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New York State
REAL PROPERTY LAW (RPL)
Laws 1909, Chap. 52


ARTICLE 12-A

REAL ESTATE BROKERS AND REAL ESTATE SALESMEN

Section             440.   Definitions.
                    440a.  License required for real estate
                           brokers and salesmen.
                    440b.  Licenses in Putnam county.
                    441.   Application for license.
                    441a.  License and pocket card.
                    441b.  License fees.
                    441c.  Revocation and suspension of
                           licenses.
                    441d.  Salesman's license suspended by
                           revocation of employer's license.
                    441e.  Denial of license; complaints;
                           notice of hearing.
                    441f.  Judicial review.
                    442.   Splitting commissions.
                    442a.  Compensation of salesmen;
                           restrictions.
                    442b.  Discontinuance of salesman's
                           employment; report.
                    442c.  Violations by salesmen; broker's
                           responsibility.
                    442d.  Actions for commissions; license
                           prerequisite.
                    442e.  Violations.
                    442f.  Saving clause.
                    442g.  Nonresident licensees.
                    442h.  Rules of the secretary of state.
                    442i.  Repealed.
                    442j.  Enforcement; advisory committee of
                           real estate brokers; employees.
                    442k.  Effect of invalid provision.
                    443.   Disclosure regarding real
                           estate agency relationship; form.

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Sec. 440.      Definitions.

1.   Whenever used in this article "real estate broker" means any
     person, firm or corporation, who, for another and for a fee,
     commission or other valuable consideration, lists for sale,
     sells, at auction or otherwise, exchanges, buys or rents, or
     offers or attempts to negotiate a sale, at auction or
     otherwise, exchange, purchase or rental of an estate or
     interest in real estate, or collects or offers or attempts
     to collect rent for the use of real estate, or negotiates or
     offers or attempts to negotiate, a loan secured or to be
     secured by a mortgage, other than a residential mortgage
     loan, as defined in section five hundred ninety of the
     banking law, or other incumbrance upon or transfer of real
     estate, or is engaged in the business of a tenant relocator,
     or who, notwithstanding any other provision of law, performs
     any of the above stated functions with respect to the resale
     of condominium property originally sold pursuant to the
     provisions of the general business law governing real estate
     syndication offerings. In the sale of lots pursuant to the
     provisions of article nine-a of this chapter, the term "real
     estate broker" shall also include any person, partnership,
     association or corporation employed by or on behalf of the
     owner or owners of lots or other parcels of real estate, at
     a stated salary, or upon a commission, or upon a salary and
     commission, or otherwise, to sell such real estate, or any
     parts thereof, in lots or other parcels, and who shall sell
     or exchange, or offer or attempt or agree to negotiate the
     sale or exchange, of any such lot or parcel of real estate.
     For purposes of this subdivision the term, "interest in real
     estate" shall include the sale of a business wherein the
     value of the real estate transferred as part of the business
     is not merely incidental to the transaction, and shall not
     include the assignment of a lease, and further, the
     transaction itself is not otherwise subject to regulation
     under state or federal laws governing the sale of
     securities. In connection with the sale of a business the
     term "real estate broker" shall not include a person, firm
     or corporation registered pursuant to the provisions of
     article twenty-three-A of the general business law or
     federal securities laws.

2.   "Associate real estate broker" means a licensed real estate
     broker who shall by choice elect to work under the name and
     supervision of another individual broker or another broker
     who is licensed under a partnership, trade name or
     corporation. Such individual shall retain his or her license
     as a real estate broker as provided for in this article;
     provided, however, that the practice of real estate sales
     and brokerage by such individual as an associate broker
     shall be governed exclusively by the provisions of this
     article as they pertain to real estate salesmen. Nothing
     contained herein shall preclude an individual who elects to
     be licensed as an associate broker from also retaining a
     separate real estate broker's license under an individual,
     partnership, trade name or corporation.

3.   "Real estate salesman" means a person associated with a
     licensed real estate broker to list for sale, sell or offer
     for sale, at auction or otherwise, to buy or offer to buy or
     to negotiate the purchase or sale or exchange of real
     estate, or to negotiate a loan on real estate other than a
     mortgage loan as defined in section five hundred ninety of
     the banking law, or to lease or rent or offer to lease, rent
     or place for rent any real estate, or collects or offers or
     attempts to collect rent for the use of real estate for or
     in behalf of such real estate broker, or who,
     notwithstanding any other provision of law, performs any of
     the above stated functions with respect to the resale of a
     condominium property originally sold pursuant to the
     provisions of the general business law governing real estate
     syndication offerings.

4.   "Tenant relocator" means any person, firm, corporation,
     partnership, or any legal entity whatsoever, which, for
     another and for a fee, commission or other valuable
     consideration, supervises, organizes, arranges, coordinates,
     handles or is otherwise in charge of or responsible for the
     relocation of commercial or residential tenants from
     buildings or structures that are to be demolished,
     rehabilitated, remodeled or otherwise structurally altered.

5.   "Association, associated; or associated with" whenever used
     in this article shall be deemed to make reference to a
     salesman's relationship with his or her broker. Nothing in
     this article shall be deemed or construed to be indicative
     or determinative of the legal relationship of a salesperson
     to a broker nor shall any provision of this article be
     deemed or construed to alter or otherwise affect the legal
     responsibility of a real estate broker to third parties for
     the acts of anyone associated with such broker pursuant to
     this article.


Sec. 440-a.    License required for real estate brokers and
               salesmen.

No person, co-partnership or corporation shall engage in or
follow the business or occupation of, or hold himself or itself
out or act temporarily or otherwise as a real estate broker or
real estate salesman in this state without first procuring a
license therefor as provided in this article. No person shall be
entitled to a license as a real estate broker under this article,
either as an individual or as a member of a co-partnership, or as
an officer of a corporation, unless he or she is nineteen years
of age or over, a citizen of the United States or an alien
lawfully admitted for permanent residence in the United States.
No person shall be entitled to a license as a real estate
salesman under this article unless he or she is over the age of
eighteen years. No person shall be entitled to a license as a
real estate broker or real estate salesman under this article who
has been convicted in this state or elsewhere of a felony, and
who has not subsequent to such conviction received executive
pardon therefor or a certificate of good conduct from the parole
board, to remove the disability under this section because of
such conviction.

Notwithstanding the above, tenant associations, and not-for-
profit corporations authorized in writing by the commissioner of
the department of the city of New York charged with enforcement
of the housing maintenance code of such city to manage
residential property owned by such city or appointed by a court
of competent jurisdiction to manage residential property owned by
such city shall be exempt from the licensing provisions of this
section with respect to the properties so managed.


Sec. 440-b.    Licenses in Putnam county.

On and after the first day of July, nineteen hundred thirty-four,
no person, copartnership or corporation shall engage in or follow
the business or occupation of, or hold himself or itself out
temporarily or otherwise as a real estate broker or real estate
salesman in the county of Putnam, without first procuring a
license therefor as provided in this article, except that such
license in such county shall be granted and issued, without the
written examination provided in this article, to a person,
copartnership or corporation who was engaged in business as a
real estate broker or real estate salesman in such county prior
to the first day of January, nineteen hundred thirty-four.


Sec. 441.      Application for license.

1.   Form. Any person, copartnership or corporation desiring to
     act as a real estate broker or any person desiring to act as
     a real estate salesman on or after the first day of October,
     nineteen hundred and twenty-two, shall file with the
     department of state at its office in Albany an application
     for the kind of license desired in such form and detail as
     the department shall prescribe, setting forth the following,
     if the application be for a broker's license:

     (a)  The name and residence address of the applicant, and if
          an individual the name under which he intends to
          conduct business.

          If the applicant be a copartnership the name and
          residence address of each member thereof and the name
          under which the business is to be conducted; or, if the
          applicant be a corporation, the name of the corporation
          and the name and residence address of each of its
          officers.

     (b)  The place or places, including the city, town or
          village, with the street and number, where the business
          is to be conducted.

     (c)  The business or occupation theretofore engaged in by
          the applicant, or, if a copartnership, by each member
          thereof, or, if a corporation, by each officer thereof,
          for a period of two years, immediately preceding the
          date of such application, setting forth the place or
          places where such business or occupation was engaged in
          and the name or names of employers, if any.

     (d)  Such further information as the department may
          reasonably require shall be furnished by the applicant
          including sufficient proof of having taken and passed a
          written examination and answered such questions as may
          be prepared by the department to enable it to determine
          the trustworthiness of the applicant if an individual,
          or of each member of a co-partnership or each officer
          of a corporation for whom a license as a broker is
          asked, and his or their competency to transact the
          business of real estate broker in such a manner as to
          safeguard the interests of the public. In determining
          competency, the department shall require proof that the
          person being tested to qualify to apply for a broker's
          license has a fair knowledge of the English language, a
          fair understanding of the general purposes and general
          legal effect of deeds, mortgages, land contracts of
          sale, and leases, a general and fair understanding of
          the obligations between principal and agent, as well as
          of the provisions of this act. The applicant must also
          furnish proof that he has attended for at least ninety
          hours and has successfully completed a real estate
          course or courses approved by the secretary of state as
          to method and content and supervision which approval
          may be withdrawn if in the opinion of the secretary of
          state said course or courses are not being conducted
          properly as to method, content and supervision, and
          that either the applicant has actively participated in
          the general real estate brokerage business as a
          licensed real estate salesman under the supervision of
          a licensed real estate broker for a period of not less
          than one year or has had the equivalent experience in
          general real estate business for a period of at least
          two years, the nature of which experience shall be
          established by affidavit duly sworn to under oath
          and/or other and further proof required by the
          department of state.

     In the event the applicant shall be a licensed salesman
     under this article and shall have submitted acceptable proof
     pursuant to the provisions of either paragraph (f) of
     subdivision one-A of this section or paragraph (a) of
     subdivision three of this section of having attended and
     successfully completed forty-five hours of an approved real
     estate course or courses within four years of the date of
     the application, the department may accept and credit same
     against the ninety hours required hereunder.

1-a. Every application for a real estate salesman's license shall
     set forth:

     (a)  The name and residence address of the applicant.

     (b)  The name and principal business address of the broker
          with whom he is to be associated.

     (c)  The business or occupation engaged in for the two years
          immediately preceding the date of the application,
          setting forth the place or places where such business
          or occupation was engaged in, and the name or names of
          employers if any.

     (d)  The length of time he has been engaged in the real
          estate business.

     (e)  Each applicant for a salesman's license shall provide
          such further information as the department may
          reasonably require, appearing at such time and place as
          may be designated by the department, to take a written
          examination and answer such questions as may be
          prepared by the department to enable it to determine
          the trustworthiness of the applicant and the
          applicant's competence to transact the business of real
          estate salesman in such a manner as to safeguard the
          interests of the public, including the applicant's
          working knowledge of the basic concepts of law
          pertaining to contracts, real property, agency and this
          article which govern conduct of such business, mastery
          of basic skills needed to perform the applicant's
          duties, working knowledge of the ethical obligations of
          a real estate salesman, and knowledge of the provisions
          of the general obligations law pertaining to
          performance of the applicant's duties.

     Each application for either a broker's or salesman's license
     under this article shall be subscribed by the applicant; or
     if made by a co-partnership it shall be subscribed by a
     member thereof, or if made by a corporation it shall be
     subscribed by an officer thereof. Each application shall
     contain an affirmation by the person so subscribing that the
     statements therein are true under the penalties of perjury.
     An application for a license shall be accompanied by the
     appropriate license fee, as hereinafter prescribed in this
     article.

     (f)  Anything to the contrary herein notwithstanding, on and
          after the effective date of this paragraph, no
          salesman's license or conditional license shall be
          issued by the department unless the application
          therefor has been accompanied by proof that prior to
          such application the applicant has attended at least
          forty-five hours and successfully completed a real
          estate course or courses approved by the secretary of
          state as to method and content and supervision, which
          approval may be withdrawn if in the opinion of the
          secretary of state said course or courses are not
          properly conducted as to method, content and
          supervision.

2.   Renewals. Any license granted under the provision hereof may
     be renewed by the department upon application therefor by
     the holder thereof, in such form as the department may
     prescribe, and payment of the fee for such license. In case
     of application for renewal of license, the department may
     dispense with the requirement of such statements as it deems
     unnecessary in view of those contained in the original
     application for license. A renewal period within the meaning
     of this act is considered as being a period of two years
     from the date of expiration of a previously issued license.
     The department shall require any applicant, who does not
     apply for renewal of license within such period, to qualify
     by passing the written examination as provided herein, and
     may require any licensee who has not yet passed the written
     examination, and who cannot reasonably prove to the
     satisfaction of the department, that he can meet the
     competency requirements, to pass the written examination
     before a renewal of license shall be granted; provided,
     however, that a person who failed or was unable to renew his
     license by reason of his induction or enlistment in the
     armed forces of the United States shall not be required to
     take or pass such examination.

3.   (a)  No renewal license shall be issued any licensee
          under this article for any license period commencing
          November first, nineteen hundred ninety-five unless
          such licensee shall have within the two year period
          immediately preceding such renewal attended at least
          twenty-two and one-half hours and successfully
          completed a continuing education real estate course or
          courses approved by the secretary of state as to
          method, content and supervision, which approval may be
          withdrawn if in the opinion of the secretary of state
          such course or courses are not being conducted properly
          as to method, content and supervision. The licensee
          shall provide an affidavit, in a form acceptable to the
          department of state, establishing the nature of the
          continuing education acquired and shall provide such
          further proof as required by the department of state.
          The provisions of this paragraph shall not apply to any
          licensed real estate broker who is engaged full time in
          the real estate business and who has been licensed
          under this article for at least fifteen consecutive
          years immediately preceding such renewal.

     (b)  Notwithstanding the provisions of section four hundred
          one of the state administrative procedure act, except
          as provided in this paragraph, no license issued under
          this article shall continue in effect beyond the period
          for which it is issued if the proof of attendance
          required hereunder is not submitted and accepted prior
          to such expiration date. The department in its
          discretion may however issue a temporary renewal
          license for such period of time it deems appropriate to
          permit the submission of the required proof of
          attendance when the failure to submit such proof is not
          due to the fault of the licensee.

     (c)  The secretary of state, no later than November first,
          nineteen hundred seventy-nine, shall promulgate rules
          establishing the method, content and supervision
          requirements of the continuing education real estate
          course or courses provided for in this section. In
          establishing the requirements for the continuing
          education course or courses, the secretary of state
          shall permit alternatives with respect to content and
          method of presentation in consideration of the type of
          brokerage practiced and the availability of the sources
          of such course or courses in different areas of the
          state. Each course shall, however, be presented in an
          appropriate class room setting, have an established
          curriculum composed primarily of real estate practice
          and professional responsibility and ethics and properly
          prepared written materials of the subject matter which
          shall be distributed as part of the course. It shall be
          taught by a qualified faculty with attorneys presenting
          legal subjects. Credit shall be awarded on the basis of
          one hour for each sixty minutes of actual attendance
          and records shall be maintained of attendance at each
          session which shall be transmitted to the department at
          the conclusion of the course.

4.   The fees provided for by this section shall not be
     refundable.


Sec. 441-a.    License and pocket card.

1.   The department of state, if satisfied of the competency and
     trustworthiness of the applicant, shall issue and deliver to
     him a license in such form and manner as the department
     shall prescribe, but which must set forth the name and
     principal business address of the licensee, and, in the case
     of a real estate salesman, the name and business address of
     the broker with whom the salesman is associated.

2.   Terms. A license issued or reissued under the provisions of
     this article shall entitle the person, co-partnership or
     corporation to act as a real estate broker, or, if the
     application is for a real estate salesman's license, to act
     as a real estate salesman in this state up to and including
     the thirty-first day of October of the year in which the
     license by its terms expires.

3.   Place of business; business sign required. Except as
     otherwise provided in this article, each licensed real
     estate broker shall have and maintain a definite place of
     business within this state, and shall conspicuously post on
     the outside of the building in which said office is
     conducted a sign of a sufficient size to be readable from
     the sidewalk indicating the name and the business of the
     applicant as a licensed real estate broker, unless said
     office shall be located in an office, apartment or hotel
     building, in which event the name and the words "licensed
     real estate broker" shall be posted in the space provided
     for posting of names of occupants of the building, other
     than the mail box. Where the applicant for a real estate
     broker's license maintains more than one place of business,
     the broker shall apply for and the department shall issue a
     supplemental license for each branch office so maintained
     upon payment to the department of state for each
     supplemental license so issued the same fee prescribed in
     this article for a license to act as a real estate broker.
     Such fee shall accompany such application and shall be non-
     refundable. For purposes of this subdivision, the principal
     residence of a real estate broker or salesman shall not be
     deemed a place of business solely because such broker or
     salesman shall have included the residence telephone number
     in his business cards.

4.   Display of license. The license of a real estate broker
     shall be conspicuously displayed in his principal place of
     business at all times. Licenses issued for branch offices
     shall be conspicuously displayed therein. The display of a
     real estate broker's license, the term whereof has expired,
     by any person, partnership or corporation not duly licensed
     as a real estate broker for the current license term is
     prohibited.

5.   Change of address. Notice in writing in the manner and form
     prescribed by the department shall be given the department
     at its offices in Albany by a licensed real estate broker on
     his own behalf and on behalf of each salesman associated
     with him of any change in his or its principal business
     address. The filing fee of ten dollars for each licensee
     named therein shall accompany such notice. Such change by a
     licensee without such notification shall operate to suspend
     his license until such suspension shall be vacated by the
     department.

6.   Pocket card. The department shall prepare, issue and deliver
     to each licensee a pocket card in such form and manner as
     the department shall prescribe, but which shall contain the
     name and business address of the licensee, and, in the case
     of a real estate salesman, the name and business address of
     the broker with whom he or she is associated and shall
     certify that the person whose name appears thereon is a
     licensed real estate broker or salesman, as may be. Such
     cards must be shown on demand. In the case of loss,
     destruction or damage, the secretary of state may, upon
     submission of satisfactory proof, issue a duplicate pocket
     card upon payment of a fee of ten dollars.

7.   License term. From and after the date when this subdivision
     shall take effect, the term for which a license shall be
     issued or reissued under this article shall be a period of
     two years.

8.   Death of broker. A license issued to a real estate broker
     who was, at the time of his death, the sole proprietor of a
     brokerage office may be used after the death of such
     licensee by his duly appointed administrator or executor in
     the name of the estate pursuant to authorization granted by
     the surrogate under the provisions of the surrogate's court
     procedure act for a period of not more than one hundred
     twenty days from the date of death of such licensee in order
     to complete any unfinished realty transactions in the
     process of negotiation by the broker or his salesmen
     existing prior to his decease. There shall be endorsed upon
     the face of the license, after the name of the decedent, the
     words "deceased", the date of death and the name of the
     administrator or executor under whose authority the license
     is being used. The period of one hundred twenty days may be
     extended upon application to the secretary of state, for
     good cause shown, for an additional period not to exceed one
     hundred twenty days. A license expiring during such period
     or extension shall be automatically renewed and continued in
     effect during such period or extension. No fee shall be
     charged for any such license or renewal thereof.

9.   Except for changes made on a renewal application, the fee
     for changing an address on a license shall be ten dollars.

10.  Except for changes made on a renewal application, the fee
     for changing a name or for changing the status of a real
     estate broker's license shall be one hundred fifty dollars.
     The fee for changing a salesperson's name shall be fifty
     dollars.

11.  If a real estate salesperson shall leave the service of a
     real estate broker, the real estate broker shall file a
     termination of association notice on such form as secretary
     may designate. The fee for terminating the record of
     association shall be ten dollars. The salesperson's license
     may be endorsed to a new sponsoring broker upon the
     establishment of a new record of association filed with the
     department of state. The fee for filing a record of
     association shall be ten dollars.


Sec. 441-b.    License fees.

1.   The fee for a license issued or reissued under the
     provisions of this article entitling a person, co-
     partnership or corporation to act as a real estate broker
     shall be one hundred fifty dollars. The fee for a license
     issued or reissued under the provisions of this article
     entitling a person to act as a real estate salesman shall be
     fifty dollars. Notwithstanding the provisions of subdivision
     seven of Section four hundred forty-one-a of this article,
     after January first, nineteen hundred eighty-six, the
     secretary of state shall assign staggered expiration dates
     for outstanding licenses that have been previously renewed
     on October thirty-first of each year from the assigned date
     unless renewed. If the assigned date results in a term that
     exceeds twenty-four months, the applicant shall pay an
     additional prorated adjustment together with the regular
     renewal fee. The secretary of state shall assign dates to
     existing licenses in a manner which shall result in a term
     of not less than two years.

1-a. The fee for a person to take an examination offered by the
     secretary of state pursuant to this article shall be fifteen
     dollars. Fees collected for written examinations shall be
     paid into the licensing examinations services account
     pursuant to section ninety-seven-aa of the state finance
     law.

2.   Corporations and co-partnerships. If the licensee be a
     corporation, the license issued to it shall entitle the
     president thereof or such other officer as shall be
     designated by such corporation, to act as a real estate
     broker. For each other officer who shall desire to act as a
     real estate broker in behalf of such corporation an
     additional license expiring on the same date as the license
     of the corporation shall be applied for and issued, as
     hereinbefore provided, the fee for which shall be the same
     as the fee required by this section for the license to the
     corporation. No license as a real estate salesman shall be
     issued to any officer of a corporation nor to a member of a
     co-partnership licensed as a real estate broker. If the
     licensee be a co-partnership the license issued to it shall
     entitle one member thereof to act as a real estate broker,
     and for each other member of the firm who desires to act as
     a real estate broker an additional license expiring on the
     same date as the license of the co-partnership shall be
     applied for and issued, as hereinbefore provided, the fee
     for which shall be the same as the fee required by this
     section for the license to the co-partnership. In case a
     person licensed individually as a real estate broker
     thereafter becomes an officer of a corporation or a member
     of a co-partnership an application shall be made in behalf
     of such corporation or co-partnership for a broker's license
     for him as its representative for the remainder of the then
     current license term, provided that the license and pocket
     card previously issued to the licensee in his individual
     capacity shall have been returned to the department
     whereupon the department shall cause a properly signed
     endorsement to be made without charge on the face of such
     license and pocket card as to such change of license status
     and return the license and pocket card to the licensee.

3.   Disposition of fees. The department of state shall on the
     first day of each month make a verified return to the
     department of taxation and finance of all fees received by
     it under this article during the preceding calendar month,
     stating from what city or county received and by whom and
     when paid. The department shall on or before the tenth day
     of each month pay into the state treasury all monies to its
     credit on account of fees under this article, at the close
     of business on the last day of the preceding month.


Sec. 441-c.    Revocation and suspension of licenses.

1.   Powers of department. The department of state may revoke the
     license of a real estate broker or salesman or suspend the
     same, for such period as the department may deem proper, or
     in lieu thereof may impose a fine not exceeding one thousand
     dollars payable to the department of state, or a reprimand
     upon conviction of the licensee of a violation of any
     provision of this article, or for a material misstatement in
     the application for such license, or if such licensee has
     been guilty of fraud or fraudulent practices, or for
     dishonest or misleading advertising, or has demonstrated
     untrustworthiness or incompetency to act as a real estate
     broker or salesman, as the case may be. In the case of a
     real estate broker engaged in the business of a tenant
     relocator, untrustworthiness or incompetency shall include
     engaging in any course of conduct including, but not limited
     to, the interruption or discontinuance of essential building
     service, that interferes with or disturbs the peace,
     comfort, repose and quiet enjoyment of a tenant.

2.   Determination of department. In the event that the
     department shall revoke or suspend any such license, or
     impose any fine or reprimand on the holder thereof, its
     determination shall be in writing and officially signed. The
     original of such determination, when so signed, shall be
     filed in the office of the department and copies thereof
     shall be served personally or by registered mail upon the
     broker or salesman and addressed to the principal place of
     business of such broker or salesman, and to the complainant.
     All brokers' and salesmen's licenses and pocket cards shall
     be returned to the department of state within five days
     after the receipt of notice of a revocation or suspension,
     or in lieu thereof, the broker or salesman whose license has
     been revoked or suspended shall make and file an affidavit
     in form prescribed by the department of state, showing that
     the failure to return such license and pocket card is due
     either to loss or destruction thereof.

3.   The display of a real estate broker's license after the
     revocation or suspension thereof is prohibited.

4.   Whenever the license of a real estate broker or real estate
     salesman is revoked by the department, such real estate
     broker or real estate salesman shall be ineligible to be
     relicensed either as a real estate broker or real estate
     salesman until after the expiration of a period of one year
     from the date of such revocation.


Sec. 441-d.    Salesman's license suspended by revocation or
               suspension of employer's license.

The revocation or suspension of a broker's license shall operate
to suspend the license of each real estate salesman associated
with such broker, pending a change of association of the salesman
or the expiration of the period of suspension of the broker's
license. Such suspension of the salesman's license shall be
deemed to be a discontinuance of association with the broker
being suspended.


Sec. 441-e.    Denial of license; complaints; notice of hearing.

1.   Denial of license. The department of state shall, before
     making a final determination to deny an application for a
     license, notify the applicant in writing of the reasons for
     such proposed denial and shall afford the applicant an
     opportunity to be heard in person or by counsel prior to
     denial of the application. Such notification shall be served
     personally or by certified mail or in any manner authorized
     by the civil practice law and rules. If the applicant is a
     salesman or has applied to become a salesman, the department
     shall also notify the broker with whom such salesman is
     associated, or with whom such salesman or applicant is about
     to become associated, of such proposed denial. If a hearing
     is requested, such hearing shall be held at such time and
     place as the department shall prescribe. If the applicant
     fails to make a written request for a hearing within thirty
     days after receipt of such notification, then the
     notification of denial shall become the final determination
     of the department. The department, acting by such officer or
     person in the department as the secretary of state may
     designate, shall have the power to subpoena and bring before
     the officer or person so designated any person in this
     state, and administer an oath to and take testimony of any
     person or cause his deposition to be taken. A subpoena
     issued under this section shall be regulated by the civil
     practice law and rules. If, after such hearing, the
     application is denied, written notice of such denial shall
     be served upon the applicant personally or by certified mail
     or in any manner authorized by the civil practice law and
     rules, and if the applicant is a salesman, or has applied to
     become a salesman, the department shall notify the broker
     with whom such applicant is associated. 2.   Revocation,
     suspension, reprimands, fines. The department of state
     shall, before revoking or suspending any license or imposing
     any fine or reprimand on the holder thereof, and at least
     ten days prior to the date set for the hearing, notify in
     writing the holder of such license of any charges made and
     shall afford such licensee an opportunity to be heard in
     person or by counsel in reference thereto. Such written
     notice may be served by delivery of same personally to the
     licensee, or by mailing same by certified mail to the last
     known business address of such licensee, or by any method
     authorized by the civil practice law and rules. If said
     licensee be a salesman, the department shall also notify the
     broker with whom he is associated of the charges by mailing
     notice by certified mail to the broker's last known business
     address. The hearing on such charges shall be at such time
     and place as the department shall prescribe. 3.   Power to
     suspend a license. The department, acting by such officer or
     person in the department as the secretary of state may
     designate, shall have the power to suspend a license pending
     a hearing and to subpoena and bring before the officer or
     person so designated any person in this state, and
     administer an oath to and take testimony of any person or
     cause his deposition to be taken. A subpoena issued under
     this section shall be regulated by the civil practice law
     and rules.


Sec. 441-f.    Judicial review.

The action of the department of state in granting or refusing to
grant or to renew a license under this article or in revoking or
suspending such a license or imposing any fine or reprimand on
the holder thereof or refusing to revoke or suspend such a
license or impose any fine or reprimand shall be subject to
review by a proceeding brought under and pursuant to article
seventy-eight of the civil practice law and rules at the instance
of the applicant for such license, the holder of a license so
revoked, suspended, fined or reprimanded or the person aggrieved.


Sec. 442.      Splitting commissions.

No real estate broker shall pay any part of a fee, commission or
other compensation received by the broker to any person for any
service, help or aid rendered in any place in which this article
is applicable, by such person to the broker in buying, selling,
exchanging, leasing, renting or negotiating a loan upon any real
estate including the resale of a condominium unless such a person
be a duly licensed real estate salesman regularly associated with
such broker or a duly licensed real estate broker or a person
regularly engaged in the real estate brokerage business in a
state outside of New York.

Furthermore, notwithstanding any other provision of law, it shall
be permissible for a broker properly registered pursuant to the
provisions of article twenty-three-A of the general business law
who earns a commission on the original sale of a cooperative or
homeowners association interest in real estate, including
condominium units to pay any part of a fee, commission or other
compensation received for bringing about such sale to a person
whose prinicipal business is not the sale or offering of
cooperatives or homeowners association interests in real
property, including condominium units in this state but who is
either: (i) a real estate salesman duly licensed under this
article who is regularly associated with such broker; (ii) a
broker duly licensed under this article; or a person regularly
engaged in the real estate brokerage business in a state outside
of New York.

Except when permitted pursuant to the foregoing provisions of
this Section no real estate broker shall pay or agree to pay any
part of a fee, commission, or other compensation received by the
broker, or due, or to become due to the broker to any person,
firm or corporation who or which is or is to be a party to the
transaction in which such fee, commission or other compensation
shall be or become due to the broker.


Sec. 442-a.    Compensation of salesmen; restrictions.

No real estate salesman in any place in which this article is
applicable shall receive or demand compensation of any kind from
any person, other than a duly licensed real estate broker with
whom he associated, for any service rendered or work done by such
salesman in the appraising, buying, selling, exchanging, leasing,
renting or negotiating of a loan upon any real estate.


Sec. 442-b.    Discontinuance or change of salesman's
               association; report.

When the association of any real estate salesman shall have been
terminated for any reason whatsoever, his broker shall forthwith
notify the department of state thereof in such manner as the
department shall prescribe. Where change of such salesman's
association is the basis for such termination, the salesman's
successor broker shall forthwith notify the department of such
change in such manner as the department shall prescribe, such
notice to be accompanied by a fee of one dollar. No real estate
salesman shall perform any act within any of the prohibitions of
this article from and after the termination for any cause of his
association until he thereafter shall have become associated with
a licensed real estate broker.


Sec. 442-c.    Violations by salesmen; broker's responsibility.

No violation of a provision of this article by a real estate
salesman or employee of a real estate broker shall be deemed to
be cause for the revocation or suspension of the license of the
broker, unless it shall appear that the broker had actual
knowledge of such violation or retains the benefits, profits or
proceeds of a transaction wrongfully negotiated by his salesman
or employee after notice of the salesman's or employee's
misconduct. A broker shall be guilty of a misdemeanor for having
any salesman associated with his firm who has not secured the
required license authorizing such employment.


Sec. 442-d.    Actions for commissions; license prerequisite.

No person, copartnership or corporation shall bring or maintain
an action in any court of this state for the recovery of
compensation for services rendered, in any place in which this
article is applicable, in the buying, selling, exchanging,
leasing, renting or negotiating a loan upon any real estate
without alleging and proving that such person was a duly licensed
real estate broker or real estate salesman on the date when the
alleged cause of action arose.


Sec. 442-e.    Violations.

1.   Misdemeanors; triable in court of special sessions. Any
     person who violates any provision of this article shall be
     guilty of a misdemeanor. The commission of a single act
     prohibited by this article shall constitute a violation
     hereof. All courts of special sessions, within their
     respective territorial jurisdictions, are hereby empowered
     to hear, try and determine such crimes, without indictment,
     and to impose the punishments prescribed by law therefor.

2.   Attorney general to prosecute. Criminal actions for
     violations of this article shall be prosecuted by the
     attorney general, or his deputy, in the name of the people
     of the state, and in any such prosecution the attorney
     general, or his deputy, shall exercise all the powers and
     perform all the duties which the district attorney would
     otherwise be authorized to exercise or to perform therein.
     The attorney general shall, upon a conviction for a
     violation of any provision of this article, and within ten
     days thereafter, make and file with the department of state
     a detailed report showing the date of such conviction, the
     name of the person convicted and the exact nature of the
     charge.

3.   Penalty recoverable by person aggrieved. In case the
     offender shall have received any sum of money as commission,
     compensation or profit by or in consequence of his violation
     of any provision of this article, he shall also be liable to
     a penalty of not less than the amount of the sum of money
     received by him as such commission, compensation or profit
     and not more than four times the sum so received by him, as
     may be determined by the court, which penalty may be sued
     for and recovered by any person aggrieved and for his use
     and benefit, in any court of competent jurisdiction.

4.   In any prosecution under this article, any person, firm or
     corporation who, for another, performs or offers to perform
     or attempts or offers to attempt, the performance of any one
     of the acts set forth in Section four hundred forty of this
     article, shall be presumed to do so for a fee, commission or
     other valuable consideration, but such presumption shall not
     arise out of a single transaction, except upon proof of
     repeated and successive acts, offers or attempts of a like
     nature.

5.   The secretary of state shall have the power to enforce the
     provisions of this article and upon complaint of any person,
     or on his own initiative, to investigate any violation
     thereof or to investigate the business, business practices
     and business methods of any person, firm or corporation
     applying for or holding a license as a real estate broker or
     salesman, if in the opinion of the secretary of state such
     investigation is warranted. Each such applicant or licensee
     shall be obliged, on request of the secretary of state, to
     supply such information as may be required concerning his or
     its business, business practices or business methods, or
     proposed business practices or methods.

6.   For the purpose of enforcing the provisions of this article
     and in making investigations relating to any violation
     thereof, and for the purpose of investigating the character,
     competency and integrity of the applicants or licensees
     hereunder, and for the purpose of investigating the
     business, business practices and business methods of any
     applicant or licensee, or of the officers or agents thereof,
     the department of state, acting by such officer or person in
     the department as the secretary of state may designate,
     shall have the power to subpoena and bring before the
     officer or person so designated any person in this state and
     require the production of any books or papers which he deems
     relevant to the inquiry and administer an oath to and take
     testimony of any person or cause his deposition to be taken
     with the same fees and mileage and in the same manner as
     prescribed by law for civil cases in a court of record,
     except that any applicant or licensee or officer or agent
     thereof shall not be entitled to such fees and/or mileage.
     Any person, duly subpoenaed, who fails to obey such subpoena
     without reasonable cause or without such cause refuses to be
     examined or to answer any legal or pertinent question as to
     the character or qualification of such applicant or licensee
     or such applicant's or licensee's business, business
     practices and methods or such violations, shall be guilty of
     a misdemeanor.

7.   In any criminal proceeding before any court or grand jury,
     or upon any investigation before the department of state for
     a violation of any of the provisions of this section, the
     court or grand jury, or the secretary of state, his deputy
     or other officer conducting the investigation, may confer
     immunity, in accordance with the provisions of section 50.20
     or 190.40 of the criminal procedure law.


Sec. 442-f.    Saving clause.

The provisions of this article shall not apply to receivers,
referees, administrators, executors, guardians or other persons
appointed by or acting under the judgment or order of any court;
or public officers while performing their official duties, or
attorneys at law.


Sec. 442-g.    Nonresident licensees.

1.   A nonresident of this state may become a real estate broker
     or a real estate salesman by conforming to all of the
     provisions of this article, except that a nonresident broker
     regularly engaged in the real estate business as a vocation
     who is licensed and maintains a definite place of business
     in another state, which offers the same privileges to the
     licensed brokers of this state, shall not be required to
     maintain a place of business within this state. Anything to
     the contrary herein notwithstanding, if any state prohibits
     or restricts the right of a resident of this state to become
     a licensed nonresident real estate broker or salesman, then
     the issuance of such a license to an applicant resident in
     such state shall be similarly restricted. The department of
     state shall recognize the license issued to a real estate
     broker or salesman by another state as satisfactorily
     qualifying him for license as broker or salesman, as the
     case may be, under this Section; provided that the laws of
     the state of which he is a resident require that applicants
     for licenses as real estate brokers and salesmen shall
     establish their competency by written examinations but
     permit licenses to be issued to residents of the State of
     New York duly licensed under this article, without
     examination. If the applicant is a resident of a state which
     has not such requirement then the applicant must meet the
     examination requirement as provided herein and the
     department of state shall issue a license to such
     nonresident broker or salesman upon payment of the license
     fee and the filing by the applicant with the department of a
     certified copy of the applicant's license issued by such
     other state.

2.   Every nonresident applicant shall file with his application
     or renewal application an irrevocable consent on a form
     prescribed by the department of state submitting himself to
     the jurisdiction of the courts of this state and designating
     the secretary of state of the state of New York as his agent
     upon whom may be served any summons, subpoena or other
     process against him in any action or special proceeding.
     Such process may issue in any court in this state having
     jurisdiction of the subject matter, and the process shall
     set forth that the action or special proceeding is within
     the jurisdiction of the court.

3.   Service of such process upon the secretary of state shall be
     made by personally delivering to and leaving with him or his
     deputy or with any person authorized by the secretary of
     state to receive such service, at the office of the
     department of state in the city of Albany, duplicate copies
     of such process together with a fee of five dollars if the
     action is solely for the recovery of a sum of money not in
     excess of two hundred dollars and the process is so
     endorsed, and a fee of ten dollars in any other action or
     proceeding, which fee shall be a taxable disbursement. If
     such process is served upon behalf of a county, city, town
     or village, or other political subdivision of the state, the
     fee to be paid to the secretary of state shall be five
     dollars, irrespective of the amount involved or the nature
     of the action on account of which such service of process is
     made. If the cost of registered mail for transmitting a copy
     of the process shall exceed two dollars, an additional fee
     equal to such excess shall be paid at the time of the
     service of such process. Proof of service shall be by
     affidavit of compliance with this subdivision filed by or on
     behalf of the plaintiff together with the process, within
     ten days after such service, with the clerk of the court in
     which the action or special proceeding is pending. Service
     made as provided in this section shall be complete ten days
     after such papers are filed with the clerk of the court and
     shall have the same force and validity as if served on him
     personally within the state and within the territorial
     jurisdiction of the court from which the process issues.

4.   The secretary of state shall promptly send one of such
     copies by registered mail, return receipt requested, to the
     nonresident broker or nonresident salesman at the post
     office address of his main office as set forth in the last
     application filed by him.

5.   Nothing in this section shall effect the right to serve
     process in any other manner permitted by law.


Sec. 442-h.    Rules of the secretary of state.

1.   The secretary of state shall adopt such rules and
     regulations as the secretary of state may determine are
     necessary for the administration and enforcement of this
     article.

2.   (a)  If, after a public hearing and a reasonable
          investigation, the secretary of state determines that
          the owners of residential real property within a
          defined geographic area are subject to intense and
          repeated solicitations by real estate brokers and
          salespersons to place their property for sale with such
          real estate brokers or salespersons, and that such
          solicitations have caused owners to reasonably believe
          that property values may decrease because persons of
          different race, ethnic, social, or religious
          backgrounds are moving or are about to move into the
          neighborhood or geographic area, the secretary of state
          may adopt a rule, to be known as a nonsolicitation
          order, directing all real estate brokers and
          salespersons to refrain from soliciting residential
          real estate listings within the subject area. Each area
          subject to such an order shall be bounded or otherwise
          specifically defined in the order. The nonsolicitation
          order shall be subject to such terms and conditions as
          the secretary of state may determine are, on balance,
          in the best interest of the public, including but not
          limited to the affected owners and licensees. A
          nonsolicitation order may prohibit any or all types of
          solicitation directed towards particular home-owners,
          including but not limited to letters, postcards,
          telephone calls, door-to-door calls, and handbills.
          Every nonsolicitation order shall contain a provision
          setting forth the day, month and year that the order
          shall become effective, as well as the day, month and
          year that the order shall expire. A nonsolicitation
          order shall not be effective for more than five years.
          However, a nonsolicitation order and the boundaries of
          the area where it applies may be re-adopted or amended
          from time to time in accordance with the procedures set
          forth herein.

     (b)  No real estate broker shall establish a new principal
          office or branch office within any geographic area
          which is the subject of a nonsolicitation order without
          prior approval from the secretary of state. The
          secretary of state may deny any application for the
          establishment or relocation of a principal office or
          branch office if approval of the application would
          cause the total number of principal and branch offices
          within the subject area to exceed the total number of
          principal and branch offices that were licensed within
          the area on the date the nonsolicitation order became
          effective.

3.   (a)  If the secretary of state determines that some
          owners of residential real property within a defined
          geographic area are subject to intense and repeated
          solicitation by real estate brokers and salespersons to
          place their property for sale with such real estate
          brokers or salesperson, the secretary of state may
          adopt a rule establishing a cease and desist zone,
          which zone shall be bounded or otherwise specifically
          defined in the rule. After the secretary of state has
          established a cease and desist zone, the owners of
          residential real property located within the zone may
          file an owner's statement with the secretary of state
          expressing their wish not to be solicited by real
          estate brokers or salespersons. The form and content of
          the statement shall be prescribed by the secretary of
          state. After a cease and desist zone has been
          established by the secretary of state, no real estate
          broker or salesperson shall solicit a listing from any
          owner who has filed a statement with the secretary of
          state if such owner's name appears on the current cease
          and desist list prepared by the secretary of state. The
          prohibition on solicitation shall apply to direct forms
          of solicitation such as the use of the telephone, the
          mail, personal contact and other forms of direct
          solicitation as may be specified by the secretary of
          state.

     (b)  The secretary of state shall compile a cease and desist
          list for each zone established pursuant to paragraph
          (a) of this subdivision. In addition to such other
          information as the secretary of state may deem
          appropriate, each cease and desist list shall contain
          the name of each owner who has filed an owner's
          statement with the secretary, as well as the address of
          the property within the zone to which the owner's
          statement applies. The secretary of state shall print a
          list for each zone. Each list shall be revised and
          reprinted at least annually on or before December
          thirty-first and shall be made available to the public
          and to real estate brokers at a reasonable price to be
          set by the secretary of state and approved by the
          director of the division of the budget. Additions or
          deletions shall be made to each list only at the time
          the list is reprinted, and the secretary of state shall
          not issue amendments or addenda to any printed list.

     (c)  No rule establishing a cease and desist zone shall be
          effective for longer than five years. However, the
          secretary of state may re-adopt the rule to continue
          the cease and desist zone for additional periods not to
          exceed five years each. Whenever a rule establishing a
          cease and desist zone shall have expired or shall have
          been repealed, all owner's statements filed with the
          secretary of state pursuant to that rule shall also
          expire. However, an owner may file a new statement with
          the secretary of state if a new rule is adopted
          establishing a cease and desist zone containing the
          owner's property. Once the boundaries of a cease and
          desist zone have been established by rule of the
          secretary of state, the boundaries may not be changed
          except by repeal of the existing rule and adoption of a
          new rule establishing the new boundaries.


Sec. 442-j.    Enforcement; advisory committee of real estate
               brokers; employees.

The department of state shall enforce the provisions of this
article. The secretary of state may appoint an advisory committee
of seven duly licensed real estate brokers, to assist the
department in the administration and enforcement of this article.
The members of such committee shall serve without compensation
but shall be entitled to their reasonable traveling expenses
necessarily incurred in the performance of their duties. The
secretary may, subject to the civil service law and within the
amount of appropriations available therefor, employ and fix the
compensation of such employees as may be necessary for the
efficient administration of this article, who shall exercise such
of the powers and perform such of the duties conferred upon and
imposed upon the department by this article as he may delegate to
such employees.


Sec. 442-k.    Effect of invalid provision.

Should the courts of this state declare any provision of this
article unconstitutional, or unauthorized, or in conflict with
any other Section or provision of this article, then such
decision shall affect only the section or provision so declared
to be unconstitutional or unauthorized and shall not affect any
other Section or part of this article.


Sec. 443.      Disclosure regarding real estate agency
               relationship; form.

1.   Definitions. As used in this section, the following terms
     shall have the following meanings:

     a.   "Agent" means a person who is licensed as a real estate
          broker or real estate sales associate under section 440-
          a of this article and is acting in a fiduciary
          capacity.

     b.   "Buyer" means a transferee or lessee in a residential
          real property transaction and includes a person who
          executes an offer to purchase or to lease residential
          real property from a seller through an agent, or who
          has engaged the services of an agent with the object of
          entering into a residential real property transaction
          as a transferee or lessee.

     c.   "Buyer's agent" means an agent who contracts to locate
          residential real property for a buyer or who finds a
          buyer for a property and presents an offer to purchase
          to the seller or seller's agent and negotiates on
          behalf of the buyer.

     d.   "Listing agent" means a person who has entered into a
          listing agreement to act as an agent of the seller for
          compensation.

     e.   "Listing agreement" means a contract between an owner
          or owners of residential real property and an agent, by
          which the agent has been authorized to sell or lease
          the residential real property or to find or obtain a
          buyer or lessee therefor.

     f.   "Residential real property" means real property
          improved by a one-to-four family dwelling used or
          occupied, or intended to be used or occupied, wholly or
          partly, as the home or residence of one or more
          persons, but shall not refer to (i) unimproved real
          property upon which such dwellings are to be
          constructed or (ii) condominium or cooperative
          apartments in a building containing more than four
          units.

     g.   "Seller" means the transferor or lessor in a
          residential real property transaction, and includes an
          owner who lists residential real property for sale or
          lease with an agent, whether or not a transfer or lease
          results, or who receives an offer to purchase or lease
          residential real property.

     h.   "Seller's agent" means a listing agent who acts alone,
          or an agent who acts in cooperation with a listing
          agent, acts as a seller's subagent or acts as a
          broker's agent to find or obtain a buyer for
          residential real property.

2.   This section shall apply only to transactions involving
     residential real property.

3.   a.   A listing agent shall provide the disclosure form
          set forth in subdivision four of this section to a
          seller prior to entering into a listing agreement with
          the seller and shall obtain a signed acknowledgment
          from the seller, except as provided in paragraph f of
          this subdivision.

     b.   A seller's agent shall provide the disclosure form set
          forth in subdivision four of this section to a buyer or
          buyer's agent at the time of the first substantive
          contact with the buyer and shall obtain a signed
          acknowledgement from the buyer, except as provided in
          paragraph f of this subdivision.

     c.   A buyer's agent shall provide the disclosure form to
          the buyer prior to entering into an agreement to act as
          the buyer's agent and shall obtain a signed
          acknowledgment from the buyer, except as provided in
          paragraph f of this subdivision. A buyer's agent shall
          provide the form to the seller or seller's agent at the
          time of the first substantive contact with the seller
          and shall obtain a signed acknowledgment from the
          seller or the seller's listing agent, except as
          provided in paragraph f of this subdivision.

     d.   The parties to a contract of purchase and sale shall
          sign the acknowledgment of the parties to the contract.
          If attorneys for the buyer and seller arrange for the
          preparation and execution of a contract, the real
          estate licensees are not responsible for obtaining the
          acknowledgement of the parties as required by this
          paragraph.

     e.   The agent shall provide to the buyer or seller a copy
          of the signed acknowledgment and shall maintain a copy
          of the signed acknowledgment for not less than three
          years.

     f.   If the seller or buyer refuses to sign an
          acknowledgment of receipt pursuant to this subdivision,
          the agent shall set forth under oath or affirmation a
          written declaration of the facts of the refusal and
          shall maintain a copy of the declaration for not less
          than three years.

4.   The following shall be the disclosure form:

     DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS

     Before you enter into a discussion with a real estate agent
     regarding a real estate transaction, you should understand
     what type of agency relationship you wish to have with that
     agent.

     New York State law requires real estate licensees who are
     acting as agents of buyers or sellers of property to advise
     the potential buyers or sellers with whom they work of the
     nature of their agency relationship and the rights and
     obligations it creates.

     SELLER'S OR LANDLORD'S AGENT

     If you are interested in selling or leasing real property,
     you can engage a real estate agent as a seller's agent. A
     seller's agent, including a listing agent under a listing
     agreement with the seller, acts solely on behalf of the
     seller. You can authorize a seller's or landlord's agent to
     do other things including hire subagents, broker's agents or
     work with other agents such as buyer's agents on a
     cooperative basis. A subagent, is one who has agreed to work
     with the seller's agent, often through a multiple listing
     service. A subagent may work in a different real estate
     office.

     A seller's agent has, without limitation, the following
     fiduciary duties to the seller: reasonable care, undivided
     loyalty, confidentiality, full disclosure, obedience and a
     duty to account.

     The obligations of a seller's agent are also subject to any
     specific provisions set forth in an agreement between the
     agent and the seller.

     In dealings with the buyer, a seller's agent should (a)
     exercise reasonable skill and care in performance of the
     agent's duties; (b) deal honestly, fairly and in good faith;
     and (c) disclose all facts known to the agent materially
     affecting the value or desirability of property, except as
     otherwise provided by law.

     BUYER'S OR TENANT'S AGENT

     If you are interested in buying or leasing real property,
     you can engage a real estate agent as a buyer's or tenant's
     agent. A buyer's agent acts solely on behalf of the buyer.
     You can authorize a buyer's agent to do other things
     including hire subagents, broker's agents or work with other
     agents such as seller's agents on a cooperative basis.

     A buyer's agent has, without limitation, the following
     fiduciary duties to the buyer: reasonable care, undivided
     loyalty, confidentiality, full disclosure, obedience and a
     duty to account.

     The obligations of a buyer's agent are also subject to any
     specific provisions set forth in an agreement between the
     agent and the buyer.

     In dealings with the seller, a buyer's agent should (a)
     exercise reasonable skill and care in performance of the
     agent's duties; (b) deal honestly, fairly and in good faith;
     and (c) disclose all facts known to the agent materially
     affecting the buyer's ability and/or willingness to perform
     a contract to acquire seller's property that are not
     inconsistent with the agent's fiduciary duties to the buyer.

     BROKER'S AGENTS

     As part of your negotiations with a real estate agent, you
     may authorize your agent to engage other agents whether you
     are a buyer/tenant or seller/landlord. As a general rule,
     those agents owe fiduciary duties to your agent and to you.
     You are not vicariously liable for their conduct.

     AGENT REPRESENTING BOTH SELLER AND BUYER

     A real estate agent acting directly or through an associated
     licensee, can be the agent of both the seller/landlord and
     the buyer/tenant in a transaction, but only with the
     knowledge and informed consent, in writing, of both the
     seller/landlord and the buyer/tenant.

     In such a dual agency situation, the agent will not be able
     to provide the full range of fiduciary duties to the
     buyer/tenant and seller/landlord.

     The obligations of an agent are also subject to any specific
     provisions set forth in an agreement between the agent and
     the buyer/tenant and seller/landlord.

     An agent acting as a dual agent must explain carefully to
     both the buyer/tenant and seller/landlord that the agent is
     acting for the other party as well. The agent should also
     explain the possible effects of dual representation,
     including that by consenting to the dual agency relationship
     the buyer/tenant and seller/landlord are giving up their
     right to undivided loyalty.

     A BUYER/TENANT OR SELLER/LANDLORD SHOULD CAREFULLY CONSIDER
     THE POSSIBLE CONSEQUENCES OF A DUAL AGENCY RELATIONSHIP
     BEFORE AGREEING TO SUCH REPRESENTATION.

     GENERAL CONSIDERATIONS

     You should carefully read all agreements to ensure that they
     adequately express your understanding of the transaction. A
     real estate agent is a person qualified to advise about real
     estate. If legal, tax or other advice is desired, consult a
     competent professional in that field.

     Throughout the transaction you may receive more than one
     disclosure form. The law requires each agent assisting in
     the transaction to present you with this disclosure form.
     You should read its contents each time it is presented to
     you, considering the relationship between you and the real
     estate agent in your specific transaction.


ACKNOWLEDGEMENT                     ACKNOWLEDGEMENT OF PROSPECT
OF PROSPECTIVE BUYER/TENANT         SELLER/LANDLORD

(1) I have received and read this   (1) I have received and read
disclosure notice.                  this disclosure notice.

(2) I understand that a seller's    (2) I understand that a
/landlord's agent, including a      seller's/landlord's agent,
listing agent, is the agent of the  including a listing agent, is
seller/landlord exclusively, un-    the agent of the seller/
less the seller/landlord and        landlord exclusively, unless
buyer/tenant otherwise agree.       the seller/landlord and
                                    buyer/tenant otherwise agree.

(3) I understand that subagents,    (3) I understand that subagents,
including subagents participating   including subagents
in a multiple listing service, are  participating in a multiple
agents of the seller/landlord       listing service, are agents
exclusively.                        of the seller/landlord
                                    exclusively.

(4) I understand that I may en-     (4) I understand that a buyer's
gage my own agent to be my buy-     /tenant's agent is the agent of
er's/tenant's broker.               the buyer/tenant exclusively.

(5) I understand that the agent     (5) I understand that the agent
presenting this form to me,         presenting this form to me,
____________________________ of     __________________________ of
   (name of licensee)                   (name of licensee)
____________________________ is     __________________________ is
   (name of firm)                       (name of firm)
(check applicable relationship)     (check applicable relationship)

____  an agent of the seller        ____  my agent as a seller's/
/landlord                           landlord's

____  my agent as a buyer's         ____  an agent of the buyer/
/tenant's agent                     tenant

Dated:___________                   Dated:______________
Buyer/tenant:______________________
Seller/landlord:___________________

Dated:___________                    Dated:_______________
Buyer/tenant:______________________
Seller/landlord:___________________


ACKNOWLEDGMENT OF PROSPECTIVE BUYER/TENANT
AND SELLER/LANDLORD TO DUAL AGENCY

(1)  I have received and read this disclosure notice.
(2)  I understand that a dual agent will be working for both the
     seller/landlord and buyer/tenant.
(3)  I understand that I may engage my own agent as a
     seller's/landlord's agent or a buyer's/tenant's agent.
(4)  I understand that I am giving up my right to the agent's
     undivided loyalty.
(5)  I have carefully considered the possible consequences of a
     dual agency relationship.
(6)  I understand that the agent presenting this form to me,

________________________________ of
(name of licensee)

________________________________ is
(name of firm)

a dual agent working for both the buyer/tenant and
seller/landlord, acting as such with the consent of both the
buyer/tenant and seller/landlord and following full disclosure to
the buyer/tenant and seller/landlord.

Dated:______________          Dated:_____________
Buyer/tenant:_____________    Seller/landlord:_______________
Dated:______________          Dated:_____________
Buyer/tenant:________         Seller/landlord:_______________

ACKNOWLEDGMENT OF THE PARTIES TO THE CONTRACT


(1) I have received, read and understand this disclosure notice.

(2) I understand that _________________________________ of
                       (name of real estate licensee)

                      _________________________________ is
                            (name of firm)

(check applicable)       ____ an agent of the seller/landlord
relationship)            ____ an agent of the buyer/tenant
                         ____ a dual agent working for both
                              the buyer/tenant and
                              seller/landlord,
                              acting as such with the consent
                              of both buyer/tenant and seller/
                              landlord and following full
                              disclosure to the buyer/tenant
                              and seller/landlord.

I also understand that _____________________________________ of
                               (name of real estate licensee)

                         __________________________________ is
                               (name of firm)

(check applicable )      ____ an agent of the seller/landlord
relationship)            ____ an agent of the buyer/tenant
                         ____ a dual agent working for both
                              the buyer/tenant and
                              seller/landlord,
                              acting as such with the consent of
                              both buyer/tenant and
                              seller/landlord and
                              following full disclosure to the
                              buyer/tenant and seller/landlord.

Dated:_______________________  Dated:_________________________
Buyer/tenant:________________  Seller/landlord:_______________
Dated:_______________________  Dated:_________________________
Buyer/tenant:________________  Seller/landlord:_______________


5.   This section shall not apply to a real estate licensee who
     works with a buyer or a seller in accordance with terms
     agreed to by the licensee and buyer or seller and in a
     capacity other than as an agent, as such term is defined in
     paragraph a of subdivision one of this section.

6.   Nothing in this section shall be construed to limit or alter
     the application of the common law of agency with respect to
     residential real estate transactions.


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