New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsMedium
A New York real estate salesperson is representing a seller. A prospective buyer expresses interest but has not yet provided any financial information. The seller asks the salesperson to 'verify the buyer's ability to purchase' before scheduling a showing. How should the salesperson proceed?
- AAsk the buyer for a verbal assurance of their financial capability.
- BInform the seller that such a request is discriminatory and cannot be fulfilled.
- CSchedule the showing immediately, as financial verification is the lender's responsibility.
- DRequest the buyer's pre-approval letter or proof of funds before scheduling.
Show answer & explanationAnswer & explanation
Correct answer: D. Request the buyer's pre-approval letter or proof of funds before scheduling.
It is a legitimate and common practice for a seller's agent to verify a buyer's financial capability (e.g., through a pre-approval letter or proof of funds) before scheduling showings or accepting offers, to ensure the buyer is qualified. This is part of the agent's duty to the seller.
Why the other options are wrong
- A. A verbal assurance is insufficient and unreliable for verifying financial capability.
- B. This request is not inherently discriminatory; it's a reasonable business practice to qualify a buyer.
- C. Scheduling without verification could waste the seller's time and is not acting in their best interest.
Verification of Buyer's Financials (Seller's Agent)
A seller's agent has a duty to their client to help verify a prospective buyer's financial ability to purchase a property, typically by requesting pre-approval or proof of funds.
- Standard practice for seller representation.
- Ensures buyer qualification, saves seller's time.
- Usually involves pre-approval letter or proof of funds.
Memory trick: Verify the Buyer's Bank, to protect the Seller's plan.