There are two types of Agency disclosure forms in New York, one addressing the agent’s fiduciary relationship to the Landlord and Tenant in a rental transaction, and another for their relationship to a Buyer and Seller in sales transactions. Each clearly delineates whose interest the agent serves and, though not binding, defines the terms of the relationship during the real estate transaction.
Below are the agency relationships specified by a New York State Disclosure Form for Landlord and Tenant.
A landlord’s agent is an agent who is engaged by a landlord to represent the landlord’s interest. A landlord's agent has, without limitation, the following fiduciary duties to the landlord: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and duty to account.
A tenant's agent is engaged by a tenant to represent their interests only, and does this by negotiating the rental or lease of an apartment or house at a rent and on terms acceptable to the tenant. Similar to a landlord's agent's relationship to the landlord, a tenant's agent has, without limitation, the following fiduciary duties to the tenant: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and duty to account.
A broker's agent cooperates with or is engaged by a listing agent or a tenant's agent to assist the listing agent or tenant’s agent in locating a property to rent or lease for the listing agent’s landlord or the tenant agent’s tenant, but they do not work for the same firm as the listing agent or tenant's agent. The tenant and landlord therefore do not have a direct relationship with the broker's agent, and cannot provide instructions nor direction (except through their own agent). This prevents the landlord and tenant from bearing liability for any acts of the broker’s agent.
A dual agent may represent both the tenant and landlord if both parties grant their informed written consent. However, in such a dual agency situation, the agent is unable to provide the full range of fiduciary duties to the tenant and landlord due to conflict of interest. By consenting to the dual agency relationship, both tenant and landlord waive their right to undivided loyalty.
This relationship builds on the terms of a dual agent, but ultimately does not alter the fact that the acting agents cannot provide the full range of fiduciary duties to the tenant and landlord. With a designed sales agent, for the purposes of negotiation, the dual agent representing both parties may designate an additional agent to represent the tenant, and another to represent the landlord. Still, the designated sales agent must explain that, like the dual agent under whose supervision they function, they cannot provide undivided loyalty.