Disclosure forms not always needed for buyers

disclosureIt has taken a while, but most listing brokers now have agency disclosure forms available for homebuyers at open houses.

The forms spell out who is representing whom — namely that the listing broker has only the seller’s best interests in mind.  However, rare is the listing broker who complies with a statutory requirement to explain the form in more than a few words before buyers sign the thing.

What some brokers working for sellers apparently don’t understand is that they don’t always have to provide the form to open house attendees.  That situation arises when the visitor is accompanied by a buyer’s representative — another broker or sales agent.

Still, the Department of State, which licenses brokers and agents, maintains that the law requires a real estate broker to make clear which party the real estate broker represents in a transaction.  At a minimum, therefore, listing agents must verbally disclose who the real estate broker is representing in the transaction even when the homebuyer is accompanied.

The Real Estate Board of New York (REBNY) recently was asked whether a broker listing a property for sale had the right to demand the agency disclosure form for a potential purchaser visiting the property with her own buyer representative

The answer: No.  Likewise, the buyer’s broker may not demand the seller’s disclosure form.

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Malcolm Carter
Licensed Associate Real Estate Broker
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022

M: 347-886-0248
F: 347-438-3201

Malcolm@ServiceYouCanTrust.com
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