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?
Correct Answer
C) Decline to recommend a minimum acceptable price and refer the seller to an independent appraiser or attorney for that guidance
Under New York Real Property Law §443 and the duties governing disclosed dual agency, a dual agent must remain neutral and cannot advocate for either party's negotiating position. Recommending a minimum acceptable price is a form of negotiating strategy advice that would benefit the seller at the expense of the buyer — a direct conflict with the dual agent's obligation of neutrality. The agent must decline to provide that guidance and direct the seller to an independent professional, such as an appraiser or attorney, who can advise without a conflict of interest. Note that a dual agent may still share objective market data such as comparable sales figures; what is prohibited is using that data to advocate for a specific negotiating outcome on behalf of one party.
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