NYSBA Ethics Opinion 882 (10/14/2011)

Topic: Lawyer’s participation in residential real estate transaction that includes both a “seller’s concession” and an equivalent “gross-up” in the sales

price

 

Digest: If the sales price in a residential real estate transaction has been “grossed-up” in exchange for a “seller’s concession,” all transaction documents containing the grossed- up sales price must disclose that the sales price has been increased by a sum equal to the seller’s concession. Rules: 8.4(c).

“…in a residential real estate transaction where the sales contract, the HUD-1 Settlement Statement, the transfer tax return and any other documents that contain the sales price [shall] each contain the following statement (or a substantially similar statement): “The sales price has been increased by a sum equal to the seller’s concession.”

 

Read the entire opinion here.

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