dual representation, 6 including that by consenting to the dual agency relationship the land- 7 lord and tenant are giving up their right to undivided loyalty. A land- 8 lord and tenant should carefully consider the possible consequences of a 9 dual agency relationship before agreeing to such representation. A 10 landlord or tenant may provide advance informed consent to dual agency 11 by indicating the same on this form.] 12 DUAL AGENT 13 WITH 14 DESIGNATED SALES AGENTS 15 If the tenant and the landlord provide their informed consent in writ- 16 ing, the principals and the real estate broker who represents both 17 parties as a dual agent may designate a sales agent to represent the 18 tenant and another sales agent to represent the landlord. A sales agent 19 works under the supervision of the real estate broker. With the informed 20 consent in writing of the tenant and the landlord, the designated sales 21 agent for the tenant will function as the tenant's agent representing 22 the interests of and advocating on behalf of the tenant and the desig- 23 nated sales agent for the landlord will function as the landlord's agent 24 representing the interests of and advocating on behalf of the landlord 25 in the negotiations between the tenant and the landlord. A designated 26 sales agent cannot provide the full range of fiduciary duties to the 27 landlord or tenant. The designated sales agent must explain that like 28 the dual agent under whose supervision they function, they cannot 29 provide undivided loyalty. A landlord or tenant should carefully consid- 30 er the possible consequences of a dual agency relationship with desig- 31 nated sales agents before agreeing to such representation. A landlord 32 or tenant may provide advance informed consent to dual agency with 33 designated sales agents by indicating the same on this form. 34 This form was provided to me by _____________________ (print name of 35 licensee) of __________________ (print name of company, firm or broker- 36 age), a licensed real estate broker acting in the interest of the: 37 ( ) Landlord as a ( ) Tenant as a 38 (check relationship below) (check relationship below) 39 ( ) Landlord's agent ( ) Tenant's agent 40 ( ) Broker's agent ( ) Broker's agent 41 [( ) Dual agent] ( ) Dual agent with designated sales agents 42 For advance informed consent to [either dual agency or] dual agency 43 with designated sales agents complete section below: 44 [( ) Advance informed consent dual agency.] 45 ( ) Advance informed consent to dual agency with designated sales 46 agents. 47 If dual agent with designated sales agents is indicated above: 48 _________________________ is appointed to represent the tenant; and 49 _________________________ is appointed to represent the landlord in 50 this transaction.
A. 5499 9 1 (I) (We) _____________________________________________ acknowledge 2 receipt of a copy of this disclosure form: 3 Signature of { } Landlord(s) and/or { } Tenant(s): 4 ______________________________________________________ 5 _______________________________________________________ 6 Date: _______________ Date: ________________ 7 6. [Nothing] Except as provided for in section four hundred forty- 8 three-b of this article, nothing in this section shall be construed to 9 limit or alter the application of the common law of agency with respect 10 to residential real estate transactions. 11 § 4. This act shall take effect on the one hundred eightieth day after 12 it shall have become a law.