Key Terms Chapter 1

Question 1

Administrative Discipline

Answer 1

The Department of State’s ability to enforce license laws through reprimand and denial as well as the suspension and revocation of licenses.

Question 2

Apartment Information Vendor

Answer 2

Any person who engages in the business of claiming, demanding, charging, receiving, collecting, or contracting for the collection of, a fee from a customer for furnishing information concerning the location and availability of real property, including apartment housing, which may be leased, rented, shared or sublet as a private dwelling, abode, or place of residence.

Question 3

Apartment Sharing Agent

Answer 3

Any person who, for a fee, arranges, conducts, coordinates, handles or causes meetings between a customer and the current owner or occupant of legally occupied real property, including apartment housing, who wishes to share that housing with one or more individuals.

Question 4

Article 12-A

Answer 4

The section of the New York Real Property Law pertaining to real estate salespersons and brokers.

Question 5

Article 78 Proceeding

Answer 5

An appeal brought forth because of a ruling by a government agency.

Question 6

Associate Real Estate Broker

Answer 6

A licensed real estate broker who by choice elects to work under the name and supervision of another real estate broker.

Question 7

Blind Ad

Answer 7

An ad that remains anonymous as to who is advertising. Blind ads are illegal.

Question 8

Change of Association

Answer 8

The process by which a salesperson’s license changes sponsorship.

Question 9

Commingling

Answer 9

To mingle or mix, for example, a client’s funds in the broker’s personal or general account.

Question 10

Continuing Education

Answer 10

Post license education required by salespersons and brokers. New York State demands 22.5 hours of continuing education.

Question 11

Escrow

Answer 11

A written agreement between two or more parties providing that certain instruments or property be placed with a third party to be delivered to a designated person upon the fulfillment or performance of some act or condition.

Question 12

Exemption

Answer 12

Conditions under which a property condition disclosure statement is not required.

Question 13

Home Inspection

Answer 13

An examination of a real estate property’s condition, usually performed in connection with the property’s sale. A qualified home inspector can assess the condition of a property’s roof, foundation, heating and cooling systems, plumbing, electrical work, water and sewage, and some fire and safety issues. In addition, the home inspector will look for evidence of insect, water or fire damage or any other issue that may affect the value of the property.

Question 14

Irrevocable Consent

Answer 14

Incapable of being recalled or revoked; unchangeable; unalterable.

Question 15

Kickback

Answer 15

Payment by a broker of any part of compensation to a real estate transaction to anyone who is not licensed or who is not exempt from the license law.

Question 16

Listing Agreement

Answer 16

An employment contract between principal and agent, authorizing the agent to perform services for the principal involving the latter’s property.

Question 17

Misdemeanor

Answer 17

A crime punishable by up to a year in prison and/or a $1,000 fine.

Question 18

Multiple Listing Service (MLS)

Answer 18

A service provided by a group of real estate brokers. They band together to create a Multiple Listing Service that allows each of them to list each other’s houses. Under this arrangement, the listing broker and the selling broker split the commission for each sale.

Question 19

Net Listing

Answer 19

A price below which an owner will not sell the property, and at which price a broker will not receive a commission; the broker receives the excess over and above the net listing as the broker’s commission.

Question 20

Pocket Card

Answer 20

A card issued by the Department of State to each licensee which contains the photo, name and business address of the licensee, and, in the case of a real estate salesperson, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesperson.

Question 21

Real Estate Appraiser

Answer 21

A practitioner who has the knowledge and expertise necessary to estimate the value of an asset, or the likelihood of an event occurring, and the cost of such an occurrence. Ideally, an appraiser acts independently of the buying and selling parties in a transaction in order to arrive at the fair value of an asset without bias.

Question 22

Real Estate Broker

Answer 22

A licensed individual or firm that charges a fee to serve as the mediator between the buyer and seller.

Question 23

Real Estate Salesperson

Answer 23

An individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.

Question 24

Revocation

Answer 24

An act of recalling a power of authority conferred, as the revocation of a power of attorney; a license, an agency, etc.

Question 25

Sponsor

Answer 25

A licensed real estate broker that holds the license of a salesperson.

Question 26

Suspension

Answer 26

The right of the Department of State to deactivate a broker’s or salesperson’s license for wrongdoing.

Question 27

Termination

Answer 27

The discontinuance of an agent’s relationship with his/her sponsoring broker.

Question 28

Termination of Association Notice

Answer 28

A written document that terminates the relationship between an agent and his/her sponsoring broker.

Question 29

Violation

Answer 29

Act, deed or conditions contrary to law or permissible use of real property.