Q: Is there a distinction between a residential real estate broker and a commercial real estate broker pursuant to Article 12-A of New York Real Property Law?
A: No. Article 12-A of New York Real Property Law (“Article 12-A”) does not distinguish between residential real estate brokers and commercial real estate brokers when defining the term “real estate broker”. Accordingly, all real estate brokers must comply with the rules and regulations set forth in Article 12-A and Title 19 of the New York Codes, Rules and Regulations.
Important Tip: Notwithstanding the foregoing, there are some distinctions between a real estate broker’s obligations when dealing with residential versus commercial properties. For example, while all real estate brokers have an obligation to disclose their agency relationship, only real estate brokers dealing with residential property have an obligation to provide the Agency Disclosure Form and ensure sellers’ and lessors’ compliance with the Lead Based Paint Disclosure requirements.
Neil B. Garfinkel
REBNY Broker Counsel
Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP