Q: My husband and I are purchasing a condominium in Brooklyn. We came upon that our actual property agent and the vendor’s agent paintings in the similar place of business and report back to the similar boss, and that the vendor has performed more than one offers with this crew. All through our negotiations, there were a couple of problems, and the end result is all the time that our agent bends to the need of the vendor. What’s the legal responsibility of an actual property company if it employs the brokers on all sides of a deal? What rights do we now have if we don’t really feel a dealer is objectively representing our pursuits?
A: Your actual property agent must be representing your pursuits with what state legislation calls “undivided loyalty.” If that’s now not going down, you want a brand new agent.
“Ethically, there must be a transparent separation of pursuits,” mentioned Steven O. Goldschmidt, director of gross sales at Coldwell Banker Warburg and co-chair of the Actual Property Board of New York’s Residential Brokerage Ethics Committee.
In New York, it’s felony — though discouraged — for an agent to constitute each a purchaser and a vendor, or for individuals of the similar crew to constitute each events. However you, as the customer, should be notified of this association and the constraints that it might create to your agent. State legislation calls for that brokers fill out a form during which they give away to their purchasers whether or not they’re appearing as a twin agent (representing each events), or as a twin agent with designated gross sales brokers, which may well be the state of affairs you describe.
“In a standard courting, your agent’s loyalty is simply to you,” mentioned Ruta Behrend, spouse at Tane Waterman & Wurtzel P.C. “Below twin company, on the other hand, key fiduciary duties, comparable to loyalty, confidentiality, and entire disclosure, are essentially divided.”
If the brokerage didn’t let you know about its courting to the vendor, it could be in violation of state legislation, and that would have an effect on whether or not your settlement with the corporate is enforceable. It will additionally result in disciplinary motion through the New York State Division of State.
You’ll touch the control of the brokerage place of business and ask to be hooked up with an agent who isn’t a part of the crew representing the vendor. Or you’ll search illustration in different places — although this may well be tricky should you’re deep within the sale procedure. Earlier than you wreck off any courting together with your agent, have your legal professional assessment the settlement you and your agent signed, to make sure you aren’t breaching your contract.
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