of deed and provides the greatest protection to the grantee.

Real Estate U Flashcards Independent Contractor RelationshipA salesperson must work under a sponsoring broker. Their relationship must be that of an independent contractor.It is important that salespersons maintain their independent contractor status in the eyes of the Internal Revenue Service (IRS). Otherwise, if the salesperson is considered an employee, the sponsoring broker will be required to withhold income taxes and pay for health insurance.Operation of lawThis includes the statue of limitations.Full Covenant and Warranty DeedContains the broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee.Straight Loan (Term Loan)This is an interest-only loan. The balance of the loan always remains the same. At the end of the term of the loan, the borrower must pay the full balance back.OLD CARAgent's responsibilities to the principal.1.) Obedience2.) Loyalty3.) Disclosure4.) Confidentiality5.) Accounting6.) Reasonable skill and care - Provide Square Footage, Comparable Market Analysis (CMA), discover and disclose material facts, fill-in the blanks of pre-printed contracts and advise people regarding offers Vicarious LiabilityVicarious 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".Real Property vs Personal PropertyReal property is the land and improvements, and all legal rights, powers, and privileges of real estate ownership.Real property includes the bundle of rights.Everything that is not real property is personal property.Personal property is also known as chattel.Real estate salespersons licenseA real estate salesperson must be at least 18 years old.A real estate salespersons license is valid for 2 years.Every 2 years, the salesperson must renew their license online through eAccessNY.Before renewing a license, the salesperson must complete 22.5-hours of Continuing Education.Real estate salespersons may perform acts that a broker is authorized to perform, but they do so on behalf of a broker with whom they are associated.

Blanket MortgageA type of commercial mortgage in which two or more parcels of real estate are pledged as security for payment of the mortgage debt.It usually contains a release clause, which allows certain parcels of property to be removed from the mortgage lien when the loan balance is reduced by a certain amount.Tax LienWhen a taxpayer is delinquent in paying property taxes, this type of lien attaches against the property.It takes the highest priority among other liens (even higher than a mortgage lien).FixturesA fixture is personal property that attaches permanently to the land or improvements and becomes part of the real

property.A few typical examples of a fixture include:-

chandelier- custom book shelves- wall-to-wall carpeting- plumbing fixtures Buyer Agency / Buyer BrokerageBuyer agency occurs when a purchaser/renter hires a broker to represent them.The purchaser/renter employs a broker to locate a property. In this relationship, the buyer is the principal and the broker is the agent.A Buyer Representation Form should be signed between the buyer and broker.Leasehold Estatesa non-freehold of limited duration, providing the right of possession and control but not title.New York Court of AppealsThe New York Court of Appeals is the highest court in New York State.Chain of titleRefers to the sequence of historical transfers of title to a property.It runs from the present owner all the way back to the original owner of the property.Specific performanceWhen an order from the court requires this, it means that the contract is to be completed as the parties originally agreed.Suspension or Revocation of Sponsor's License If a broker's license is suspended or revoked, each real estate salesperson working under that broker shall also have their licenses suspended. In this case, the State deems the salesperson's license as a 'discontinuance of association with the broker being suspended'.Using the old deedThe seller's attorney uses this to prepare a new deed for the closing.TitleEvidence of the right to own property.Net ListingA 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.Periodic Estate (Leasehold Estate)automatically renews itself for another period at the end of each period unless one party gives notice to the other party

at a time specified in the lease before the lease ends.

Exclusive Right to Sell Agreement: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 seller finds a buyer themselves.Liquidated damagesDamages agreed to be paid in the contract.Actual evictionOccurs when the landlord removes the tenant from the property without aid or control of the court system.This is wrongful use of self-help.Liena claim or charge against the property of another.Compensatory damagesEqual the amount of money actually lost due to the breach of contract.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.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.Sub-leaseThe original tenant is still responsible to the landlord for the lease payments under the lease contract.In this kind of arrangement, the sub-lessee pays the rent to the tenant (lessee) and the tenant pays the landlord.Agent / Client RelationshipsThe 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.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." Tenancy by the entiretyThis form of co-ownership is limited to married couples.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.AssignmentThe assignee is responsible for paying the rent directly to the landlord. The assignee takes responsibility of the lease.Pocket CardThe Department of State issues a real estate license and a pocket card.The salesperson's license is held with their sponsoring broker.The salesperson must carry their pocket card at all times when doing business and show it on