20. Failure to Qualify Purchaser

82 DOS 93 Matter of Zulawski - failure of proof that salespersons breached fiduciary duties: (i) assertion that buyer was said to be "pre-approved" for mortgage; (ii) misinformation about buyer's income (salesperson only repeated what she was told); (iii) failure to conduct independent investigation about buyer's income and expenses (no proof of obligation to do so or industry practice to do so)

12 DOS 95 Matter of Morse - respondents' testimony which is inconsistent with documentary evidence is rejected in its entirety; salesperson failed to advise tenant of landlord's credit verification requests, causing them to lose half of their deposits; dual agency without informed consent not established, as licensee signature in space for landlord's was only intended to show who the broker was in the transaction; no failure to make escrow deposit where tenant knew money was to be delivered to landlord; failure of tenant's agent to advise of material information that in delivering deposit to landlord the tenant might lose money; use of unlicensed name; vicarious liability of broker for salesperson misconduct, broker may be fined even in absence of knowledge of salesperson's misconduct; restitution required of broker

580 DOS 07 Matter of Herzog- broker fails to comply with terms of consent order (failure to pay fine and restitution); license revoked

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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