Chapter 1 Flashcards
How do real estate agents obtain their license?
Department of state
True or false: The department of state can fine and suspend a real estate agent/brokers license, but it can’t take the license away.
False: the DOS can fine, suspend, and take away an agent/broker’s license.
If an agent is found at fault by the department of state, he can be fined up to how many times the amount of damages?
4 times the amount
If an agent gets their license taken away by the DOS, how long must he wait before re-applying for his license?
1 year
Does a real estate agents license go to the agent himself, or to the agent’s broker?
The agent’s broker
Instead of a license, what does an agent receive in order to practice real estate ?
A pocket card
What must an agent carry around at all times?
A pocket card
Who gives a pocket card to a licensed salesperson? The department of state, or motor vehicles?
The department of state
How long is a real estate license in New York good for?
2 years
After 2 years of having your license as a real estate agent, how many hours of continuing education do you need?
22.5 hours
What is commingling?
Mixing other peoples money with your own
Is this a broker, associate broker, or a salesperson?
Assist sellers, buyers, landlords, and tenants with satisfying their real estate needs for a fee.
Broker
Is this a salesperson, a broker, or an associate broker.
“Can assist sellers, buyers, landlords, and tenants with satisfying their real estate needs for a fee, but chooses to work as a salesperson under the name and supervision of a broker.
Associate broker
Is this a salesperson, a broker, or an associate broker?
“Assists the broker with sellers, buyers, landlords and tenants under the direct supervision of a broker.
Salesperson
What is article 12-a?
The main source of real estate law.
What year was article 12a created?
1922
What article is NYS real property law?
Article 12-a
What is the purpose of a license?
To protect the public
Which law was made to minimize fraud?
Article 12-a
Can a real estate salesperson work independently?
No
Who does a r.e. Salesperson work for?
Broker
True or false: a salesperson is licensed to negotiate and arrange real estate sales.
True
What is an associate real estate broker?
A broker who by choice, elects to work under the name and supervision of another broker.
A wrongfully accused real estate agent can contest the actions through which article?
Article 78
What does caveat emptor mean?
Let the buyer beware
What year did the New York State pass the pioneering legislation that would regulate the real estate industry? And what article was it?
1922, article 12a
Today, does every state have their own version of real estate license law.
Yes
True or false: real estate licensing is required for any person who performs a real estate act for another and for or in anticipation of compensation or other valuable consideration.
True
What are the 3 types of categories of licensure?
Broker, salesperson, and associate real estate broker.
How many services are there for a broker to perform?
11
True or false: a real estate broker can sell a lot or parcel of land by auction.
True
One who assists a broker in the performance and disposition of the broker’s business concerning any of the 11 services performed by the broker is a…?
Salesperson
Can a sales person accept a commission or other compensation of any kind from anyone except their supervising principal broker?
No
Who pays a sales person, a client, a customer, or their broker? 
Their broker
True or false: An associate broker, once licensed, has to abide by the regulations and the license-law provisions that apply to a real estate salesperson.
True
What is it called when a broker of any kind holds more than one license, or when a salesperson holds separate licenses to work under more than one broker?
Dual licensure
How old do you have to be to be a salesperson?
At least 18.
If you have a felony, sex offense, or sexual violet offense, can you still become a salesperson?
Nope
True or false: You can be a broker if you’re not a citizen or permanent resident of the United States.
False, you have to be a citizen or permanent resident
True or False: You have to be a citizen or a permanent resident of the United States to be a salesperson.
False, you only need to have the legal right to work in the United States.
How many hours do you need in order to take salesperson exam?
77
How many hours of study do you need in order to be a broker?
152 hours, which includes the 77 hours that a salesperson needs
How old do you need to be, to be a broker?
At least 20
What kind of person can be a broker without taking the brokers course and exam?
An attorney
Do attorneys need to obtain a broker’s license if they want to hire salespeople?
Yes
A broker’s responsibility is: A. to the public is care, fair, and honest dealing. B. Accountability for escrowed funds C. Limited disclosure D. All of the above
D
How many years do you have to apply for a salesperson license if you completed the course on or after July 1, 2008?
8 years
Through what law can you review the actions of DOS?
Article 78 proceeding
Any appeal you make is through who?
The Secretary of State
A judicial appeal is made through an article 78 proceeding, which is made to the New York State Supreme Court. True or false?
True
What is one word to describe article 78?
Appeal
Would the revocation of a broker’s license also suspend the license of all salespersons and associate brokers affiliated with that broker until they find another supervising broker?
Yes, because that broker holds the salesperson and associate broker’s license, so it would have to get reissued.
How would you define vicarious liability?
Responsibility for the wrongful acts of another.
What is it called to have responsibility for the wrongful acts of another?
Vicarious liability
What is restitution?
Having to pay money back and or be held liable in court for up to 4 times the sum in damages if you received money as commission, compensation, or profit in connection with a license law violation.
What is it called when your license is permanently cancelled?
Revocation
What is it called when you’re fined or reprimanded?
Administrative discipline
How much is a misdemeanor punishable by?
$1000
Revoked=revocation=?
License is permanently cancelled
How much does it cost to get a brokers license or renew a brokers license?
$185
How much does a broker’s license cost to receive and or renew?
$65
What 2 things do you receive as a salesperson once you’re licensed? And which one do you keep?
A license and a pocket card. You keep the pocket card.
Who does the department of states use in order to get your license?
Motor vehicles
Can you be sponsored by more than one broker as a salesperson?
Yes
What is it called when a seller authorizes a broker to procure a specified amount of money for the property and allows the broker to keep any money above the specified amount obtained from the sale?
A net listing
Does a broker need an owners consent to place a for sale sign on their property?
Yes
Does a broker need an owners consent to place a for sale sign on their property?
Yes
Which act can be found as untrustworthiness or incompetence?
A. Making any False promise
B. Making a false statement
C. Making any substantial misrepresentation (false promise)
D. Concealing a material fact
E. Failing to make the appropriate property defect disclosures
F. Negotiating with an owner or a landlord with knowledge that the owner or landlord has an exclusive written contract with another broker
G. All of the above
H. A and C
I. C, A, and F
G, all of the above
How many years do you need to maintain a file of all agency discourse forms?
No less than 3 years
Do you have to present all offers to the owner of the property. If so, what exception is there?
Yes, you have to do so promptly. The exception is if the seller specifically states not to do so.
What must all real estate advertisements contain?
The name of the broker ‘s firm, and must clearly state that the party who placed the ad is a real estate broker.
What must any internet ad contain?
A link to the firms website
What is a blind ad? Is it allowed?
Any ad that does not identify that the advertiser of the ad is a real estate broker. No it’s illegal.
What does the DOS require of all brokers on their office wall?
All brokers must put their license on the wall.
Does the DOS require that brokers put the license of their salespersons and associate brokers’ license on their office wall?
No, brokers are only required to put their license on the wall.
What is it called when states are willing to recognize each other’s license laws as well as the requirements needed to achieve licensing within their jurisdictions?
Reciprocal
Does New York still have reciprocity with other states?
No
Does New York State require licensing for home inspectors ?
Yes
True or false: listings, customers, and clients are always the property of the broker.
True
What does section 441 require?
That you complete 22.5 hours of continuing education of at least 3 hours on fair housing, discrimination, or both in the sale or rental of real property.
True or false: if the sales person decides to terminate their association with a broker, they must turn over any and all listing information obtained during the association to the broker.
True
Brokers may not receive compensation from more than one party to a transaction without the full knowledge and consent of all parties involved (dual compensation) according to which section?
Section175.7
A secret profit is known as…?
A kickback
The terms…. blank…Improper commission splitting, undisclosed referral fees, and after the fact referral fees and secret profit can refer to various situations in which an agent might improperly share part of the agent’s compensation in a real estate transaction. Fill in the blank.
Kickback
a commission rebate paid by, or a referral fee accepted by a real estate broker, given the appropriate procedures, falls within the law. What is it called when this is done illegally?
A kickback
What is disclosure of interest?
Licensees can’t buy or acquire an interest in property listed with them for their own account without first making their true position as a licensee, known to the owners involved. You have to disclose that you’re an agent to every one.
True or false: when self dealing, the licensee must be on alert for the potential creation of a dual agency.
True
What is it called if a broker does not have a separate account called “escrow” when dealing with money that belongs to others.
Commingling
Can an unlicensed assistant or employee of a brokerage list or sell property?
No.
Can an unlicensed assistant or employee of a brokerage list or sell property?
No.
Can an unlicensed assistant or employee of an office show property or hold open houses alone or answer buyers questions about a property?
No
Can unlicensed assistance or employees do paperwork, answer the phone, arrange appointments for the licensee, or follow up on loan commitments?
Yes
Who are the duties of a salesperson to?
Duty to the public, and duty to the broker
Can a court ordered official receive a license to be a salesperson without needing to take the course or state exam?
Yes
What does fiduciary mean?
Obligations you have to a buyer or seller.
Who is interest are you representing as a broker?
The public
Offering money as a broker, just to make a transaction occur is an example of a?
Kickback
What happens if a commingling occurs?
You can lose your compensation and get a penalty of up to 3x the amount.
You should get a brokers agreement signed. True or false
True
The process by which a sales person changes brokerages is called what?
Changes of association
In capable of being recalled or revoked is called what?
irrevocable consent
A service provided by a group of real estate brokers that allows each of them to list each other’s houses is known as what?
Multiple listing service
Which is included on your pocket card, your business address or your personal address?
Your business address.
A written document that terminates the relationship between a sales person and a broker is called what.
Termination of association notice. 
An act or deed Contrary to law or permissible use of real property is called what?
A violation
True or false: you don’t need to be proficient in the English language. To be a salesperson.
False
Can you lose your license if you are demonstrating incompetence?
Yes
Who is required to sign the property condition disclosure statement?
Both the buyer and the seller
Who is required to sign the property condition disclosure statement?
Both the buyer and the seller
If there are any changes in your name or brokerage or address, how many days do you have until you have to tell the department of state to change your status?
5 days
How many times do you have to rediscuss your commission with your broker?
Annually, once a year
Since what year does New York require licensing for home inspectors?
2006
J has no real estate license, and calls homeowners by the phone to determine whether they are interested in selling their home. B, who is licensed, gives J $25 for every lead she turns up. Does this Violate license law? If so, why?
Yes because B is paying compensation for services that require licensure
Why were real estate license laws instituted?
Protect the public while maintaining high standards for those issued a license
What is the minimum age to become a broker?
20
Do you need experience in the field to become a broker?
Yes 2 years and 3500 points
Do you need experience in the field to become a salesperson?
No
As a real estate licensee, you will more likely than not, be a what?
Independent contractor
As an independent contractor, what should you receive from your broker for tax purposes?
1099
What form do you need to file for tax returns to detail your earnings vs. spending
Schedule C
What fiduciary responsibility are you violating when commingling?
Accountability
What is the first form you should fill out with a new client or customer?
Agency disclosure form
Who gives you your pocket card?
The department of state Not motor vehicles
