A complete, test-ready glossary for New York agency law. Each term below is written in plain exam language and paired with a quick example so students can recognize how the concept appears in agency, disclosure, fiduciary duty, antitrust, and representation questions.
Accountability means an agent must answer for actions taken on behalf of the principal and must be able to explain decisions, disclosures, and handling of money or information.
If a broker receives an offer and fails to present it, the broker may be held accountable to the client for that failure.
A general agent is authorized to handle a broad range of ongoing acts for a principal, not just one isolated transaction.
A property manager hired to lease units, collect rent, and arrange repairs is acting as a general agent for the owner.
Advance consent to dual agency is a client’s agreement given in advance that the broker may later act as a dual agent if a dual-agency situation develops.
A buyer signs an agency form acknowledging that the brokerage may represent both sides later if proper consent is obtained.
This is advance consent allowing the broker to operate as a dual agent while assigning separate designated sales agents to work with each side within the same brokerage.
A seller agrees in advance that if the brokerage also works with the buyer, different designated sales agents may represent each party under the supervising broker.
A group boycott is an antitrust violation in which competitors agree not to do business with a person, company, or competitor in order to restrain trade.
Several brokerages agree they will not show listings from a discount broker. That coordinated refusal can be a group boycott.
Implied agency arises from the conduct of the parties rather than from a clear written or spoken agreement.
A broker repeatedly gives confidential advice to a buyer and acts like the buyer’s representative even though no express agreement was signed. That may suggest implied agency.
Informed consent means a person agrees after receiving enough information to understand the nature and consequences of the decision.
A buyer consents to dual agency only after the broker explains how loyalty and confidentiality will be limited.
The agency disclosure form is the official form used to explain the broker’s agency role and the rights and duties that come with that role.
At the first substantive contact, a buyer is given the disclosure form showing whether the broker is acting for the seller, buyer, or both.
A landlord’s agent represents the landlord in a rental transaction and owes fiduciary duties to the landlord, not the tenant.
A rental broker hired by the owner to find a tenant and negotiate lease terms is the landlord’s agent.
An agent is a person authorized to act on behalf of another person, called the principal.
A broker hired by a seller to market and negotiate the sale is acting as the seller’s agent.
Loyalty means the agent must place the principal’s interests above the agent’s own interests and above those of others.
A buyer’s agent should not secretly steer the buyer toward a property that benefits the agent more than the buyer.
A broker’s agent is another broker who assists the listing broker and, through that relationship, owes duties to the listing broker’s client.
A cooperating broker who helps sell a listed property but works through the listing broker may be acting as the broker’s agent.
Market allocation is an illegal agreement among competitors to divide territories, customers, or markets instead of competing freely.
If one brokerage agrees to handle only uptown listings while another takes only downtown listings, that may be market allocation.
A buyer agent represents the buyer in a transaction and owes fiduciary duties to the buyer.
A broker hired to locate homes, advise on pricing, and negotiate for a purchaser is acting as a buyer agent.
Misrepresentation is a false statement or misleading omission of a material fact that causes another person to rely on incorrect information.
A broker says a property has legal parking when the broker knows it does not. That may be misrepresentation.
A client is the person who is represented by the agent and to whom fiduciary duties are owed.
If a broker is hired by the seller, the seller is the client and the buyer is not.
Obedience means an agent must follow all lawful instructions of the principal.
If a seller instructs a broker not to reveal a move-out date, the broker must follow that lawful instruction.
Confidentiality means an agent must protect private information that could harm the principal if disclosed.
A buyer’s agent should not tell the seller the buyer is willing to pay more unless authorized to do so.
An open listing is a nonexclusive listing in which multiple brokers may try to sell the property, and only the broker who is the procuring cause earns the commission.
A seller gives the same listing to three brokers and keeps the right to sell personally. That is an open listing.
A cooperating agent is a licensee from another brokerage who works with the listing side or buyer side in bringing the transaction together.
An MLS participant who brings the buyer to the listed property is acting as a cooperating agent.
Price fixing is an illegal agreement among competitors to set prices, fees, or commissions instead of letting the market determine them.
If several firms agree that no one will charge less than a certain commission rate, that can be price fixing.
A customer is a party in the transaction who is not represented by the agent and therefore is not owed full fiduciary duties.
In a seller-agency transaction, the buyer may be treated as the broker’s customer rather than the client.
A principal is the person who authorizes the agent to act and to whom the agent owes duties.
If a broker is hired by the seller, then the seller is the principal.
A designated sales agent is a sales agent assigned by the broker to represent one party in a dual-agency setting while another designated sales agent represents the other party.
One agent in the brokerage works with the seller while another designated sales agent works with the buyer under the same broker.
Reasonable care means the agent must use the level of skill, care, and diligence that a reasonably competent real estate professional would use.
A broker who fails to verify a clearly suspicious material fact may be accused of failing to exercise reasonable care.
Disclosure means revealing information that the law or fiduciary duty requires a party to communicate.
An agent must disclose the nature of the agency relationship rather than letting the consumer guess whom the agent represents.
Self-dealing occurs when an agent acts in the agent’s own interest instead of the principal’s interest, usually without full disclosure and consent.
A broker secretly buys the client’s property through a relative at a lower price to profit later. That is self-dealing.
Dual agency exists when the same broker represents both parties in the same transaction.
A broker lists a home for a seller and then also agrees to represent the buyer who wants to purchase it.
A seller’s agent represents the seller and owes fiduciary duties to the seller.
The broker who signs the listing agreement with the homeowner is usually the seller’s agent.
An employee is a worker whose services are performed under the direction and control of an employer, especially as to the manner, means, schedule, and details of the work, and whose compensation is commonly subject to payroll withholding.
If a broker sets fixed office hours, pays a salesperson by the hour, closely controls daily work methods, and treats the worker through payroll withholding, the salesperson may be treated as an employee.
An independent contractor is a worker who performs services with greater independence and is generally compensated based on sales or other output rather than hours worked, with less control over the manner and means of performance by the hiring party.
A real estate salesperson who is paid by commissions, chooses working hours, may work from home or the broker’s office, and operates under supervision without employer-style control is typically functioning as an independent contractor.
Estoppel prevents a person from denying a fact or position when that person’s conduct caused another to reasonably rely on it.
If a broker acts like an agent for a buyer and the buyer reasonably relies on that conduct, the broker may be estopped from denying the relationship later.
A special agent is authorized to perform a limited task or handle a specific transaction rather than a broad ongoing set of duties.
A broker hired only to find a buyer for one property is generally acting as a special agent.
An exclusive agency listing gives one broker the exclusive right to represent the seller, but the seller may still sell the property personally without owing a commission.
A seller hires one broker but keeps the right to find a buyer independently. That is exclusive agency.
A subagent is an agent appointed by another agent to assist in performing duties for the principal and usually owes duties to the principal through the original agent.
A cooperating broker who works through the listing broker and represents the seller’s interests may be a subagent.
An exclusive right-to-sell listing gives one broker the right to earn a commission no matter who finds the buyer during the listing period.
Even if the seller finds the buyer personally, the broker still earns the commission under an exclusive right-to-sell listing.
A tie-in arrangement is an antitrust problem where a buyer is forced to purchase one product or service in order to get another.
A brokerage says it will show homes only if the buyer also agrees to use a certain mortgage company. That may be a tie-in arrangement.
Expressed agency is an agency relationship created by clear written or spoken agreement between the principal and the agent.
A signed listing agreement is a classic example of expressed agency.
Undivided loyalty means the agent’s loyalty is not split by competing interests and is devoted fully to the principal.
A single agent representing only the seller owes undivided loyalty to that seller unless the relationship changes with proper consent.
A fiduciary is a person in a position of trust who must act in the best interests of another.
A buyer’s agent is a fiduciary to the buyer because the agent must protect the buyer’s interests.
Undisclosed dual agency occurs when a broker represents both parties without full disclosure and informed consent from both sides.
A broker secretly advises both buyer and seller while never telling either party about the dual role. That is undisclosed dual agency.
Fiduciary duties are the legal duties an agent owes a client, commonly including obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care.
When a seller hires a broker, that broker owes fiduciary duties to the seller throughout the agency relationship.
First substantive contact is the first point in an interaction when the discussion becomes meaningful enough that agency disclosure is required.
If a broker starts discussing pricing strategy, representation, or negotiation, that may be the first substantive contact.
Vicarious liability means one person can be held legally responsible for the acts of another because of the relationship between them, such as broker and salesperson.
A sponsoring broker may face vicarious liability for wrongful acts committed by a salesperson acting within the scope of agency duties.
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