A buyer's agent in New York is representing a client purchasing a cooperative apartment. All of the following fall within the appropriate scope of the buyer's agent's duties EXCEPT:
Correct Answer
B) Advising the buyer on whether the co-op's reserve fund level is adequate and recommending whether to proceed based on that assessment
Rendering a professional opinion on whether a co-op's reserve fund is financially adequate — and basing a purchase recommendation on that assessment — constitutes financial analysis that exceeds a real estate licensee's authorized scope of practice in New York. While an agent may help a buyer obtain and review financial documents at a general level, determining the adequacy of reserve funds and advising accordingly requires the expertise of a licensed accountant or attorney. Providing such advice exposes the agent to liability for practicing outside their competence.
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Eric is a buyer's agent in New York representing client Rachel who is purchasing a townhouse. Rachel's mortgage lender requires a survey, but the seller is providing a 20-year-old survey instead of ordering a new one. Rachel asks Eric whether the old survey is acceptable. What should Eric advise Rachel?
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