Explained: Acting as Your Own Broker and Earning Commission When Buying Property in NY

Under New York law you may act as your own broker when purchasing real estate, and secure a commission, but there are several important considerations.

First, you do not need to be a member of REBNY or NAR to earn a commission. In fact, REBNY and NAR have expressly stepped out of the commission enforcement role following the Sitzer/Burnett v. NAR litigation and the March/Friedman v. REBNY litigation. That said, there is no longer an automatic right to commission simply by being a licensed real estate broker. Instead, you must confirm whether the seller (or the seller’s listing broker) is offering a buyer-side commission. If not, you may need to “gross up” your offer to include the amount of the commission you expect to earn. Either way, a party to the transaction can share commission pursuant to RPL 442(2). 

The antitrust lawsuits removed the centralized practice of posting cooperative commission offers on MLS/RLS systems, but they did not prohibit private commission arrangements. Many listing agreements still authorize listing brokers to offer compensation to buyer brokers. When representing a third party, note that any commission paid by the listing broker cannot exceed the amount stated in your buyer-broker agreement, if you are a real estate licensee.

You do not need to sign a REBNY or NAR co-brokerage agreement to participate in a transaction and you do not need to associate with another brokerage firm solely to collect a commission if you are a party to a transaction.

For reference about REBNY & NAR being out of the commission game, see:

• REBNY RLS Compensation Fields Update

• NAR Settlement FAQs

Practice Tip: As brokerage counsel, Lieb at Law strongly advises reviewing the specific listing agreement and, if applicable, the settlement documentation of the listing broker to determine what commission terms govern your deal. For smaller brokerages that have not issued their own settlement forms, the default terms from Sitzer/Burnett typically apply. Keep in mind that REBNY litigation is ongoing and not at final disposition, so these rules may continue to evolve. Updated September 2025. 

Have questions about brokerage law? Lieb at Law counsels real estate brokers and salespersons on commission disputes, licensing issues, compliance with REBNY and NAR rules, and the impact of recent antitrust litigation. Call 646.216.8009 or email info@liebatlaw.com to speak with Lieb at Law today.

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New Bill Would Require Written Buyer Broker Agreements in NY

A new bill introduced by Assemblymember Cruz, Bill A08910, proposes significant changes to New York’s real estate brokerage law. If enacted, the bill would add Section 442-m to the Real Property Law and modify Section 443, the existing agency disclosure statute, to require written Buyer Broker Agreements (BBAs) that include clear and conspicuous disclosures about compensation.

Key Requirements Under the Bill

Under the Bill, a Buyer's Broker Agreement (BBA) must contain the following:

(a) Clearly and conspicuously contain the following disclosure: "Compensation is not set by law and is fully negotiable."

(b) The name, address and contact information for all parties to the agreement;

(c) The length of the agreement including the length of any condition under which the real estate broker may still have a claim for compensation after the agreement expires;

(d) The type of agency relationship between the buyer and the real estate broker; and

(e) The terms of compensation, including:

(i) The amount the buyer agrees to compensate the real estate broker;

(ii) How the amount of compensation will be determined;

(iii) When compensation is earned by the real estate broker;

(iv) When compensation is due to the real estate broker;

(v) The consent of the buyer if the real estate broker will share any compensation with another broker;

(vi) The consent of the buyer if the broker will be requesting any compensation from another party; and

(vii) The consent of the buyer if the broker will be compensated by more than one party.

Potential Legal Conflict: Statute of Frauds

Although transparency is a worthy goal, this bill raises legal questions. Notably, it may conflict with the Statute of Frauds under GOL § 5-701(a)(10), which exempts licensed real estate brokers and salespersons from the written contract requirement. Additionally, duplicating agency disclosures, first in the statutory disclosure form and again in the BBA - could be viewed as superfluous and if they conflict, real issues could emerge.

Why Brokers Should Pay Attention

While this bill hasn't advanced in the legislature and is not law yet, it's a clear signal of where things may be headed in response to commission related scrutiny across the industry. Smart brokers can use this bill as a template to proactively strengthen their buyer's brokerage agreements, improve transparency, and minimize legal risk.

📞 Need Help Drafting or Reviewing Your Buyer Broker Agreement?

The proposed legislation may not be law yet - but smart brokers get ahead of compliance.
Contact Lieb at Law, P.C. to review your current agreements or create custom templates that protect your commissions and meet evolving legal standards.

👉 Learn More.

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