New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsHard
A New York real estate salesperson is acting as a dual agent in a transaction. Which of the following is a specific requirement for lawful dual agency in New York?
- ADual agency is only permitted if the buyer and seller are represented by different salespersons within the same brokerage.
- BThe broker must appoint separate designated agents for the buyer and seller, and obtain informed written consent from both.
- CThe dual agency disclosure form must be signed by both the buyer and seller before the presentation of any offers.
- DThe salesperson must obtain verbal consent from both parties during the first substantive contact.
Show answer & explanationAnswer & explanation
Correct answer: B. The broker must appoint separate designated agents for the buyer and seller, and obtain informed written consent from both.
In New York, dual agency is permitted but requires strict adherence to disclosure and consent rules. When a broker acts as a dual agent, they must appoint separate designated agents for the buyer and seller, and obtain informed written consent from both parties.
Why the other options are wrong
- A. This describes 'designated agency,' which is a form of dual agency, but the core requirement is the appointment of designated agents and written consent, not just different salespersons.
- C. While consent is needed, the specific requirement is for designated agents with informed written consent.
- D. Verbal consent is insufficient; written consent is required for dual agency.
NY Dual Agency Requirements
In New York, lawful dual agency requires the appointment of separate designated agents for the buyer and seller and informed written consent from both parties.
- Requires informed written consent
- Designated agents must be appointed
- Broker acts as dual agent, salespersons as designated agents
Memory trick: Dual agency in NY: 'Designate and Consent' in writing, or it's a no-go!