NYRE EXAM

Escrow Account

Account in which the lender maintains the borrower's extra 1/12, monthly deposits to voer next year's insurance and tax payments. Also called a Reserve Account.

Improvements

Additions to real property- can be natural (trees), but usually they are man-made, substantial fixtures, such as buildings.

Police Power

Constitutional power of state, county, and local governments to enact and enforce laws that protect the public's health, safefty, morals and general welfare.

Cease and Desist ORder

Court order requiring certain activities be stopped.

Compensatory Damages

Damages award (usually $), intended to compensate the plaintiff for harm caused by the defendant's act or failure to act, including personal injuries, property damage, and financial losses.

Punitive Damages

Damages award that is added to compensatory damages, to punish the defendant for malicious or outrageous conduct and discourage others from engaging in similar acts.

Management Agreement

A written agreement that governs the relationship between the property owner/investor and the property manager, and outlines the duties of the property manager.

Brokerage

A broker's business.

Capital Reserve Budget

A budget for expenses that are not fixed.

Sole Proprietorship

A business owned and managed by one person (or for tax purposes, husband and wife). For IRS purposes, a sole proprietor and his business are one tax entity, meaning that business profits are reported and taxed on the owner's personal tax return. With a sole proprietorship, the owner is liable for all business debts.

Limited Liability Company (LLC)

A business ownership structure that offers its owners the advantage of limited liability (like corporations) and partnership-like taxation, in which profits are passed through to the owners and taxed on their personal income tax returns.

Midsdemeanor

A crime, less serious than a felony, punishable by no more than on year in jail.

Pocket Card

A wallet-sized real estate licensee identification that serves as a portable proof of licensure, and which must be carried whener a licensee is engaging in the practice of real estate.

Criminal Litigation

A lawsuit in which the government sues someone to punish the wrongdoer and protect society.

Estate for Years

A leasehold estate set to last for a definite period (ex, one week, three years), after which it automatically terminates. Also called Term Tenancy.

Periodic Tenancy

A leasehold estate that continues for successive periods of equal length (such as from week to week or month to month), until terminated by proper notice from either party. Also called Esate from Year to Year or a Period to Period Tenancy.

Corporation

A legal structure authorized by state law that allows a business to organize as a separate legal entity from its owners for liability or tax purposes. Also known as a legal person.

Holdover Tenant

A lessee who remains in possession of property after the lease has expired; a tenant who refuses to surrender possession of property at the tenancy's end.

Office Manager

A licensed associate real estate broker who elects to work as an office manager under the name and supervision of another broker in order to supervise a branch office.

Associate Broker

A licensed broker who works for another broker.

Multiple Listing Service (MLS)

A listing service whereby local member brokers agree to share listings, and agree to share commissions on properties sold jointly.

Anchor Tenant

A major department or chain store strategically located within a shopping center to give maximum exposure to smaller satellite stores.

Reciprocity

A mutual exchange of priviledges, such as recognizing a license issued in one jurisdiction in another jurisdiction.

Receiver

A neutral person appointed by a judge to take charge of the property and business of one of the parties to a lawsuit and receive his rents and profits while the right to the monies has been finally decided. Or to receive rents and profits coming to a debtor either while a bankruptcy is being processed or while an arrangement is being worked out to pay creditors.

Termination of Association Notice

A notice filed with the Department of State indicating that a licensee is ending his assocation with a sponsoring broker.

General Partnership

A partnership in which each member has an equal right to manage the business or share in the profits, as well as an equal responsibility for the partnership's debts.

Real Estate Licensee

A person licensed to practice real estate. State law requires that any person, partnership, or corporation who, for a fee, sells, lists, leases, exchanges, negotiates, or otherwise deals in the real estate of others, or represents publicly that he or she does so, must be licensed.

Immobility

A physical characteristic of RE referring to the fact that RE can't move from place to place.

Branch Office

A physical location separate from a broker's main office that is used by firm's licensees to meet or consult with clients or customers on a regular basis.

Management Proposal

A plan created by the property manager for overseeing the property, including market analysis, and developing a variety of financial reports including the operating budget.

Condominium

A property developed for co-ownership, with each co-owner having a separate interest in an individual unit, combines with an undivided interest in the common areas.

Suspension

A real estate agent's license being temporarily withdrawn for a specified period of time.

Fiduciary Relationship

A relationship of trust and confidence, in which one party owes the other (or both parties owe each other) loyalty and a higher standard of good faith than is owed to third parties. Ex, an agent is a fiduciary in relation to the principal.

Restitution

A requirement that a licensee return any money that was taken or used improperly to the injured party.

Implied Authority

Authority indirectly given to an agent to do everything reasonably necessary to carry out the principal's express orders.

Blind Ad

An ad placed by real estate licensee that doesn't include the appropriate broker identification, often placed in order to give the illusion that property is FSBO.

General Agent

An agent authorized to handle all of the principal's affairs in one area or in specified areas.

FSBO (For Sale By Owner)

An attempt to sell one's own property without listing it with a real estate broker.

Leasehold Estate

An estate that gives the holder (tenant) a temporary right to possession, without title. Also called a less-than-freehold estate.

Appraisal

An estimate or opinion of property value (parcel of land) as a certain date, supported by objective data.

Capital Expense

An expense to improve the property and increase its value. Sometimes they are preplanned, but other times they are expenses to replace something on the property that's no longer working, such as a roof or an AC unit.

Inflation

An increase in the cost of good or services. "Too much money chasing too few goods."

Fraud

An intentional misrepresentation or concealment of a material fact; when a person actively conceals material info or makes statements that he knows are false or misleading.

Timeshare

An ownership interest that gives the owner a right to possession of the property only for a specific, limited period of time each year.

Salesperson

Any licensed agent associated with a broker, and as such may perform most of the acts a broker can on his behalf.

Salesperson

Any licensed agent who is associated with a broker and as such may perform most of the acts a broker can on behalf of the broker.

Code of Ethics and Standards of Practice

Any person who has a real estate license must abide by this document (published in 1913).

Broker

Any person, partnership, association, limited liability partnership, limited liability company, or corporation, who for a fee, sells, lists, leases, exchanges, negotiates, or otherwise deals in real estate of others or represents publicly that she does so.

REALTOR

Any real estate licensee who is a member of the National Association of REALTORS (NAR) and his or her affiliated state and local boards. ONly members may use the term REALTOR.

Realtist

Any real estate licensee who is a member of the National Association of Real Estate Brokers.

Agent

Anyone who is authorized to act on the behalf of someone else.

Express Authority

Authority expressly communicated, in words or in writing, by the principal to the agent.

Actual Authority

Authority given intentionally by the principal to an agent.

Operating Budget

Budget created to project the income and expenses for a property over a one-year period.

Scarcity

Characteristic of real property that says there is a limited supply of real estate.

Kickbacks

Fees or other compensation given for services not performed, but as means of undisclosed commission for business referrals (prohibited by RESPA).

Eminent Domain

Government's constitutional power to take private property for public use as long as the owner is paid just compensation.

Commingling

Illegally mixing money held in trust on behalf of a client with personal funds.

Affiliated Licensee

Individuals licensed as salesperson or associate brokers who work in the brokerage of a sponsoring broker.

Mortgage Broker

Individuals or companies that, for a fee, bring borrowers and lenders together for the origination of a loan.

Irrevocable Consent

Submission of an out-of-state agent to the jurisdiction of the state courts in which the agent agrees to allow summons, subpoenas, or other processes to be served against him.

Conversion

Misappropriation of property or funds belonging to another.

Civil Penalties

Monetary relief in the form of surcharges or fines against an individual as restitution for wrongdoing by the individual.

Deposit

Money offered as an indication of good faith regarding future performance of a purchase agreement. Also called earnest money. Can also be a tenant's security deposit.

Puffing

Superlative statements about the quality of a property that shouldnt be considered fact. "best buy in town!"

Fiduciary Duites

Obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care are owed to all clients in an agency relationship.

Mortgage Banker

Originators of loans in the primary market.

Fiduciary

Person in a position of trust, held by law to high standards of good faith and loyalty.

Lessor

Person who leases property to another; a landlord.

Lessee

Person who leases property; a tenant.

Actual Eviction

Physically forcing someone off of a property, preventing someone from reentering property, or using the legal process to make someone leave.

Taxation

Process of a government levying a charge on people or things.

Land Use Controls

Public or private restrictions on how land may be used.

REBNY

Real Estate Board of New York

Corrective Maintenance

Repairing or restoring broken or failed equipment to a specified condition; emergency measures to fix.

Tenant Relocator

Someone who, for a fee, commission or other valuable consideration, supervises, organizes, arranges, coordinates, handles, in charge of or responsible for relocating commercial or residential tenants from buildings or structures that are to be demolished, rehabilitated, remodeled, or altered.

Apartment Information Vendor

Someone, who, for a fee, coordinates information concerning the location and availability of a residential rental property.

Apartment Sharing Agent

Someone, who, for a fee, coordinates with a customer and the current owner or occupant of legally occupied real property who wishes to share that housing.

Continuing Education

Specific hours of training or education required in order to renew a real estate license.

ARELLO

The Association of Real Estate License Law Officials promotes uniform standards and policies related to real estate licensure and education throughout North America.

Department

The Department of State is the NYS agency that issues state licenses to qualified applicants and oversees the State Board of RE.

NYSAR

The New York State Association of REALTORS.

Board

The State Board of Real Estate is responsible for carrying out the requirements set fotth in NY's real estate licensing law.

Management

The cost and complexity of monitoring an investment. Management occurs at 2 levels. Asset Management- involves monitoring the financial performance of an investment and making changes as needed. Property Management- involves the day-to-day operations of the property and the physical maintenance of the buildings.

Occupancy Standard

The establishment of the maximum number of occupants allowable in a given rental dwelling, intended to help promote an adequate and safely occupied inventory of housing.

Appreciation

The increase in the value of a property due to changes in the market, inflation, etc.

Cost of Money

The interest rate that people or businesses must pay to use another's money for their own purposes.

Economic Base

The main business or industry in an area that community uses to support and sustain itself.

Revocation

The permanent withdrawal of a licensee's license.

Administrator

The person appointed by the court to handle the estate of someone who died without a will, with a will but no nominated executor, or the executor named in the will has died, has been removed form the case or does not desire to serve. Sometimes called a personal representative.

Executor

The person named in a will to handle the property of someone who has died and carry out the terms of the will.

Sponsoring Broker

The principal broker in a real estate brokerage who oversees the affiliated licensees.

Escrow

The system in which things of value are held on behalf of the parties to a transaction by a disinterested third party, until specified conditions have all been complied with.

Moral Suasion

Trying to use persuasive influences on the public and financial markets to perceive credit in a specific way. It is the application of pressure, by an authority. (ex. Fed Reserve Board to get members to adhere to a policy)

Retaliatory Eviction

When a landlord evicts a tenant in retaliation for complaining about code violations or violations of the Landlords and Tenants Act, or for participating in a tenants' rights group.

Self-Help Eviction

When a landlord uses physical force, a lockout, or utility shutoff to remove a tenant, instead of going through the legal process. (illegal in NY)

Constructive Eviction

When a landlord's act interferes with the tenant's quiet enjoyment of the property, or makes the property unfit for its intended use, to such an extent that the tenant is forced to move out.

Dual Licensure

When a licensee is associated with more than one broker.

Vicarious Liability

When one person bears the responsibility for the actions of another, such as a licensed broker's vicarious liability for his agents.

Escheat

When property reverts to the state after a person dies without a valid will and heirs.