Ch. 1-3 transaction, rules and regs, unlicensed assistants, law violations Flashcards
Four parts of the real estate transaction
L- listing the property
N- negotiating the purchase contract
F-financing the purchase
S- settling the transaction
Listing the property
Stipulates the terms and agreements including price of property and and length of listing period
Listing agreement authorized the broker/associate to do what
Find a ready, wiling and able buyer
Negotiating the purchase contract
Licensee must impart all important information to seller including
- buyers qualifications
- quality of offer
Financing the purchase
Some or all of transaction will most likely be financed
Licensee needs to have good knowledge on current loan programs from banks/lenders to quality buyers and property
Settling the transaction
AKA Closing
Buyer receives deed to property
Seller gets proceeds from sale
Broker gets commission
Prior to closing, licensee must
- Coordinate an appraisal and title survey
- Arrange a home inspection of a federally backed loan
NY Department of State three goals
- protect health safety and welfare of consumers
- provide efficient processing and examination services to applicants
- provide accurate information and qualified licenses to the business community
NY Dept. of State, Division of Licensing does what
Issues licenses and enforces real estate law
Purpose of real property law Article 12-A
Gives authority to the DOS to regulate brokers and salespersons
Artical 12-A, Section 441-C purpose
Allows DOS to revoke, suspend, fine or reprimand brokers and salespersons is the
- violate any provision of 12-A
- engage in fraud or fraudulent behavior
- demonstrate untrustworthiness or incompetence
Arrival 12-A, Section 441-i purpose
Established Board of Real Estate
Board of Real Estate consists of how many members
15 members total:
- secretary of state
- superintendent of financial survives
- 13 appointed members
Minimum number of brokers in the appointed members on the Boars of Real Estate
At least 5 brokers
-must have at least 10 years experience
Term information for Board of Real Estate members
- 2 years in length, up to 10 consecutive years
- removal by the appointee
- if death replaced by OG appointee
If a member of the Board of RealEstate misses 3 consecutive meetings they need what to continue to serve
A written note from Secretary of State excusing actions based on illness or death in family
Governor can appoint how many Board of Real Estate members
3 brokers, 4 public
Senate majority leader can appoint how many Board of Real Estate members
1 broker, 1 public
Speaker of assembly can appoint how many Board of Real Estate members
1 broker, 1 public
Senate minority leader can appoint how many Board of Real Estate members
1 broker OR public
Assembly minority leader can appoint how many Board of Real Estate members
1 broker OR public
How does a vote pass on the Board of real estate
By majority (8+)
How often does the board of real estate meet (minimum) per year
3 times a year at the call of the Secretary of State or majority of members
Plus public hearing in NYC, Albany and Buffalo to solicit public comment, suggestions and observations about real estate practice in NY
Secretary of State duties
Administer all licensing, examination, education and compliance provision of 12-A
Rules of the board
Rules of Secretary of State
Powers and duties of the board of real estate
Prescribe content for course exams
Advise Secretary of State
Establish rules and regulations of schools as continuing education
Annually submit report to senate assembly judiciary committees on types of complaints, status of cases and length of time from complaint to final disposition
Responsibilities of lincensees
To be fair and competent when dealing with the public
Salesperson can only receive payment of commission from
Their broker
Exemptions to licensure
Owner selling their own property
Landlord renting their own property
Attorney performing duties of an attorney
Court-appointed guardian
License qualifications for salespersons
Fair knowledge of the English language
18+ for salespersons
Never been convicted of felony
75 hour pre-licensing course
Pass NYS licensing exam
Obtain sponsoring broker before exam
$55 fee
License qualifications for broker
Fair knowledge of the English language
20+ for brokers
Never been convicted of felony
120 hour pre-licensing course (75 sales and 45 broker)
Pass NYS licensing exam
Proof of 2 years experience as salesperson (3,500 pts) or 3 years equivalent experience (5,250 pts) or proof of license in reciprocating state
$155 fee
What must be on your person at all times to show at request
Pocket ID card
How many days to notify DOS of change of broker or address
5 days
Suspension viable if not filed
Change of association process
Broker fields termination of association notice with DOS
Managing broker files change of association on behalf of licensee and $20 fee
Continuing education requirements
22.5 hours every two years
3 hours much be fair housing or discrimination
1 hour for law of agency (2 hours in first term
1 hour ethics taught by attorney
When could continuing education be waived
With proof of bonafide hardship provided with application and a written request
All courses are approved by
The department of state
Who sets the rules for content and other requirements
Secrets of State
Process for non-resident (with no reciprocity)
Pass exam, submit application, pay fee send DOS copy of current license
Sign and file an irrevocable consent form
Salesperson must have sponsoring broker w NYS license
Irrevocable consent form
Waiver stating the signee will be prosecuted under NY law for any unlawful actions done in-state
Apartment information vendor
Furnished information about location and availability of residential rental property
18+ years old
$400 for 1 year term
$5000 interest bearing escrow account plus $2500 for each branch office
Apartment sharing agent
Arranges meetings between potential roommates and property owners
$400 for 1 year term
$2500 trust account plus $1250 for each additional office
Appraiser
Determines value of property
License or certification
- assistant
- real estate appraiser
- residential appraiser
- general appraiser
$300 for a 2 year term
Mortgage banker
Individual of entity licensed to make residential mortgage loans
License issues by Dept. of financial services
$1000 for 1 year term
Net worth $250,000
Line of credit min. $1 million
$50,000 surety bond
5 years experience
Mortgage broker
Person or entity registered to solicit, process, place or negotiate residential mortgage loans
Brings together lender and borrower for a fee paid by borrower
2 years credit experience
Surety bind of $250,000 trust fund
$500 for 1 year term
Home inspector
Hired to inspect property to determine the condition and provide a written report
Edu, exams and supervised apprenticeship
MUST be licensed and can check online
Commingling
Mixing of personal and business funds
Broker must NOT commingle his money
Kickbacks
A fee or rebate paid to an agent for a referral of a customer
ILEGAL IN NY
Blind ad
An ad WITHOUT name and license
ILEGAL IN NY
Business cards must include
Name and address of brokerage or branch office
Personal name as on license
Type of license held
Firms business telephone number
Unlicensed personal assistants may perform what tasks
Any office function not described in the license laws
Unlicensed personal assistants are paid
By their broker or employing salesperson as an employee (hourly rate, per activity or salaries)
