Question 1: What Type Of Transaction Am I Working On?

Is it a residential or commercial transaction? (Is there a distinction between residential and commercial under NYS law; can you participate in a commercial transaction?)

If it is a residential transaction, is it a co-op, condominium, house or townhouse?

Do you explain the differences in each property?

For example, that co-ops can reject, that co-ops require a board package, that you should start the board package immediately; that you should put your team of professional together immediately.

For example, that condos have a waiver of right of first refusal (which may be held hostage); that condos may not be warrantable.

For example, that a house or townhouse is going to likely need an inspection, that the inspection is going to disclose certain issues depending on where it is located (termites, radon, underground storage tanks).​

If it is a commercial transaction, is it retail, industrial, office space, etc.?

Do I have NDAs and non-solicitation agreements?

Can I do these types of transactions; no prohibition in terms of licensing but there is reputational risk.

Is it a leasing transaction, purchase and sale transaction, subleasing transaction, sale of air rights, sale of a business, etc.?

See the Transaction-Specific Checklists

Based on the type of transaction, who is working with me? Who does the client need on the team?

See the Team Email Template.

What type of co-broking environment am I working in? Is it REBNY or another MLS?

See the Cooperation Agreement Form (if it is another MLS environment).

Is it a FSBO?

What are the customs, rules and laws of the location where the property is located?

For example, Section 8 and Occupation are protected categories under Fair Housing laws in New York City.

What “property” disclosures am I required to give?

Property Condition Disclosure, Lead Paint Disclosure, Bedbug Dislcosure, etc.

Question 2: Who Am I Representing?

Am I representing the purchaser, seller, tenant, landlord or subtenant?

What is the difference between REBNY and other MLS environments?

What “agency” disclosures am I required to give?

Agency Disclosure is required in all 1-4 family transactions.

New York State law requires agency disclosure on all transactions.

See the Agency Disclosure Form.

What are my fiduciary obligations to the party that I am representing?

Confidentiality, (Reasonable) Care, Loyalty, Obedience, Accounting, Disclosure.

What are my fiduciary obligations to the opposing party?

See the Agency Disclosure Form.

Can I enter into an exclusive relationship with a purchaser?

Buyers are fickle; need to protect that you are the “procuring cause”

Who do I represent in “open listings?”

Do I have to represent at least one party in a transaction?

Question 3: How Am I Getting Paid?

Who is paying me? Is it the (i) owner/landlord, (ii) purchaser/tenant or (iii) co-broker?

Can I be paid by multiple parties?

Is a real estate broker required to co-broker a transaction?

Do I need to have an agreement of compensation in writing?

See theCompensation Agreement Form.

Does compensation create an agency relationship?