2 - New York Real Estate License Law

Question 1

Administrator

Answer 1

The person appointed by the court to handle the estate of someone who died without a will, with a will but no nominated executor, or the executor named in the will has died, has been removed from the case or does not desire to serve. Sometimes called a personal representative.

Question 2

Affiliated Licensee

Answer 2

Individuals licensed as salespersons or associate brokers who work in the brokerage of a sponsoring broker.

Question 3

Apartment Information Vendor

Answer 3

Someone who, for a fee, furnishes information concerning the location and availability of residential rental property,

Question 4

Apartment Sharing Agent

Answer 4

Someone who, for a fee, coordinates with a customer and the current owner or occupant of legally occupied real property who wishes to share that housing.

Question 5

ARELLO

Answer 5

The Association of Real Estate License Law Officials promotes uniform standards and policies related to real estate licensure and education throughout North America.

Question 6

Associate Broker

Answer 6

A licensed broker who works for another broker.

Question 7

Actual Authority

Answer 7

Authority given intentionally by the principal to an agent.

Question 8

Express Authority

Answer 8

Authority expressly communicated, in words or in writing, by the principal to the agent.

Question 9

Implied Authority

Answer 9

Authority indirectly given to an agent to do everything reasonably necessary to cary out the principal’s express orders.

Question 10

Blind Ad

Answer 10

An ad placed by a real estate licensee that does not include the appropriate broker identification, often placed in order to give the illusion that property is for sale by owner.

Question 11

Board

Answer 11

The State Board of Real Estate is responsible for carrying out the requirements set forth in New York’s real estate licensing law.

Question 12

Branch Office

Answer 12

A physical location separate from a broker’s main office that is used by firm’s licensees to meet or consult with clients or customers on a regular basis.

Question 13

Broker

Answer 13

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

Question 14

Brokerage

Answer 14

A broker’s business.

Question 15

Cease and Desist Order

Answer 15

Court order requiring certain activities to be stopped.

Question 16

Civil Penalties

Answer 16

Monetary relief, in the form of fines for surcharges, against an individual as restitution for wrongdoing by the individual.

Question 17

Commingling

Answer 17

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

Question 18

Continuing Education

Answer 18

Specific hours of training or education required in order to renew a real estate license.

Question 19

Conversion

Answer 19

Misappropriation of property or funds belonging to another.

Question 20

Corporation

Answer 20

A legal structure authorized by state law that allows a business to organize as a separate legal entity from its owners for liability or tax purposes. Also known as a Legal Person.

Question 21

Criminal Litigation

Answer 21

A lawsuit in which the government sues someone to punish the wrongdoer and protect society.

Question 22

Compensatory Damages

Answer 22

Damages awarded, usually money, intended to compensate the plaintiff for harm caused by the defendant’s act or failure to act, including personal injuries (physical and mental), property damage, and financial losses.

Question 23

Punitive Damages

Answer 23

Damages award that is added to compensatory damages, to punish the defendant for malicious or outrageous conduct and discourage others from engaging in similar acts.

Question 24

Department

Answer 24

The Department of State is the New York state agency that issues state licenses to qualified applicants and oversees the State Board of Real Estate.

Question 25

Deposit

Answer 25

1. Money offered as an indication of good faith regarding future performance of a purchase agreement. Also called Earnest Money.
2. A tenant’s security deposit.

Question 26

Dual Licensure

Answer 26

When a licensee is associated with more than one broker.

Question 27

Escrow

Answer 27

A system in which things of value (e.g., money or documents) are held on behalf of the parties to a transaction by a disinterested third party (escrow agent), until the specified conditions have all been complied with.

Question 28

Escrow Account

Answer 28

Account in which the lender maintains the borrower’s extra 1/12, monthly deposits to cover next year’s insurance and tax payments. Also called Reserve Account.

Question 29

Excutor

Answer 29

The person named in a will to handle the property of someone who has died and carry out the terms of the will.

Question 30

Fiduciary

Answer 30

Person in a position of trust, held by law to high standards of good faith and loyalty.

Question 31

Fiduciary Relationship

Answer 31

A relationship of trust and confidence, in which one party owes the other (or both parties owe each other) loyalty and a higher standard of good faith than is owed to third parties. For example, an agent is a fiduciary in relation to the principal.

Question 32

Fraud

Answer 32

An intentional misrepresentation or concealment of a material fact; when a person actively conceals material information or makes statements that he or she knows are false or misleading.

Question 33

For Sale By Owner (FSBO)

Answer 33

An attempt to sell one’s own property without listing it with a real estate broker.

Question 34

General Partnership

Answer 34

A partnership in which each member has an equal right to manage the business and share in the profits as well as an equal responsibility for the partnership’s debts.

Question 35

Irrevocable Consent

Answer 35

Submission of an out-of-state agent to the jurisdiction of the state courts in which the agent agrees to allow summons, subpoenas, or other processes to be served against him or her.

Question 36

Kickbacks

Answer 36

Fees or other compensation given for services not performed, but as a means of undisclosed commission for business referrals (prohibited by RESPA).

Question 37

Limited Liability Company (LLC)

Answer 37

A business ownership structure that offers its owners the advantage of limited liability (like corporations) and partnership-like taxation, in which profits are passed through to the owners and taxed in their personal income tax returns.

Question 38

Misdemeanor

Answer 38

A crime, less serious than a felony, punishable by no more than one year in jail.

Question 39

Mortgage Banker

Answer 39

Originators of loans in the primary market.

Question 40

Mortgage Broker

Answer 40

One who, for a fee, places loans with investors but typically does not service such loans.

Question 41

Multiple Listing Service (MLS)

Answer 41

A listing service whereby local member brokers agree to share listings, and agree to share commissions on properties sold jointly.

Question 42

Office Manager

Answer 42

A licensed associate real estate broker who elects to work as an office manager under the name and supervision of another broker in order to supervise a branch office.

Question 43

Pocket Card

Answer 43

A wallet-sized real estate licensee identification that serves as a portable proof of licensure, and which must be carried whenever a licensee is engaging in the practice of real estate.

Question 44

Puffing

Answer 44

Superlative statements about the quality of a property that should not be considered assertions of fact. “The best buy in town” or “a fabulous location” are examples of puffing.

Question 45

Realtor

Answer 45

Any real estate licensee who is a member of the National Association of Realtors (NAR) and his or her affiliated state and local association.

Question 46

Receiver

Answer 46

A neutral person appointed by a judge to take charge of the property and business of one of the parties to a lawsuit and receive his/her rents and profits while the right to the monies has not been finally decided or to receive rents and profits coming to a debtor either while a bankruptcy is being processed or while an arrangement is being worked out to pay the creditors.

Question 47

Reciprocity

Answer 47

A mutual exchange of privileges, such as recognizing a license issued in one jurisdiction in another jurisdiction.

Question 48

Restitution

Answer 48

A requirement that a licensee return any money that was taken or used improperly to the injured party.

Question 49

Revocation

Answer 49

The permanent withdrawal of a licensee’s license.

Question 50

Salesperson

Answer 50

Any licensed agent associated with a broker, and as such may perform most of the acts a broker can on behalf of the broker.

Question 51

Sole Partnership

Answer 51

A business owned and managed by one person (or for tax purposes, a husband and wife). For IRS purposes, a sole proprietor and his or her business are one tax entity, meaning that business profits are reported and taxed on the owner’s personal tax return. With a sole proprietorship, the owner is personally liable for all business deals.

Question 52

Sponsoring Broker

Answer 52

The principal broker in a real estate brokerage who oversees the affiliated licensees.

Question 53

Suspension

Answer 53

A real estate agent’s license being temporarily withdrawn for a specified period of time.

Question 54

Tenant Relocator

Answer 54

Someone who, for another and for a fee, commission or other valuable consideration supervises, organizes, arranges, coordinates, handles, or is otherwise in charge of or responsible for relocating commercial or residential tenants from buildings or structures that are to be demolished, rehabilitated, remodeled, or otherwise structurally altered.

Question 55

Termination of Association Notice

Answer 55

A notice filed with the Department of State indicating that a licensee is ending his or her association with a sponsoring broker.

Question 56

Vicarious Liability

Answer 56

When one person bears the responsibility for the actions of another, such as a licensed broker’s vicarious liability for his or her agents.