In 1922, New York Passed laws that regulated the real estate industry. Why?
To provide consumers protecton of their welfare, health, and safety of the general public and prevent economic loss resulting from the dishonest practices of others in expectation of a fee or other valuable consideration.
How can the Department of State (DOS), Division of Licensing Services enforce real estate license law?
The law is enforced through fines, reprimands, and the denial, suspension or revocation of licenses.
The Board of Real Estate is composed of how many members?
15 members and at least five are real estate brokers; the remainder are members of the public, and the secretary of state serves as chairperson.
Violation of license law is a misdemeanor and is punishable by-
up to a year in jail and a fine up to $1,000.
Who must be licensed?
Any person who performs a real estate act,
for another, and
for or in anticipation of compensation or other valuable consideration (unless otherwise specifically exempt from the state license law).
When a broker or associate broker holds more than one license it is called-
What is the minimum age required to be a salesperson? Broker?
What is the difference between both?
Salesperson - 18
Broker - 20
A broker needs proof of two full years’ experience as a licensed salesperson.
What are the education requirements for salesperson and broker?
Salesperson requires 75 hours of prelicensing education. The remaining 45 hours complete the 120 hours of prelicensing for brokers.
What are the application fees for-
Broker, original license and renewal?
Associate broker, original license and renewal?
Salesperson, original license and renewal?
Brokers and Associate brokers- $150
How long is a license good for?
Each license is good for two years from the date issued.
Who may a salesperson accept commission from?
The current supervising broker or from a former broker for fees already earned but not paid when the salesperson was already associated with that broker.
What is kickback? Is this legal?
The illegal return of part of the commission as gifts or money to buyers or sellers.
What is the law on ‘Offers to Purchase?’
All offers to purchase property must be presented promptly to the owner of the property.
What must a broker do when a salesperson or associate broker terminates an association with that broker?
The supervising broker must file a termination of association notice with the DOS.
What must a broker do when a change of association occurs?
The former broker must return the license and at the same time file a termination of association notice with the DOS.
A salesperson whose license has expired and who wishes to affiliate with and renew under a different broker must establish a new-
record of association.
What must a licensee do if they do not renew within two years of expiration?
The licensee must retake the licensing examination.
What must a licensee do to renew their license every two years?
A licensee must complete 22 1/2 hours of continuing education.
The business name and sign must be readable by which of the following:
Across the street
Every real estate broker must maintain a file of AGENCY DISCLOSURE FORMS, listings, offers, closing statements, and certain other documents for a period of no less than-
Three years but smart brokers keep these files for a lifetime.
How soon must a broker deliver to all parties signing the document duplicate originals of any document relating to a real estate transaction?
Brokers who hold money belonging to others in their possesion must place the money in what account?
Escrow or trust account.
Listing agreements prevent-
brokers from interfering with anothers broker’s exclusive listing agreement.