What rental forms or documents should I expect to sign when working with a real estate agent?
There are numerous forms and documents that you should expect to fill out and sign throughout the entire home search process. Some are for the benefit of the agent / brokerage firm and others are for the management company / landlord of a property.
Brokerage firms generally require at least several forms to be completed and signed, including a Client Registration form, a NY State Agency Disclosure form and a Commission Agreement (if applicable). The names of these documents may vary from firm to firm, but they should all be relatively standard / official with the firm’s name or logo and contact info in the header or footer (except the NYS Disclosure form). If you have any questions about the documents that you want to confirm with the brokerage firm, feel free to contact the company directly.
Client Registration
The Client Registration form is used by most brokerage firms and agents to document which buildings and apartments an agent shows to a client, requiring a broker fee if a unit is secured at each address listed on the form. This legally protects agents from clients attempting to circumvent them and secure the apartment without paying a broker fee.
Most agents will present this form to clients prior to viewing each building in order to get credit for showing them one or multiple units there. However, if the client has seen the building on their own or with another agent, the client should inform the agent so that it is not included (or crossed out) on the form.
NY State Agency Disclosure
The New York State Agency Disclosure form is a standard document that ALL real estate agents are legally required (by NY State) to provide to their clients when having any substantive contact. The form essentially states who the agent is representing, the client, the landlord or acting as a dual agent for both sides.
Commission Agreement
If a broker fee is being paid, a Commission Agreement is usually provided to the client once he/she has been approved for an apartment, prior to the lease signing. The document should state the address of the apartment and unit number, commission amount agreed to, date, brokerage firm name and any other pertinent information relating to the commission (broker fee). The client must sign the document and return to the agent or firm promptly.
Deposit Agreement
Some agents require a deposit when working with clients to ensure that they are serious about moving forward with a particular apartment once an application is submitted. A Deposit Agreement may be given to the client to legally document the deposit, stating that if the client is approved for the apartment, the deposit is non-refundable and would be applied to a portion of the broker fee. However, if the client’s application is rejected, the deposit would be returned in full.
Credit Check Authorization
For many transactions, the agent is responsible for running a credit check for the client on behalf of the management company / landlord. As a result, the agent will generally provide the client with a version of a Credit Check Authorization to be filled out and signed, allowing the agent to run the client’s credit. This form may include the client’s credit card information to be used to run the credit check. Credit check fees can range from $25-100, but the client should make sure the amount of the fee is stated on the Authorization form, as it can act as a receipt of payment.
Other Documents
In addition to standard forms and documents, real estate brokerage firms may have other various agreements and paperwork that are required or optional for their clients to complete. Remember, it never hurts to contact the brokerage firm directly and ask questions to a manager. Furthermore, contacting a NYC residential real estate attorney could alleviate uncertainty about providing personal information or signing specific documents.
