Chapter 1: Important Points

Question 1

IP Real Estate Broker

Answer 1

A person or organization who, for compensation of any kind, performs or offers to perform aspects of real estate transactions for others.

Question 2

IP Real Estate Salespersons

Answer 2

Perform Acts that a broker is authorized to perform, but salespersons do so on behalf of a broker with whom they are associated.

Question 3

IP Associate Real Estate Brokers

Answer 3

Must fulfill the same requirements as a broker, but their status in the firm is equivalent to that of a salesperson.

Question 4

IP Licenses related to real estate

Answer 4

Mortgage Bankers, Mortgage Brokers, Apartment Information Vendors, Sharing Agents, Licensed and Certified Appraisers, and Licensed Home Inspectors.

Question 5

IP Attorneys and Licensing

Answer 5

They do not have to be licensed to engage in real estate brokerage unless they employ licensees to work under their supervision.

Question 6

IP Term of Licensure for Real Estate Salespersons and Brokers

Answer 6

Both licenses last two years
Salespersons - 75-Hour Course
Brokers - 120 Hour
Brokers who completed old 45-hour salesperson course must also complete a 30-hour remedial course.

Question 7

IP Brokers responsibility

Answer 7

To comply with sign requirements and change in status notices, change of address notices, and termination notices that must be filed with DOS, along with a fee.

Question 8

IP Violations of License Law

Answer 8

Net listing arrangements
Kickbacks
Commingling of Funds

Question 9

IP Real estate salesperson and associate brokers limitations

Answer 9

May not be officers of real estate brokerage corporations, hold voting stock in the company, or be a partner in the company.

Question 10

IP DOS Info

Answer 10

DOS has specific guidelines for real estate advertising by brokers and for the duties of unlicensed real estate assistants.

Question 11

IP DOS Power

Answer 11

DOS has the power to deny, revoke, fine or suspend a license.

Question 12

IP Violation of License Law Repercussions

Answer 12

A misdemeanor and is punishable by a $1,000 fine and/or maximum sentence of one year in jail.

Question 13

IP Revocation or Suspension of A Broker Real Estate License

Answer 13

Also suspends the license of the salespersons and associates brokers in the broker’s employ.

Question 14

IP Antitrust Violations

Answer 14

Any business activities in which a monopoly, contract, or conspiracy negatively impacts an individual’s or a company’s ability to do business. The negative impact is called restraint of trade.

Question 15

IP Antitrust laws are important to the real estate profession because…

Answer 15

It is unlawful for brokerage firms, real estate broads, franchises, and MLS services to conspire to fix commission rates.

Question 16

IP What did the Sherman (1890) and Clayton (1914) antitrust acts, and the Federal Trade Commission (FTC) establish?

Answer 16

Legislation to control and regulate anti-trust activity.

Question 17

IP Antitrust division of the Department of Justice

Answer 17

Enforces the Sherman and Clayton Acts. Violators are subject to criminal liability and monetary damages.

Question 18

IP Antitrust Laws

Answer 18

Prohibit price fixing, group boycotts, market allocation agreements, and tie-in arrangements.

Question 19

IP Under the IRS Code, who is classified as independent contractors?

Answer 19

Real Estate Salespersons and brokers.

Question 20

IP Pros and Cons of listing with an MLS

Answer 20

Cons - Fee for services, less commission

Pros - Greater exposure, faster sale, and better price

Question 21

IP Reciprocity

Answer 21

New York has reciprocal arrangements with other states for the licensure of non-resident licensees.

Question 22

IP License Laws

Answer 22

An exercise of the police power of New York. Much of the license law pertaining to salespersons and brokers is contained in Article 12-A of the Real Property Law.