New York Real Estate Salesperson ExaminationBrokerage and Salesperson ResponsibilitiesEasy
A real estate broker is acting as a dual agent in a transaction in New York. Which of the following statements accurately describes the broker's responsibility regarding disclosure and client consent?
- AThe broker can proceed with dual agency without explicit consent if both parties are represented by separate salespersons within the same brokerage.
- BThe broker must obtain written informed consent from both the buyer and seller after explaining the implications of dual agency.
- CDual agency is strictly prohibited in New York and cannot be practiced under any circumstances.
- DThe broker only needs to disclose the dual agency orally to both parties, as long as they acknowledge understanding.
Show answer & explanationAnswer & explanation
Correct answer: B. The broker must obtain written informed consent from both the buyer and seller after explaining the implications of dual agency.
In New York, dual agency is permissible but requires strict adherence to disclosure and consent rules. The broker must fully explain the limited duties of a dual agent to both the buyer and seller and obtain their written informed consent before acting as a dual agent.
Why the other options are wrong
- A. Even if salespersons are separate, the *broker* is still the dual agent, and written informed consent from both parties is still required for the broker to act in that capacity.
- C. Dual agency is permitted in New York under specific conditions of disclosure and consent.
- D. Oral disclosure and acknowledgment are insufficient; written informed consent is required.
NY Dual Agency Disclosure & Consent
In New York, a real estate broker acting as a dual agent must obtain written informed consent from both the buyer and the seller. This requires a clear explanation of the limited fiduciary duties the broker can provide in a dual agency role.
- Dual agency is permitted in NY.
- Requires full disclosure of limited duties.
- Written informed consent from both parties is mandatory.
- Without consent, broker must withdraw or represent only one party.
Memory trick: Double Duty, Double Disclosure, Double Docs.