17. Disclosure of Ownership Interest

32 DOS 94 Matter of DOS v. Siderakis - Husband GS is owner of two-family rental unit and representative broker of "High Value" and individually licensed broker. Wife HS is representative broker of "High Value." Timely disclosure made of HS' interest in the rental unit; neither individual or the licensee corporation on whose behalf as representative licensee can be broker for that individual as landlord; no valid brokerage service rendered and commission must be repaid to Tenant (see also CRC #304, Matter of DOS v. Gregory, Consent Order - licensee purchase for own account)

3 DOS 95 Matter of Tucci - licensee as partner in entity selling property to builder does not come within 19 NYCRR §175.6; dual agency found where licensee represents seller in real estate transaction and serves as mortgage broker for buyer; failure to make agency relationships clear violates 19 NYCRR §175.7; pre-hearing and post-hearing motions; restitution of $1,081; fine of $1,000; DOS determination vacated by stipulation of settlement; non-admission, restitution of earned mortgage broker fee

24 DOS 95 Matter of Seplow - disciplinary charge jurisdiction where licensee's renewal has been previously denied; proof of service of process; agency relationship and duties; fraud in sale of cooperative apartment, including false information about particular sale and willful non-disclosure of material information; failure to obey buyer's obvious intent to have deposit treated as funds to be held in escrow as payments to seller; conversion; rules applicable to supplemental pleadings - absent surprise or prejudice, motion to file and serve could be granted on day of hearing, but here respondent doesn't appear, so supplemental complaint dismissed without prejudice; DOS fails its burden of proof as to extortion and retention of unlawful commission and unauthorized practice of law; when respondent became optionee to purchase subject matter, agency relationship ceased to exist; fiduciary duty precludes respondent from acting simultaneously as agent and principal in a transaction; restitution of $35,000 deposit plus interest at legal rate for judgments

318 DOS 02 Matter of DOS v. Conciatori - DOS fails its burden of proof; disclosure of ownership interest; disclosure of conditions affecting the value or desirability of listed premises; broker and his wife listed their property with another real estate brokerage and informed the listing agent that the husband was a licensed broker; DOS failed to prove that broker/seller failed to disclose he was a licensed real estate broker where he disclosed his status to the listing broker at the time of the listing and provided the listing agent with a copy of his license; DOS failed to prove claim that seller/broker failed to adequately represent and/or misrepresented prior problems with a well where broker/seller made proper disclosures to the listing agent; complaint dismissed

1517 DOS 07 Matter of Bizzari- Broker; fraud and breach of fiduciary duty re deposit; bad check; commingling (19 NYCRR §175.1) unauthorized demand for 50% down payment; fraud and misrepresentation as registered HUD agent; false statement that purchase would be owner-occupied; failure to disclose broker ownership interest in listed property (19 NYCRR 175.6); failure to deliver duplicate original (19 NYCRR 175.12); agency disclosure notice (RPL § 443[3][b]); use of unlicensed name (RPL § 440-a; 441 [1][a]); incompetency; revocation

1919 DOS 07 Matter of Rite Buy Homes- salesperson holds himself out as broker; failure to supply copies; failure to make disclosures; improper ownership of voting stock; 175.4, 175.7, 175.22; other salesperson avails license; revocation and prohibition on reapplication unless refund unearned commission of $11,056 plus interest; one year suspension of salesperson who availed license

1183 DOS 08 Matter of Taylor – broker; failure to identify ownership interest in listing (175.6); dishonest and misleading advertising (RPL 441-c); failure to provide property condition disclosure statement and advise of rights (RPL 462 and RPL 466); revocation and no reapply until refund $4,000 with interest

683 DOS 09 Matter of Korzeniewski – failure to disclose ownership; $2,000 fine\

1090 DOS 09 Matter of Burns – notary public; violating Executive Law §130 (interest in transaction, but no fraud); 3-month suspension

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Fourth quarter Legal Lines now available

The fourth quarter 2019 edition of NYSAR’s Legal Lines is now available online at This edition covers new DOS proposed regulations, emotional support animals in housing, Landlord discrimination and more. Learn more