Chapters: 2, 3, 5 & 15
Activities That Don't Require a License
Highest Real Estate License in NYS: Associate real estate broker
Pocket Card: Must be shown on demand
Earning Commission: When bringing about a meeting of the minds
Definition of a Real Estate Broker: A person, firm, corporation, or LLC
License Duration: Good for 2 years
License Renewal in Grace Period: Must take continuing education
After Grace Period: Must retake the state exam
Licensure Exemptions: Lawyers, employees doing real estate for their employer, court orders
Real Estate Salesperson Sponsorship: Must be sponsored by a broker
Broker License Suspension: Suspends the sponsored licensees without a hearing
Compensation for Sales People and Associate Brokers: Must come from their own broker
Suing Establishment: Must sue your broker if the broker won't sue the client
Official Record Retention: 3 years
License Revocation Period: Revoked for 1 year
License Law Violation: Classified as a misdemeanor
Advertising Restrictions: Must accurately state property location
Illegal Listing: Net listings are against the law in NYS
Disclosure Statement Exceptions: No disclosure required for condominiums
Property Condition Disclosure: Must be given before buyer signs purchase offer
Buy Out Option: $500
Commission Determination: Typically a percentage of the sale price or flat fee
Commission Determination Responsibility: Determined between consumer and broker
Agency Definition: Legal relationship between agent and principal
Licensees Representing Clients: Brokers, associate real estate brokers, salespersons
Agent Employment: Agents are employed by clients
Buyer/Seller Agent Relationships:
Buyer hires buyer’s agent
Seller hires seller’s agent
Fiduciary Duties:
Obedience: Follow lawful instructions
Loyalty: Prioritize principal's interest
Disclosure: Timely information for beneficial transactions
Confidentiality: Protect privileged information
Accounting: Responsible for value held for the principal
Reasonable Care: Diligence to avoid principal harm
Types of Agents:
Universal Agent: Represents client in all matters
General Agent: Represents client in multiple matters
Special Agent: Employed mainly for specific tasks (most licensees)
Agency Agreements: Expressed (written/verbal) or Implied (through actions)
Listing Types:
Open Listing: Multiple brokers; seller retains rights
Exclusive Right to Sell: Broker earns commission regardless of seller's actions
Exclusive Agency: Seller can sell without broker fees
Agency Disclosure Requirements: ADF must be provided at first substantive contact
Dual Agency: Conflict of interest; preferred solution: Designated sales associate
Riparian Rights: Rights to water for property bordering a river/stream
Trade Fixture Example: Large attached display case
Best Ownership Type: Fee simple absolute
Property Transfer:
To daughter: Fee simple absolute
Life estate: Can rent property
Remainder interest: After life estate expiration
Ownership Forms:
In Severalty: One person owns property
Tenancy in Common: Concurrent ownership without survivorship
Joint Tenancy: Concurrent ownership with right of survivorship
Tenancy by Entirety: Joint ownership for married couples
Owner Rights Post-Divorce: Automatically converted to tenancy in common
Encumbrance Definition: Right of another over owner’s property
Liens Definition: Financial claim tied to property
Types of Liens:
Property Taxes: Always priority
Mechanics Lien: Claims attached to the property for unpaid labor/materials
Easements: Right of another to cross over the land
Common Easements:
Easement Appurtenant: Between two parcels
Easement in Gross: Utility easement, rights unrelated to land ownership
Encroachments: Intrusions on another's property discovered usually via survey
Real Estate Lease: Conveys possession without ownership
Types of Leases:
Tenancy for Years: Fixed start and end dates
Periodic Lease: Specific period without expiration
Tenant Rights:
Implied covenants include habitability and quiet enjoyment
Sublease: Transfer less than all terms; sublessor primarily responsible
Lease Types:
Gross Lease: Tenant pays fixed amount; landlord covers expenses
Net Lease: Tenant pays fixed rent plus expenses
Percentage Lease: Tenant pays rent based on profits
Graduated Lease: Rent increases at set dates
Mortgaging Definition: Pledging property as security for debt
Mortgagor and Mortgagee:
Mortgagor: Owner/borrower
Mortgagee: Lender
Foreclosure Process in NYS: Judicial foreclosure
Amortization: Repayment of principal and interest over time
Escheat: Property returns to the state without a will or heirs
Eminent Domain: Government can take property for public use with compensation
Zoning: Regulates land use and segregation of uses
Zoning Board of Appeals: Grants variances and nonconforming uses
Building Codes: Ensure construction standards
Certificate of Occupancy: Certifies the building is safe to live
Environmental Hazards: Know regulations around asbestos, lead, and radon
Appraisal: A finished product from the appraiser
Market Value Factors: Includes buyer/seller motivations and market conditions
Depreciation and Obsolescence: Concepts to understand value decrease
Protected Classes: Groups that cannot be discriminated against in housing
Key Laws: Civil Rights Act of 1866 and FHA amendments of 1988
Purpose of Property Insurance: Protection against physical damage
Homeowners Policies: Various forms like HO3, H04, H06
Ad Valorem Taxes: Based on assessed value of properties
Zoning Ordinances: Passed by municipal governments for community planning
Property Manager Role: Reducing risk and increasing NOI
Management Agreement: Formal contract between owner and manager
Mortgage Broker Licensing: Must be licensed by the division of financial services
Commonly Managed Loans: Typically deal with nonconforming subprime loans
NYS Attorney General: Reviews offering plans for co-ops and condos
Co-op Ownership: Purchase of stock rather than direct ownership of property
IRV Formula: Net Operating Income, Capitalization Rate & Value
Valuation Methods: ProForma statement to project future income potential
Tax Deductions: Home loan interest and taxes are deductible
Capital Gains Calculation: Based on the adjusted basis and sale price
Management Agreement: Governs the relationship between manager and owner
NYS Department: Licenses mortgage brokers and managers