AGENCY & CONTRACTS — NY RE SALESPERSON CHEAT SHEET

---

AGENCY RELATIONSHIP TYPES

|---|---|---|

---

FIDUCIARY DUTIES (OLD CAR)

Acronym: OLD CAR

• Obedience — follow client instructions (legal/ethical)

• Loyalty — put client above all others

• Disclosure — reveal material facts & conflicts

• Care — professional standard

• Accounting — trust funds / funds due

• Reasonable skill & care — standard of trade

✓ Confidentiality SURVIVES termination of agency

---

AGENCY DISCLOSURE & BUYER AGREEMENTS

|---|---|

---

LISTING AGREEMENT TYPES

|---|---|---|

---

CONTRACTS — FIVE ESSENTIAL ELEMENTS

Parties (legally competent)

Offer & Acceptance (mutual assent)

Consideration (value exchanged)

Legal Purpose (not prohibited by law)

Proper Form (Statute of Frauds—RE contracts MUST BE WRITTEN)

---

CONTRACT STATUS MATRIX

|---|---|---|---|

---

REMEDIES FOR BREACH

|---|---|

---

NY CLOSING SEQUENCE

Contract signed (both parties; earnest money to broker escrow)

Due Diligence (title search, appraisal, inspections, survey)

Board Approval (co-op/condo)

Closing (attorney-conducted in NY; title company; funds disbursed)

✓ Earnest Money = held in broker escrow (not trust account)

---

MARTIN ACT (NEW CONDO/CO-OP OFFERINGS)

|---|---|

---

HIGH-YIELD FORMULAS (CONTRACTS/SETTLEMENT)

Commission: Sale Price × Rate × Split

Transfer Tax (NY State): Sale Price × 0.004

Transfer Tax (NYC):

• < $500K: Sale × 0.01

• ≥ $500K: Sale × 0.01425

Mortgage Recording Tax (NYC ~1.8%): Mortgage Amount × Rate (borrower pays)

Flip Tax (Co-op): Sales Price × Rate → goes to building reserve fund

---

FAIR HOUSING & PROTECTED CLASSES

Federal (FHA): Race, Color, Religion, National Origin, Sex (incl. gender identity/sexual orientation per interpretation), Familial Status, Disability

NY Human Rights Law (added): Creed, Age 18+, Military Status, Citizenship/Immigration Status (since Dec 2022)

NYC (added): Source of Income, Partnership Status

NYC FARE Act (eff. 6/11/25):

• Landlord must pay own broker's fee — NOT tenant

• Violation = $2,000 fine (enforced by DCWP)

• Tenant-paid fees = illegal

---

PROHIBITED CONDUCT

|---|---|

---

BROKERAGE OPERATIONS (KEY RULES)

|---|---|

Type	Key Features	Written Req'd?
Seller Agency (listing)	Agent = seller's fiduciary	YES (listing agreement)
Buyer Agency	Agent = buyer's fiduciary; MANDATORY since 8/17/24 (BEFORE showing)	YES (buyer agreement w/ compensation)
Dual Agency	One firm, both parties; written consent BOTH parties required; limited advisory duty	YES
Designated Agency	One agent per party within same firm	YES
Subagency	Subagent acts for listing agent's principal (seller)	Depends on listing terms
Item	Rule
DOS Agency Disclosure Form	Receipt only — NOT consent, NOT representation agreement
Buyer Agreement (8/17/24+)	MANDATORY BEFORE showing any property; must state compensation terms
Net Listing	ILLEGAL in NY
Referral Fees	Only to licensed professionals
Antitrust	Price fixing = per se violation
Type	Agent as Procuring Cause?	Multiple Agents?
Exclusive Right to Sell	YES (gets commission)	NO
Exclusive Agency	YES (if agent's customer)	YES (others possible)
Open Listing	NO (only true procuring cause)	YES
Status	Definition	Binding?	Remedy Available?
Valid	All elements present; legal	YES	YES
Voidable	One party can cancel (e.g., minor, fraud, misrepresentation)	YES, until rescinded	YES—rescission/reformation
Void	Lacks essential element; cannot be enforced	NO	NO
Remedy	When Used
Damages	$$ compensation for loss
Specific Performance	Force completion (real estate—unique asset)
Rescission	Cancel contract; return to pre-contract state
Element	Rule
Jurisdiction	NY Attorney General oversees offering plans
Filing Req'd	YES—before accepting deposits
Buyer Right	Right of Rescission (can cancel & get $ back)
Timing	Typically 5–7 days from signing
Conduct	Definition
Steering	Directing buyers/renters to/from areas based on protected class
Blockbusting	Creating panic to induce sales (esp. racial context)
Redlining	Refusing service to geographic area (esp. race-based)
Reverse Redlining	Targeting vulnerable groups for predatory loans
Item	Rule
Trust Account	Broker holds client funds; NO commingling; NO conversion
Advertising	**Broker name