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NY REAL ESTATE EXAM: STUDY GUIDE
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NY REAL ESTATE EXAM: STUDY GUIDE
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NY REAL ESTATE EXAM: STUDY GUIDEIndependent contractor must pay their own expenses. Correct Ans -
According to IRS code section 3508[A, B],
real estate agents are statutory non-employees and are therefore independent
contractors.
The code also states that there must be a written contract between the broker
and the sales associate, also reviewed every 12-15 months
· All records must be kept for 3 years
· If sales associate not deemed independent then they will not be able to file
"SCHEDULE C' of the federal return
· The Independent Contractor Relationship
Ø Salespersons are free to engage in outside employment
Ø Either party may terminate the relationship at any time
License Law & Regulations Correct Ans - The New York Department of
State, Division of licensing Services is the regulatory agency that oversees and
administers the licensure process.
Most of the law pertaining to salespersons and brokers is contained in Article
12-A of the real property law.
A real estate broker Correct Ans - is any person, partnership,
association or corporation who, for another, and for compensation of any
kind, negotiates any form of real estate transaction.
Real estate brokers supervise and are responsible for the activities of
associate brokers and salespersons in their employ.
A salesperson or an associate broker Correct Ans - cannot operate
independently. Although licensed, they must work under a licensed Real
Estate Broker
,Duties That Require Licensure Correct Ans - * Selling or purchasing
real estate at an auction
*Negotiating the sale of a business for which the values of the real estate
transferred is not merely incidental to the transaction (RE value is worth
more than the business
* Salespersons must be 18 years of age.
* Brokers must be 20 years old with 2 years experience
* Points for Broker License work as salesperson & 3500 points or 3 years and
5250 points.
*Licenses are renewed every two{2} years
Exemptions to Licensure Correct Ans - Building superintendents or
maintenance workers who perform tasks such as rent collecting for one
owner, company or entity.
Classes of Licensure for Brokers Correct Ans - Ø Each officer of a
corporation or member of a co-partnership must be licensed as a broker.
Ø Salespersons licenses are not issued to officers of corporations or members
of co-partnerships.
Ø Salespersons and associate brokers may not be principals in the brokerage
firm and may not own voting stock in the licensed brokerage corporation.
License and Pocket Card Correct Ans - Ø Pocket Cards must be carried
at all times and shown on demand.
· Fees, Office Requirements, and Terms of Licensure
Ø Brokers must pay $150.00 and Salespersons $50.00 for each term.
Ø Additional licenses for each branch office cost $150.00.
An apartment-sharing agent Correct Ans - is an individual who, for a
fee, arranges and coordinates meetings between the current owners of real
property, including apartment housing who wish to share their housing with
others.
, A mortgage banker Correct Ans - is an individual or entity licensed by
the New York Banking Department to engage in the business of making
residential mortgage loans. Licensed and lends.
Compensation and Fee Splitting Correct Ans - Ø Salespersons may not
accept compensation except from their sponsoring brokers
Ø If brokers improperly pay any part of compensation to anyone who is not
licensed or who is not exempt from the license law, they are in violation of the
license law,
this payment is called a kickback.
Lawsuits for Commissions Correct Ans - An unlicensed person, co-
partnership or corporation cannot bring about a lawsuit to collect
compensation for real estate services rendered because-
only a licensed real estate broker or salesperson is entitled to a judgment by
the courts.
Violations of Real Estate License Law Correct Ans - Ø Failing to
provide adequate disclosure regarding any or all of the following:
a) if licensees purchase property listed by their firm, they must make their
position clear to the seller,
b) the licensee must make clear their position regarding the party for whom
they are acting in a residential real estate transaction-seller, buyer or both.
Ø Receiving compensation from more than one party in a real estate
transaction without the knowledge and consent of all parties.
Ø Being a party to an exclusive listing contract that contains an automatic
continuation of the listing beyond the specified termination date.
Listing contracts are renewed by the signing of a written renewal agreement.
Ø Drawing up legal documents such as deeds or mortgages, giving an opinion
as to the legal validity of any document, performing a title examination.
A licensee may not perform any service that is performed by an attorney.
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