Units 1-3 CREL Vocab for Final

Administrative Discipline

The Department of State's enforcement of license laws, rules and regulations through the use of reprimands and denial, suspension or revocation of licenses.

Apartment Information Vendor

A person who, for a fee, brings landlords and tenants together.

Apartment-Sharing Agent

One who brings together roommates and housemates.

Article 12A

The section of New York State's Real Property Law relating to real estate licenses.

Article 78 Proceeding

Legal process for contesting the action of a governmental body.

Associate Real Estate Broker

An individual broker who is employed by another broker.

Blind Ad

An ad in which agents do not indicate in the ad that they are licensed real estate agents. Blind ads are illegal!

Change of Association

Occurs when a new sponsoring broker submits a change of association form to the Department of State signed by the salesperson or associate broker and the new sponsoring broker.

Commingle

The illegal act by a real estate broker of mixing client or customer funds with personal funds.

Continuing Education

A requirement in most states that real estate and appraiser licensees complete a specified number of educational offerings as a prerequisite to license renewal or reinstatement.

Escrow

The closing transaction through a third party called an escrow agent, who receives certain funds and documents to be delivered upon the performance of conditions outlined in the escrow instructions.

Exemption

With an exemption, a licensee is excused from a given requirement that otherwise would apply.

Home Inspector

A professional who conducts thorough visual surveys of a property's structure, systems and site conditions.

Irrevocable Consent

An agreement filed by an out-of-state broker stating that suits and actions may be brought against the broker in the state where a license is sought.

Kickback

The return of part of the commission as gifts or money to buyers and sellers.

Listing Agreement

A contract between an owner and a real estate professional by which the real estate professional is employed to find a buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission or other form of compensation.

Misdemeanor

A crime, less serious than a felony, usually punishable by fine or imprisonment for one year or less.

Multiple Listing Service (MLS)

A marketing organization composed of member real estate professionals who agree to share their listing agreements with one another in the hope of procuring ready, willing and able buyers for their properties more quickly than they could on their own.

Net Listing

A listing based on the net price the seller will receive if the property is sold. The broker is free to offer the property for sale at any price to increase the commission. Outlawed in NYS!

Pocket Card

Copy of real estate license, issued by the Department of State, to be carried in the licensee's wallet.

Real Estate Appraiser

An independent person trained to provide an unbiased estimate of value.

Real Estate Broker

Any person, partnership, association or corporation that sells, buys or negotiates the purchase, sale, or exchange of real estate or that leases/rents any real estate or the improvements thereon for others and for a compensation or valuable consideration.

Real Estate Salesperson

A person licensed by the state to assist a licensed broker in the field of real estate.

Revocation

Cancelling or annulling license privileges or rights.

Sponsor

The developer or owner organizing and offering for sale a condominium or cooperative development.

Suspension

The action of punishing violations of the license law by recalling a license temporarily.

Termination

The action of a salesperson or associate broker ending an association with a broker.

Termination of Association Notice

Notice sent to the Department of State by a principal broker, stating that a particular license is no longer under the broker's supervision.

Violation

An infraction of the law less serious than a misdemeanor.

Accountability

An agent's fiduciary duty to account for all activities, including money, paperwork, and property the agent handles for a client.

Agency

The relationship of trust and confidence where one person, known as the principal or client, hires another person, known as an agent to transact business on the client's behalf.

Agency coupled with an interest

An agency relationship in which the agent has an interest in the property.

Agency Disclosure

The requirement that an agent make it clear which party they are representing in a transaction.

Agent

A person who is authorized to transact business or manage some matters on behalf of the agent's principal or client.

Broker's Agent

Licensee's working not as subagents but simply as cooperating brokers in non-sub-agency type transactions.

Brokerage

The business of bringing buyers and sellers together in the marketplace.

Buyer's agent

A broker who has entered into an agreement to represent a buyer (the broker's principal and client) in finding a suitable property.

Care

An agent's fiduciary duty to use reasonable care and diligence on behalf of the client.

Client

The person who hires and delegates an agent to represent their interest; synonymous with principal.

Commission

A broker's compensation for having successfully performed the service for which the broker was employed; usually a percentage of the purchase price or rent paid for the property.

Confidentiality

An agent's fiduciary duty to keep a client's information confidential. It does not expire.

Cooperating Broker

A licensee from another company working with a broker representing a seller.

Customer

The third party with whom the agent deals on behalf of the principal.

Disclosure

An agent's fiduciary duty to disclose to the client all relevant facts concerning the transaction, the property and the parties involved.

Dual Agency

The act of representing, or appearing to represent, both principals' interests simultaneously in the same transaction.

Estoppel

A legal doctrine by which a person is prevented from asserting facts that are inconsistent with a previous representation.

Express Agency

A form of agency that is specifically stated, either orally or in writing.

Fiduciary

One in whom trust and confidence are placed; a reference to a broker employed under the terms of a listing contract or buyer-agency agreement.

Fiduciary Duties

The specific legal duties that are owed by an agent to a principal: care, confidentiality, loyalty, obedience, accounting, and disclosure.

Fiduciary Relationship

A relationship of trust and confidence between an agent and her principal.

Fraud

The intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person.

Group Boycott

An agreement among members of a trade to exclude other members from fair participation in the activities of the trade.

Implied Agency

An agency relationship established by the action of the parties, not by oral or written agreement.

Informed Consent

Agreement based on full and fair disclosure of all facts necessary to make a rational decision.

Kickbacks

The return of part of the commission as gifts or money to buyers or sellers or other unlicensed parties who may, in some way, have been involved in the real estate transaction. Kickbacks are illegal.

Latent Defects

Hidden defects that are not discoverable by ordinary inspection.

Law of Agency

The law that governs the relationships and duties of agents, clients, and customers, as defined in Article 12-A.

Listing Agreement

A written or oral agreement that creates an agency relationship between a client (usually the seller or the landlord) and a broker.

Loyalty

The fiduciary duty under which an agent puts the principal's interest above all others' interest.

Market Allocation

An agreement among members of a trade to refrain from competition in specific market areas.

General Agent

An agent who is empowered to represent the principal in a specific range of matters, and who may bind the principal to any contract within the scope of the agent's authority.

Material Fact

Matters that must be disclosed by a broker to customers and clients, such as structural soundness, true value, and ability of the parties to close.

Meeting of the Minds

The agreement by the parties to a transaction on essential terms.

Misrepresentation

Falsely stating or concealing a material fact with the intent of causing another party to act.

Obedience

An agent's fiduciary duty to obey all of a client's lawful instructions. If the matter is not legal, the agent has a duty to advise the client as to the reason why it may not be done.

Power of Attorney

A written instrument authorizing a person, the attorney-in-fact, to act as agent for another person to the extent indicated in the instrument.

Price-Fixing

An agreement between members of a trade to artificially maintain prices at a set level.

Principal

The person who hires and delegates an agent to represent her interest. Synonymous with client.

Procuring Cause of Sale

The status of a broker who produces a ready, willing, and able buyer and then brings about a meeting of the minds with an uninterrupted chain of events.

Property Condition Disclosure

The 48-question form that NYS law requires the seller of one-to four-family residential properties to complete and provide to the buyer at the time of contract signing.

Puffing

Statements of opinion that exaggerate a property's benefits.

Ratification

The creation of an agency relationship when a principal accepts (ratifies) the agent's conduct as that of an agent of the principal.

Ready, Willing, and Able Buyer

A person who is (1) prepared to buy on the seller's terms, (2) is financially capable, and (3) is ready to take positive steps toward consummation of the transaction.

Rebate

Returning a portion of the commission by the broker to a seller or a buyer client. Rebates are legal in NYS.

Restraint of Trade

The unreasonable restriction of business activities as the result of the cooperation or conspiracy of members of the trade.

Seller's Agent

An individual employed or authorized to transact business on behalf of the seller.

Self-Dealing

The act of a broker who lists property and then buys it and collects the agreed-on commission.

Special Agent

An agent who is authorized to represent the principal in one specific transaction or business activity under detailed instructions.

Subagent

Third-party licensee working on behalf of another's client.

Tie-in Arrangement

Occurs when a selling party conditions the sale of an item. The condition might require the buyer to purchase another unrelated item or the seller will refuse the sale of the original item to the buyer.

Undisclosed Dual Agency

The act of representing both principal parties in the same transaction without providing full written disclosure to the parties and receiving their consent.

Universal Agent

An individual who has authority to represent the principal in all matters that can be delegated.

Employee

A person who works as a direct employee of an employer and who has employee status for income tax, insurance, and benefits purposes.

Errors and Omissions Insurance

A form of malpractice insurance for real estate brokers.

Independent Contractor

A person who is retained to perform a certain act but who is subject to the control and direction of another only with regard to the end result and not as to the way in which the act is performed.

Social Security Tax

A tax of 15% required of every taxpayer; half of the tax is withheld from an employee's paycheck, and half must be paid by the employer.

Buyer Agency

An agency relationship in which the broker or agent represents the interests of the buyer.

Dual Agency

An agency relationship in which the agent represents both principal parties in the same transaction.

Exclusive Agency Listing

A listing agreement in which the broker is entitled to a commission if the property is sold during the listing term, unless the seller, acting alone, procures a buyer.

Exclusive Right to Represent

The most common form of buyer agency agreement.

Exclusive-Right-to-Sell Listing

A listing agreement in which the broker is entitled to a commission, regardless of who sells the property.

Fiduciary

A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.

First Substantive Contact

The point at which agents must disclose and obtain signed acknowledgments of their agency relationships.

Informed Consent

Agreement to an act based on the full and fair disclosure of all the facts a reasonable person would need in order to make a rational decision.

In-House Sale

A sale in which one firm lists and sells the same property.

Listing Broker

The broker with whom sellers enters into a valid listing agreement for the sale or lease of their real estate.

MLS (multiple listing service)

An organization formed by brokers to share information about their listings with other broker members with offers of cooperation and compensation.

Net Listing

An illegal type of listing in NYS where the selling broker would keep, as commission, money in excess of a price set by the seller or landlord of a property.

Offer of Cooperation

When the listing broker invites other brokers and their agents to participate in the sale of property.

Open Listing

The least restrictive type of listing agreement, in which the seller is free to employ any number of brokers.