CHAPTER 2

Corporate Broker

If the corporation is new, the officer must submit a copy of the corporate filing receipt with the application.

How many continuing education credit hours does a licensee receive for completing a course in Sales Psychology?

None

A broker must keep records of transactions on file for how long?

Three years

Changes of Association or Termination

When a salesperson or an associate broker wants to leave the service of the sponsoring broker, that broker must file a termination of association notice with the Department of State.

Licensees must carry their _____ with them and show them on demand.

pocket cards

Change of Name or Status

the licensee must notify the Department using the appropriate form.

The fee for changing a broker's name or status is ______, except if the change is made on the renewal application.

$155

How many hours of continuing education credit will a licensee receive for teaching an approved real estate course?

2 hours for each teaching hour

If there is a change of broker and/or address, how long does the licensee have to complete and submit the appropriate form to The Department of State?

5 days

HANDLING FUNDS

A real estate broker must not commingle money with his own funds. The broker must maintain a separate escrow account to be used exclusively for the deposit of client monies.

OWNERSHIP OF VOTING STOCK

A salesperson may not own any voting shares of stock in any licensed real estate brokerage corporation with which he or she is associated.

Failure to notify The Department of State of a change of business address is grounds for which of the following? -Censure -Suspension -$50 fine -Revocation

Suspension

A net listing is a contract in which the broker receives as commission all monies over and above a minimum sales price agreed upon by the broker and the seller. This type of listing is ______ in New York.

illegal

The Licensing Division may issue a license to a corporation to conduct business as a real estate brokerage only if the applicant

is an officer of the corporation prior to licensing.

Branch Office Requirements

A branch office must be owned, maintained and operated only by the licensed broker to whom the branch office license is issued. A branch office must be under the direct supervision of the broker to whom the license is issued. A broker may not relocate his or her principal office or any branch office without prior approval of the Department.

Reciprocity Requirements

All applicants need current, completed application, irrevocable consent form, and the appropriate fee.

BROKER'S PROPERTY

Before a broker can assist his client in the purchase of a property in which the broker has an ownership interest, the broker must disclose that interest to all parties to the transaction.

Which would be a service charged by the NYS Commission?

Change from individual to a corporate license

Renewal Procedure

If the licensee is a salesperson or an associate broker, the renewal application must be signed by the broker, confirming the fact that the licensee is sponsored by that broker. It is the licensee's responsibility to complete the renewal form and pay the appropriate fees before the license expires

Limited Liability Company or Limited Liability Partnership

If the limited liability company is new, the applicant must submit an application along with a copy of the articles of the organization which was filed with the Division of Corporations or the filing receipt. An officer or partner of a legal entity may only be licensed as a broker - not a salesperson or an associate broker.

What is the form called that nonresident brokers must submit that allows them to be sued in NY State?

Irrevocable consent form

If a licensee completes 25 hours of continuing education in one renewal period, how many hours will be applied to the following renewal period?

None

KICKBACKS

fee paid to an agent as an incentive to refer customers to a particular vendor. This action can be a violation of the license law.

NEGOTIATING A LISTING CONTRACT

A broker is prohibited from negotiating the sale of any property directly with an owner who has an existing written exclusive listing agreement with another broker.

SIGN ON PROPERTY

A broker may not place a sign on any property without the owner's consent.

A broker maintaining more than one place of business must apply for and secure an additional____________ for each of the branch offices.

license

AUTOMATIC CONTINUATION OF LISTING CONTRACT

An exclusive listing contract cannot contain an automatic continuation of the listing period beyond the fixed termination date specified in the contract.

Other Licenses That Involve Real Estate

Apartment Information Vendor - A person who is at least 18 years old who furnishes information about the location and availability of residential rental property. Apartment-Sharing Agent - A person who arranges meetings between potential roommates and property owners who want to share their apartments and homes with others. Appraiser - A person who determines the value of a piece of property. Mortgage Banker - An individual or an entity licensed to make residential mortgage loans. Mortgage Broker - A person registered to negotiate residential mortgage loans - brings together a lender and a borrower for a fee that is paid by the borrower. Home Inspector - A person hired to inspect a property to determine the condition of the improvements and then provide a written report of the findings.

Which of the following is NOT required for a broker from Rhode Island to legally practice real estate in New York?

Reciprocity agreement

Which of the following is NOT required for a broker from Rhode Island to legally practice real estate in New York? -Reciprocity agreement -Pass the NYS examination -Maintain current license in the broker's home state -Submit an irrevocable consent form

Reciprocity agreement

Jayson is a NY licensed salesperson. A local moving company asks Jayson to recommend his moving company to clients looking to relocate. In exchange, the mover will pay Jayson $200 for every client who moves with his company. This type of arrangement is which of the following? -A great source of additional income to Jayson by simply networking -May be a source of income and is legal in NY if the payments are under $500 -This type of kickback arrangement is prohibited by The Real Estate Settlement Procedures Act -This type of rebate or fee arrangement is prohibited by the NY Board of Real Estate

This type of kickback arrangement is prohibited by The Real Estate Settlement Procedures Act

Continuing Education

To renew his or her license, a licensee must complete 22.5 hours of continuing education during the two-year period preceding the renewal date. At least three hours of the continuing education requirement must include fair housing and/or discrimination in the sale or rental of real property or an interest in real property. At least 1 hour must be on agency law, unless it is your first license term (then it would be 2 hours). If a licensee teaches an approved real estate or continuing education course, he or she will receive two hours of continuing education credit for each hour of actual teaching. If a licensee fails to show that he or she has completed the required continuing education hours, the license will no longer be in effect. The following types of instruction do not meet continuing education requirements and will not be accepted: General training or education designed to prepare a student for passing a real estate broker's or salesperson's examination Offerings in mechanical office and business skills Sales promotion meetings

When did New York begin to require home inspectors to be licensed?

2005

How many hours of continuing education are required for license renewal?

22.5

Every licensed broker must keep and maintain a file of agency disclosures, listings, offers, closing statements and other transaction-related documents for a period of _____ years.

3

Of the 22.5 hours of continuing education, the topic of fair housing and/or discrimination in the sale or rental of real property must be at least how many hours?

3

How many hours of continuing education is the licensee required to complete in fair housing?

3 hours

A broker must keep records of transactions on file for how long?

3 years

NET LISTINGS

(illegal in New York)contract in which the broker receives as commission all monies over and above a minimum sales price agreed upon by the broker and the seller.

An officer of a legal entity may only be licensed as

A broker

Dual Licensure

A broker may hold two broker's licenses. A licensed broker may also become an associate broker with another firm. A salesperson or associate broker can work under the supervision of more than one broker.

BUSINESS CARDS

A business card must include at least the: Name and address of the brokerage or the branch office; Person's full name as it appears on the license; Type of license held; The firm's business telephone number.

USE OF TRADE OR CORPORATE NAME

A licensed broker or applicant applying for a broker's license may not use a trade or corporate name which is so similar to the name of another licensed broker that it will confuse the public.

Nonresident Licenses and Reciprocity

A nonresident broker from another state may become a broker in New York by passing the New York state exam and by maintaining an office in New York.

The NY Department of State requires a broker to maintain what kind of bank account for client funds?

A separate, federally-insured escrow account

The continuing education requirement does not apply to any broker who was licensed and engaged full time in the real estate business for at least_____consecutive years prior to July 2008.

15

MANAGING PROPERTY FOR A CLIENT

A broker cannot accept any commission without the client's full consent.

BROKER'S LISTING

A broker cannot buy for himself any property he has listed, or acquire any interest in a property, without clearly notifying the listing owner.

OFFERING PROPERTY FOR SALE

A broker may never offer a property for sale or lease without the owner's authorization.

ACCEPTING SERVICES OF ANOTHER BROKER'S SALESPERSON

A broker may not accept the services of any salesperson or employee of another real estate broker without the knowledge of the employing broker.

COMPENSATION

A broker must make it clear for which party he is acting.

Issuing a License for Individuals

If the applicant has submitted all of the appropriate paperwork and fees, his/her broker will receive both a license and a pocket card. Licensees must carry their pocket cards with them and show them on demand. Each license is valid for two years.

RECIPROCITY

If the nonresident broker lives in a state that does not require New York licensees to take their exam or maintain an office in their state, then the nonresident does not have to do either of those things to get licensed in New York.

Which of the following is required of a real property appraiser? -Pay a $300 licensure fee -Hold a 1-year license -Have 5 years of appraisal experience -Hold one of the five levels of licenses or certifications

Pay a $300 licensure fee

COMPENSATION AND FEE SPLITTING

Salespersons may accept compensation ONLY from their sponsoring brokers. Brokers may share compensation with only the following licensedpersons: Their own salespersons Other New York brokers Brokers from another state Brokers can share compensation with a person who is exempt from the license law, such as a lawyer.

Other professions that deal with real estate but require other types of licenses other than a real estate broker or salesperson license include all of the following except? -Apartment-Sharing Agent -Appraiser -Attorney -Mortgage Banker

Attorney

Brokers may share compensation with any of the following licensed persons except? -Their own salespersons -Other New York brokers -Brokers from another state -Certified residential appraisers

Certified residential appraisers

DELIVERING DUPLICATE ORIGINALS

Duplicate originals of any documents that a broker prepares that pertain to a real estate transaction must be delivered immediately to all parties to the transaction.

RECORD MAINTENANCE

Every licensed broker must keep and maintain a file of agency disclosures, listings, offers, closing statements and other transaction-related documents for a period of three years

Brokerage Regulations

Every licensed real estate broker must maintain a definite place of business within New York State. The broker must post a sign conspicuously on the outside of the office building. Broker must apply for and secure an additional license for each of the branch offices.

Renewals

Licensees must renew their licenses every two years. The Department may require the licensee to pass the written examination before granting the license renewal.

Who is exempt from the requirement that every licensed broker maintain a place of business within New York?

Nonresident brokers who are licensed and maintain a place of business in another state.

INTERNET

On real estate web sites, a salesperson's name cannot be displayed in type that is larger or more prominent than the broker's or firm's name. Any ads placed on the Internet must have a link to the firm's web site. If a salesperson has a web site, the broker must supervise the site.

Who can maintain a branch office?

Only the owner broker to whom the branch office license is issued

Under what conditions may a broker allow an associate broker to operate a branch office?

Only under the broker's direct supervision

Which of the following is required of an apartment information vendor? -Pay a $400 licensure fee -Maintain a $5,000 non-interest-bearing escrow account -Maintain an escrow account with deposits of $5,000 for each branch office -Hold a 2-year license

Pay a $400 licensure fee

Who sets the rules for the content of continuing education courses?

Secretary of State

SALESPERSON SUPERVISION

The broker and salesperson must keep written records of all real estate listings the salesperson obtains and of all sales and other transactions the salesperson makes during the period of his or her association with the broker.

Which of the following is Not required for a broker from a state with a reciprocity agreement with New York? -The broker must maintain an office in his or her home state. -The broker must have current certification from the Real Estate Commission where the license was obtained. -The broker must be sponsored by his or her home state broker who holds a NYS broker's license. -The broker must submit an irrevocable consent form.

The broker must maintain an office in his or her home state.

What score is required to pass the written examination if an individual failed to renew his or her license on time because the individual enlisted in the U.S. armed forces?

The exam is not required

When a licensee terminates his or her association with a firm, which statement is true? -The licensee may take his or her listings to the new firm -The licensee must take over any listings provided by the broker, but can take those listings he or she acquired -The licensee must turn over any and all listing information he or she obtained during the association -The new sponsoring broker can take over any listings acquired by the newly-employed licensee

The licensee must turn over any an all listing information he or she obtained during the association

TERMINATION OF ASSOCIATION

When a salesperson terminates his or her association with a broker, the salesperson must turn over any and all listing information he or she obtained during the association.

Maintaining a License

Whenever there is a change of broker or address, the licensee must submit the appropriate form to the DOS within five days. Failure to notify the Department of a change of business address is grounds for license suspension.

A licensed ____ must display his or her license conspicuously in the principal place of business at all times.

broker

ADVERTISING GUIDELINES

fee paid to an agent as an incentive to refer customers to a particular vendor. This action can be a violation of the license law.

When a salesperson or an associate broker wants to leave the service of his or her sponsoring broker, that broker must file a ___________________________ with the Department of State.

termination of association notice