Hi, I am a buyer for a co-op and do not have a broker. The sellers broker wants me to sign the NYS Disclosure Form for Buyers and Sellers. In the form they have indicated they are the sellers agent. However below this line, they have also checked: "For advance informed consent to either dual agency or dual agency with designated sales agents complete section below: Advance informed consent dual... [more]
Hi,
I am a buyer for a co-op and do not have a broker. The sellers broker wants me to sign the NYS Disclosure Form for Buyers and Sellers. In the form they have indicated they are the sellers agent. However below this line, they have also checked:
"For advance informed consent to either dual agency or dual agency with designated sales agents complete section below: Advance informed consent dual agency"
There is a seperate document after where if I sign, I consent the sellers broker company xyz group is acting as a dual agent for the particular property.
Should I sign this? What does this mean? Does this mean that the sellers broker is entitled to collect the full 6% sales commission because they some way are dual agents?
If I don't sign it, what does that mean?
Thanks for your help
[less]
Response by Aaron2
about 10 years ago
Posts: 1693
Member since: Mar 2012
If you sign it, it means you are now a buyer with a broker, i.e., your broker is also the sellers broker. The payment of commissions should be the least of your concerns. If you can live with the inherent conflict of interest, and think that a person who is being compensated to sell something is capable of looking out for your best interests when you are interested in buying that thing, then sign.
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Response by crescent22
about 10 years ago
Posts: 953
Member since: Apr 2008
It's more a disclosure requirement for them (listing agent) and gives them the opportunity to represent you without opening themselves up to be sued if they grossly misrepresent you. There is some question if you are restricted from bringing in your own broker later in the process (it can be hard anyway) if you sign- they would prob try to say you can't but you can.
What if you don't sign- technically, it's fine- you can send an offer in and negotiate it all yourself without even the veneer of listing agent representing you also. I guess they must put "none" on the deal sheet instead of themselves for broker but the effect is the same- listing agent keeps all the commission. In practice, the broker/firm might give you a hard time and tell you that you have to sign to move forward, which doesn't really change anything- you just make sure you know you are talking to the seller's broker also when you talk.
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Response by dan@digsrealtynyc.com
about 10 years ago
Posts: 114
Member since: May 2012
All a seller’s broker is obligated to do is present the disclosure form to an unrepresented buyer at their first meaningful interaction. The disclosure law is really intended to protect consumers by clarifying who is representing who, rather than coerce unrepresented buyers into designating the seller’s broker as their broker. There is no obligation for an unrepresented buyer to sign the disclosure form.
The text on the disclosure form states that the seller’s broker’s “undivided loyalty” is to the seller, so I’m not really sure why anybody would ever agree to dual agency.
Very little incentive to "go without a broker" in NYC. Find the right broker/agent that meets your needs..
Keith Burkhardt
The Burkhardt Group
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Response by peter@horowitzre.com
about 10 years ago
Posts: 2
Member since: Sep 2007
A buyer agent wants to sell something as well and often buyer agents, especially representing their clients in neighborhoods they're not that familiar with (such as nyc brokers working in queens and bk) will over bid on properties.
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Response by ioserin
almost 10 years ago
Posts: 21
Member since: Jan 2009
It's a DISCLOSURE form NOT a CONTRACT as clearly stated on the top of the form. It's to inform you who the agent is representing. By signing it does not obligate you to work with the seller's agent.
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Response by kmbroker
almost 10 years ago
Posts: 116
Member since: Jan 2008
by law agents are required to give customers the disclosure form if they are interested in bidding on a property. Consumers are not required to sign the form it is for disclosure.
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Response by jlkaufman1
over 9 years ago
Posts: 24
Member since: Oct 2009
Hi MaxEff, real estate agents/brokers are required to DISCLOSE to their clients which side of the deal they are on. So if the listing broker is representing the seller, and you are NOT represented by a broker, they want to make sure that YOU are not assuming that they also represent you too. And any information you disclose to the sales agent regarding your financial situation and desires during negotiations CAN and WILL be disclosed to the SELLER as it's the listings agents FIDUCIARY DUTIES to disclose any and all information to them.
Even if you don't want representation, I would recommend a broker as they will be a great resource for you while you are not having to pay for their services. If you are in need, feel free to email me at jkaufman@citihabitats.com.
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If you sign it, it means you are now a buyer with a broker, i.e., your broker is also the sellers broker. The payment of commissions should be the least of your concerns. If you can live with the inherent conflict of interest, and think that a person who is being compensated to sell something is capable of looking out for your best interests when you are interested in buying that thing, then sign.
It's more a disclosure requirement for them (listing agent) and gives them the opportunity to represent you without opening themselves up to be sued if they grossly misrepresent you. There is some question if you are restricted from bringing in your own broker later in the process (it can be hard anyway) if you sign- they would prob try to say you can't but you can.
What if you don't sign- technically, it's fine- you can send an offer in and negotiate it all yourself without even the veneer of listing agent representing you also. I guess they must put "none" on the deal sheet instead of themselves for broker but the effect is the same- listing agent keeps all the commission. In practice, the broker/firm might give you a hard time and tell you that you have to sign to move forward, which doesn't really change anything- you just make sure you know you are talking to the seller's broker also when you talk.
All a seller’s broker is obligated to do is present the disclosure form to an unrepresented buyer at their first meaningful interaction. The disclosure law is really intended to protect consumers by clarifying who is representing who, rather than coerce unrepresented buyers into designating the seller’s broker as their broker. There is no obligation for an unrepresented buyer to sign the disclosure form.
The text on the disclosure form states that the seller’s broker’s “undivided loyalty” is to the seller, so I’m not really sure why anybody would ever agree to dual agency.
Dan Gotlieb
Digs Realty Group
www.digsrealtynyc.com
never sign anything until you and the other party are ready to buy and sell a specific dwelling.
A good warning about dual agency from the NYS Department of State:
http://www.dos.ny.gov/cnsl/dualagcy.html
Very little incentive to "go without a broker" in NYC. Find the right broker/agent that meets your needs..
Keith Burkhardt
The Burkhardt Group
A buyer agent wants to sell something as well and often buyer agents, especially representing their clients in neighborhoods they're not that familiar with (such as nyc brokers working in queens and bk) will over bid on properties.
It's a DISCLOSURE form NOT a CONTRACT as clearly stated on the top of the form. It's to inform you who the agent is representing. By signing it does not obligate you to work with the seller's agent.
by law agents are required to give customers the disclosure form if they are interested in bidding on a property. Consumers are not required to sign the form it is for disclosure.
Hi MaxEff, real estate agents/brokers are required to DISCLOSE to their clients which side of the deal they are on. So if the listing broker is representing the seller, and you are NOT represented by a broker, they want to make sure that YOU are not assuming that they also represent you too. And any information you disclose to the sales agent regarding your financial situation and desires during negotiations CAN and WILL be disclosed to the SELLER as it's the listings agents FIDUCIARY DUTIES to disclose any and all information to them.
Even if you don't want representation, I would recommend a broker as they will be a great resource for you while you are not having to pay for their services. If you are in need, feel free to email me at jkaufman@citihabitats.com.
Jessica