NYS real estate salesperson final exam Flashcards

NYS real estate salesperson final exam Flashcards Associate brokerAssociate real estate brokers must fulfill the same requirements as a broker (they must obtain their brokers license), but their status in the firm is the same as that of a salesperson.Record KeepingBrokers must maintain records of all transactions for at least 3 years Fee simple absolute provides the most complete form of ownership.Ownership in Severalty

The 4 possible unities include:1) Time2) Title3) Interest4)

Possession Life Estates Violations of the Real Property LawThe Department of State may suspend or revoke a real estate salesperson or broker's license for violations of the Real Property Law. The DOS may also impose a fine not to exceed $1,000.A net listing is not technically a listing agreement, but a method of establishing the listing broker's commission as all money above a specified net amount to the seller.Net listings are illegal in New York.Commissions eal Estate Salespersons/Agents DO NOT collect money or commissions.Any commissions earned are paid to the salesperson's broker, who in turn, pays the salesperson his/her portion of the commission.Commissions are determined between the client and broker and are always negotiable (there is no 'standard' commission rate).Commissions are typically calculated as a percentage of the sales price (not the listing price).Commission between the broker and salesperson are always negotiable.A commission is technically earned when the agent finds a "ready, willing and able buyer" for the seller.Independent Contractor Relationship licensees must present a written Agency Disclosure Form that details consumer choices about representation at the first substantive contact.If a seller or buyer refuses to sign the Agency Disclosure

Form, the agent should do the following:

Real estate brokers licenseOnce an individual obtains their NYS real estate salespersons license, they must do the following to obtain a

brokers license:- Have at least two years of experience as

a real estate salesperson.- Be at least 20 years of age.- Complete the 45-hour NYS real estate broker's course (120 hours of total coursework including the 75-hour real estate salespersons course).- Pass the State real estate broker's exam.A broker's license must be renewed every 2 years.

Agent shall follow the legal instructions of their client.Loyalty The real estate agent serves as a fiduciary to the client.A fiduciary relationship implies great confidence and trust.As a fiduciary, the agent is in a position of great trust by the client. Use the acronym OLD CAR to remember the agent's fiduciary duties to their client.Obedience AdvertisingAccording to section 175.25 of Article 12-A of the NY Real

Property Law:"All advertisements placed by a broker must

indicate that the advertiser is a broker or give the name of the broker and his telephone number.All advertisements placed by a broker which state that property is in the vicinity of a geographical area or territorial subdivision must indicate as part of such advertisement the name of the geographical area or territorial subdivisionin which such property is actually located." The broker shall not withhold income taxes. The salesperson must pay their own taxes on commissions.- The salesperson is responsible for paying social security taxes and self-employment taxes.- Compensation is not based on hours worked (a salesperson can make their own hours).- A salesperson is not required to work in a specific location (a salesperson can work from home if they choose).- A salesperson can have outside employment.- Brokers can provide office facilities and supplies, but salespersons are responsible for their own expenses (transportation, cell phone, clothing).- The broker supervises the salesperson, but does not direct or control their activity.- Either party can terminate the relationship at any time.Vicarious Liability Stigmatized Property DisclosureAccording to Article 443-a of the NY Real Property Law, sellers and seller agents do not have to disclose the following facts when selling or leasing residential

property:1) Occupants who have AIDS or other illnesses

not transmitted through occupancy.2) Properties that were a site of death due to natural causes, accidents, suicide, homicide, crime, and other reasons.Blind AdvertisingAll ads by a licensee must indicate that the advertiser is a broker and give the name and telephone number of the broker.Ads that do not contain this information are called blind ads.Blind ads are illegal in New York State.The buyer and/or seller is known as the Principal or Client.The broker is known as the Agent.The salesperson is a Sub-agent of their broker.Buyer Agency / Buyer Brokerage Trade fixtures are items of personal property that a business operator installs in rented building space.Unlike a

typical fixture, a trade fixture is considered personal property of the business owner. It is assumed the business owner will take the trade fixtures with them when moving out of the rented space.A display case is a common example of a trade fixture.Fee Simple

NYS Department of StateThe Department of State is primarily responsible for issuing real estate licenses, pocket cards, and handing down disciplinary action.Article 12-A of the NYS Real Property Law outlines the roles/duties of the Department of State.is illegal in New York State.Dual Agency with Designated Agents Attorney GeneralAccording to Article 12-A (NYS Real Property Law), the Attorney General shall prosecute criminal actions for violations of the Real Property Law.Dual agency occurs when a broker represents both the buyer and seller in a transaction. Dual agency is permitted in New York State; however, advanced informed consent by BOTH parties is required.Dual agency inherently puts the agents fiduciary duty of loyalty at risk.Undisclosed Dual Agency Vicarious liability is a situation in which one party is held partly responsible for the unlawful actions of a third party.According to Section 442-c of the New York Real Property Law, a broker is vicariously liable for a salesperson's actions only when "the broker had actual knowledge of such violations or if the broker retains the benefits from the transaction after he knows that the salesperson has engaged in some wrongdoing".Sherman Anti-Trust Act This form of co-ownership is limited to married couples.4 Unities of Co-ownership Littoral Rights = LakeLittoral rights apply to property bordering a stationary body of water.Riparian Rights = River (stream)Riparian rights belong to the owner of a property bordering a flowing body of water.Supply and Demand Someone authorized to transact every kind of business for

the principal.Example: Property Manager

Special Agent License Exemptions- Attorneys admitted to the NY State Bar are exempt from obtaining a license if they represent a client. If an attorney wants to employ salespersons, they then must obtain a broker's license.- Public officers are exempt when performing official duties.- Persons under the judgment or order of a court.(refers to financial accountability) the agent must account for and promptly remit all money or property entrusted to the agent.Reasonable Care and Duty to Account MisdemeanorAccording to section 442-e of the NYS Real Property

Law:"Any person who violates any provision of this article

shall be guilty of a misdemeanor. The commission of a single act prohibited by this article shall constitute a violation hereof." This listing contract offers the most security to the broker.The seller must work exclusively with the broker to sell their property. The broker is entitled to a commission even if the