Open Houses in New York: Agent Disclosure Rules, Broker Procedures and Offer Scams

New York real estate agents work under written disclosure rules, and brokers must publish their own standardized procedures for homebuyers. This page covers both, then buying without an agent, iBuyer offers and closing scams. The rest of the buying guides cover what comes next: the home inspection, closing costs and co-ops and condos.

What an open house is and who runs it

An open house is an event in which a building is open to the public. A real estate agent holds it to show a listed residential property to any interested parties. Agents and brokers represent sellers or buyers of real estate. They are licensed by the state to negotiate sales agreements and manage the documentation required for closing.

Payment of a commission to the brokerage is usually contingent upon finding a buyer for the real estate.

The New York disclosure form

The seller’s agent must give the disclosure form to a buyer at the time of the first substantive contact with the buyer. The agent must also obtain a signed acknowledgment from the buyer. The form is titled “New York State Disclosure Form for Buyer and Seller” and is marked as not a contract. Throughout a transaction a buyer may receive more than one disclosure form.

The agent must keep a copy of the signed acknowledgment for not less than three years.

The duty runs in more than one direction. A listing agent must give the form to a seller before entering a listing agreement. A buyer’s agent must give it to the buyer before agreeing to act as the buyer’s agent. A buyer or seller who refuses to sign an acknowledgment leaves the agent to set out the facts of the refusal in a written declaration under oath or affirmation, kept for not less than three years. The section applies only to transactions involving residential real property, defined to include one-to-four family dwellings and condominium or cooperative apartments. The version read for this page was published on 2022-08-19.

Agent roles on the form

A seller’s agent owes the seller reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and a duty to account, and does not represent the interests of the buyer. In dealings with the buyer, a seller’s agent should disclose all facts known to the agent that materially affect the value or desirability of the property, except as otherwise provided by law.

A buyer’s agent owes the buyer the same six duties and does not represent the interests of the seller. A broker may represent both sides only if the buyer and seller give informed consent in writing. In that dual agency, the agent cannot provide the full range of fiduciary duties, and the buyer and seller give up their right to undivided loyalty. A seller or buyer may give advance informed consent to dual agency by indicating it on the form. A designated sales agent cannot provide the full range of fiduciary duties either.

What brokers must publish for homebuyers

Under Real Property Law section 442-h, each broker must institute standardized operating procedures for the prerequisites prospective homebuyers must meet before receiving any services. The procedures must say whether prospective clients show identification, whether an exclusive broker agreement is required and whether pre-approval for a mortgage loan is required.

Brokers must date stamp, notarize and post these procedures on any publicly available website and mobile application they maintain. They must give the public a copy on request at their office locations and keep a file of the procedures while the license is active. After any change, the new procedures must be date stamped, notarized and posted within thirty days. A broker or salesperson under the brokerage license who fails to follow them faces the penalties in section 441-c. Brokers must affirm to the Department of State, each time they renew a license, that they comply. The full text is at section 442-h.

Buyer preparation before you tour

The CFPB’s buying page sets out four stages. The first two come before an offer, and the last two come after it.

Choosing the right home loan is as important as choosing the right home. A broker’s published procedures must say whether mortgage pre-approval is required. See the CFPB buying process page for the full sequence.

Buying without an agent

Some home buyers choose to forgo representation and proceed without a real estate agent. The unrepresented party assumes full responsibility for navigating the transaction, including showings, negotiations and paperwork. A broker cannot receive any compensation from a lender for referring a residential client to a specific lender. The federal RESPA law ensures that buyers and sellers get adequate notice of the settlement process.

How realistic are Opendoor offers?

iBuyers are companies that use technology to make quick offers on homes. Opendoor promoted itself as a tech company that uses pricing technology to offer more accurate offers and lower costs. In an August 1, 2022 consumer alert, the FTC alleged that Opendoor’s offers were lower than a home’s market value and that the company asked sellers to pay repair costs higher than what people would typically spend on repairs in a market sale.

As a result, sellers who sold their homes to Opendoor typically lost thousands of dollars compared with what they would have made on the open market. To settle the FTC’s charges that the company’s claims were deceptive, Opendoor agreed to pay $62 million, which the FTC will use for refunds to affected people. The FTC consumer alert has the full account.

Scams aimed at buyers

Scammers target homebuyers days before closing on their new home, and a few simple steps can protect a buyer and their life savings. The CFPB page was last modified Oct. 29, 2025. Its closing stage covers the paperwork around closing.