The law can be accessed here: Chapter 153 of the Laws of 2022
The law requires all NYS real estate companies to post policy regarding the requirement for representing buyers on their website. These include but are not limited to showings, exclusive broker agreement, and pre-approval letters.
The law is a result of buyers in today’s challenging market facing disappointment, frustration, and anger at the present home buying process. Essentially, buyers aren’t only not winning; they aren’t even in the game unless they can demonstrate the ability to buy with cash or ready financing on the spot.
This is because sellers are insisting on pre-qualification letters to submit an offer or even view the home. These restrictions are required largely because of Covid-19. Sellers want to know that a buyer is ready, willing and able to purchase their home before they risk additional needless exposure--that, and it’s always inconvenient having strangers in their homes when they aren’t. (To counter this, many agencies are requiring government issued identification.) But mostly, it’s because sellers don’t have to put themselves out. Inventory is so scarce the task usually comes down to picking the best qualified offer out of several from the first day or two the home is on the market.
While in the past, buyers typically started their house hunting by taking a look at a few interesting homes, today’s market requires a first stop at their lender to pick up a pre-qualification letter. This ticket costs nothing and is not only invaluable to determine home much house can be afforded; it is an invaluable and necessary tool throughout the process.
In compliance with this law, Real Estate New York group policy is that although we do not require an exclusive broker agreement, we do require a pre-qualification letter at this time. This policy does not apply to our open house events.