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Agency Relationships DisclosuresStigmatized_property_nyHARD

A dual agent in Buffalo is representing both the buyer and seller in a transaction. The agent knows that a triple homicide occurred in the property five years ago, but the seller has instructed the agent not to disclose this information. The buyer, during a property showing, mentions that she would never buy a house where someone died violently. What should the dual agent do?

Correct Answer

A) Honor the seller's instructions and continue without disclosure since New York law permits this

Under New York law, dual agents are not required to disclose stigmatizing events like homicides. The seller's instruction not to disclose aligns with New York Real Property Law Article 12-A, which protects against required disclosure of such events. The dual agent can legally honor the seller's wishes while continuing to represent both parties.

Answer Options
A
Honor the seller's instructions and continue without disclosure since New York law permits this
B
Suggest the buyer research the property's history without confirming or denying any specific events
C
Withdraw from representing the buyer to avoid the conflict between client instructions and buyer concerns
D
Disclose the homicide to fulfill fiduciary duties to the buyer despite the seller's instructions

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Related Topics & Key Terms

Key Terms:

dual_agencytriple_homicideconflicting_interestsseller_instructions

Related Concepts

In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.

An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.

A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.

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