Getting a Realtor Approved by All Owners Before Marketing a Property — New York

FAQ: Getting stakeholder approval to market a property in New York

Short answer: Identify every person or entity with legal authority over the property, confirm how each must approve (signature, written consent, corporate resolution, court order, etc.), gather the needed documents, present the chosen broker and listing terms in writing, and collect signed authorizations (usually a listing agreement signed by all owners or authorized representatives) before marketing. If you cannot get unanimous approval, consider negotiation, mediation, or a court process such as partition.

Detailed answer — step‑by‑step checklist

1. Identify who must approve.
   • Look at the deed and title report to see how the property is vested (individual(s), tenants in common, joint tenants, married couple, trust, LLC, corporation, decedent’s estate, etc.).
   • If the owner is a trust, LLC or corporation, check the trust instrument, operating agreement, bylaws, or corporate resolutions to learn who can sign or authorize a listing.
   • If someone has a power of attorney (POA), confirm it is valid in New York and that the POA specifically authorizes real estate transactions. See the General Obligations Law (power of attorney statutes): https://www.nysenate.gov/legislation/laws/GOB.
2. Gather authority documents and current title information.
   • Collect the deed, title report (or order a preliminary title search), mortgage statements, trust documents, LLC operating agreement, corporate resolutions, POA instrument, letters testamentary or letters of administration (if an estate), and co‑op/condo bylaws and proprietary lease or declaration if applicable.
   • If the property is in an estate, the executor normally needs letters testamentary issued by the Surrogate’s Court. See Surrogate’s Court Procedure Act material at: https://www.nysenate.gov/legislation/laws/SCPA.
3. Confirm what written authorization the broker will require.
   • Most brokers require a signed listing agreement from every person or entity with ownership authority (or from an authorized signatory such as the trustee, LLC manager, corporate officer, or attorney‑in‑fact with a valid POA).
   • Broker licensing and seller disclosure rules are governed by New York laws and the Department of State; a licensed broker should explain what signatures they need. See NY Department of State real estate licensing info: https://dos.ny.gov/real-estate-license.
4. Present the proposed realtor and the listing terms to all stakeholders in writing.
   • Provide the listing agreement, proposed commission, asking price, marketing plan, and the duration of the listing to every owner/decision‑maker. Give them time to review and ask questions.
   • Document consent: ask owners to sign the listing agreement or a separate written consent that names the broker and confirms authorization to list and market the property.
5. Deal with special property types or third‑party approvals.
   • Condominium or cooperative: check the condo/coop bylaws and proprietary lease for board approval or application requirements. Boards often require application forms and financial documents and may have screening timelines.
   • Tenant‑occupied properties: review leases and local landlord‑tenant laws (including NYC requirements where applicable) before marketing showings.
   • Mortgaged property: you can list without lender approval, but the mortgage holder will require a payoff at closing and may have requirements for short sales if the payoff is short of the debt.
6. If one owner refuses to approve the realtor.
   • Try negotiation or mediation to reach an agreement (many counties and courts encourage mediation for property disputes).
   • Consider buyout options or letting the co‑owner market their share.
   • If there is no agreement, a partition action may be available to force sale or division of physical property. See New York’s Real Property Actions & Proceedings Law (RPAPL) for partition remedies: https://www.nysenate.gov/legislation/laws/RPA.
   • Be aware that unilateral marketing by one owner without others’ authorization can create liability (breach of fiduciary duties among co‑owners, broker liability, difficulty closing the sale).
7. Finalize signatures and keep records.
   • Obtain original, dated signatures from all required signatories on the listing agreement (or an explicit written consent) and keep scanned copies for the title company and closing.
   • Confirm the broker’s license and that the listing agreement complies with New York Real Property Law; many disputes arise from unclear scope or authority in the listing contract. New York Real Property Law index: https://www.nysenate.gov/legislation/laws/RPL.
8. Bring in professionals early.
   • A real estate attorney can prepare/approve consent language, resolve executor/trust/LLC signing issues, and, if necessary, advise on petitioning the Surrogate’s Court or bringing a partition action.
   • A title company can flag liens, judgments, and defects that affect who must sign and whether the property can be marketed or closed.

When formal court authorization is needed

If the property is owned by an estate without letters testamentary, by a decedent’s estate with unresolved beneficiaries, or if there is a contested guardianship/POA, you may need court approval (Surrogate’s Court or Supreme Court) to sell or to allow a listing. The court can issue orders granting an executor, administrator, guardian, or other representative the authority to market and sell real property.

Reference pages for relevant New York statutes and procedure: General Obligations Law (POA): https://www.nysenate.gov/legislation/laws/GOB; Surrogate’s Court Procedure Act: https://www.nysenate.gov/legislation/laws/SCPA; Real Property Law: https://www.nysenate.gov/legislation/laws/RPL; partition remedies (RPAPL): https://www.nysenate.gov/legislation/laws/RPA.

Practical timeline (typical)

• Day 0–3: Pull deed/title and list stakeholders.
• Day 3–10: Collect documents (trust instrument, POA, operating agreement, letters testamentary).
• Day 7–14: Present broker proposal and listing agreement to stakeholders; allow review and obtain signatures.
• Ongoing: If issues arise, consult an attorney promptly; unresolved disputes can delay listing and closing for weeks or months.

Helpful hints

• Get everything in writing: verbal consents rarely protect you. A signed listing agreement or written, dated consent is best.
• Ask the broker for a sample listing agreement and let your attorney review it before signatures.
• If multiple owners are geographically dispersed, use verified electronic signature tools that comply with New York law and keep original documents where required.
• Keep the title search current—new liens or judgments can appear quickly and affect authority to sell.
• When an owner signs by POA, attach a copy of the POA to the listing agreement so the title company and closing attorney can rely on it.
• For co‑ops and condos, start the board application process early—board reviews can take several weeks and can be a separate approval step beyond owner approval.
• If a co‑owner is uncooperative, consider a neutral mediator experienced in real estate disputes before filing a partition action, which is costly and can take many months.

Next steps: Collect the ownership documents listed above, contact a licensed New York broker you trust for a written listing proposal, and consult a New York real estate attorney if any ownership or authority questions exist.

Disclaimer: This article is educational only and is not legal advice. Laws change and every situation is different. Consult a licensed New York attorney for advice specific to your facts.