Chapter 1

Question 1

Article 12-A

Answer 1

The section of the New York Real Property Law pertaining to real estate salespersons and brokers

Question 2

Real Estate Broker

Answer 2

A licensed individual or firm that charges a fee to serve as the mediator between the buyer and seller. Mortgage brokers are individuals in the business of arranging funding or negotiating contracts for a client, but who does not loan the money. A real estate broker is someone who helps find a house

Question 3

Real Estate Salesperson

Answer 3

An individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker

Question 4

Associate Real Estate Broker

Answer 4

A licensed real estate broker who by choice elects to work under the name and supervision of another real estate broker

Question 5

Continuing Education

Answer 5

Post-license education required by salespersons and brokers. New York State demands 22.5 hours of continuing education

Question 6

Pocket Card

Answer 6

A card issued by the Department of State to each licensee which contains the photo, name and business address of the licensee, and, in the case of a real estate salesperson, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesperson

Question 7

Listing Agreement

Answer 7

An employment contract between principal and agent, authorizing the agent to perform services for the principal involving the latter’s property

Question 8

Property Inspection

Answer 8

An examination of a real estate property’s condition, usually performed in connection with the property’s sale. A qualified home inspector can assess the condition of a property’s roof, foundation, heating and cooling systems, plumbing, electrical work, water and sewage, and some fire and safety issues. In addition, the home inspector will look for evidence of insect, water or fire damage or any other issue that may affect the value of the property

Question 9

Escrow

Answer 9

A written agreement between two or more parties providing that certain instruments or property be placed with a third party to be delivered to a designated person upon the fulfillment or performance of some act or condition

Question 10

Commingling Funds

Answer 10

To mingle or mix, for example, a client’s funds in the broker’s personal or general account

Question 11

Net Listing

Answer 11

A price below which an owner will not sell the property, and at which price a broker will not receive a commission; the broker receives the excess over and above the net listing as the broker’s commission

Question 12

Article 78 Proceeding

Answer 12

An appeal brought forth because of a ruling by a government agency

Question 13

Kickback

Answer 13

Payment by a broker of any part of compensation to a real estate transaction to anyone who is not licensed or who is not exempt from the license law

Question 14

Administrative Discipline

Answer 14

The Department of State’s ability to enforce license laws through reprimand and denial as well as the suspension and revocation of licenses

Question 15

Apartment Information Vendor

Answer 15

Any person who engages in the business of claiming, demanding, charging, receiving, collecting, or contracting for the collection of, a fee from a customer for furnishing information concerning the location and availability of real property, including apartment housing, which may be leased, rented, shared or sublet as a private dwelling, abode, or place of residence

Question 16

Apartment Sharing Agent

Answer 16

Any person who, for a fee, arranges, conducts, coordinates, handles or causes meetings between a customer and the current owner or occupant of legally occupied real property, including apartment housing, who wishes to share that housing with one or more individuals.

Question 17

Blind Ad

Answer 17

An ad that remains anonymous as to who is advertising. Blind ads are illegal

Question 18

Change of Association

Answer 18

The process by which a salesperson’s license changes sponsorship

Question 19

Exemption

Answer 19

Conditions under which a property condition disclosure statement is not required

Question 20

Irrevocable Consent

Answer 20

Incapable of being recalled or revoked; unchangeable; unalterable

Question 21

Misdemeanor

Answer 21

A crime punishable by up to a year in prison and/or a $1,000 fine

Question 22

Multiple Listing Service (MLS)

Answer 22

A service provided by a group of real estate brokers. They band together to create a Multiple Listing Service that allows each of them to list each other’s houses. Under this arrangement, the listing broker and the selling broker split the commission for each sale

Question 23

Real Estate Appraiser

Answer 23

A practitioner who has the knowledge and expertise necessary to estimate the value of an asset, or the likelihood of an event occurring, and the cost of such an occurrence. Ideally, an appraiser acts independently of the buying and selling parties in a transaction in order to arrive at the fair value of an asset without bias

Question 24

Revocation

Answer 24

An act of recalling a power of authority conferred, as the revocation of a power of attorney; a license, an agency, etc

Question 25

Sponsor

Answer 25

A licensed real estate broker that holds the license of a salesperson

Question 26

Suspension

Answer 26

The right of the Department of State to deactivate a broker’s or salesperson’s license for wrongdoing

Question 27

Termination

Answer 27

The discontinuance of an agent’s relationship with his/her sponsoring broker

Question 28

Termination of Association Notice

Answer 28

A written document that terminates the relationship between an agent and his/her sponsoring broker

Question 29

Violation

Answer 29

Act, deed or conditions contrary to law or permissible use of real property