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First of all, even though many listing agents do it, it's absolutely not necessary to present the agency disclosure form to every unrepresented buyer that walks through the door at an open house, or who calls or emails you.
Agents are only required to present the NY State agency disclosure form upon first substantive contact with the customer. But just what counts as the first substantive contact? Well, it's somewhere in between the buyer asking a basic question that can be answered on the listing's show sheet (i.e. how many bedrooms are there?) to the buyer confessing that they must buy this place within 30 days or they will have a nervous breakdown.
Officially, here's what a serious REBNY affiliated lawyer once told me counts as first substantive contact:
- Buyer expresses serious interest in discussing the terms of the offer
- Triggered when the buyer began asking questions that went beyond the four corners of the fact sheet
So essentially, if the buyer starts talking to the agent about price (i.e. besides what is the listing price) and material terms.
Note though that there is no substantive contact if the buyer has a buyer's agent present, even if the buyer's agent doesn't say anything. No agency disclosure is necessary by the listing agent as long as the buyer has an agent present.
P.S. It's super important to get this signed, or have a record of you having at least presented the form to the customer. Because if something goes wrong, the first thing a litigator is going to do is ask for a signed copy of the agency disclosure form, or proof that you presented it. In litigation, the easiest and first thing for a litigator to do is to check if the professional being sued failed to comply with a legal requirement of their professional, because if they didn't, how can you take anything else they do or claim seriously?
Agents are only required to present the NY State agency disclosure form upon first substantive contact with the customer. But just what counts as the first substantive contact? Well, it's somewhere in between the buyer asking a basic question that can be answered on the listing's show sheet (i.e. how many bedrooms are there?) to the buyer confessing that they must buy this place within 30 days or they will have a nervous breakdown.
Officially, here's what a serious REBNY affiliated lawyer once told me counts as first substantive contact:
- Buyer expresses serious interest in discussing the terms of the offer
- Triggered when the buyer began asking questions that went beyond the four corners of the fact sheet
So essentially, if the buyer starts talking to the agent about price (i.e. besides what is the listing price) and material terms.
Note though that there is no substantive contact if the buyer has a buyer's agent present, even if the buyer's agent doesn't say anything. No agency disclosure is necessary by the listing agent as long as the buyer has an agent present.
P.S. It's super important to get this signed, or have a record of you having at least presented the form to the customer. Because if something goes wrong, the first thing a litigator is going to do is ask for a signed copy of the agency disclosure form, or proof that you presented it. In litigation, the easiest and first thing for a litigator to do is to check if the professional being sued failed to comply with a legal requirement of their professional, because if they didn't, how can you take anything else they do or claim seriously?