Chapter 1: Important Points Flashcards
IP Real Estate Broker
A person or organization who, for compensation of any kind, performs or offers to perform aspects of real estate transactions for others.
IP License Laws
An exercise of the police power of New York. Much of the license law pertaining to salespersons and brokers is contained in Article 12-A of the Real Property Law.
IP Real Estate Salespersons
Perform Acts that a broker is authorized to perform, but salespersons do so on behalf of a broker with whom they are associated.
IP Associate Real Estate Brokers
Must fulfill the same requirements as a broker, but their status in the firm is equivalent to that of a salesperson.
IP Licenses related to real estate
Mortgage Bankers, Mortgage Brokers, Apartment Information Vendors, Sharing Agents, Licensed and Certified Appraisers, and Licensed Home Inspectors.
IP Attorneys and Licensing
They do not have to be licensed to engage in real estate brokerage unless they employ licensees to work under their supervision.
IP Term of Licensure for Real Estate Salespersons and Brokers
Both licenses last two years
Salespersons - 75-Hour Course
Brokers - 120 Hour
Brokers who completed old 45-hour salesperson course must also complete a 30-hour remedial course.
IP Brokers responsibility
To comply with sign requirements and change in status notices, change of address notices, and termination notices that must be filed with DOS, along with a fee.
IP Violations of License Law
Net listing arrangements
Kickbacks
Commingling of Funds
IP Real estate salesperson and associate brokers limitations
May not be officers of real estate brokerage corporations, hold voting stock in the company, or be a partner in the company.
IP DOS Info
DOS has specific guidelines for real estate advertising by brokers and for the duties of unlicensed real estate assistants.
IP DOS Power
DOS has the power to deny, revoke, fine or suspend a license.
IP Violation of License Law Repercussions
A misdemeanor and is punishable by a $1,000 fine and/or maximum sentence of one year in jail.
IP Revocation or Suspension of A Broker Real Estate License
Also suspends the license of the salespersons and associates brokers in the broker’s employ.
IP Antitrust Violations
Any business activities in which a monopoly, contract, or conspiracy negatively impacts an individual’s or a company’s ability to do business. The negative impact is called restraint of trade.
IP Antitrust laws are important to the real estate profession because…
It is unlawful for brokerage firms, real estate broads, franchises, and MLS services to conspire to fix commission rates.
IP What did the Sherman (1890) and Clayton (1914) antitrust acts, and the Federal Trade Commission (FTC) establish?
Legislation to control and regulate anti-trust activity.
IP Antitrust division of the Department of Justice
Enforces the Sherman and Clayton Acts. Violators are subject to criminal liability and monetary damages.
IP Antitrust Laws
Prohibit price fixing, group boycotts, market allocation agreements, and tie-in arrangements.
IP Under the IRS Code, who is classified as independent contractors?
Real Estate Salespersons and brokers.
IP Pros and Cons of listing with an MLS
Cons - Fee for services, less commission
Pros - Greater exposure, faster sale, and better price
IP Reciprocity
New York has reciprocal arrangements with other states for the licensure of non-resident licensees.
