Sarah is a buyer's agent in New York representing client Tom who is purchasing a single-family home. The seller has chosen not to provide a Property Condition Disclosure Statement and instead will provide the statutory $500 credit to the buyer at closing. What should Sarah advise Tom about this situation?
Correct Answer
B) The seller's choice is legal under New York law and Tom will receive the $500 credit
Under New York's Property Condition Disclosure Act (RPL §462), sellers may choose not to provide a disclosure statement by giving the buyer a $500 credit at closing. This is a legal alternative to disclosure and is the seller's choice to make. Sarah should explain this option to Tom as a normal part of New York real estate practice.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
More Agency Relationships Disclosures Questions
What is the primary risk that New York dual agency disclosure is designed to address?
What document must be provided to both parties before a New York broker can act as a dual agent?
Under New York's Property Condition Disclosure Act, how is the $500 credit amount determined when a seller elects not to provide the Property Condition Disclosure Statement?
Acting as a dual agent in New York, an agent has presented a below-asking-price offer that the seller rejected. The seller then asks the agent what the buyer's maximum budget is. How should the dual agent respond?
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?
- → When acting as a dual agent in New York, which type of information can an agent share with both parties?
- → Agent David represents seller Susan in New York City. Susan asks David about the current market conditions for co-op apartments in her neighborhood. This type of information falls under which of David's duties to Susan?
- → A buyer's agent in New York never disclosed that a listed property was the site of a homicide. The buyer later discovers this and threatens legal action against the agent for failing to disclose it. What is the agent's strongest legal defense?
- → 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?
- → Lisa, a seller's agent in New York, discovers that her client failed to disclose a known foundation crack in the basement on the Property Condition Disclosure Statement. The seller had mentioned this issue to Lisa during the listing appointment but chose not to disclose it. What is Lisa's primary obligation under New York law?
- → In New York, before a real estate agent can act as a dual agent representing both buyer and seller, what must occur?
- → Under New York's Property Condition Disclosure Act, a seller who chooses not to complete and deliver a Property Condition Disclosure Statement to the buyer must do which of the following?
- → A New York licensee is acting as a dual agent and receives simultaneous offers on the listed property from two different buyers, both of whom the agent also represents. Which obligation is most specifically implicated by the dual agency relationship in this situation?
- → Michael is a buyer's agent in New York. His client makes an offer on a property listed by another agent in his same brokerage. The listing agent becomes unavailable, and Michael's broker asks him to also represent the seller to complete the transaction. What must happen for Michael to legally represent both parties?
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