From the May issue: It’s been four months since New York State amended its disclosure law for real estate agents, aiming to help consumers understand the sometimes murky world of commissions.
But ironically, brokers say the well-intentioned new law has created even more confusion for both clients and brokers — in the short term at least.
The problem, they say, is the complicated two-page form, which clients are required to sign stating that they understand who their broker represents: the buyer, the seller or both.
Brokers must give the form — called an Agency Disclosure Form — to their clients early in the buying process. Brokers who fail to get the forms signed could face fines, revoked commissions or even suspended licenses.
But brokers say they’re still unsure about when and how to present the paperwork, since some clients are initially reluctant to sign it. While many feel that the law is positive in theory, in practice, some brokers say, it’s taking time to work out the kinks. [more]
