5. Business Brokers

Declaratory Ruling 91-9 Matter of West York Commission Merchants, Inc. - license not required for business broker, so long as real property is only incidental to sale of ongoing business and is not dominant feature of sale

Declaratory Ruling 91-37 Matter of Cusack - license not required for business broker, so long as transfer of real property is only incidental

6 DOS 92 Matter of Collins - business broker involved in sale of going businesses and assignment of rights under leases - not "equivalent experience"

12 DOS 92 Matter of Palastro - financial consultant re: GBL Art. 23A limited partnerships - not "equivalent experience"

734 DOS 01 DOS v. Turyan - disclosure of agency relationships; business broker; a transaction that consists of negotiations and subsequent purchase of a business does not involve a regulated real estate activity; agency law forbids a fiduciary from acting concurrently as an agent for the seller and as the principal-buyer of the subject matter of the agency; agent must terminate the agency relationship before assuming the role of buyer of the subject matter of the agency; seller’s agent breaches fiduciary duty of confidentiality by disclosing to the buyer the price that the seller would accept below the asking price; broker misrepresents material existing facts which constitutes fraud; concealment of information which broker has a duty to communicate is misrepresentation when done with intent to defraud; where broker committed a fraudulent act, the broker necessarily engaged in a fraudulent practice; DOS fails to prove that broker engaged in forgery; Real Property Law §443 does not apply to a lease of commercial property or to a transaction that does not involve a regulated, real estate activity; brokers 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