Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney for advice on your specific situation.
Detailed Answer
When two or more individuals own real property as co-owners in New York, selecting a real estate broker (realtor) requires cooperation and clear communication. Below are key considerations under New York law.
1. Understand Co-Ownership Rights and Obligations
Co-owners hold title as tenants in common or joint tenants. Each has the right to market the property, but any listing agreement must be signed by all owners to bind the property. If you cannot agree on a broker or listing terms, a court-ordered partition under RPAPL § 901 allows sale or division of the property.
2. Verify Broker Licensing
Under Real Property Law § 443, anyone acting as a broker must hold a valid New York license. Confirm each prospective broker’s license status and disciplinary history with the New York Department of State.
3. Interview Multiple Brokers Together
Jointly interview at least three brokers. Compare commission rates, marketing strategies, local sales performance, and communication styles. Request client references and recent sales data.
4. Address Dual Agency and Conflicts
If a broker represents both co-owners, they become a dual agent under RPL § 442-a. Dual agency requires written consent from all parties. Discuss potential conflicts and consent in writing before signing.
5. Draft a Co-Owner Listing Agreement
Use a written listing agreement naming all co-owners as clients. Include the agreed commission rate, marketing plan, listing term, and signature lines for each owner. Cooperative listings must comply with RPL § 441-d.
6. Plan for Dispute Resolution
Incorporate a mediation clause to resolve disagreements on pricing, marketing, or contract amendments. Mediation can be faster and less expensive than a partition action.
Helpful Hints
- Openly discuss sale goals, timeline, and preferred commission split.
- Verify broker credentials on the New York Department of State website.
- Agree on a marketing budget (staging, photography, online ads).
- Consider professional photography and virtual tours to attract buyers.
- Document every decision in writing to prevent misunderstandings.