The Real Property Law has been amended to include the Property Condition Disclosure Act.This law requires a form that must be completed by a seller and given to a buyer of real property. Real estate brokers will be responsible for providing the form to the seller for completion and for providing prospective buyers with a copy of the completed form. Real estate brokers are still responsible for providing buyers and sellers with an agency disclosure form for all residential (1-4 family) transactions. Property Condition Disclosure forms are available from your real estate broker.
IMPORTANT ADVISORY: Section 442 of the Real Property Law previously prohibited a real estate broker from paying any part of a commission to an unlicensed person, firm, corporation or LLC if the payment was intended as compensation for a service that would require a real estate license.
Accordingly, the amendment of August 10, 2004 , permits a real estate broker to pay the commission earned by a licensed associate broker or salesperson to an unlicensed corporation or unlicensed LLC , if each of the shareholders of the corporation or each member of the LLC, is an individual who is licensed and properly associated with the real estate broker as a licensed associate broker or salesperson.
This amendment does not entitle the associate real estate broker or real estate salesperson to be licensed or to advertise in the name of the corporation or LLC, nor will the records maintained by Department of State, Division of Licensing, reflect the name of the corporation or LLC. A licensee may NOT use the name of the corporation or LLC on business cards.