What should you do if a client refuses to sign the agency disclosure form?

The correct approach when a client refuses to sign the agency disclosure form is to have them sign an affidavit of refusal. This step is important because it formally documents the client's decision not to sign the agency disclosure, ensuring that you have a record of their refusal. This documentation helps protect you and your brokerage from potential legal issues in the future by showing that you did provide the client with the opportunity to understand the agency relationship and that they chose not to engage with it.

Having an affidavit of refusal not only preserves transparency but also upholds the ethical standards required in real estate transactions. By obtaining a written record, you demonstrate professionalism and adherence to regulations governing agency relationships in real estate. This is particularly crucial in New York, where compliance with agency disclosure laws is mandatory for agents.

In contrast, options like terminating the relationship or using verbal consent do not provide the same level of documentation and protection. Proceeding without the form altogether could jeopardize compliance with legal requirements and potentially expose a salesperson to liability.