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As a home buyer in New York City, you may have been asked by a listing agent to sign a ‘dual agency’ disclosure form. Agreeing to dual agency will cost you money because it means that you won’t be able to request a buyer agent commission rebate. Furthermore, dual agency presents you with several risks which we more fully explain below.Read the original article here: Dual Agency in NYC | What are the Pros and Cons of Dual Agency?What is dual agency in NYC?Dual agency in NYC real estate occurs when the same broker or salesperson simultaneously represents both the buyer and seller in the same transaction. Dual agency also occurs when both the listing agent and the buyer’s agent work for the same brokerage. It is also considered to be a dual agency situation if the same broker or salesperson represents two parties in a mutually dependent transaction.What are some examples of dual agency in NYC?There are a number of instances in which dual agency may occur. Here are a few examples:Example 1: The same broker represents both buyer and sellerJohn Smith at Brokerage A is currently marketing an exclusive listing in the West Village. Although 75% of the buyers who inquire on his listing are working with buyers’ agents, John does receive a handful of walk-in buyers who are unrepresented. If a walk-in buyer demonstrates an interest in the property and decides to submit an offer, the listing agent will be in a position to act as a dual agent for both buyer and seller.Example 2: The same brokerage firm represents both buyer and sellerDual agency also occurs in a situation where members of the same brokerage firm are representing both the buyer and seller. Even if the listing agent and the buyer’s agent have never spoken before and work in different offices, being associated with the same brokerage will trigger a dual agency environment.Example 3: A mutually dependent transactionGoing back to our previous example, John Smith at Brokerage A is holding an open house for his exclusive listing in the West Village. An unrepresented buyer who happens to live in the building pays a visit and expresses and interest in the listing. However, the buyer also mentions that he must first sell his current studio apartment before he is able to make a purchase.If the listing agent agrees to represent this buyer on his sale so that he can ultimately buy John’s listing, then these are considered as mutually dependent transactions. As such, this triggers a dual agency situation.Is dual agency in New York illegal?Dual agency in New York is completely legal, however a real estate salesperson or broker is required to fulfill several disclosure requirements before being permitted to transact as a dual agent. New York’s dual agency disclosure requirements were made effective in on January 1, 2011 with the amendment of Section 443 of New York State Real Property Law.Why is dual agency risky for buyers and sellers?Dual agency is risky for buyers and sellers because it means that the salesperson or broker is no longer able to offer undivided loyalty to either party. Typically, hiring an agent to represent you signifies the establishment of a principal agent relationship which is fiduciary in nature.For example, a seller’s agent has the following fiduciary duties to the seller: “reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account.”A buyers agent, on the other hand, has the following fiduciary duties to the buyer: “reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account.”Under a dual agency arrangement, is no longer possible for the salesperson or broker to provide undivided loyalty to both parties at the same time. As such, the key motive for disclosure in a dual agency situation is to ensure that both buyer and seller understand that he or she is giving up the right to undivided loyalty.What are the cons of dual agency in NYC?Agreeing to dual agency as a buyer will take away your ability to automatically save money on your purchase by requesting a NYC buyer agent commission rebate. In addition, there are a number of other risks you should be aware of if you are considering signing a dual agency disclosure form as a buyer.Key Disadvantage: You won’t be able to save money with a buyer broker commission rebateRequesting a buyer closing credit in NYC is an automatic way to save $20,000 or more on your sale price. The savings you pocket from a commission rebate can fully offset the NYC mansion tax and reduce your closing costs.Rebates are effective in NYC because virtually all sellers have agreed to pay the same total average 6% NYC commission regardless of whether the buyer has a buyer’s agent. Therefore, electing to be ‘unrepresented’ will not make your offer more competitive in the eyes of the seller.By representing you on a purchase, your buyer’s agent will collect half of the total commission (paid by seller) which would otherwise have gone directly to the listing agent. When you request a rebate, your buyer’s agent will legally give you back a portion of the commission he/she earns in the form of a cash check at closing.Commission rebates are completely legal in NYC, however most buyers have never heard about of them. Why? Broker commission rebates save consumers money, and as a result virtually all brokers in the city either refuse to offer them, deny that they exist, or claim that they are illegal (note: false). As a matter of fact, broker commission rebates are encouraged by New York State’s Attorney General as a means of reducing broker fees and helping consumers. Better yet, commission rebates are not generally considered to be taxable by the IRS.Additional Disadvantages to Buyers Under Dual Agency:The listing agent can advance interests which are hostile to yoursThe listing agent won’t necessarily use the strategic information you provide them about your offer pricing and financial situation to advance just your interestYou won’t have someone to advocate just for you at the negotiation tableA dual agent cannot negotiate on your behalfYou may not hear about all the problems or quirks with your apartment or the specific condo or co-op building you are buying intoAnother key risk of agreeing to dual agency arises if you happen to be buying a co-op in NYC. Co-ops have a very rigorous board application process, and rejections are a common occurrence. If the listing agent is a risk taker, he or she may see you as a meal ticket for earning double commission on a deal even if you might not be the best fit for the co-op. With the double commission in mind, the listing agent may therefore be incentivized to try and sell you a co-op even if there would be less risk in choosing a more qualified buyer who is represented.What are the pros of dual agency in NYC?Agreeing to dual agency in NYC can help streamline the purchase process by making it more efficient from a timing standpoint. By having just one agent on the deal, both the buyer and seller will be able to more easily coordinate showings, discuss pricing and prepare the board application (if you are buying a co-op or condo).As a buyer, you will have to consider whether or not the aforementioned benefits justify the fact that dual agency will prevent you from requesting a buyer agent commission rebate and having a real advocate throughout the deal.Regardless of what you decide to buy, you can automatically save money on your purchase by requesting a buyer agent commission rebate.What are the dual agency disclosure requirements in New York City?In the event dual agency arises, the broker or salesperson must fulfill the following disclosure requirement for buyer and seller:Clearly explain the existence of dual agency and its implications to both partiesPresent both buyer and seller with a “New York State Disclosure Form for Buyer and Seller” in order to obtain a written acknowledgement from each party consenting to dual agencyPrior to 2011, the real estate disclosure requirements did not apply to the sale of condo and co-op apartments. You may find copies of the New York agency disclosure forms here:New York State Agency Disclosure Form for Buyer and Seller – PDFNew York State Agency Disclosure Form for Landlord and Tenant – PDFThe New York agency disclosure law compels agents to present the disclosure form at the time of “first substantive contact” with the prospective client.What is Section 443 of the New York Real Property Law?New York State’s Real Property Law Section 443 was amended effective January 1, 2011 as a result of a bill signed into law by Governor David Paterson. The amendment provided for advance informed consent to dual agency and also added condos and co-ops to the definition of ‘residential real property’ as it relates to agency disclosure requirements.The specific disclosure language of Section 443 is included below:Section 443 of New York State Real Property Law1. Definitions. As used in this section, the following terms shall have the following meanings:f. “Residential real property” means real property used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons improved by (i) a one-to-four family dwelling or (ii) condominium or cooperative apartments but shall not refer to unimproved real property upon which such dwellings are to be constructed.2. This section shall apply only to transactions involving residential real property.3. a. A listing agent shall provide the disclosure form set forth in subdivision four of this section to a seller or landlord prior to entering into a listing agreement with the seller or landlord and shall obtain a signed acknowledgment from the seller or landlord, except as provided in paragraph e of this subdivision.b. A seller’s agent or landlord’s agent shall provide the disclosure form set forth in subdivision four of this section to a buyer , buyer’s agent, tenant or tenant’s agent at the time of the first substantive contact with the buyer or tenant and shall obtain a signed acknowledgement from the buyer or tenant, except as provided in paragraph e of this subdivision.c. A buyer’s agent or tenant’s agent shall provide the disclosure form to the buyer or tenant prior to entering into an agreement to act as the buyer’s agent or tenant’s agent and shall obtain a signed acknowledgment from the buyer or tenant, except as provided in paragraph e of this subdivision. A buyer’s agent or tenant’s agent shall provide the form to the seller, seller’s agent, landlord or landlord’s agent at the time of the first substantive contact with the seller or landlord and shall obtain a signed acknowledgment from the seller, landlord or the listing agent, except as provided in paragraph e of this subdivision.d. The agent shall provide to the buyer, seller, tenant or landlord a copy of the signed acknowledgment and shall maintain a copy of the signed acknowledgment for not less than three years.e. If the seller, buyer, landlord or tenant refuses to sign an acknowledgment of receipt pursuant to this subdivision, the agent shall set forth under oath or affirmation a written declaration of the facts of the refusal and shall maintain a copy of the declaration for not less than three years.f. A seller/landlord or buyer/tenant may provide advance informed consent to dual agency and dual agency with designated sales agents by indicating the same on the form set forth in subdivision four of this section.Related Questions | People Also Ask:What does dual agent mean?A dual agent is a broker or salesperson who represents adverse parties (i.e. buyer and seller) in the same real estate transaction. Dual agency also arises in a situation where the buyer’s agent is associated with the same firm as that of the listing agent, even if the two salespeople or brokers do not know each other and/or work in different offices of the company.What is single agency?Single agency is the most common form of real estate representation whereby a broker or salesperson represents either a buyer or seller in a transaction. Both a buyer’s agent who solely represents a buyer and a listing agent who exclusively represents a seller are considered to be working in a ‘single agency’ capacity as single agents. A single agent owes his or her client the fiduciary duties of reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account.What is a single real estate agent?A single real estate agent refers to a salesperson or broker who exclusively represents either the buyer or the seller in a New York real estate transaction. A dual real estate agent, on the other hand, represents both the buyer and seller on the same transaction. Note that a dual real estate agent is required to provide full and fair disclosure to both buyer and seller before being permitted to operate in the capacity of a dual agent.What is real estate dual representation?Real estate dual representation is another way of saying dual agency, which occurs when the same broker or salesperson simultaneously represents both the buyer and seller in a transaction. Prior to engaging in dual representation, a New York real estate salesperson or broker must obtain informed consent from both buyer and seller.What is a dual agent?A dual agent is a salesperson or broker who simultaneously represents both the seller and buyer on the same deal under a disclosed dual agency arrangement. A New York salesperson or broker is also considered a dual agent if he/she represents two parties in mutually dependent transactions, such as the sale of one property in order to fund the purchase of another property.Can a NYC real estate agent represent both buyer and seller?Yes. A licensed real estate broker or salesperson in New York City may represent both the buyer and seller under a dual agency arrangement provided that he or she provides buyer and seller with full and fair, informed disclosure. A dual agent may also seek advanced informed consent to dual agency from both buyer and seller before dual agency actually arises.What is advanced informed consent to dual agency?Advanced informed consent to dual agency occurs when a New York broker or salesperson seeks informed consent to dual agency from both buyer and seller prior to the occurrence of dual agency itself. In other words, a broker or salesperson may receive consent to dual agency before it actually occurs. Advanced informed consent to dual agency has been permitted in New York since January 1, 2011.What is Dual Agency in NYC? – PDFDisclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Are NYC buyer closing credit legal?As a NYC home buyer who may have just heard about the concept of a buyer closing credit, you are likely asking yourself – are NYC buyer closing credit legal?Fortunately, buyer buyer closing credit in NYC are fully legal. In addition, broker commission rebates are not generally considered to be taxable income.Buyer Closing Credit in NYC are 100% Legal and EncouragedRead the full article here: Are Broker Commission Rebates Legal in NYC? | Legality of RebatesWhat do I need to know about the legality of buyer closing credit in NYC?Fortunately and despite what you may hear from traditional buyer’s agents and NYC listing agents, buyer closing credit in NYC are 100% hands-down legal. As a buyer, if you request a broker commission rebate in NYC you can expect to receive a significant cash incentive simply for purchasing a property.New York is one of 40 states where receiving a buyer closing credit is permissible and encouraged by law. Specifically in New York City, broker commission rebates are 100% legal as per the Real Property Law which governs the state’s property market. In fact, closing credits are actively promoted by New York’s Attorney General and Antitrust Division as a means of increasing competition in the real estate industry and ultimately reducing overall real estate commissions when buying and selling real estate in New York City.Where in the law does it say that NYC buyer closing credit are legal?To pave the way for buyer closing credit, New York State recently amended Section 442 of the Real Property Law Article 12-A to specifically permit buyer closing credit. As you can see in the excerpt below, broker commission rebates in NYC are fully legal and there is absolutely no limit on the amount or types of incentives a New York City real estate salesperson, associate broker or broker can offer to his or her client as a means of securing a client’s business:“ … nothing in this section shall prohibit a real estate broker from offering any part of a fee, commission, or other compensation received by the broker to the seller, buyer, landlord or tenant who is buying, selling, exchanging, leasing, renting or negotiating a loan upon any real estate including the resale of a condominium or cooperative apartment. Such fee, commission, or other compensation must not be made to the seller, buyer, landlord or tenant for performing any activity requiring a license under this article.”Source: New York State Real Property Law Section 442, amended December 2014How are lawmakers in New York encouraging broker commission rebates in NYC?As if it weren’t sufficient just to change the law itself, New York’s Attorney General Eric Schneiderman issued an open letter to New York’s real estate community specifically encouraging them to offer NYC broker commission rebates. In this excerpt below, you can see that the Attorney General makes multiple references to the fact that broker commission rebates are fully legal and encouraged in New York City:“In December, a statute was signed into law amending Section 442 of the New York Real Property Law to make it completely clear that it is lawful for a broker to pass through, or “rebate,” part of his or her commission to the client…This legislation arose out of an investigation by my office into competition in the residential real estate brokerage industry. .. As of December’s legislative fix, there is no room for debate: commission rebating in New York State is legal…Such rebating is also procompetitive and good for consumers…I encourage all real estate brokers and salespersons in New York to consider enhancing the choices available to real estate buyers by offering lower commissions (by means of rebates) to some or all of your clients.”Source: Open letter from Attorney Eric Schneiderman to the New York real estate broker industry, dated April 20th, 2015What is a NYC buyer closing credit?As a buyer in NYC, you may have heard that the services of a so called ‘buyer’s agent’ are free. But you may be asking – if my buyer’s agent is free, who pays the bill? And what is a New York City real estate commission rebate? How does a real estate rebate save me money?A NYC buyer closing credit is a cash rebate offered to a home buyer from his or her NYC buyer’s agent as an incentive for working with them on the home purchase.To better understand what rebates are, how they work and how you can qualify for one when buying in NYC, let’s take a step back and look at how a typical sale in NYC works:Step 1: A seller hires a New York City listing agent and signs a 6% ‘exclusive right to sell’ listing agreement. In signing this contract, the seller agrees to pay a total of 6% commission when the property sells.If you as the buyer are unrepresented and have no buyer’s agent, the seller pays the entire 6% commission to the listing agent. If you are working with a buyer’s agent, the seller pays 3% commission to the listing agent and 3% commission to your buyer’s agent.The key takeaway here is that the seller pays the same amount of commission regardless of whether a buyer’s agent is involved in your deal alongside the listing agent.Because the seller pays the commission bill for your buyer’s agent and you won’t achieve a lower sale price by being unrepresented, hiring a buyer’s agent is a no brainer.Step 2: You hire a buyer’s agent to help you with your purchase. Your buyer’s agent offers several services to help streamline the overall deal process. The typical services provided by a New York City buyer’s agent include the following:Helping you search for listingsAnswering your questions about specific buildings and unitsPreparing pricing analysis for the listings you are interested inImplementing a negotiation strategyReviewing and assembling your board packageNow here’s where the real estate commission rebate concept comes into play. If you hired a traditional buyer’s agent who does not offer a rebate, your agent will collect his or her commission check at closing and walk away. If you are lucky, your traditional buyer’s agent will buy you a box of chocolates or a bottle of wine as a token of gratitude for you sending them a deal worth tens of thousands of dollars.On the other hand, if you requested a real estate commission rebate your buyer’s agent will write you a check at closing for a portion of the commission he or she earned on the deal.While it’s certainly not permissible for a broker or salesperson to split a commission with an unlicensed party, brokers and salespeople are fully permitted and encouraged by the law to offer commission rebates (cash or otherwise) to their actual customers (buyers and renters).Who pays for a NYC buyer agent commission rebate?The average New York City real estate commission rate of 5-6%, which includes the buyer’s agent commission, is fully paid by the seller in NYC. When a buyer is unrepresented, the full 6% commission is pocketed by the listing agent. If a buyer has representation, then the 6% commission is generally split equally between the listing agent and buyer’s agent.Because of the high median purchase price in the city, real estate commission rebates in NYC can end up being $30,000 or more. An NYC real estate commission rebate can significantly reduce your NYC buyer closing costs. If you are buying a property above $1 million, the NYC real estate commission rebate you receive will pay your entire NYC mansion tax bill. Better yet, real estate commission rebates in NYC are completely legal and generally considered to be non-taxable income.Why should a NYC home buyer work with a buyer’s agent?When searching for a property in NYC, home buyers are presented with two options. They can either choose to search on their own and then work directly with the listing agent for a particular property. Alternatively, NYC home buyers can work with a buyer’s agent throughout the search. Typical NYC buyer agent responsibilities include everything from the initial search through to submitting offers, negotiating, preparing a NYC co-op board package and guiding the overall deal to closing.There are two compelling reasons to hire a buyer’s agent in NYC as opposed to being unrepresented. They are:Receive a NYC Broker Commission Rebate – Requesting a NYC buyer agent commission rebate is an automatic way to save money when buying in NYC. The best part about receiving a commission rebate is that it’s an automatic discount which is on top of whatever other pricing concessions you negotiate with the seller. If you work directly with a listing agent, you are simply handing all of the commission to the listing agent without receiving any direct, monetary savings or benefit yourself. Requesting a NYC broker commission rebate will also save you from the risks of working directly with a listing agent under a dual agency arrangement.Buyer’s Agent Representation in NYC is Free – Buyers don’t pay anything to have professional representation. Sellers in NYC pay 100% of all real estate commissions, including the percentage which is paid to a buyer’s agent. In addition, there’s almost always zero benefit to an unrepresented buyer in terms of getting a lower sale price by being unrepresented. This is because virtually all NYC home sellers sign an exclusive right to sell listing agreement with his/her listing agent obligating the seller to pay 6% commission no matter what. So if you are unrepresented, the full commission just goes to the listing agent as opposed to being split with your buyer’s agent.Will I save more money on my purchase by being unrepresented than by requesting a rebate?Because of the way NYC commissions are structured, unrepresented buyers almost never benefit from a lower purchase price simply because they are unrepresented. This is because sellers typically agree to pay the same 6% in real estate commissions even if no buyer’s agent is involved in the deal. The only thing that’s up for debate is how that 6% will be split. It will either be 100% kept by the listing agent (if the buyer is unrepresented) or shared 50/50 with the buyer’s agent.Even if a listing agent claims that the seller will pay less commission if you are unrepresented, there is no way to prove how much less commission the seller will pay. There’s also no way for you to guarantee that any seller commission savings will be passed onto you in the form of a lower purchase price.Therefore, it’s impossible for you as the buyer to measure the size of the alleged discount you’d receive as an unrepresented buyer and ensure that you are actually receiving it. On top of that, a typical NYC real estate commission rebate will unquestionably dwarf the amount of alleged savings you’d pocket by submitting an unrepresented offer.Why chase a theoretical, unquantifiable discount by being unrepresented when you can lock in an automatic and quantifiable discount by requesting a NYC broker commission rebate?Are NYC broker commission rebates available for renters as well?Given the low inventory of rentals in NYC and the competitiveness among renters, it’s definitely less common to receive a commission rebate as a renter in New York City. There is less room for negotiation with a rental agent because he or she likely has a line of potential renters who won’t ask for a rebate. Furthermore, even though rental broker fees are highly detested and perceived as being high by renters, the reality is that after the commission split with his or her brokerage, brokers don’t actually earn that much money from rentals. Commission rebates may also be unofficially not permitted by their brokerage. So there are many forces working against renters in NYC receiving any form of broker commission rebate.Will I be discriminated against by listing agents for receiving a NYC broker commission rebate?Absolutely not, for two reasons. First and most importantly, it’s illegal and a violation of the State and Federal antitrust laws for any agent to discriminate against innovate listing brokers and buyer’s agents who work for reduced commissions or offer rebates. In his open letter to the real estate community New York’s attorney general specifically warned brokers that any boycotting or discrimination will be investigated by the State.“I also emphasize that my office will investigate any allegations of boycotting or discrimination against brokers engaged in rebating or other lawful discounting practices.”Source: Open letter from Attorney Eric Schneiderman to the New York real estate broker industry, dated April 20th, 2015The second reason why a NYC home buyer requesting a broker commission rebate won’t be discriminated against is because the listing agent doesn’t need to know about your private arrangement with your buyer’s agent!How do I request a NYC buyer closing credit?First, a word of advice before you request a NYC real estate buyer closing credit. There are over 50,000 buyer’s agents in NYC, and most of them have little or no recent deal experience. Just like in any other industry, there are seasoned professionals as well as amateurs all vying for your business. Having an experienced buyer’s agent can be a tremendous asset to your deal, but partnering with an inexperienced or unprofessional buyer’s agent can put your entire deal at risk.Discretion is also key when requesting an NYC real estate closing credit. The last thing you want is for the listing agent and/or seller to hold a grudge against you because they know you are receiving a NYC buyer closing credit.At Hauseit, we’ve partnered with NYC’s most experienced and seasoned buyer’s agents who have agreed to discretely offer you an NYC real estate closing credit at closing. As NYC’s largest FSBO and Buyer Closing Credit company, Hauseit’s reviews online are second to none.To request a NYC buyer closing credit, contact us today.Why were buyer broker commission rebates legalized in New York?Buyer broker closing credit were legalized in New York as a result of the NY Attorney General’s investigation into the lack of competition in the New York real estate market. The investigation was triggered as a response to NYC commission rates remaining steadfast at 5-6% despite falling commission rates around the country and significantly lower commissions in London than in NYC.Under the traditional NYC commission structure, sellers agree to pay 6% in total commissions no matter what. This arrangement effectively encourages the use of two agents in every deal: a listing agent and a buyer’s agent. As a result, a buyer effectively for the services of a buyer’s broker even if he/she does not choose to be represented.The Attorney General’s office concluded that the quickest way to reduce real estate commissions in NYC was to permit buyer broker commission rebates. Legalizing rebates has a much quicker impact in reducing transaction costs compared to trying to change the traditional seller commission structure which has been in NYC for decades and won’t disappear anytime soon.Where can I read the letter that NY's Attorney General wrote about the legality of commission rebates?The full text of the NY Attorney General’s letter regarding broker commission rebates can be viewed below:April 20, 2015Dear participant in New York’s real estate industry:I am writing to alert you to a recent change in New York State’s Real Property Law that was strongly supported by my office. This law has the potential to breathe new life into competition in the residential real estate brokerage industry, to the benefit of all New Yorkers. I urge you take advantage of this law and help reinvigorate price competition among real estate brokers in New York.In December, a statute was signed into law amending Section 442 of the New York Real Property Law to make it completely clear that it is lawful for a broker to pass through, or “rebate,” part of his or her commission to the client. This legislation arose out of an investigation by my office into competition in the residential real estate brokerage industry. My office worked together with the New York Department of State, the New York State Association of Realtors, and others in the industry to initiate the clarifying legislation.As you know, for most residential real estate sales in New York State, including New York City, the seller’s broker is usually compensated by receiving a contractually set commission from the seller. The buyer’s broker, however, is not typically paid by the buyer; he or she instead receives a fraction (often half) of the seller’s broker’s commission. Due to this payment structure, often the best way for a buyer’s broker to compete on price is to offer to rebate part of his or her commission to the buyer. Such buyer rebates are legal in most states, including New York. But until recently, some people in the industry may have read Section 442 to suggest that this type of rebating was not permitted in New York. As of December’s legislative fix, there is no room for debate: commission rebating in New York State is legal.Such rebating is also procompetitive and good for consumers. One reason my office helped initiate this legislative change was because we were concerned that confusion over the legality of rebating may be hindering efforts of real estate brokers to employ more innovative, consumer-friendly business models. For example, the widespread use of sophisticated real-estate search websites now allows buyer-side brokers to offer more limited-service, lower-fee models, under which clients do more of their own legwork when searching for properties. Brokers adopting such models can offer lower commissions (by rebating) and, in principle, may also be able to serve a larger number of clients.I encourage all real estate brokers and salespersons in New York to consider enhancing the choices available to real estate buyers by offering lower commissions (by means of rebates) to some or all of your clients. I also emphasize that my office will investigate any allegations of boycotting or discrimination against brokers engaged in rebating or other lawful discounting practices. Finally, I urge consumers and other buyers of real estate in New York to take note of your right to bargain with your broker for a lower commission.For the text of Section 442 highlighting the recent amendment, and additional information about competition in the real estate industry in New York, see my office’s Antitrust Bureau webpage at here.Sincerely,Eric T. SchneidermanAttorney GeneralState of New YorkSource: Open letter from Attorney Eric Schneiderman to the New York real estate broker industry, dated April 20th, 2015Disclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

A client is someone who you have a fiduciary responsibility over in real estate. For example, a broker or agent my represent a client (buyer, seller, tenant or landlord). You owe your client fiduciary responsibilities. Loyalty is the only one you cannot fulfill in a dual agency agreement (meaning your brokerage represents both buyer and seller). Some states may not allow dual agency. If dual agency exists, a brokerage will have two different agents works with the respective clients so that they can fairly represent each other (buyer agent will want the lowest price for their client, the seller agent will want the highest price for their client).A tenant is someone who rents property from an owner, owner’s rep aka landlord (sometimes an owner can also be the landlord- someone who manages the space). A tenant has rights to possession, quiet enjoyment & exclusion. They do not have right to control or disposition, which belong to an owner.