When Governor David Paterson signed into law (August 30, 2010) amendments to Real Property Law §443 which take effect on January 1, 2011 (“§443” or the “Law”), he ensured that condominiums and cooperative apartment units previously exempt from Agency Relationship Disclosure would now be included under this important section of the Law.
The Real Property Law – January 1, 1991
Section 443 originally became effective on January 1, 1991 after the Department of State had concluded that brokers in residential transactions often failed to articulate whether they were representing the sellers or the buyers. Regulation §175.7 of the Department of State’s Regulations which then required, and still require, disclosure in every real estate transaction regarding the person or entity on whose behalf the agent is acting, was deemed insufficient. Written disclosure became the requirement in residential transactions. The definition of “residential real property” under subsection 1.f of §443 (definitions) indicated that residential real property would not refer to “condominium
or cooperative apartments in a building containing more than four units.” As a result, many real estate salespersons in the City of New York and its surrounding areas who are focused on cooperative and condominium properties have seldom been required to comply with the written agency disclosure requirements of §443.
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