Sarah, a licensed real estate salesperson in New York, is representing a buyer who asks her to explain the legal implications of a specific clause in the purchase contract. The buyer wants to know if the clause will protect him from liability in case of a title defect. What should Sarah do?
Correct Answer
A) Provide a general explanation but recommend the buyer consult with an attorney for legal advice
In New York, real estate licensees cannot provide legal advice even if they understand the contract terms. Sarah should provide general information about the clause but must recommend that the buyer consult with an attorney for specific legal advice about liability protection and legal implications.
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Previous Question
Carlos enters into a contract to purchase a condominium in Brooklyn. The contract states that Carlos will receive 'insurable title' rather than 'marketable title.' At closing, the title company discovers a minor lien that would prevent them from issuing a standard title insurance policy. Under New York law, can Carlos refuse to close?
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In a typical New York residential real estate transaction, at what stage do attorneys commonly become involved?