New York State Real Estate Broker Licensing and Regulation, Exams of Real Estate Management

Download New York State Real Estate Broker Licensing and Regulation and more Exams Real Estate Management in PDF only on Docsity! NY Real Estate Express Practice Exam Questions with Verified Solutions. Sellers’ market their property using a __________. - ANS listing agreement When the licensee has a buyer brokerage agreement with a purchaser, he or she must represent the best interests of the ___ rather than the ___. - ANS buyer, seller In most cases, buyers cannot make a purchase without ____ at least some part of the transaction. - ANS financing Buyer gets the ____ to the property, seller gets the _____ from the sale, and the broker gets a _____. - ANS deed, proceeds, commission The DOS is responsible for the ___, _____ and _____ of a number of occupations - ANS licensure, registration, and regulation The Mission of the DOS is... - ANS to protect the health, safety and welfare of consumers. To provide efficient processing and examination services to license applicants. To provide accurate information and qualified licensees to the business community. The DOS is allowed to reprimand a real estate broker if: - ANS Violated any provision of Article 12-A of the Real Property Law. Engaged in fraud or fraudulent practices. Demonstrated untrustworthiness or incompetence. The Board consists of the _____, the _____ of Financial Services and ______ (brokers or public members). - ANS Secretary of State, Superintendent of Financial Services, thirteen appointed members (brokers or public members). Depending on the appointments by the Minority Leaders, the Board will be composed of: - ANS Seven real estate brokers and six public members Six real estate brokers and seven public members Five real estate brokers and eight public members The _____ is the Chairperson. A Vice-Chairperson and Secretary are elected from among the other members of the Board. If a member fails to attend ____ consecutive meetings, the member shall forfeit seat on the Board (may be excused due to illness or death in the family). - ANS Secretary of State, three The ____ has the duty to administer all licensing, examination, education, and compliance provisions of Article 12-A; the rules of the Board; and the rules of the Secretary of State. - ANS Secretary of State Except for things delegated specifically to the ____, the ___ has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer Article 12-A of the Real Property Law. - ANS Secretary of State, Board Has a responsibility to be fair and competent when dealing with the public. Is responsible for managing and supervising all affiliated licensees. - ANS real estate broker Licensed real estate broker who chooses to work under the name and supervision of a licensed real estate broker. Can maintain a separate real estate broker's license. Can only P a g e 1 | 11 receive commission payments from their sponsoring broker. - ANS Associate real estate broker Works on behalf of a licensed real estate broker to perform any of the duties associated with real estate transactions. Can only receive commission payments from sponsoring broker. - ANS Real estate salesperson Exemptions from needing a license: - ANS An owner selling/landlord renting own property. An attorney performing duties as an attorney/admitted to the bar in New York. A receiver or trustee in bankruptcy. In order to become a licensed salesperson in New York, a candidate must: Be at least __ year’s old and permanent US residency. Successfully complete the __-hour pre-license course approved by the New York Department of State and pass the New York state licensing exam. Obtain a _____ before obtaining the license. - ANS 18, 75, sponsoring broker To become a licensed broker, a candidate must: Be at least __ year’s old and permanent US residency. Successfully complete the ___-hour course of study approved by the New York Department of State and pass the New York state broker exam. Submit proof of one of these requirements: ___ full years of experience as a licensed salesperson and _____ points.____ years of equivalent experience in some other aspect of real estate and ____ points, subject to approval by the Department of State. - ANS 20, 120, Two, 3500, Three, 5250 To become a licensed associate broker, a candidate must meet all of the same qualifications as for a ______ and submit the name of a sponsoring broker. - ANS broker's license Education Required for Obtaining a License Salespersons - __ hours of approved course instruction. Brokers - __ hours of approved course instruction - the 75-hour salesperson's course plus an additional __-hour broker course. - ANS 75, 120, 45 License Exams The examinee must correctly answer at least __ percent of the questions to pass the exam. Passed exam results are only valid for a period of ___ years. Exam results are reported as either passed or failed; numerical scores are not given. - ANS 70, two License Procedure - ANS Complete the license application. Provide proof of having successfully completed the applicable coursework/ licensing exam. Pay the appropriate fee. License Classes for Brokers: a broker who will be conducting business using his or her personal name only. - ANS Individual Broker License Classes for Brokers: conducts business as a sole proprietorship, doing business under a name other than the personal name. - ANS Trade Name Broker License Classes for Brokers: Applicants must be an officer prior to licensing. A copy of the corporate filing receipt must be submitted with the application for new corporations only. - ANS Corporate Broker: P a g e 2 | 11 A person hired to inspect a property to determine the condition of the improvements and then provide a written report of the findings. - ANS Home Inspector Handling Funds - A real estate broker must not _____ money with his own funds. The broker must maintain a separate escrow account to be used exclusively for the deposit of client monies. - ANS commingle Managing Property for a Client - A broker (can/ cannot) accept any commission without the client's full consent. - ANS cannot Broker's Listings - A broker (can/ cannot) buy for himself any property he has listed, or acquire any interest in a property, without clearly notifying the listing owner. - ANS can not 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. - ANS 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. Automatic Continuation of Listing Contract - An exclusive listing contract (can/cannot) contain an automatic continuation of the listing period beyond the fixed termination date specified in the contract. - ANS can not (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. - ANS Net Listings A salesperson may not own any voting shares of stock in any licensed real estate brokerage corporation with which he or she is associated. - ANS A salesperson may not own any voting shares of stock in any licensed real estate brokerage corporation with which he or she is associated. Any ad that contains a phone number only is called a ___ - prohibited. - ANS blind ad A personal assistant may perform any office function NOT described in the license law as one which only licensees may perform. Activities allowed for licensed personnel only: ____ Personal assistants may be paid directly by the broker or the employing salesperson. - ANS Hold open houses and show real property. Negotiate commissions. Perform activities to solicit business for the broker or any other activity that requires a license. License Law Violations (name 3) - ANS Failing to provide the required disclosures. Accepting compensation from more than one party in a transaction without the knowledge and written consent of all parties. Accepting as a salesperson a fee or commission for a real estate service from anyone except the salesperson's employing broker. Offering a property for sale or lease without the owner's permission. Failing to deliver duplicate documents for a real estate transaction to all the appropriate parties. Performing services that should be performed by a lawyer. Entering into a net listing contract. P a g e 5 | 11 If the Department decides to deny a license application, the applicant will be notified in writing and may then ask for a hearing within ____ days. An appeal of a decision can be made to the Secretary of State or judicially through an ___ - ANS 30, Article 78 proceeding. Penalties for License Law Violations - ANS revoke the license for a period of time that they feel is appropriate (revocation). (Minimum of 1 year.) Suspend the license for a period of time that they feel is appropriate (suspension). Impose a fine of up to $1,000 payable to the Department of State. Issue a reprimand upon a licensee's conviction of a violation. Fines and reprimands are referred to as ____. A violation of license law also constitutes a misdemeanor. If a broker's license is suspended, the licenses of all salespersons and associate brokers associated with that broker will also be suspended, until the salesperson ____ - ANS administrative discipline. Can change the association to another broker. Outlines what the court believes happened. - ANS Findings of Fact Explains what violations the Respondent committed and has references to the specific law that the Respondent violated. - ANS Opinion and Conclusions of Law Refers to a legal relationship between a licensee and a seller, a buyer, landlord or a tenant. - ANS agent Types of agency: The principal empowers the agent to perform any and all actions that may be legally delegated to an agency representative. - ANS Universal Agent Types of agency: The principal delegates to the agent ongoing tasks and duties within a particular business or enterprise. - ANS General Agent Types of agency: The principal delegates authority to conduct a specific activity, after which the agency relationship terminates. - ANS Special Agent Fiduciary Duties what does Coal stand for - ANS care, obedience, accounting, loyalty, disclosure Vicarious liability - ANS a broker is liable for a salesperson's wrongful actions only if the broker had knowledge or retains the benefits of the transaction. A listing agreement that authorizes the broker to find a ready, willing and able buyer for the property. A buyer's agency agreement authorizes the broker to find a suitable property to purchase or rent. - ANS Express Agency Whether intended or accidental, the creation of ____ agency obligates the agent to fiduciary duties and professional standards of care. - ANS implied The Sherman Antitrust Act of 1890 is the principal federal statute that covers ___. Antitrust laws prohibit: ______ - Collusion between or among members of a particular trade to maintain prices at a set level. P a g e 6 | 11 _____ - Agreements between or among members of a particular trade that would prevent other members from fair participation in the trade's activities. ______ - Agreements between or among members of a trade to avoid doing business in specific market areas. ______ - Arrangements that require a buyer to purchase additional or unrelated products or services when making a product purchase. - ANS competition, Price Fixing, Group Boycotts, Tie-in Arrangements Individual violators of the Sherman Act can be fined up to ____ and sentenced to up to ___ years in federal prison for each offense; corporations can be fined up to ____ for each offense. - ANS $1,000,000, 10, $100 million Section ___ of the New York Real Property Law requires that licensees disclose their agency relationship to their clients using a disclosure form designed specifically for this purpose. - ANS 443 According to Real Property Law, Section _____, a broker may accept a referral fee or other compensation from a party that he or she does not represent, as long as the broker discloses the fact to all parties and gets their consent. - ANS 175.7 Designated agency. - ANS Designated agency means that a broker may designate one or more licensees to act exclusively as the agent of the seller or landlord, and designate one or more licensees to act exclusively as the agent of the buyer or tenant in the same transaction. This arrangement must also be disclosed to both parties, and the broker must obtain the written consent of both the buyer and the seller. Section ___ of the Real Property Law requires that licensees provide the agency disclosure form to potential clients in any transactions that involve residential real property - ANS 443 If court action imposes an involuntary lien, the lien is a ____ lien. - ANS equitable A judgment is a lien against the property for ___ years. - ANS ten Define Lies pendent - ANS Lies pendent is a legal document giving notice of an action that has been filed against a parcel of property. Easement Appurtenant - ANS gives a property owner a right of usage to portions of an adjoining property owned by another party. Easement by Necessity - ANS granted by a court of law to a property owner because of a circumstance of necessity, most commonly the need for access to a property. An easement in gross - ANS is a personal right that one party grants to another to use the grantor's real property. The right does not attach to the grantor's estate. Prescription - ANS Adverse and hostile use Open and notorious use Continuous use (ten years) An encroachment is - ANS the unauthorized, physical intrusion of one owner's real property into that of another. Voluntary alienation - ANS is an unforced transfer of title by sale or gift from an owner to another party. P a g e 7 | 11 $90,000 x .0575 = $5,175 yearly interest due $5,175 ÷ 12 = $431.25 first month's interest $525.22 - $431.25 = $93.97 first month's principal Now the lender will subtract the principal payment from the initial loan balance to arrive at the loan balance for next month's calculation. $90,000 - $93.97 = $89,906.03 Area of a rectangle formula - ANS Area = length x width Area of a square formula - ANS Area = side x side Front foot formula - ANS For example, if a rectangular lot measuring 800 feet wide by 200 feet deep is offered for $20 per front foot, the asking price would be $16,000. 800' X $20 = $16,000 Area of a triangle formula - ANS Area = ½ base x height Ex) if the base of a triangle is 100 feet and the height is 50 feet, the area is 2,500 square feet: ½ (100' X 50') = area ½ (5000') = 2,500 square feet Area of irregular lots/ rooms - ANS to compute the area of an irregular parcel or room, you will have to follow this procedure: Divide the shape into regular rectangles, squares or triangles. Compute the area for each figure. Add the areas together to get the total area for the parcel. Price Per Square Foot formula - ANS Once you figure out the total square footage of a home or parcel, you can compute the price per square foot by dividing the sales price of the home or land by the calculated area. Example: A parcel of land that is 150 feet wide and 100 feet deep and sold for $140,000 has a price per square foot of $9.34. 150 X 100 = 15,000 square feet $140,000 ÷ 15,000 = $9.34 per square foot Perimeter formula - ANS The perimeter of a lot or other shape is the sum of the length of all its sides. How many square feet in an acre? - ANS 43,560 How many acres in a hectare - ANS 10,000 square meters or approximately 2.47 acres? Income ratio formula - ANS Divide total house payment by gross monthly income: Debt ratio formula - ANS Divide total monthly debt by gross monthly income: Income qualification for conventional and FHA - ANS under 28, no more than 29 Debt ratio qualification for conventional and FHA - ANS 36 and under, no more than 41 Real Property Transfer Tax formula - ANS The amount of the tax is $4.00 per $1,000 of purchase price. Tax is based on the purchase price of the property, except if part of the loan P a g e 10 | 11 is assumed. In that case, the amount of the assumption is subtracted from the purchase price and the tax calculation is done on the remainder. Ex) Sale price of the property is $575,000. Transfer tax is $2,300. $575,000 ÷ $1,000 = $575 $575 x $4 = $2,300 Ex) Sale price of the property is $323,900. Assumed mortgage is $75,000. Transfer tax is $995.60. $323,900 - $75,000 = $248,900 $248,900 ÷ $1,000 = $248.90 $248.90 x $4 = $995.60 Mortgage Recording Tax - ANS The minimum tax rate is $.75 for each $100 of the amount secured by the mortgage. The maximum amount is $2.75 for each $100. Real Property Tax Rate formula - ANS Assessed value x tax rate = annual taxes Commission formula - ANS Sales price X rate of commission = total commission P a g e 11 | 11