Great question. It appears New York State has made a move in the right direction by bringing greater transparency to an historically opaque industry.  A state law requiring brokers to disclose to the client whom they actually work for—the seller or the buyer—has been expanded to include co-op and condo transactions. (The previous law applied only to transactions involving single-family homes and buildings with four or fewer units.) Good news, because we love transparency and an educated consumer. We also love that other brokers will be following the same disclosure rules we’ve always followed. We represent either the buyer or the seller—and not both in the same transaction—so we embrace this new refinement in the disclosure law. (Download the disclosure form here.)
Most consumers don’t even know they have a right to representation on the buy-side—typically the buyer’s broker had indirectly worked for the seller, due to the lack of an agreement clarifying the relationship. As the recent New York Times article points out some brokers are concerned that the new disclosure requirement will reduce their flow of business and lessen their direct deals for their seller clients. That pretty much tells you that buyers have been getting screwed all these years. It also indicates to me that existing brokers and their salespeople need to pick up their game and get better educated on their subject matter. Brownstone Brooklyn is full of hidden value and beautiful properties—now consumers will have a greater chance finding them–on their terms.
