What is the agency disclosure form? Agency disclosure form is a form that
New York state requires real estate brokers to give consumers in connection
with residential real estate transactions. OK, so what is the
definition of residential real estate? Transactions and residential real estate
transaction is a one- to four-family transaction it also includes co-ops and
condos. The agency disclosure form is not required in commercial transactions. New York state law requires real estate brokers to give consumers or
anyone thats party to a transaction a disclosure form saying how they're
acting only in connection with residential real estate transactions. Is
the specific agency disclosure form required? Once again I remind you
that a real estate brokers are always required to inform the parties how
they're acting in connection with the transaction that would include
commercial transactions. Is the agency disclosure form used for residential
rental transactions? Yes there are actually two agency disclosure forms.
One is used for rental transactions, the other is for purchase and sale
transactions. OK, I'm so we are just require that we put an address on that
form? No, there is no there's no address required on the form. The form
is relationship-based its not transactional based. OK, so can you give
me an example of what that means, that statement that its "relationship-based"?
The agency disclosure form is relationship-based it's not based on a
particular transaction. So, for example, I could be representing a buyer and I
could give the agency disclosure form in the summer. Then we work together a little bit with the buyer and then we don't work together for a while. Next summer the buyer comes back to me and we're working the same capacity. I do not need to to re-deliver the agency
disclosure form because I've already said they were acting in that certain
capacity as opposed to saying that we work on a particular transaction
together. So, Neil, if I'm workign with somebody
and a time lapses, how much time should I let lapse before I re-disclose? Well as we
will talk about later you can never over- disclosed so there's certainly no harm. If you work with someone in the summer in a couple of months go by to
re-deliver the form so they understand what capacity you're acting in. But iin theory there is no time frame as long as they still understand or you gave the form and they understood that; there really is no time frame. Does the agency disclosure form create a contract between the real estate broker and consumer? No. The
agency disclosure form is simply that a disclosure form. If you look at it, it
clearly says this is not a contract. So no it does not create any contract
between the parties.
