The Westchester-Putnam Multiple Listing Service, Inc. has amended its exclusive listing agreements to include provisions which enable listing agents to comply with Section 294 of the Real Property Law which became effective January 1, 2009. The New York State Association of Realtors worked actively for more than 15 years to provide the residential brokerage community with some means of protection when sellers do not pay agreed upon commissions under listing agreements.
Language in Listing Agreement
In order to enable a licensee to utilize the new Commission Escrow Act (the “Act”) listings taken after January 1, 2009 must include the following mandatory verbiage in “clear and conspicuous bold face type”:
“At the time of Closing, you may be required to deposit the broker’s commission with the county clerk in the event that you do not pay the broker his or her commission as set forth herein. Your obligation to deposit the broker’s commission with the county clerk may be waived by the broker.”
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