What YOU Need to Know - "Real Estate Education" - New York State - Brokers & Salespersons

The following information is reprinted in its entirety from the Department of State's website for your information:

The Department of State’s “Real Estate Education” Campaign

The following are some basic facts that anyone looking to buy, sell or rent should know. 

These facts are part of a new brochure that is available for download on the Department of State homepage, http://www.dos.state.ny.us/.  [This is the link to the brochure itself.]

What you need to know before entering into a real estate transaction:

1. All real estate professionals[1] must be licensed by the Department of State, and they must renew their licenses every two years.
2. To check if a person who represents themselves as a real estate salesperson or broker is, in fact, licensed by the state of New York, you can search the Department of State website, http://www.dos.state.ny.us/ by clicking on the “eAccessNY” link [this is the direct link to the search area for licensed real estate professionals] and entering the name of the person or by calling (518) 474-4429.
3. Buyers, sellers, renters and landlords all have the right to hire their own broker in a real estate transaction.
4. You should not assume that an agent is acting solely on your behalf. Unless you have entered into a written agreement with the broker, he or she could be representing the other party to the transaction.
5. When you have hired an agent to represent you, he or she owes you the following duties: reasonable care, undivided loyalty, confidentiality, full disclosure and the ability to provide you with an accounting of any money collected or expended on your behalf.
6. Real estate salespeople and brokers must disclose whom they are representing in the transaction at the time of their first contact with you.
7. Commission fees are negotiable. You have the right to negotiate the amount of the commission to be paid to a broker or salesperson. There is no such thing as a mandatory commission rate.
8. If a broker collects fees that you owe to the landlord or seller, such as a deposit or the first month’s rent, the broker has an obligation to separate that money from his or her own. If the money is not immediately provided to the landlord or seller, the broker must put the money into a separate escrow account until the transaction has been closed. If the transaction does not close, the broker cannot keep the money and must return it to you.
9. Non-refundable commission deposits are not permissible. A broker earns a commission when he or she finds a person who is ready, willing and able to purchase the property or rent the apartment. Only if the broker has assisted the parties in reaching an agreement on all of the material elements of the deal has he or she earned a commission.
10. Real estate salespeople and associate brokers work under the oversight and supervision of the broker with whom they are associated. You have the right to contact the broker with any concerns about the transaction or the agent’s handling of the transaction. Some salespeople and associate brokers advertise themselves as a “team” or “group.” This is not a separate company. These agents still work for a broker who is responsible for supervising their activity.

The brochure also includes information on where New Yorkers can turn if they believe that they have been a victim of a loan scam or of abusive lending practices. New Yorkers are encouraged to visit the Department of State’s website if they have any further questions about what constitutes illegal or dishonest actions by licensed real estate professionals – and to report these actions to the Department if they experience them.

[1] To become a licensed real estate salesperson, an individual must take specific coursework and pass an exam on state real estate law and practice. To work in New York state, salespersons must be associated with a real estate broker. Real estate brokers are individuals who, after gaining two years of experience in real estate sales, take additional coursework and exams in order to own or operate their own brokerage firms. Real estate appraisers must take required coursework and exams to become certified in estimating the value of real property.

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Additional news available at http://www.dos.state.ny.us/about/new2.htm.
New York State Department of State | info@dos.state.ny.us | 518.486.9846 | 212.417.5801