law and regulation terminology Flashcards
The Department of State’s ability to enforce license laws through reprimand and denial as well as the suspension and revocation of licenses.
Administrative Discipline
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.
Apartment Information Vendor
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.
Apartment Sharing Agent
The section of the New York Real Property Law pertaining to real estate salespersons and brokers.
Article 12-A
A licensed real estate broker who by choice elects to work under the name and supervision of another real estate broker.
Associate Real Estate Broker
An ad that remains anonymous as to who is advertising. Blind ads are illegal.
Blind Ad
The process by which a salesperson’s license changes sponsorship.
Change of Association
To mingle or mix, for example, a client’s funds in the broker’s personal or general account.
Commingling
Post license education required by salespersons and brokers. New York State demands 22.5 hours of continuing education.
Continuing Education
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.
Escrow
Conditions under which a property condition disclosure statement is not required.
Exemption
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.
Home Inspection
Incapable of being recalled or revoked; unchangeable; unalterable.
Irrevocable Consent
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.
Kickback
An employment contract between principal and agent, authorizing the agent to perform services for the principal involving the latter’s property
Listing Agreement
A crime punishable by up to a year in prison and/or a $1,000 fine.
Misdemeanor
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.
Multiple Listing Service (MLS)
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.
Net Listing
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.
Pocket Card
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.
Real Estate Appraiser
A licensed individual or firm that charges a fee to serve as the mediator between the buyer and seller.
Real Estate Broker
An individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.
Real Estate Salesperson
An act of recalling a power of authority conferred, as the revocation of a power of attorney; a license, an agency, etc.
Revocation
A licensed real estate broker that holds the license of a salesperson.
Sponsor
The right of the Department of State to deactivate a broker’s or salesperson’s license for wrongdoing.
Suspension
The discontinuance of an agent’s relationship with his/her sponsoring broker.
Termination
A written document that terminates the relationship between an agent and his/her sponsoring broker.
Termination of Association Notice
Act, deed or conditions contrary to law or permissible use of real property.
Violation
One who undertakes to transact some business or to manage some affair for another by authority of the latter.
Agent
A broker’s agent is an agent that cooperates or is engaged by a listing agent or a buyer’s agent (but does not work for the same firm as the listing agent or buyer’s agent) to assist the listing agent or buyer’s agent in locating a property to sell or buy, respectively, for the listing agent’s seller or the buyer agent’s buyer.
Broker’s Agent
An agent who represents the buyer of real property.
Buyer Agent
The one by whom a broker is employed.
Client
Form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship.
Implied Agency
A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord.
Landlord’s Agent
The employer of an agent or broker; the broker’s or agent’s client.
Principal
An agent who represents the seller of real property.
Seller’s Agent
An agent of a person already acting as an agent of a principal.
Sub-agent
A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction.
Tenant’s Agent
An agent is obligated to safeguard his/her principal’s lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal’s bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property. The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold know material facts about the condition of the seller’s property from the buyer, or to misrepresent the property’s condition. To do so constitutes misrepresentation and may impose liability on both the broker and/or the seller.
Confidentiality
The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems.
Disclosure
A person who on behalf of or for the benefit of another transacts business or handles money or property not the person’s own; such relationship implies great confidence and trust.
Fiduciary
The legal duty of a fiduciary to act in the best interests of the beneficiary. One common duty includes confidentiality.
Fiduciary Duties
The fiduciary relationship obligates the agent to act in good faith at all times, obeying the client’s instructions in accordance with the contract.
Obedience
The fiduciary duty that prohibits the agent from advancing any interests adverse to the principal’s interest or conducting the principal’s business in such a way as to benefit a customer, a sub-agent, the agent or any other party to the detriment of the principal’s interest unless required by statute, regulation or common law – e.g., disclosing material facts and defects of a property.
Undivided Loyalty
OBEDIENCE TO THE CLIENT
“Old car”
loyalty work in the best interest of client
“oLd car”
accoutability
“olD cAr” (accoutability)
Reasonable care
“old caR” REASONABLE CARE
An agent with the full authority over one property of the principal, such as a property manager.
General Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing.
Special Agent
An agreement to do something or to allow something to happen only after all the relevant facts are disclosed.
Informed Consent
Making an intentionally false statement to induce someone to contract.
Misrepresentation
caveat emptor
buyer aware
the principal must act to defend the agent in the case the agent is sued while acting on behalf of the principal
indemnification
A situation in which one party is held partly responsible for the unlawful actions of a third party.
Vicarious Liability
An actual agency created by written or oral agreement between the principal and the agent.
Expressed Agency
Form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship.
Implied Agency
The principle which prevents a person from asserting something contrary to what is implied by a previous action or statement of that person.
Estoppel
Conspiring to establish fixed fees or prices for services or products.
Price Fixing
An agreement between members of a trade to exclude other members from fair participation in the trade.
Group Boycott
An agreement between members of a trade to refrain from competition in specific market areas.
Market Allocation
A contract where one transaction depends upon another.
Tie-in Arrangement
Representing both principals (seller and buyer) to a transaction.
Dual Agency
Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an “in-house” dual agency situation.
Designated Sales Agent
An agent who represents the seller of real property.
Seller’s Agent
An agent who represents the buyer of real property.
Buyer Agent
A broker’s agent is an agent that cooperates or is engaged by a listing agent or a buyer’s agent (but does not work for the same firm as the listing agent or buyer’s agent) to assist the listing agent or buyer’s agent in locating a property to sell or buy, respectively, for the listing agent’s seller or the buyer agent’s buyer.
Broker’s Agent
A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord.
Landlord’s Agent
A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction.
Tenant’s Agent
An agreement to do something or to allow something to happen only after all the relevant facts are disclosed.
Informed Consent
A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties. Undisclosed Dual Agency is illegal in all states.
Undisclosed Dual Agency
Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an “in-house” dual agency situation.
Designated Sales Agent
commission agents can receive referral commission for referral services
real property law .175.7
To be responsible.
Accountability
The seller or buyer agrees to dual agency before it occurs by indicating the same on the agency disclosure form.
Advance Consent to Dual Agency
Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an “in-house” dual agency situation.
Designated Sales Agent
An agent is obligated to safeguard his/her principal’s lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal’s bargaining position.
Confidentiality
A real estate agent who sells a property. The selling agent may be (1) the subagent or listing agent of the seller; (2) a buyer’s agent; or (3) a dual agent. Also called a selling agent or participating agent.
Cooperating Agent
The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems.
Disclosure
The principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person or by a previous pertinent judicial determination.
Estoppel
An actual agency created by written or oral agreement between the principal and the agent.
Expressed Agency
An agreement between members of a trade to exclude other members from fair participation in the trade.
Group Boycott
An agreement to do something or to allow something to happen only after all the relevant facts are disclosed.
Informed Consent
An agent’s duty to place the client’s interest above those of all others, including the agent’s own self-interest.
Loyalty
An agreement between members of a trade to refrain from competition in specific market areas.
Market Allocation
This fiduciary relationship obligates the agent to act in good faith at all times, obeying the client’s instructions in accordance with the contract.
Obedience
Conspiring to establish fixed fees or prices for services or products.
Price Fixing
The degree of caution and concern for the safety of himself/herself and others an ordinarily prudent and rational person would use in the circumstances. This is a subjective test of determining if a person is negligent, meaning he/she did not exercise reasonable care.
Reasonable Care
A contract where one transaction depends upon another.
Tie-in Arrangement
A situation in which one party is held partly responsible for the unlawful actions of a third party.
Vicarious Liability
a single agency broker represents either the buyer or seller in a transaction but never both
single agency broker
what records should an agent keep?
disclosure form, affidavit
what records should a seller`s agent keep?
potential purchasers, disclosure forms, purchases budget, correspondence
what records should a buyers agent records?
disclosure forms, affidavit, property showings, prospective properties, correspondence
What disclosure should I make as a seller`s agent?
lead paint disclosure form ( buildings build before 1978)
property condition disclosure ( mold, foundation issues, termites etc)
when is the agent disclosure form used?
does the broker have to be present in the brokerage office ?
can the broker give a salesperson a bonus?
yes,
what happens when a salesperson moves from one brokerage firm to another?
depends
what to look at when negotiating my brokerage agreement?’
1) commission split
2) agreement time
3) early termination clause
4) non-competition clause
5) ability to modify the agreement
how can I modify the independent salesperson agreement?
dependS ON THE INTIAL agreement
how to choose the right broker to work for?
chose one that is good for you, a local or national one,
modern space etc, rentals, sales, join one that is line with what you want to do. how they will assist you. look for one that will help you grow. look into commission split 60-40 offers more training. global
Land, and generally whatever is erected upon or affixed thereto.
Real Estate / Real Property
The premise that the ownership of real estate consists of the ownership of various rights associated with it. These rights include the right to use and/or occupy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.
Bundle of Rights
Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.
Fee Simple Estate
Rights in real property to use the space above the surface of the land.
Air Rights
The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means “riverbank”.
Riparian Rights
The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.
Littoral Rights
Personal property, such as household goods.
Chattel
personal property so attached to the land or improvement as to become part of the real property
fixture/ trade fixture
The concept that property is an illiquid asset because it cannot easily be sold or exchanged for cash.
Illiquidity
Property that is appropriate for one type of use or limited use. This type of property has unique design or layout, uses special construction materials, or other features that limit the property’s utility for purposes other than the one for which it was built. For example, a church, theater, or school.
Special Purpose Real Estate
residential, commercial, industrial, vacant land
uses of real property
real property is immobile location specific and illiquid!
real property
The conveyance of title to property for the duration of the life of the grantee.
Life Estate
The person who is to receive the property after the termination of the prior estate.
Remainder Interests / Remainderman
the owner of the property holds a fee simple title contingent upon certain condition
fee simple defeasible
the conveyance of title property from the duration of the life of the grantee
life estate
the person who id to receive the property after the termination of the prior estate
remainderman
ownership of a temporary right to hold land or property in which a lessee or a tenant holds rights of real property by some forms of title from a lessor or landlord.
leasehold estate
month to month etc
periodic estate
An ownership of real property by two or more persons, each of whom has an undivided interest, without the “right of survivorship”.
Tenancy in Common
The division which is made of real property between those who own it in undivided shares.
Partition
the deeds bundle of rights fee simple is stronger than the contract rights’
fee simple
Any person who holds property, authority, or a position of trust and responsibility for the benefit of another.
Trustee
A person who conveys title to a trustee.
trustor
an arrangement whereby a person ( a trustee) holds property as its nominal owner for the good of one or more beneficiaries
trust
Describes a cause of action that can be brought in court to address a change in condition of a property brought about by a current tenant that damages or destroys the value of that property.
Act of Waste
Rights in real property to use the space above the surface of the land.
Air Rights
The person who receives or is to receive the benefits resulting from certain acts.
Beneficiary
The premise that the ownership of real estate consists of the ownership of various rights associated with it. These rights include the right to use and/or occupy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.
Bundle of Rights
The reversion to the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributees to whom the property may pass by lawful descent.
Escheat
A leasehold estate for any specific period of time. An estate for years is not automatically renewed.
Estate for Years
Personal property so attached to the land or improvements as to become part of the real property.
Fixture / Trade Fixture
A husband’s interest upon the death of his wife in the real property of an estate that she either solely owned or inherited provided they bore a child capable of inheriting the estate.
Curtesy
The part of or interest in real estate of a deceased husband given by law to his widow during her life.
Dower
Ownership of real property by two or more persons, each of whom has an undivided interest with the “right of survivorship”.
Joint Tenancy
A business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity.
Joint Venture
The conveyance of title property for the duration of the life of the grantee.
Life Estate
The division which is made of real property between those who own it in undivided shares.
Partition
Any property which is not real property
Personal Property
The interest which a grantor has in lands or other property upon the termination of the preceding estate.
Reversionary Interest
Right of the surviving joint owner to succeed to the interests of the deceased joint owner, distinguishing feature of a joint tenancy or tenancy by entirety.
Right of Survivorship
The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means “riverbank”.
Riparian Rights
Ownership by only a single individual.
Severalty
An ownership of real property by two or more persons, each of whom has an undivided interest, without the “right of survivorship”.
Tenancy in Common -
Any person who holds property, authority, or a position of trust and responsibility for the benefit of another.
Trustee
The interest in property owned by tenants whereby each tenant has an equal right to enjoy the entire property.
Undivided Interest
Describes the conditions that must exist in order for certain kinds of property interests to be created. In order for two or more people to own property as joint tenants with right of survivorship, or for a married couple to own property as tenants by the entirety, they must have the four unities (Interest, Possession, Time, and Title)
Unities of Interest, Possession, Time and Title
