New York Agency Disclosure and Designated Agency
New York requires licensees to provide a statutory agency disclosure form explaining the relationships available to buyers and sellers, and it permits designated agency within a firm. This chapter covers the disclosure and the agency structures a broker must manage.
The Statutory Agency Disclosure Form
New York licensees must present the statutory 'Disclosure Regarding Real Estate Agency Relationships' form to buyers and sellers at the first substantive contact and obtain a signed acknowledgment. The form explains seller's agent, buyer's agent, broker's agent, dual agent, and dual agent with designated sales agents so the consumer understands who the licensee represents. Providing the form is informational and does not by itself create an agency relationship.
Designated Agency
When both the buyer and the seller in a transaction are represented by the same firm, New York permits the supervising broker, with informed consent, to designate one sales agent to represent the seller and a different sales agent to represent the buyer. This designated agency lets each consumer keep an advocate while the firm manages the in-house transaction. The broker overseeing the designation acts as a dual agent and must protect each side's confidential information.
Dual Agency Limits
A licensee may act as a dual agent, representing both buyer and seller in the same transaction, only with the informed written consent of both parties. A dual agent cannot fully advocate for either side and must not disclose one party's confidential negotiating information to the other. The broker is responsible for ensuring the firm documents consent and applies its agency policy consistently.