Contracts

In New York, a real estate broker's commission agreement must be in writing to be enforceable because of:

AReal Property Law Article 12-A
BThe Statute of Frauds (General Obligations Law section 5-703)✓ Correct
CThe Truth in Lending Act
DRESPA

Explanation

Under New York's Statute of Frauds (General Obligations Law section 5-703), a contract or agreement for the payment of a commission or compensation for services as a real estate broker must be in writing and signed by the party to be charged (the principal). An oral commission agreement between a broker and a seller or buyer is unenforceable in New York.

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