Podcast
Questions and Answers
A broker legitimately may pay all or part of a real estate commission to a?
A broker legitimately may pay all or part of a real estate commission to a?
- Buyer
- Friend who provides a listing lead
- Seller
- Salesperson (correct)
The minimum age for a New York real estate broker's license is?
The minimum age for a New York real estate broker's license is?
- 18
- 19
- 20 (correct)
- 21
Which of the following acts would require a real estate license in New York?
Which of the following acts would require a real estate license in New York?
- Sale of one's own property
- Sale of land by an auctioneer (correct)
- Sale by the owner's lawyer
- Foreclosure sale by court order
An associate broker may?
An associate broker may?
Violation of the license law is a misdemeanor, punishable by up to a year in jail and a fine of up to?
Violation of the license law is a misdemeanor, punishable by up to a year in jail and a fine of up to?
When salesperson Tom Jones left ABC Realty and went to work with XYZ REALTORS, Tom's listings?
When salesperson Tom Jones left ABC Realty and went to work with XYZ REALTORS, Tom's listings?
A salesperson's license must be?
A salesperson's license must be?
When does offering a client's business for sale require a real estate license?
When does offering a client's business for sale require a real estate license?
An apartment information vendor is licensed by?
An apartment information vendor is licensed by?
When a license is revoked, how long must a licensee wait before applying to have the license reinstated?
When a license is revoked, how long must a licensee wait before applying to have the license reinstated?
The form of listing whereby an owner lists property for sale with a number of brokers is known as a?
The form of listing whereby an owner lists property for sale with a number of brokers is known as a?
To avoid possible liability for the actions of cooperating members of a multiple-listing system, the owner who lists property for sale may decline to offer?
To avoid possible liability for the actions of cooperating members of a multiple-listing system, the owner who lists property for sale may decline to offer?
An agent who has the authority to represent the principal in specific matters is a?
An agent who has the authority to represent the principal in specific matters is a?
Jan Lipson gave Sun City Realty an exclusive agency listing on her property. If she sells the property herself without involving Sun City, she will owe Sun City?
Jan Lipson gave Sun City Realty an exclusive agency listing on her property. If she sells the property herself without involving Sun City, she will owe Sun City?
When selling a property in New York, the licensee is required to disclose to a potential buyer that?
When selling a property in New York, the licensee is required to disclose to a potential buyer that?
The commission to be paid in a written listing agreement is the?
The commission to be paid in a written listing agreement is the?
The relationship between an agent and his or her principal is?
The relationship between an agent and his or her principal is?
If you are selling a house in New York, it is necessary to disclose that?
If you are selling a house in New York, it is necessary to disclose that?
Seller is legally required to reveal to a buyer anything seller knows about?
Seller is legally required to reveal to a buyer anything seller knows about?
To create an agency relationship, it is necessary that?
To create an agency relationship, it is necessary that?
If you are a salesperson working with a buyer, then the buyer is your client?
If you are a salesperson working with a buyer, then the buyer is your client?
The type of listing illegal in New York State is a(n)?
The type of listing illegal in New York State is a(n)?
A licensed salesperson or broker associate acting as an independent contractor must?
A licensed salesperson or broker associate acting as an independent contractor must?
A salesperson sells another firm's listing of a commercial building for $462,500. The 7 percent commission is split 50/50 between the two companies. The salesperson received 60 percent of her office's share. How much does she receive?
A salesperson sells another firm's listing of a commercial building for $462,500. The 7 percent commission is split 50/50 between the two companies. The salesperson received 60 percent of her office's share. How much does she receive?
A broker may be entitled to a commission in the event that the sale does not close if the problem was caused by the?
A broker may be entitled to a commission in the event that the sale does not close if the problem was caused by the?
Big Apple Realty is concerned that its commission on a sale will not be paid. Big Apple Realty may?
Big Apple Realty is concerned that its commission on a sale will not be paid. Big Apple Realty may?
A real estate salesperson's compensation is set by?
A real estate salesperson's compensation is set by?
The Duncan and Hill decision cautioned real estate licensees against?
The Duncan and Hill decision cautioned real estate licensees against?
When a buyer/client wants to see property listed by his or her agent's company, the possible conflict of interest can be solved by the use of?
When a buyer/client wants to see property listed by his or her agent's company, the possible conflict of interest can be solved by the use of?
Buyers should be careful NOT to reveal the top price they're willing to pay to a?
Buyers should be careful NOT to reveal the top price they're willing to pay to a?
Ads made by real estate brokers that do not indicate that the advertiser is a broker are?
Ads made by real estate brokers that do not indicate that the advertiser is a broker are?
If a licensee becomes a partner in a real estate firm, he must have a?
If a licensee becomes a partner in a real estate firm, he must have a?
Agency relationships in an in-house sale require?
Agency relationships in an in-house sale require?
In a buyer/agency relationship, the broker owes the seller?
In a buyer/agency relationship, the broker owes the seller?
If you are a salesperson working with a buyer, then the buyer is your client?
If you are a salesperson working with a buyer, then the buyer is your client?
In a real estate transaction, a broker had a written representation agreement with the buyer but was paid 6 percent of the selling price at the closing by the seller. Under these circumstances, whose agent was this broker?
In a real estate transaction, a broker had a written representation agreement with the buyer but was paid 6 percent of the selling price at the closing by the seller. Under these circumstances, whose agent was this broker?
A broker signed a listing agreement with the Ghents to market their luxury downtown condominium. If the buyers decide they want to see the Ghent's property, what should the broker do?
A broker signed a listing agreement with the Ghents to market their luxury downtown condominium. If the buyers decide they want to see the Ghent's property, what should the broker do?
The DOS regulation 175.7 states: 'A real estate broker shall make it clear for which party he is acting...'. This applies to?
The DOS regulation 175.7 states: 'A real estate broker shall make it clear for which party he is acting...'. This applies to?
A licensee should use the disclosure form with prospective sellers or buyers at the first substantive contact. Which of the following illustrates the first substantive contact?
A licensee should use the disclosure form with prospective sellers or buyers at the first substantive contact. Which of the following illustrates the first substantive contact?
In which clause in a deed would you find metes and bounds and monuments?
In which clause in a deed would you find metes and bounds and monuments?
If Mr. Jones owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a?
If Mr. Jones owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a?
The Goodmans purchased a cottage bounding on a stream. They have rights to the stream known as?
The Goodmans purchased a cottage bounding on a stream. They have rights to the stream known as?
Which of the following would NOT be considered chattel?
Which of the following would NOT be considered chattel?
The most complete type of ownership in real estate is?
The most complete type of ownership in real estate is?
Deed restrictions may be established only by the?
Deed restrictions may be established only by the?
One future action that may NOT be limited by a deed restriction is?
One future action that may NOT be limited by a deed restriction is?
Any right to or interest in the land interfering with its use or transfer is called an?
Any right to or interest in the land interfering with its use or transfer is called an?
A deed is valid when it is?
A deed is valid when it is?
Which type of deed is used to convey title to a parcel of land through a foreclosure proceeding?
Which type of deed is used to convey title to a parcel of land through a foreclosure proceeding?
Title to real property is conveyed by a?
Title to real property is conveyed by a?
A lease that provides for the lessee to pay all or part of the expenses of the property in addition to rent is called a(n):
A lease that provides for the lessee to pay all or part of the expenses of the property in addition to rent is called a(n):
When a lessee transfers the entire remaining interest of his lease to another party who then must pay the owner, it is called a(n):
When a lessee transfers the entire remaining interest of his lease to another party who then must pay the owner, it is called a(n):
A contract transferring the rights to possession of real property for a specified term is known as a:
A contract transferring the rights to possession of real property for a specified term is known as a:
Under the New York General Obligations Law, security deposits by a tenant:
Under the New York General Obligations Law, security deposits by a tenant:
A tenant learns her building has been sold to a new landlord. The sale of the property:
A tenant learns her building has been sold to a new landlord. The sale of the property:
A legally enforceable agreement between competent parties in which each party acquires a right is called a:
A legally enforceable agreement between competent parties in which each party acquires a right is called a:
The usual listing agreement between a seller and a real estate agent is a(n):
The usual listing agreement between a seller and a real estate agent is a(n):
When the agreement of the parties is demonstrated by their acts and conduct, this is known as what type of contract?
When the agreement of the parties is demonstrated by their acts and conduct, this is known as what type of contract?
When a new contract is substituted for an existing agreement, the process is known as:
When a new contract is substituted for an existing agreement, the process is known as:
Except for the amount of mortgage that may be assumed, a sale in New York State is subject to a transfer tax of:
Except for the amount of mortgage that may be assumed, a sale in New York State is subject to a transfer tax of:
In the transfer of what type of property may a flip tax be imposed?
In the transfer of what type of property may a flip tax be imposed?
The Flintstones sold their house to the Simpsons and are to close on July 1. The Flintstones paid their annual town taxes in January. At the closing, the Simpsons will reimburse the Flintstones for:
The Flintstones sold their house to the Simpsons and are to close on July 1. The Flintstones paid their annual town taxes in January. At the closing, the Simpsons will reimburse the Flintstones for:
RESPA explicitly prohibits the payment of:
RESPA explicitly prohibits the payment of:
An instrument in writing that is the security for a debt with specific property as a pledge is a:
An instrument in writing that is the security for a debt with specific property as a pledge is a:
A Department of Veterans Affairs mortgage is:
A Department of Veterans Affairs mortgage is:
When a house purchase is financed by a federally related mortgage loan, RESPA requires that loan closing information be prepared on the:
When a house purchase is financed by a federally related mortgage loan, RESPA requires that loan closing information be prepared on the:
A blanket mortgage usually encumbers:
A blanket mortgage usually encumbers:
Under a mortgage, the mortgagor is the party who:
Under a mortgage, the mortgagor is the party who:
Margo and Clarence Stilton have applied for an FHA/insured loan. The mortgage will be:
Margo and Clarence Stilton have applied for an FHA/insured loan. The mortgage will be:
If a real estate broker earned a commission of $5,600 at a commission rate of 7%, at what price was the property sold?
If a real estate broker earned a commission of $5,600 at a commission rate of 7%, at what price was the property sold?
What type of mortgage loan has an interest rate that may become higher or lower at specified intervals, keyed to an economic indicator?
What type of mortgage loan has an interest rate that may become higher or lower at specified intervals, keyed to an economic indicator?
Charging more than the legal interest rate is known as:
Charging more than the legal interest rate is known as:
Deed restrictions are provisions that apply to current property owners and:
Deed restrictions are provisions that apply to current property owners and:
Variances and special use permits are issued by a(n):
Variances and special use permits are issued by a(n):
When the present usage of land is in legal conflict with an enacted zoning ordinance, the usage is called:
When the present usage of land is in legal conflict with an enacted zoning ordinance, the usage is called:
The owner of a five-unit apartment building that would not be allowed by a new zoning law may be entitled to a(n):
The owner of a five-unit apartment building that would not be allowed by a new zoning law may be entitled to a(n):
Among other methods, land use is controlled or regulated by:
Among other methods, land use is controlled or regulated by:
Examples of private land use controls would NOT include:
Examples of private land use controls would NOT include:
Even though a building permit is issued, new construction will still need:
Even though a building permit is issued, new construction will still need:
A detailed architectural rendering of a structure is known as a(n):
A detailed architectural rendering of a structure is known as a(n):
Electrical systems are routed through a:
Electrical systems are routed through a:
A lakefront home sold for $385,000. The broker received $27,912.50. What rate of commission did this broker charge?
A lakefront home sold for $385,000. The broker received $27,912.50. What rate of commission did this broker charge?
The most commonly used insulation material is:
The most commonly used insulation material is:
The amount a particular purchaser agrees to pay and a seller agrees to accept is known as:
The amount a particular purchaser agrees to pay and a seller agrees to accept is known as:
A comparative market analysis resembles which approach to real estate evaluation?
A comparative market analysis resembles which approach to real estate evaluation?
The definition of market value includes:
The definition of market value includes:
It can be dangerous for a real estate broker to:
It can be dangerous for a real estate broker to:
A protected class under New York City law and not under state or federal law is which of the following?
A protected class under New York City law and not under state or federal law is which of the following?
The Civil Rights Act of 1866:
The Civil Rights Act of 1866:
Redlining is defined as:
Redlining is defined as:
New York State law goes beyond federal human rights law when it forbids discrimination based on:
New York State law goes beyond federal human rights law when it forbids discrimination based on:
PDQ Realty advertises that it specializes in areas suitable for European immigrants. This is a fair housing violation called:
PDQ Realty advertises that it specializes in areas suitable for European immigrants. This is a fair housing violation called:
Using 'scare tactics' regarding the possible change in the demographics of a neighborhood when soliciting listings is a violation called:
Using 'scare tactics' regarding the possible change in the demographics of a neighborhood when soliciting listings is a violation called:
Although a property owner may be exempted sometimes from discrimination laws, a real estate licensee:
Although a property owner may be exempted sometimes from discrimination laws, a real estate licensee:
The Sherman Antitrust Law is intended to promote:
The Sherman Antitrust Law is intended to promote:
The Underground Storage Tank Act in New York regulates underground fuel storage tanks that are:
The Underground Storage Tank Act in New York regulates underground fuel storage tanks that are:
Underground storage tanks are utilized by business and industry for all of the following reasons EXCEPT they are:
Underground storage tanks are utilized by business and industry for all of the following reasons EXCEPT they are:
A salesperson who is an independent contractor:
A salesperson who is an independent contractor:
An asbestos problem is sometimes best treated by:
An asbestos problem is sometimes best treated by:
The New York regulatory agency that oversees the safety of drinking water in New York is the Department of:
The New York regulatory agency that oversees the safety of drinking water in New York is the Department of:
Study Notes
Broker Compensation
- Salespersons can only receive compensation from their sponsoring broker.
- Brokers may pay all or part of the real estate commission to a salesperson but not to buyers or unrelated friends.
Licensing Requirements
- Minimum age for a New York real estate broker's license is 20 years.
- Selling one’s own property does not require a real estate license; however, auctioneers selling land do need a license.
Broker and Associate Broker Roles
- An associate broker works under the supervision of another broker and cannot collect their own real estate fees.
- If a salesperson changes brokers, listings remain with the original broker.
License Violations and Penalties
- Violating license law is a misdemeanor with fines up to $1,000 and possible jail time up to one year.
Listing Types
- Open listings allow owners to sell their property with multiple brokers, while exclusive agency listings mean the seller pays no commission if they sell without a broker's assistance.
- Net listings are illegal in New York; compensation must be per the agreed upon percentage or flat fee.
Agency and Client Relationships
- Agency relationships require a written agreement and clear communication of the broker’s role to all parties.
- Dual agency must be disclosed, and both parties must consent in writing.
Seller Disclosures
- Sellers must disclose known lead paint hazards and property conditions, including agricultural districts.
- Selling businesses that include real estate always requires a real estate license.
Compensation and Commissions
- The broker's fee is negotiable and specified in the listing agreement.
- If a sale does not close due to the seller's actions, the broker may still be entitled to a commission.
Legal Documents and Rights
- Deed restrictions are established by the grantor and run with the land.
- Property transfer is executed through a deed, while leases are contracts that grant possession for a specified period.
Types of Leases
- In a net lease, the tenant pays additional expenses beyond rent.
- Assigning a lease involves transferring the lease agreement to another party.
Tenant Rights and Security Deposits
- Security deposits must be held in escrow by landlords, and the sale of property does not terminate existing leases; tenants continue to pay rent to the new owner.
Real Estate Transactions
- Full disclosure of who the broker represents is required in all transactions, not just residential.
- Brokers must use disclosure forms at the first substantial contact with prospective buyers or sellers.
Key Property Rights
- Fee Simple Absolute grants the most complete form of ownership rights.
- Riparian rights allow property owners access to flowing bodies of water but do not extend to adjacent land.
Advertising and Regulations
- Real estate advertisements must identify the broker to avoid being categorized as 'blind ads.'
- Licensees must always act in their client's best interest and ensure compliance with all real estate laws.### Lease and Contracts
- Lease agreements remain valid even if the property is sold; new owners must honor existing leases.
- A contract is a legally binding agreement between competent parties that requires consideration.
- Express contracts clearly state the terms agreed upon by both parties.
Types of Contracts
- Implied contracts arise from actions and conduct rather than written terms.
- Novation is the process of replacing an existing contract with a new one or substituting parties.
Tax Implications and Transactions
- New York State imposes a transfer tax of $4.00 per $1,000 of the sale price, except for mortgage assumptions.
- Flip taxes are typically imposed on transfers of cooperative properties, paid by the seller.
- Buyers reimburse sellers for property taxes when closing occurs after the taxes have been paid in advance.
Real Estate Regulations
- The Real Estate Settlement Procedures Act (RESPA) prohibits kickbacks and unearned fees associated with real estate transactions.
- Mortgages serve as security instruments, whereby specific property pledges are made to lenders.
Government-Backed Loans
- Department of Veterans Affairs (VA) loans are guaranteed, providing security to lenders in cases of borrower default.
- FHA-insured loans protect lenders from financial loss by covering defaults against the loan.
Mortgage Types and Calculations
- Adjustable Rate Mortgages (ARMs) have interest rates that can fluctuate based on economic indicators.
- The calculation for property sale price can be determined by commission earned divided by the commission rate.
- The common insulation material used in homes is fiberglass, which has a significant R-factor for energy efficiency.
Market Value and Analysis
- Market value represents the most probable selling price under normal conditions where neither party is under pressure.
- Comparative Market Analysis (CMA) is similar to the direct sales comparison approach used in appraisals.
Fair Housing Laws
- The Civil Rights Act of 1866 prohibits discrimination based on race, with no exemptions.
- New York City law includes legal protections based on lawful occupation, which isn’t covered by federal law.
- Steering is the practice of directing home seekers towards particular neighborhoods based on ethnicity or background.
Land Use Controls and Zoning
- Variances and special use permits are issued by the Zoning Board of Appeals for exceptions to zoning laws.
- Nonconforming uses refer to land that doesn’t comply with current zoning laws but was legally established prior to these laws.
Construction and Occupancy
- A Certificate of Occupancy is required following inspections for new construction before it can be occupied.
- Blueprints serve as detailed architectural renderings outlining construction specifics, including mechanical systems.
Environmental Regulations
- The Underground Storage Tank Act regulates tanks larger than 1,100 gallons in New York.
- Asbestos should be left undisturbed if contained and not posing a direct hazard.
Licensing and Employment
- Independent contractors in real estate are compensated based on sales outcomes, not hourly work.
- Real estate licensees are not exempt from fair housing laws, even if property owners may have certain exemptions.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge with these flashcards designed for the New York real estate exam. Each question focuses on essential broker and salesperson regulations. Perfect for those preparing for their licensing exam.
