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?
Correct Answer
B) Advise the seller to either disclose the foundation issue or withdraw from representation
Under New York's Property Condition Disclosure Act, while sellers can choose not to complete the disclosure and instead provide a $500 credit, the agent cannot participate in concealing known material defects. The agent must advise proper disclosure or consider withdrawal to avoid participating in potential fraud.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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?
- → 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?
- → During a dual agency transaction in New York, the buyer's financing falls through three days before closing. The seller asks their dual agent what legal options they have against the buyer. How should the agent respond?
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Previous Question
A listing agent's seller client has privately told the agent she will accept any offer above $450,000, though the property is listed at $520,000. A buyer submits an offer of $480,000. How should the listing agent handle the seller's stated minimum price when presenting this offer?
Next Question
Under New York law, a seller's agent owes fiduciary duties exclusively to the seller client. Which of the following is NOT a fiduciary duty owed to the seller, but rather a statutory obligation owed to all parties in the transaction?