Chapter 1-License Law

Question 1

Administrative Discipline

Answer 1

The New York DOS’s enforcement of license laws through reprimand and denial as well as the suspension and revocation of licenses

Question 2

Apartment Sharing Agent

Answer 2

An individual licensed by the NY DOS who, for compensation, arranges, conducts, or coordinates meetings between a customer and the current owner or occupant of a legally occupied real property

Question 3

Article 12-A

Answer 3

Article of New York Real Property Law, which contains most of the laws relevant to real estate brokers and salespeople.

Question 4

Article 78 Proceeding

Answer 4

Refers to an article of the Civil Practice Law and Rules that allows aggrieved persons to bring an action against a government body or officer.

Question 5

Associate Broker

Answer 5

A real estate broker who works for another broker

Question 6

Blind Ad

Answer 6

An ad which attempts to advertise a property for sale without disclosing the fact that he/she is a licensed real estate broker or when a broker attempts to mislead the public into believing a property is FSBO. Blind ads are illegal in New York

Question 7

Broker

Answer 7

One who is licensed to represent one of the parties in a real estate transaction, for compensation.

Question 8

Commingling

Answer 8

Illegally mixing money held in trust on behalf of a client with personal funds.

Question 9

Continuing Education

Answer 9

Licensees must complete 22.5 hrs of C.E. in the two years prior to renewal. Coursework must provide at least three hrs of instruction on Fair Housing or discrimination in the sale or rental of property. Courses must be approved by DOS

Question 10

Dual Licensure

Answer 10

When real estate licensees hold more than one license at a time

Question 11

Escrow

Answer 11

System in which things of value (money or documents) are held on behalf of parties to a transaction by a disinterested third party (escrow agent), until specific conditions have been satisfied

Question 12

Exemption

Answer 12

Provision holding that a law or rule does not apply to a particular person, entity or group (e.g. a company with a property tax exemption does not have to pay property taxes).

Question 13

Irrevocable Consent

Answer 13

A form out-of-state licensees must sign, which subjects them to the jurisdiction of the courts of the state of New York.

Question 14

Kickback

Answer 14

Paying part of the proceeds to a sale to another party that helped secure the sale, but is unlicensed.

Question 15

Misdemeanor

Answer 15

A misdeed that may be tried in a court of special sessions.

Question 16

Mortgage Banker

Answer 16

An individual or entity licensed by the New York Banking Department to engage in the business of making residential mortgage loans.

Question 17

Multiple Listings Service (MLS)

Answer 17

A service whereby local member brokers agree to share listings, and further agree to share commissions on properties sold jointly. The MLS generally consists of online computer services. A book published regularly, and updated to include new listings, may be available in some areas.

Question 18

Net Listing Agreement

Answer 18

A listing agreement in which the seller sets a net amount acceptable for a property; if the actual selling price exceeds that amount, the broker is entitled to keep the excess as commission; illegal in New York.

Question 19

Office Manager

Answer 19

A licensed associate real estate broker who by choice elects to work as an office manager under the name and supervision of an individual broker or another broker who is licensed under a partnership, trade name, limited liability company, or corporation.

Question 20

Pocket Card

Answer 20

Contains a photo ID, name, business address of the licensee, and for salespersons, a name and address of the affiliated broker. These are prepared, issued, and delivered by the DOS, in cooperation with the DMV.

Question 21

Real Estate Appraiser

Answer 21

A person licensed by the DOS who is specially trained to offer an unbiased value of real property.

Question 22

Reciprocity

Answer 22

When states agree to allow licensees from other states to sell real estate in their own, by accepting the licensee’s out-of-state course credits or license level.

Question 23

Revocation

Answer 23

A real estate agent’s license being permanently withdrawn; may apply for reinstatement after one year, however.

Question 24

Salesperson

Answer 24

A person performing any of the acts included in the definition of real estate broker while associated with and supervised by a broker.

Question 25

Sponsoring Broker

Answer 25

The broker for whom a licensee works.

Question 26

Suspension

Answer 26

A real estate agent’s license being temporarily withdrawn withdrawn. Usually, reactivation is automatic the day after the suspension is lifted.

Question 27

Violation

Answer 27

An action which goes against specific rules or regulations set by national, state or local government and those set by specific governing bodies of a trade or profession. Such as when a licensee goes against any act set forth in Article 12-A.