CHEAT SHEET: Practice & Fair Housing (NY RE Salesperson Exam)

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FAIR HOUSING PROTECTED CLASSES

Federal Fair Housing Act (7 Protected Classes)

• Race

• Color

• Religion

• National origin

• Sex (includes sexual orientation & gender identity)

• Familial status

• Disability

NY Human Rights Law Additions

• Creed

• Age (18+)

• Sexual orientation

• Gender identity

• Marital status

• Military status

• Citizenship/immigration status (added Dec 2022)

NYC Additional Protections

• Source of income

• Partnership status

• Criminal history (Fair Chance Housing Act, eff. Jan 1, 2025 — cannot consider except registered sex offenders)

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PROHIBITED CONDUCT & VIOLATIONS

|---|---|---| Key Rule: Treat all clients equally regardless of protected class status. ---

MANDATORY BUYER AGENCY AGREEMENT

Effective: August 17, 2024 |---|---| ---

FARE ACT (FAIR RENT REQUIREMENT) — NYC

Effective: June 11, 2025

• Landlord's broker fee must be paid by landlord, NOT tenant

• Tenants no longer pay for landlord's broker

• Violation fine: $2,000 per violation

• Enforcer: NYC Department of Consumer and Worker Protection (DCWP)

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AGENCY DISCLOSURE & FIDUCIARY DUTIES

DOS Agency Disclosure Form

• What it is: Receipt ONLY — proves disclosure given

• NOT: Consent form, representation agreement

• When: Provide before/at first showing

• Signature: Required (shows receipt)

OLD CAR Fiduciary Duties

• Obedience — Follow lawful client instructions

• Loyalty — Act in client's best interest

• Disclosure — Reveal material facts

• Confidentiality — Survives termination; protect secrets even after firing

• Accounting — Accurate accounting of funds/commissions

• Reasonable care — Standard professional diligence

Dual Agency

• Requires: Written consent from BOTH parties

• Advisory capacity: Limited (cannot advise buyer on max price or seller on min acceptable price)

• Compensation: Must be disclosed

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LISTING AGREEMENT TYPES

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TRUST ACCOUNT RULES (Broker Escrow)

Core Rules:

• Earnest money held in broker escrow account (client fund, not broker's)

• NO commingling (mixing client funds with broker operating account)

• NO conversion (using client funds for broker's expenses)

• Must maintain detailed records

• Interest = per contract or broker policy

• Violation = serious disciplinary action & potential license suspension

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ADVERTISING & BLIND ADS

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RENT STABILIZATION (NYC)

• Scope: NYC-regulated units (Rent Guidelines Board controls increases)

• Disclosure: Seller/landlord MUST disclose if building is subject to RSL

• Tenant rights: Renewal lease at approved percentage increase

• Violation: Material misrepresentation if not disclosed

• Rent control: Pre-1947 buildings; very limited; rare

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PROPERTY CONDITION DISCLOSURE

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MARTIN ACT (Offering Plans)

• Scope: New condo/co-op offerings

• Filing: Attorney General (AG)

• Buyer right: Rescission (cancel within specified period)

• Broker role: Cannot sell without approved offering plan; must provide plan to buyer

• Violation: AG enforcement; penalties

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ANTITRUST & COMMISSION

Behavior	Definition	Violation Type
Steering	Directing buyer/tenant toward/away from neighborhood based on protected class	Per se violation
Blockbusting	Creating panic selling by suggesting protected class moving in	Per se violation
Redlining	Refusing service/financing based on geographic/demographic factors	Per se violation
Discriminatory advertising	Ads showing preference for/against protected class	Violation
Differential terms	Different prices, rates, conditions based on protected class	Violation
Requirement	Detail
When	BEFORE showing any property
Format	Must be in writing
Must state	Compensation terms (% commission, flat fee, or hourly)
Signature	Buyer consent required
Net listing	ILLEGAL in NY
Type	Broker Entitlement	Legal in NY?
Exclusive right to sell	Commission even if seller sells (broker procures or not)	✅
Exclusive agency	Commission only if broker procures sale	✅
Open listing	Commission only if broker procures; seller can list with others	✅
Net listing	Broker keeps all above set price	❌ ILLEGAL
Requirement	Rule
Broker name	Must appear in all ads
Blind ads	PROHIBITED (must show firm/agent name)
Online ads	Count as advertising; same rules apply
False claims	Violates Martin Act (AG enforcement)
Element	Rule
PCDS required	1–4 family residential only (sellers)
Timing	Before buyer makes offer
OR credit	$500 at closing in lieu of completing form
Agent duty	Independent disclosure obligation (cannot rely on seller's form alone)
$500 credit	Does NOT protect against fraud
Stigmatized property	Death/AIDS/paranormal: no duty to disclose, but cannot lie if asked
Lead paint	Federal requirement; pre-1978 only; 10-day inspection period
Certificate of Occupancy	Required at closing; lack = material defect (illegal conversion disclosure)
Prohibited	Allowed

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