Renders void and unenforceable agreements between real estate brokers and sellers of residential real property other than multiple dwellings in cities of one million or more persons where the asking price for the sale of the property is less than one million dollars, and pursuant to which such broker is designated as the exclusive agent for the sale or advertisement of the availability of the property; applies to agreements made after effective date of the bill.
STATE OF NEW YORK
________________________________________________________________________
2287
2011-2012 Regular Sessions
IN SENATE
January 18, 2011
___________
Introduced by Sen. KRUGER -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to rendering
unenforceable exclusive brokerage agreements for certain residential
sales of non-multiple dwellings in cities of one million or more popu-
lation
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general obligations law is amended by adding a new
2 section 5-329 to read as follows:
3 § 5-329. Exclusive brokerage agreements for residential sales of non-
4 multiple dwellings in any city of one million or more persons void as
5 against public policy. Every covenant, promise, agreement or understand-
6 ing in or in connection with, or collateral to, any contract entered
7 into between a real estate broker, salesman or agent, and a seller of
8 real property not utilized for commercial purposes on which a residen-
9 tial dwelling other than a multiple dwelling is located, any portion of
10 which property is situate within a city of one million or more persons,
11 where the asking price for the sale of the property is less than one
12 million dollars pursuant to which, in substance, the broker, salesman or
13 agent, or the firm with which he or she is associated, is designated as
14 the exclusive broker, salesman, agent or firm for the sale of such prop-
15 erty or to arrange such sale or to find a ready, willing and able buyer
16 of the property or for the purpose of noticing or advertising the avail-
17 ability of the property or for the purpose of rendering any services to,
18 for or on behalf of the seller or a potential buyer or both, and whether
19 or not the exclusivity is restricted to one or more advertising media or
20 to one or more areas or neighborhoods within such city, shall be deemed
21 to be void as against public policy and wholly unenforceable. No real
22 estate broker, salesman or agent shall be entitled to earn or collect
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07140-01-1
S. 2287 2
1 any commission for services rendered pursuant to such void and unen-
2 forceable covenant, promise, agreement or understanding.
3 § 2. This act shall take effect on the thirtieth day after it shall
4 have become a law, provided, however, that it shall apply only to coven-
5 ants, promises, agreements and understandings entered into on or after
6 such effective date.
