When selling a home in New York State agents are required to disclose their agency relationship. The “The New York State Disclosure Form For Buyer And Seller” is the form used to explain agency relationships. The content of the form explains in detail the various types of agency relationships you could have with your real estate professional. Listed below are the different types of agency relationships. As a seller the best way to protect your interests throughout the selling process is to understand agency. A qualified Realtor should be able to knowledgably speak to all types of agency and answer any questions you might have.
Seller’s Agency (Seller agent)
Seller’s agents are hired by the seller to represent the seller interests throughout the selling process. This means professionally listing your property, securing a buyer at a price and terms acceptable to the seller. A seller’s agent acts in the sellers best interest and is required to provide the following; A seller’s agent does not represent the interests of the buyer. In dealings with the buyer, a seller’s agent should (a) exercise reasonable skill and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the value or desirability of property, except as otherwise provided by law.
Buyers Agency (Buyer agent)
The buyer's agent is employed by the potential buyer to help search for a suitable property to purchase. A buyer’s agent acts in the buyers best interests and must provide the following;
A buyer’s agent acts in the best interests of the buyer from the beginning to the end of the transaction.
Dual Agency (Dual agent)
Real estate agents may from time to time represent both the buyer and seller in a real estate transaction; this results in “Dual Agency”. By having to provide the full range of fiduciary responsibilities to both buyer and seller a potential conflict of interests exists. When this occurs an agent is required fully explain to both parties that Dual agency exists and is required to obtain permission of both parties in writing. When practicing Dual Agency an agent cannot provide loyalty to both parties.
Designated Agency (Designated agent)
In an effort to eliminate the potential conflict of interest brought about by dual agency, New York State law provides the option of “Designated Agency”. This permits the sponsoring broker to select a sales person to represent the seller and another sales person to represent the buyer. This allows for representation for both buyer and seller without conflict of interest. Permission must be obtained in writing from both parties.
For a complete New York State Disclosure Form For Buyer And Seller please click on the link below.