Real Estate Licensing Law Summary

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Questions and Answers

What is the primary purpose of licensing laws in real estate?

  • To ensure profitability for real estate agents.
  • To create competition among real estate firms.
  • To restrict access to real estate markets.
  • To protect the public from fraud and misrepresentation. (correct)

Which of the following best defines a real estate broker?

  • A person or firm that facilitates real estate transactions for a fee. (correct)
  • A government official who oversees property sales.
  • Any entity involved in the construction of new real estate.
  • An individual who loans money for real estate purchases.

What activities are typically included under the role of a real estate broker?

  • Manufacturing building materials.
  • Negotiating loans for clients.
  • Evaluating property market conditions.
  • Collecting rent for real estate properties. (correct)

Which statement correctly describes a mortgage broker?

<p>They negotiate terms of mortgages but do not lend money themselves. (C)</p> Signup and view all the answers

How does licensing law contribute to real estate transactions?

<p>By requiring complete and accurate disclosures from brokers. (A)</p> Signup and view all the answers

What type of entity can be classified as a real estate broker?

<p>Individuals, firms, or corporations that provide real estate services. (D)</p> Signup and view all the answers

Why is it important for brokers to clarify their role with clients?

<p>To eliminate confusion and build trust. (C)</p> Signup and view all the answers

What are some risks associated with real estate transactions that licensing laws aim to minimize?

<p>Misrepresentation and fraudulent practices. (D)</p> Signup and view all the answers

What does 'interest in real estate' include?

<p>The sale of a business where real estate value is significant (B)</p> Signup and view all the answers

Which of the following is true regarding an Associate Real Estate Broker?

<p>They retain their broker's license while working under another broker (A)</p> Signup and view all the answers

Which function can a Real Estate Salesperson perform?

<p>List and negotiate the sale of real property (D)</p> Signup and view all the answers

What is a key responsibility of a Tenant Relocator?

<p>To supervise tenant relocations for a fee (D)</p> Signup and view all the answers

Which of the following must be done every two years by licensed real estate professionals?

<p>Renew their license and complete continuing education (B)</p> Signup and view all the answers

What does an Office Manager in real estate typically do?

<p>Work under another licensed broker's supervision (A)</p> Signup and view all the answers

What information is included on a Pocket Card?

<p>The licensee's name, photo, and associated broker's name (A)</p> Signup and view all the answers

What happens if a licensee fails to report changes in name, status, or location within five days?

<p>They may lose their license (C)</p> Signup and view all the answers

Which of the following accurately describes a Real Estate Salesperson's role?

<p>Negotiates purchases on behalf of clients under supervision (C)</p> Signup and view all the answers

What is required in the continuing education course for license renewal?

<p>22.5 hours of continuing education including Fair Housing training (A)</p> Signup and view all the answers

What does 'associated with' indicate in the real estate context?

<p>The working relationship between a salesperson and their broker (D)</p> Signup and view all the answers

What is NOT included in the definition of a Real Estate Broker?

<p>A person registered under federal securities laws (D)</p> Signup and view all the answers

Which statement about a Real Estate Broker's liabilities is correct?

<p>They have legal responsibilities for the acts of associated salespersons (A)</p> Signup and view all the answers

Flashcards

Purpose of Licensing Law

To protect the public from misrepresentation and fraud in real estate.

Real Estate Broker

A licensed individual or firm facilitating property transactions for a fee.

Disclosure Requirements

Complete and accurate information must be shared about property prices and terms.

Fraudulent Practices

Deceptive actions that mislead clients in real estate sales.

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Mortgage Broker

An individual who arranges funding and negotiates contracts for clients.

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Tenant Relocator

A person engaged in helping tenants find rental properties.

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Article 12-A

Section of NYS Real Property Law governing real estate practices.

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Misrepresentation

Providing false or misleading information in real estate transactions.

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Interest in real estate

Involves the sale of a business where real estate value is significant, excluding lease assignments.

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Associate real estate broker

A licensed broker who chooses to work under another broker's name and supervision.

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Real estate salesperson

A licensed individual who works for a broker to facilitate real estate transactions.

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Office manager

A licensed associate broker managing an office under another broker's name and supervision.

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Continuing education

Mandatory education for licensed real estate professionals every 2 years, including Fair Housing training.

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Pocket Card

A card proving a person is a licensed real estate agent, containing crucial identification details.

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License renewal

The process of re-certifying a real estate license every two years, including education requirements.

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Change of status notification

Requirement to report any changes to the Department of State within 5 days to avoid losing a license.

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Broker's responsibility

The legal accountability a broker has for the actions of those associated with them.

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Commercial vs. residential

Types of properties involved in tenant relocation, based on their usage and purpose.

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Fair Housing or Discrimination Law

Part of the training requirements to combat discrimination in housing transactions.

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Real estate syndication

Organized efforts to invest in real estate through group funding and management, subject to General Business Law.

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Study Notes

Real Estate Licensing Law (Summary)

  • Purpose of Licensing: To protect the public by minimizing misrepresentations, fraud, and fraudulent practices in real estate sales. This includes ensuring complete and accurate disclosure of property details, pricing, terms, and conditions.

  • Real Estate Broker: A licensed individual or firm that acts as a mediator between buyer and seller for a fee. Activities include listing, selling, exchanging, buying, renting, negotiating sales/exchanges/rentals, collecting rent, and negotiating loans (other than residential mortgages). Also covers selling land in lots or parcels, and selling a business where real estate is a significant part of the transaction. Excludes registered securities salespeople.

  • Associate Real Estate Broker: A licensed broker who chooses to work under the supervision of another broker. Maintains their broker license but is solely governed by the rules for associate brokers in the article.

  • Real Estate Salesperson: Affiliated with a licensed real estate broker, these individuals assist in listing, selling, negotiating, or leasing real estate under the broker's supervision. Cannot operate independently.

  • Tenant Relocator: A person/firm that facilitates the relocation of tenants between buildings undergoing demolition, rehabilitation, or structural changes.

  • Renewing License: License renewals occur every two years. Requires completion of a 22.5-hour continuing education course, including 3-hours in fair housing/discrimination law.

  • Pocket Card: Each licensee receives a pocket card with name, photo, and business address; for salespeople, it also includes the broker's details. Changes to name, status, or location require a 5-day notification to the Department of State to avoid license revocation.

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