New York Agency Disclosure: What the Exam Tests
New York's agency disclosure requirements are a top exam topic. When to give the form, dual agency consent, and designated agency rules.
Agency disclosure is one of the most heavily tested topics on the New York real estate exam. New York has specific rules about when, how, and to whom agency must be disclosed.
The Agency Disclosure Form
New York requires licensees to provide a written Agency Disclosure Form (officially: "Disclosure Regarding Real Estate Agency Relationships") to prospective buyers, sellers, landlords, and tenants.
When it must be provided: - At the first substantive contact with a prospective buyer or tenant - Before signing any representation agreement with a seller or landlord
"First substantive contact" is defined as the point when you begin discussing specific properties or the person's needs, motivations, or financial qualifications — not a casual social meeting.
What Happens if a Party Refuses to Sign
A party is not required to sign the Agency Disclosure Form. If a party refuses: - The licensee must note the refusal in their records - The licensee may still proceed with the transaction - The lack of signature does NOT eliminate the duty to provide the disclosure
Types of Agency Relationships in New York
Seller's Agent (Listing Agent) - Represents the seller - Owes fiduciary duties to the seller: OLDCAR - Must disclose that they represent the seller to all buyers
Buyer's Agent - Represents the buyer under a buyer representation agreement - Owes fiduciary duties to buyer
Dual Agent - Represents both buyer and seller in the same transaction - Requires informed written consent from both parties - Has reduced ability to advocate for either party's position - Cannot reveal confidential information about either party
Designated Agent - A practical solution to dual agency conflict - The managing broker designates different salespersons within the same brokerage to represent each party - Each designated agent represents only their client, maintaining full advocacy - The managing broker is still technically a dual agent but doesn't participate in negotiations
Broker's Agent - A sub-agent hired by the listing broker to assist in showing/selling - Owes duties to the listing broker and, through them, to the seller - Less common in modern practice
New York Dual Agency Rules
Dual agency in New York: 1. Must be disclosed to both parties 2. Must be consented to in writing by both parties 3. Limits the agent's ability to share certain information or negotiate aggressively for either side
The Agent Disclosure Form has checkboxes for the type of agency relationship. For dual agency, both parties must sign acknowledging consent.
Common Exam Questions
Q: At what point must a New York licensee provide the Agency Disclosure Form to a buyer? A: At the first substantive contact — when the conversation moves to discussing specific properties or the buyer's needs and qualifications.
Q: A buyer refuses to sign the Agency Disclosure Form. What should the licensee do? A: Note the refusal in writing in the file and continue working with the buyer.
Q: A listing brokerage also has a buyer interested in one of their listings. To avoid dual agency, the brokerage should: A: Use designated agency — assign a different salesperson to represent the buyer than the one representing the seller.
[Practice agency questions at CARealestate.com/states/new-york](https://carealestate.com/states/new-york)
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