ch 1-5

Question 1

4 stages of real estate transaction

Answer 1

Listing
Negotiating purchase contract
Financing the purchase
Settling the transaction

Question 2

Article 12-A regulates real estate people and section 441-C allows dept of state to punish them for?

Answer 2

breaking any provisions of Article 12-A
fraudulent behavior
being untrustworthy or incompetent

Question 3

3 types of real estate licensee?

Answer 3

broker
associate broker
salesperson

Question 4

What is a broker

Answer 4

a person, firm, llc, or corp who performs for a fee or compensation of any real estate activities defines by law

Question 5

what is an associate broker

Answer 5

is licensed broker who works under name and supervisions of a broker. Can only receive commission payments from his sponsoring broker

Question 6

what is a salesperson

Answer 6

works on behalf of broker to perform duties associated with real estate

Question 7

when can salesperson receive payments

Answer 7

only receive commission payments from sponsoring broker

Question 8

criteria to become licensed real estate salesperson

Answer 8

above 18 years old
be a citizen, legal alien with permanent resident in US, or work permit from immigration
never been convicted of felon unless executive pardon or certificate of good conduct from parole board
successfully completed 75 hr pre license course approved by NY Dept of State
Pass NYS licensing exam
obtain a sponsoring broker before obtaining the license

Question 9

criteria to become licensed real estate broker

Answer 9

be atleast 20
be a US citizen or legal alien with perman US residency
never been convicted of felony unless received executive pardon or a certificated of good conduct from parole board
sucessfully completed 120 hr course of study approved by the NY Dept of state
pass NYS broker exam
submit proof of meeting one of these experience requirements
2 full years of experience as a licensed saleperson and 3500 points
3 years of equivalent experience in some other aspect of real estate and 5250 points subject to approval by the dept of state

Question 10

Which stage of a transaction must the licensee impart info to the seller regarding the potential buyer’s qualifications and the quality of the offer being presented

Answer 10

during the negotiating stage

Question 11

mission of the division of licensing services?

Answer 11

protect health, safety and welfare of consumers
provide efficent processing and examination services to license applicants
provide accurate info and qualified licensees to the business community

Question 12

duties of the secretary of state?

Answer 12

administer:
all licensing, exams, education, and compliance provisions of article 12-A
the rules of the board
the rules of the secretary of state

Question 13

difference between associate broker and broker

Answer 13

associate broker must meet same qualifications as a licensed broker: however an associate broker chooses to work under the name and supervision of a licensed real estate broker

Question 14

how do licensees collect their commission

Answer 14

broker can collect commissions from the clients. licensees working for the broker can only receive commission payments from their sponsoring broker

Question 15

licensee receives 2 things after pass everything

Answer 15

a license

a pocket card

Question 16

how long is a license valid for?

Answer 16

2 years

Question 17

Can a licensee hold more than one license at a time?

Answer 17

Yes. For example a broker may hold two broker’s licenses
a licensed broker may also become an associate broker with another firm
However any associate broker or salesperson who wants additional licenses must submit a statement to the dept from each sponsoring broker indicating acknowledgement of each licensure
whenever there is a change of broker or address the licensee must complete and submit the appropriate form to the dept of state within 5 days

Question 18

how long does licensee have to complete and submit the appropriate form to dept of state if there is a change of broker or address?

Answer 18

5 days

Question 19

What must broker file if associate broker or salesperson wants to leave

Answer 19

a termination of association notice with dept of state and $10 fee

Question 20

What does associate broker or salesperson have to file if they want to leave?

Answer 20

change of association notice with a $10 fee

Question 21

If licensee does not renew their license every 2 years what will department require?

Answer 21

required to retake and pass written exam

Question 22

what must licensee do for renweal

Answer 22

can renew online at dept of state website using registration number and password obtained by calling the dept of state
renewal application must be signed by the broker confirming the fact that the licensee is sponsored by the broker
complete 22.5 hrs of continuing education during 2 year period (>3 hrs of that must include fair housing and discrimination in sale or rental of real property or an interest in real property)
(same course wont count more than once within 2 year cycle of renewal)

Question 23

What DO NOT count as continuing education

Answer 23

prep class for test
offerings in mechanical office and business skills
sales promotion meetings

Question 24

reciprocity states for new york

Answer 24

Arkansas 
colorado
connecticut
georgia
mass
mississippi
nebraska
oklahoma
penn
west virginia

Question 25

other real estate professions need different licenses

Answer 25

``` apartment vendor apartment-sharing agent appraiser mortgage banker mortgage broker home inspector ```

Question 26

account broker must keep for clients money

Answer 26

broker must keep a fed insured trust or escrow account to be used only for deposit of client monies and must make deposits as soon as possible

Question 27

what payment can a broker not accept when acting as a property manager?

Answer 27

cannot accept commission, rebate or profit on expenditures made for the client without the client's full knowledge and consent

Question 28

when can a broker not by or sell himself

Answer 28

when a property is listed by broker he must inform the listing owner about his interest in the property when broker buys for a client he must disclose his ownership interest to all parties in the transaction broker must make clear which party he is acting. broker may not accept compensation from more than one party except with full knowledge and consent of all parties

Question 29

important regulations

Answer 29

exclusive listing: another broker cannot talk to an exclusive client of another broker about that business broker cannot accept services of employee of another broker without that others broker knowledge when salesperson terminates job that broker must turn over listing info salesperson obtained during association exclusive listing cannot automatically continue on beyond fixed termination date broker must keep and maintain a file of agency disclosures, listings, offers, closing statements and other transaction related documents for 3 years salesperson only can get compensated by their broker ads must be clear and not misleading and must give brokers name and phone number

Question 30

what happens when a licensee receives his or her license and pocket card

Answer 30

broker keeps the license and may display it if he chooses. the licensee must carry the pocket card with him or her and show it on demand

Question 31

is every licensed broker requires to maintain a definite place of business in NY

Answer 31

yes except for nonresident brokers who are licensed and maintain a definite place of business in another state

Question 32

is anyone exempt from continuing education requirement

Answer 32

does not apply to any broker who was licensed and engaged full time in the real estate business for atleast 15 consecutive years prior to july 2008. however any broker who had less than 15 years of real estate business experience as of july 2008 will be required to complete the 22.5 hours of continuing education prior to his or her 2010 renweal and every renewal period after

Question 33

What is a net listing

Answer 33

a net listing is a contract in which the broker receives as commission all monies over and above a minimum sales price agreed upon by the broker and the seller

Question 34

personal assistant may perform office things not described in the license law and only licensees may perform for example:

Answer 34

``` hold open houses show real estate discuss property with clients clarify listings contracts or transaction negotiate commissions or splits solicit business on the phone ```

Question 35

common violations of NYS license law

Answer 35

making substantial misrepresentation when applying for a license doing fraud untrustworthy or incompetence misrepresentation during real estate transaction failing to provide correct disclosures accepting compensation from more than 1 party without both parties consent being a salesperson accepting a fee or commission from someone other than employing broker paying someone that is illegal offering property for sale without owners knowledge failing to give duplicate documents to all appropriate parties drawing up legal documents, giving legal opinions or performing title examination failing to remit funds belonging to others in appropriate amt of time entering into a net listing contract failing to maintaining disclosures and other transaction related records for the designated 3 year period of time discriminating broker guilty of misdemeanor if employs non licensed salesperson broker not subject to penalty if his employees commit violations if broker has no knowledge of violation and does not keep money

Question 36

appeals

Answer 36

an appeal of a decision can be made to the secretary of state or it can be made judicially through a proceeding called an article 78 proceeding (appeal to supreme court)

Question 37

violation punishments

Answer 37

revoke/suspend license for period of time need to return license and pocket card within 5 days impose a fine of up to $1000 payable to the dept of state issue a reprimand upon a licensee's conviction of a violation, up to x4 the commission is a misdemeanor, may be tried in criminal cour. conviction can result in fine up to $1000 and a 1 year prison sentence

Question 38

sections of a hearing

Answer 38

COMPLAINT-this section describes what the dept of state thinks the respondent may have done. these allegations are the reason the dept started an investigation that led to the hearing.. FINDINGS OF FACTS- this section outlines what the court believes happened OPINION AND CONCLUSION OF LAW- this section explains what violations the respondent committed and has references to the specific law that the respondent violated DETERMINATION- this cites the penalty that the court is imposing on the respondent

Question 39

name 4 activities that an unlicensed assistant may perform

Answer 39

get status reports on the loan progress pull together documents for closing write ads for a broker's approval place approved classified advertising

Question 40

what happens if the department decided to deny a license app

Answer 40

dept will notify the applicant in writing nd the applicant can ask for a hearing within 30 days of receiving the denial notice

Question 41

what is an agent

Answer 41

a legal relationship between a licensee and one of the following: a seller a buyer a landlord a tenant empowered by contract to rep the interests of a client also known as the principal. The agents reps the principal in dealings with 3rd parties who are known as customers

Question 42

5 duties of an agent

Answer 42

``` coald care obedience accountability loyalty disclosure confidentiality can be found guilty for negligence in court ```

Question 43

agent crap

Answer 43

bound to inform client all facts that might affect client's interests including known and should have known facts could be held liable for damages if he or she failed to disclose such info dont discriminate agent should provide more service to client than to customer can give advice to client just not legal advice

Question 44

active and passive fraud

Answer 44

ACTIVE FRAUD: intentional misrepresentation of a material fact for the purpose of gaining an unfair or dishonest advantage over another person PASSIVE FRAUD:intentional nondisclosure of material facts. intentionally fails to disclose or actively attempts to hide the fact

Question 45

violation of a duty owed to a client or customer could result in?

Answer 45

rescission of listing agreement forfeiture of any compensation that may have already been earned disciplinary action by the NY license law authorities including license suspension or revocation suit for damages in court

Question 46

brokerage

Answer 46

when client enters into an agreement with a brokerage firm, the broker is the agent and the licensee that are affiliated with the brokerage firm are the agents of the broker and the subagents of the brokers clients

Question 47

agency relationship

Answer 47

created when someone delegates to another person, the agent, the right to act on his or her behalf in business transactions with the third parties, customers.

Question 48

principles that govern agency relationship

Answer 48

both parties must consent to relationship both parties must agree to form the relationship fiduciary relationship oral or written agreement or even implied

Question 49

3 types of agency relationships

Answer 49

EXPRESS AGENCY:Express agency is created by either an oral or a written agreement between the principal and the agent. It indicates their express intent for this representational status. IMPLIED AGENCY:If a real estate agent takes on responsibilities that are normally those of an agent, but hasn't signed an agency agreement, she may still be considered an agent via implied agency. By the same token, if the customer asks the agent for advice or actions that are normally those in agency, then an implied agency could be created. Agency Ratification and Estoppel (ostensible agency) Estoppel - a person is prevented from asserting facts that are inconsistent with a previous position made by act, conduct or silence.

Question 50

when is commission earned/paid

Answer 50

``` earned when following occurs: broker produces a ready buyer buyer has signed an offer to purchase seller has accepted offer both parties receive signed copies of agreement ``` commission paid after transaction has been consummated commission is paid to broker who took action to start the chain of events resulting in the sale most transaction are done by cooperating broker (both brokers receive a share)

Question 51

sherman antitrust act of 1890

Answer 51

prohibit the following: PRICE FIXING GROUP BOYCOTTS (prevents others from fair competition) MARKET ALLOCATION (agreement won't do business is certain area) TIE IN ARRANGEMENTS (require a buyer to purchase additional or unrelated products or services when making a product purchase)

Question 52

sherman antitrust act punishment

Answer 52

individual fined up $350k up to 3 years in prison corporation fined up to $10 mill CRIMINAL ANTITRUST PENALTY ENHANCEMENT AND REFORM ACT: increases ind. penalty to $1 mill and 10 yrs prison and corp. $100 mill fine

Question 53

clayton antitrust act of 1914

Answer 53

private individuals allowed to sue antitrust violators. if successful can recover 3x damages plus court and attorney costs

Question 54

Federal Trade Commission (FTC)

Answer 54

power to judge whether particular trade practices are unfair and enforce compliance with sherman antitrust act and some of clayton act

Question 55

what actions demonstrate exercising care when representing a buyer

Answer 55

helping buyer locate appropriate housing evaluating property values and property conditions determining financing alternatives presenting offers and counteroffers with the buyers interests in mind

Question 56

what exception exists to the duty of obedience when working with a client

Answer 56

an agent is not bound by the duty of obedience if the principls direction are illegal

Question 57

an agents fiduciary responsibilities to a client usually end when the transactions closes. this is not true of which duty

Answer 57

confidentiality

Question 58

sellers agent must disclose what kinds of things to the seller

Answer 58

purchase offer who prospective buyers are and if the agent has a relationship with them in any way ability of the purchaser to complete the transaction ability of the purchaser to offer a higher price purchasers intention to resell the property for a profit

Question 59

what actions are not considered to be part of brokers authority

Answer 59

signing contracts for the seller initialing changes to offer permitting early occupancy

Question 60

what obligations do licensees owe to their customers

Answer 60

honesty and fair dealing reasonable care and skill proper disclosure

Question 61

if transaction doesn't complete under which circumstances would the broker still be entitles to a commission

Answer 61

if transaction does not complete due to the sellers default

Question 62

placing a listing in the mls..

Answer 62

does not automatically create or require subagency. seller can accept or reject subagency when created. or cooperating broker may reject offer and work as the buyers broker or agent

Question 63

if cooperating broker accepts subagency..

Answer 63

cooperating broker has same fiduciary responsibilities to seller as listing broker. working for best interest of seller. Must still deal honestly and ethically with all their buyer customers. Bound to disclose any pertinent info to the customer

Question 64

dual agency

Answer 64

when firm or licensee represents both the seller and the buyer or the landlord and the tenant in the same transaction Have to balance best interests of both principals. Could be vastly different if not opposite Usually arises unintentionally when the actions of a broker or an agent create an implied agency with a buyer. or the appearance of dual agency can arise in the case of a client becoming a customer. Dual agency must be disclosed to both the buyer and the seller. Must agree in writing to dual agency relationship

Question 65

undisclosed dual agency

Answer 65

if dual agency relationship is not disclosed, according to section 443 of NYS Real Property Law, and agreed to in writing.(disclosure form) Agent has breached fiduciary responsibilities and violated NYS license law (consensual dual agency only)

Question 66

2 types of dual agency

Answer 66

SINGLE LICENSEE DUAL AGENCY occurs when a real estate licensee tries to rep the seller as a client and the buyer as a client in the same transaction BROKER DUAL AGENCY occurs when 2 agents in the brokers firm rep both the seller and the buyer in the same transaction. the 2 parties are repped by 2 difference agent but the broker is a dual agent

Question 67

real property law section 175.7

Answer 67

broker may accept a referral fee or other compensation from a party that he or she does not represent as long as the broker discloses the fact to all parties and gets their consent

Question 68

designated agency

Answer 68

a broker may designate one or more licensees to act exclusively as the agent of the seller or landlord, and designate one or more licensees to act exclusively as the agent of the buyer or tenant in the same transaction. this arrangement must also be disclosed to both parties and the broker must obtain the written consent of both the buyer and the seller

Question 69

single agency

Answer 69

agent can only rep 1 party in a single transaction but never both. fiduciary duties to one principal. Has to disclose to listing broker that reps the buyer if buyer agent

Question 70

An agency relationship is terminated when one of the following occurs

Answer 70

performance expiration of agreement termination of relationship by mutual agreement of the parties termination of the relationship by one party

Question 71

some reasons why an agency relationship may terminate involuntary

Answer 71

``` death or incapacity or either party agent abandonment condemnation of the property destruction of the property through renunciation of the client breach of the contract bankruptcy revocation of agent license ```

Question 72

according to ny license law what types of property are not included in the def of residential real property

Answer 72

vacant land no dwellings

Question 73

how does a cooperating broker accept a unilateral blanket offer of subagency

Answer 73

if a unilateral offer of subagency is in place the cooperating broker accepts it by showing the property to a buyer or customer

Question 74

what obligation does a subagent owe to the seller and what obligation does the subagent owe to the buyer

Answer 74

the subagent owes the seller the same fiduciary responsibilities he or she would owe to any client. the subagent owes customer level services to the buyer-honesty fair dealing and the proper disclosure of pertinent facts that affect the value of the property

Question 75

hen the agency relationship has been terminated, the licensee is no longer considered the principal’s agent and does not owe any further duties to the principal, except for the following?

Answer 75

Accounting

Question 76

Mary has a listing agreement with Broker Tom. Mary tells Tom she wants him to use broker agents to help sell her property. Tom gets Larry, Gail and Bill, who all work for other firms, to help find a buyer for Mary's property. Who would be vicariously liable for Bill's actions?

Answer 76

Broket Tom

Question 77

What do we call an agent who represents a seller exclusively in a real estate transaction?

Answer 77

Single agent

Question 78

Types of Agency

Answer 78

Universal Agent - the principal empowers the agent to perform any and all actions that may be legally delegated to an agency representative. General Agent - the principal delegates to the agent ongoing tasks and duties within a particular business or enterprise. Special Agent - the principal delegates authority to conduct a specific activity, after which the agency relationship terminates.

Question 79

puffing

Answer 79

Exaggerated comments about a property's benefits are called puffing. An agent can offer an opinion as long as he or she does so with no intention to be deceptive.

Question 80

self-dealing

Answer 80

It is also an intentional misrepresentation if a broker engages in self-dealing - when a broker lists the property, decides to buy it for himself and then collects the agreed-upon commission.