2 - New York Real Estate License Law Flashcards
Administrator
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.
Affiliated Licensee
Individuals licensed as salespersons or associate brokers who work in the brokerage of a sponsoring broker.
Apartment Information Vendor
Someone who, for a fee, furnishes information concerning the location and availability of residential rental property,
Apartment Sharing Agent
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.
ARELLO
The Association of Real Estate License Law Officials promotes uniform standards and policies related to real estate licensure and education throughout North America.
Associate Broker
A licensed broker who works for another broker.
Actual Authority
Authority given intentionally by the principal to an agent.
Express Authority
Authority expressly communicated, in words or in writing, by the principal to the agent.
Implied Authority
Authority indirectly given to an agent to do everything reasonably necessary to cary out the principal’s express orders.
Blind Ad
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.
Board
The State Board of Real Estate is responsible for carrying out the requirements set forth in New York’s real estate licensing law.
Branch Office
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.
Broker
One who is licensed to represent one of the parties in a real estate transaction for compensation.
Brokerage
A broker’s business.
Cease and Desist Order
Court order requiring certain activities to be stopped.
Civil Penalties
Monetary relief, in the form of fines for surcharges, against an individual as restitution for wrongdoing by the individual.
Commingling
Illegally mixing money held in trust on behalf of a client with personal funds.
Continuing Education
Specific hours of training or education required in order to renew a real estate license.
Conversion
Misappropriation of property or funds belonging to another.
Corporation
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.
Criminal Litigation
A lawsuit in which the government sues someone to punish the wrongdoer and protect society.
Compensatory Damages
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.
Punitive Damages
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.
Department
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.
Deposit
- Money offered as an indication of good faith regarding future performance of a purchase agreement. Also called Earnest Money.
- A tenant’s security deposit.
Dual Licensure
When a licensee is associated with more than one broker.
Escrow
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.
Escrow Account
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.
Excutor
The person named in a will to handle the property of someone who has died and carry out the terms of the will.
Fiduciary
Person in a position of trust, held by law to high standards of good faith and loyalty.
Fiduciary Relationship
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.
Fraud
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.
For Sale By Owner (FSBO)
An attempt to sell one’s own property without listing it with a real estate broker.
General Partnership
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.
Irrevocable Consent
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.
Kickbacks
Fees or other compensation given for services not performed, but as a means of undisclosed commission for business referrals (prohibited by RESPA).
Limited Liability Company (LLC)
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.
Misdemeanor
A crime, less serious than a felony, punishable by no more than one year in jail.
Mortgage Banker
Originators of loans in the primary market.
Mortgage Broker
One who, for a fee, places loans with investors but typically does not service such loans.
Multiple Listing Service (MLS)
A listing service whereby local member brokers agree to share listings, and agree to share commissions on properties sold jointly.
Office Manager
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.
Pocket Card
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.
Puffing
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.
Realtor
Any real estate licensee who is a member of the National Association of Realtors (NAR) and his or her affiliated state and local association.
Receiver
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.
Reciprocity
A mutual exchange of privileges, such as recognizing a license issued in one jurisdiction in another jurisdiction.
Restitution
A requirement that a licensee return any money that was taken or used improperly to the injured party.
Revocation
The permanent withdrawal of a licensee’s license.
Salesperson
Any licensed agent associated with a broker, and as such may perform most of the acts a broker can on behalf of the broker.
Sole Partnership
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.
Sponsoring Broker
The principal broker in a real estate brokerage who oversees the affiliated licensees.
Suspension
A real estate agent’s license being temporarily withdrawn for a specified period of time.
Tenant Relocator
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.
Termination of Association Notice
A notice filed with the Department of State indicating that a licensee is ending his or her association with a sponsoring broker.
Vicarious Liability
When one person bears the responsibility for the actions of another, such as a licensed broker’s vicarious liability for his or her agents.
