Under New York law, which agency relationship arises when a single broker represents both the buyer and the seller in the same transaction, and what is a key legal consequence of that relationship?
Correct Answer
B) Dual agency; the broker's fiduciary duties to each party are limited, and written informed consent from both parties is required
When one broker represents both buyer and seller, New York law defines this as dual agency. Under NY RPL §443 and DOS regulations, dual agency is only lawful with written informed consent from both parties. Critically, the broker's fiduciary duties are inherently limited in dual agency — the broker cannot, for example, disclose the seller's lowest acceptable price to the buyer or the buyer's highest willingness to pay to the seller, because full loyalty to both parties simultaneously is impossible.
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More Agency Relationships Disclosures Questions
What is the primary risk that New York dual agency disclosure is designed to address?
Under New York law, what is dual agency?
What document must be provided to both parties before a New York broker can act as a dual agent?
Agent Michelle meets first-time homebuyer Tony at her brokerage's office in Albany. Tony asks about the difference between condos and co-ops in the area. What must Michelle do before explaining these property types?
Which of the following most accurately describes the content required in the agency disclosure form under NY Real Property Law §443?
- → Under New York's agency disclosure law, which of the following constitutes 'first substantive contact' that would trigger the disclosure requirement?
- → Under NY Real Property Law §443, at what point must a real estate agent provide the agency disclosure form to a prospective buyer during an initial property visit?
- → In a New York disclosed dual agency transaction, the seller asks the dual agent: 'What is the lowest price I should accept for this property?' How must the dual agent respond?
- → In New York, what happens if a broker acts as a dual agent without obtaining proper written consent from both parties?
- → In New York real estate law, what is dual agency?
- → In New York, what form of consent is required for dual agency?
- → When acting as a dual agent in New York, which type of information can an agent share with both parties?
- → Under New York law, what does 'informed consent' mean in the context of dual agency?
- → A New York real estate broker wants to represent both the buyer and seller in a transaction. What is required under New York law before the broker can act as a dual agent?
- → In New York, a dual agent may do all of the following EXCEPT:
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Previous Question
Under New York Real Property Law §443, when must a listing agent provide the agency disclosure form to a prospective buyer visiting an open house?
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A buyer's agent accompanies her client to a showing where the listing agent is present. During the visit, the listing agent begins discussing the property's days on market and the seller's urgency to close with the buyer directly, without having provided any agency disclosure form. What is the most accurate statement about the agency disclosure obligations in this situation?