Q: I am a REBNY member and I am currently representing my mother in purchasing a condominium. Must a REBNY member disclose that he or she is representing a family member in a real estate transaction?
A: Yes, under Section II (B)(7) of the REBNY Code of Ethics and Professional Practices, a REBNY member must provide written disclosure to all parties involved in the transaction informing them of the nature of the REBNY member’s relationship with the party they are representing. Section II (B)(7) states: "Members shall not engage in any transaction related to their real estate brokerage activities for themselves, any member of their immediate families, their firms or any member thereof or any entities in which they have any ownership interest, without making their true position known in writing to any party to the transaction;"
Important Tip: As indicated above, Section II (B)(7) also requires that REBNY members disclose when they are participating in a real estate transaction for themselves, their firms, or any entity in which they have an ownership interest.
The Legal Line Question by:
Neil B. Garfinkel
REBNY Broker Counsel
Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP