1. License Law

Question 1

In 1922, New York Passed laws that regulated the real estate industry. Why?

Answer 1

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.

Question 2

How can the Department of State (DOS), Division of Licensing Services enforce real estate license law?

Answer 2

The law is enforced through fines, reprimands, and the denial, suspension or revocation of licenses.

Question 3

The Board of Real Estate is composed of how many members?

Answer 3

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.

Question 4

Violation of license law is a misdemeanor and is punishable by-

Answer 4

up to a year in jail and a fine up to $1,000.

Question 5

Who must be licensed?

Answer 5

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).

Question 6

When a broker or associate broker holds more than one license it is called-

Answer 6

dual licensure.

Question 7

What is the minimum age required to be a salesperson? Broker?
What is the difference between both?

Answer 7

Salesperson - 18
Broker - 20
A broker needs proof of two full years’ experience as a licensed salesperson.

Question 8

What are the education requirements for salesperson and broker?

Answer 8

Salesperson requires 75 hours of prelicensing education. The remaining 45 hours complete the 120 hours of prelicensing for brokers.

Question 9

What are the application fees for-
Broker, original license and renewal?
Associate broker, original license and renewal?
Salesperson, original license and renewal?

Answer 9

Brokers and Associate brokers- $150

Salesperson- $50

Question 10

How long is a license good for?

Answer 10

Each license is good for two years from the date issued.

Question 11

Who may a salesperson accept commission from?

Answer 11

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.

Question 12

What is kickback? Is this legal?

Answer 12

The illegal return of part of the commission as gifts or money to buyers or sellers.

Question 13

What is the law on ‘Offers to Purchase?’

Answer 13

All offers to purchase property must be presented promptly to the owner of the property.

Question 14

What must a broker do when a salesperson or associate broker terminates an association with that broker?

Answer 14

The supervising broker must file a termination of association notice with the DOS.

Question 15

What must a broker do when a change of association occurs?

Answer 15

The former broker must return the license and at the same time file a termination of association notice with the DOS.

Question 16

A salesperson whose license has expired and who wishes to affiliate with and renew under a different broker must establish a new-

Answer 16

record of association.

Question 17

What must a licensee do if they do not renew within two years of expiration?

Answer 17

The licensee must retake the licensing examination.

Question 18

What must a licensee do to renew their license every two years?

Answer 18

A licensee must complete 22 1/2 hours of continuing education.

Question 19

The business name and sign must be readable by which of the following:
Across the street
The Street
The Sidewalk

Answer 19

The sidewalk

Question 20

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-

Answer 20

Three years but smart brokers keep these files for a lifetime.

Question 21

How soon must a broker deliver to all parties signing the document duplicate originals of any document relating to a real estate transaction?

Answer 21

Immediately.

Question 22

Brokers who hold money belonging to others in their possesion must place the money in what account?

Answer 22

Escrow or trust account.

Question 23

Listing agreements prevent-

Answer 23

brokers from interfering with anothers broker’s exclusive listing agreement.