New York Real Estate License Law and Regulations

Comprehensive vocabulary terms and concepts covering New York Real Estate license law, agency, estates, land use, valuation, and finance.

Broker

Any individual, firm, LLC, or corporation who, for another and for a fee or valuable consideration, lists, sells, buys, rents, negotiates, or manages real estate, or collects rent.

Associate Broker

A licensed broker who chooses to work under the name and direct supervision of another sponsoring licensed broker.

Salesperson

An individual who performs real estate activities under the direct supervision of a sponsoring licensed broker.

Blind Ad

An illegal advertisement that fails to identify the advertiser as a real estate broker or fails to include the name of the brokerage.

Reciprocity

A licensing agreement between states with similar requirements that allows a licensee to obtain a license in another state without taking additional education or exams.

Mutual Recognition

An agreement where a state recognizes a licensee’s education/experience from another state, though additional education or state law exams may still be required.

Irrevocable Consent

A legal document signed by non-resident licensees subjecting them to the jurisdiction of New York courts for actions arising within the state.

Property Condition Disclosure Act

A state requirement obligating residential property sellers to provide a signed condition disclosure statement to buyers prior to contract signing, or grant a $\$500$ credit against the purchase price at closing.

Salesperson Qualifications

Must be at least $18$ years old, complete a $77$-hour course, pass school and state exams, and obtain a sponsoring broker.

Broker Qualifications

Must be at least $20$ years old, have $2$ years of salesperson experience (or $3$ years in general real estate), complete $152$ total education hours, and pass the state broker exam.

Continuing Education (CE)

Requirement of $22.5$ hours every $2$ years, including at least $3$ hours of Fair Housing/discrimination training.

Unlicensed Assistant Compensation

Must be paid on an hourly or salaried basis; if paid per transaction, the individual must be licensed.

Principal (Client)

The party (seller, buyer, landlord, or tenant) who hires an agent to represent their interests.

Customer

A third party in a real estate transaction not represented by the agent, to whom the agent owes honesty, fair dealing, and disclosure of material facts.

Universal Agency

An agency relationship where a principal gives an agent full power of attorney to handle all legal and personal matters.

General Agency

An agency relationship delegating ongoing operational tasks within a specific business, such as a property manager managing a complex.

Special (Limited) Agency

An agency relationship created for a single, specific transaction that terminates once the transaction closes.

Single Agency

An arrangement where an agent represents only one party (either buyer or seller) in a given transaction.

Dual Agency

Representing both the buyer and seller in the same transaction; requires written informed consent from both parties.

Designated Sales Agent

An arrangement within dual agency where the broker assigns one agent to exclusively represent the seller and another to exclusively represent the buyer.

Exclusive Right-to-Sell Listing

An agreement where the exclusive agent receives a commission regardless of who procures the buyer.

Exclusive Agency Listing

An agreement where the broker is paid if any agent procures the buyer, but the owner can sell directly without owing commission.

Open Listing

An agreement where the owner can hire multiple brokers and only the procuring broker is paid.

Net Listing

An illegal agreement in New York where the seller sets a minimum price and the broker keeps everything above it as commission.

OLD CAR

The mnemonic for fiduciary duties: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care & Skill.

Price-Fixing

An antitrust violation where competitors conspire to establish uniform commission rates or fees.

Group Boycotting

An antitrust violation where competitors agree to exclude or avoid doing business with another broker.

Market Allocation

An antitrust violation where competitors agree to divide geographic areas, price points, or client bases.

Tie-In Agreements

Forcing a client to purchase an unwanted product or service as a condition to obtaining a desired service.

Bundle of Rights (PUTEE)

The core rights of real property ownership: Possession, Use, Transfer, Exclusion, and Encumber able.

Real Property

Land, permanent improvements attached to land, plus the legal bundle of rights.

Personal Property (Chattels)

Moveable items not permanently affixed to real estate.

Trade Fixtures

Personal property items installed by commercial tenants for business operations; removable before lease end.

Emblements

Annual cultivated crops considered personal property.

Severance

The act of converting real property into personal property, such as cutting down a tree.

Affixing

The act of converting personal property into real property, such as installing a ceiling fan.

Fee Simple Absolute

The highest form of real property ownership interest; perpetual and unrestricted.

Life Estate Pur Autre Vie

Ownership duration tied to the lifetime of a designated third party.

Remainder Interest

An interest where property passes to a named third party (remainderman) upon the life tenant's death.

Tenancy in Severalty

Ownership held solely by one individual or single legal entity.

Tenancy in Common

Co-ownership with undivided fractional interests and no right of survivorship; interests pass to heirs.

Joint Tenancy

Co-ownership requiring Four Unities (PITT) with Right of Survivorship.

Tenancy by the Entirety

Ownership reserved for married spouses featuring the right of survivorship.

PITT

The Four Unities of Joint Tenancy: Possession, Interest, Time, and Title.

Riparian Rights

Ownership rights along flowing bodies of water such as rivers and streams.

Littoral Rights

Ownership rights along non-flowing bodies of water such as lakes and seas up to the high-water mark.

Estate for Years

A leasehold estate with a specific start and end date; no notice is required to terminate.

Periodic Tenancy

A leasehold estate that auto-renews periodically until proper notice is given.

Lien

A monetary encumbrance placed on property to secure payment of a debt.

Superior Liens

Liens taking priority over junior liens regardless of recording date, such as Real Estate Tax liens and Special Assessments.

Mechanic's Lien

A specific, involuntary lien filed by contractors or suppliers for unpaid labor or materials.

Easement Appurtenant

An easement running with the land involving adjacent parcels (dominant and servient tenements).

Easement in Gross

An easement held by an individual or utility company; attaches to the person/entity rather than the land.

Easement by Prescription

Created through continuous, open, adverse, and uninterrupted use of another's land for a statutory timeframe.

Legal Title

Full operational bundle of ownership rights evidenced by a valid deed.

Equitable Title

A buyer's interest in property acquired upon execution of a binding sales contract prior to deed delivery.

Actual Notice

Direct, first-hand knowledge acquired through physical evidence or inspection.

Constructive Notice

Knowledge imparted to the public by legally recording documents in public county records.

Habendum Clause

A deed clause starting with 'to have and to hold' that defines the ownership estate conveyed.

Quitclaim Deed

A deed conveying whatever interest the grantor holds without guarantees; used to clear title clouds.

General Warranty Deed

A deed providing the highest protection to the grantee with covenants defending title against all historic claims.

Escheat

Property reverting to the state when an owner dies intestate with no legal heirs.

Chain of Title

The historical lineage of property transfers tracing ownership back to the original land grant.

Cloud on Title

An unrecorded claim, lien, or potential encumbrance impairing clear property ownership.

RESPA

The Real Estate Settlement Procedures Act; federal regulations requiring fee disclosures and prohibiting referral kickbacks.

TRID Rules

TILA-RESPA Integrated Disclosures combining disclosure standards under RESPA and TILA.

Closing Disclosure (CD)

TRID disclosure detailing final transaction numbers; must be delivered to the borrower at least $3$ business days prior to closing.

Statute of Frauds

State law requiring real estate contracts and leases exceeding $1$ year to be in writing to be enforceable.

Gross Lease

A lease where the tenant pays fixed rent and the landlord pays all operational expenses.

Net Lease (NNN)

A commercial lease where the tenant pays base rent plus operating expenses like taxes, maintenance, and insurance.

Implied Warranty of Habitability

A mandatory New York provision requiring residential landlords to maintain safe and livable conditions.

Building Code

A standard of construction for improved property established by local government officials.

Certificate of Occupancy

A document confirming a property complies with building codes and is ready for occupancy.

Eminent Domain

The power of a government entity to force the sale of private property for public use.

Police Power

The legal authority of a government to create, regulate, tax, and condemn real property for public health, safety, and welfare.

Variance

An authorized land use that conflicts with current zoning due to reasons like undue hardship.

R-factor

A measure of insulation efficiency.

Steering

Directly or indirectly channeling customers toward or away from properties or areas.

Blockbusting

Inducing owners to sell or rent to avoid impending change in the ethnic or social makeup of an area.

Redlining

A financial institution's refusal to provide loans within certain areas regardless of borrower qualifications.

Actual Cash Value

The value of an item minus depreciation at the time of loss.

Ad Valorem Taxes

Taxes levied based on the value of the property.

Mills

A unit of taxation equal to $1/10$ of a cent.

Condominium

Ownership of a single unit’s airspace/interior walls in a complex, with common elements owned jointly.

Cooperative

Property owned by an association where individuals hold shares and proprietary leases for specific units.

Loss (load) factor

The difference between interior usable area and rentable area in commercial real estate.

Hypothecation

The use of real property as collateral for a mortgage loan.

Loan-to-value ratio

The loan's share of the total value of the property.

Equity

The difference between the market value of a property and the remaining loan balance.

Alienation Clause

A clause allowing a lender to demand the entire debt be due upon the sale of the property.

Straight-line Depreciation

A method for calculating annual depreciation allowance on a property.

Mortgage Broker

An entity registered with the NY State Banking Department to negotiate loans for others for a fee.