Chapter 1 License Law and Regulations 1 New York Real Estate for Salespersons, 5 th e By Marcia...

Chapter 1 License Law and Regulations1

New York Real Estate for Salespersons, 5th e

By Marcia Darvin SpadaCengage Learning

© 2013 All rights reserved.


Chapter 1

License Law and Regulations


3

Chapter 1 Key Terms Administrative discipline

Apartment information

vendor

Apartment sharing agent

Appraiser

Article 12-A

Article 78 proceeding

Associated real estate

broker

Continuing Education

Commingling

Escrow

Exemptions

Home inspector

Listing agreement

Kickback

Misdemeanor


4

Chapter 1 Key Terms (continued)

Multiple listing service

Net listingPocket cardReal estate

broker/salespersonReciprocityRevocation

Sponsor SuspensionTerminateTermination of

associationViolation



Categories of Licensure

Broker

Associate brokerSalesperson



Requirements for Salesperson Licensure

Citizenship;legally present

English language

75 hrs ofqualifying education

Certificate ofrelief if

applicable

18 years old

Requirements



Broker Licensure Requirements

Two year’s experience

as a salesperson or

three year’s

equivalent experience

20 years old or older

Pass the NYS exam

120 hours of

qualifying

education


Registering for the Licensure Exam

eAccessNY:

http://www.dos.ny.gov/licensing/eaccessn

y.html




What to Bring to the NYS Exam

Driver’s license or other government ID-must be photo bearing

$15 exam fee

Two #2 pencils

Calculator (silent and non printing if desired)

You will be thumb printed© 2013 All rights reserved.

Registering for the Licensure Exam

http://www.dos.ny.gov/licensing/eaccessny.html Schedule exam on the DOS Occupational Licensing

Management System, eAccessNY.

On eAccessNY, view your scheduled exam details or exam results

User-friendly access with a personal ID and password

Exam results are reported as passed or failed and available online as soon as possible after they are received by the Exam Unit and scored.



Licensure Exam You should bring the page you were requested to

print when you scheduled your exam on eAccessNY

You must have a grade of at least 70% to pass. Exam time 1.5 hours; all questions: multiple choice

If you fail the exam, you can schedule another exam by utilizing your account in eAccessNY.

You can apply for your license online-broker sponsorship will be accessed online

Chapter 1 License Law and Regulations

11© 2013 All rights reserved.


Duties that Require LicensureReal estate transactions for others and for compensation, such as:

Listing

Selling

Purchasing

Negotiating

Leasing and renting

Auctioning

Exchanging



SALESPERSON AND BROKER APPLICATION

Salesperson Application:

First, pass exam

Most applications

submitted online

Application fee: $50

Broker application:

First, pass exam

Submit hard copy

application

Include business

organization

Experience points

Application fee: $150


Chapter 1 License Law and Regulations 14

The Broker Point System

14© 2013 All rights reserved.

The Broker Point System Explained

• Point system to clarify real estate experience• Required for the broker license

• A certain number of points allotted for• various types of experience

• For example, 250 points for the sale of a single• family house, a condo, co-op unit, multifamily or a farm

(with• residence under 100 acres)

• You must multiply the allotted points in each category• by the number of transactions per category and total the

points from each category




Point System Experienceo Experience for a

broker license may be obtained through:

o one type of experience such as residential sales

o a variety of experiences such as residential and commercial sales, property management, and leasing

o Three types of experience are:

o two years as a salesperson and the accumulation of 3,500 points:

o three years’ equivalent

experience in general real estate and 5,250 points

o combined experience including work as a salesperson and general real estate and 5,250 points

. Chapter 1 License Law and Regulations

16


Licensure RequirementsRequirement Salesperson

Broker,Associate broker

Pocket card Must carry Must carry

License Kept by broker Kept by broker

Education(Total hours)

75 120

Experience None 2 yr salesperson,3 yrs equivalent

Fee/term of license

$50/ 2 years $150/2 years

Continuing Ed 22.5 hrs every 2 yrs

22.5 hrs every 2 yrs , unless exempt

Licensing agency

NY DOS NY DOS

License Law Article 12-A, Rules and Regs

Article 12-A Rules and Regs.



Maintaining the LicenseAll broker’s licenses must

be displayed and

salesperson’s licenses

must be kept by the

broker

Branch offices must be

supervised by the broker

and managed by a broker

or associate broker

Professional liability

insurance - called

errors and omissions



Office Requirements

Branch office

requirements

Termination ofAssociation

Change of address,

status, name

Dual licensure

Licenserenewal


Chapter 1 License Law and Regulations 20

Responsibilities of Sponsoring Brokers

Broker responsible

for actions oflicensee

Brokers mustsuperviselicensees

Written employment agreement

between broker and

salesperson

Brokerage firmrecords must be

maintainedfor 3 years



Licensure FeesLICENSURE FEE

Salesperson license $ 50 Associate broker/broker license $150 Each broker branch office $150 Exam fee $ 15 Change of salesperson name $ 50 Change of broker name or status $150 Change of address $ 10 Termination of association $ 10 New association $ 10 Duplicate license/pocket card $ 10



ReciprocityNew York has reciprocity with the following states:

ArkansasColoradoConnecticutGeorgiaMassachusettsMississippiOklahomaPennsylvaniaWest Virginia



Licenses related to Real Estate Apartment information vendor Apartment sharing agent Real estate appraiser Home inspector Mortgage broker Mortgage banker Mortgage loan originator



NY State Real Estate Appraiser Licensure/Certification State Licensed Appraiser

Assistant

State Licensed Real

Estate Appraiser

State Certified

Residential Appraiser

State Certified General

Appraiser

The appraiser assistant

license requires no

experience


Home InspectionLicensure Requirements

Complete 100-hours of NYS prescribed

coursework

Complete 40-hours of supervised fieldwork

Pass the NYS licensure exam

License fee $250-2 year term




Violations of the License Law

Conduct that

demonstrates

untrustworthiness,

incompetence

Failure to provide

clients with copies

of listing

agreement or

contract of sale

Making false

promises or

misrepresentationsCommingling the

money or property of others

Engaging in net listing agreements

Publishing blind ads



Accounting Practices for the Brokerage Firm

Company dollar

Portion of revenue that

ends up belonging to

the brokerage firm

Commingling

Mixing the funds of

others with the

business of personal

account

Trust or escrow

account

For all monies

received from

clients such as

deposits and down

payments



What is wrong with these ads? Ad 12-Family, ½ acrelot$350,000Call (609) 777-1234

Ad 33-story Colonial$450,000Private professional community(201) 767-0234

Ad 2Brownstone$4,000,000Lydia Dupree,Liberty Park Brokerage(201) 777-4567

Ad 42 bedroom apt. for rent in upscale building$1,600/monthNo children or pets(973) 459-9999Lucy Baynes Brokerage, Inc.



Penalties for Violation of License Law

NYS DOS

Revoke license

Suspend license

Refuse license



Seller Property Condition Disclosure

Presented before buyer signs contractof sale

May help protect

licensees from liability

$500 credit fromSeller to buyer if not completed

Presented to buyer

CompletedBy Seller

DisclosureStatement



What is a natural gas well? A natural gas

well is a type of

well that is dug or

drilled that yields

or has yielded

natural gas.

Three types:

Oil wells

Natural gas wells

Condensate wells



Dangers of Uncapped Wells Falling in

Leakage of gas

Combustion/Explosion



Disclosure Requirements for uncapped natural gas wells

Disclosure is made before buyer and seller enter into a contract of sale.

Seller must disclose to buyer the existence of any uncapped natural gas wells on the property of which the seller has actual knowledge.

Cost of capping

should not be

passed to new

property owner



The Well HeadMounted at the opening of the well to regulate and monitor the extraction of hydrocarbons from underground.

Prevents leaking of oil or natural gas out of the well.

Prevents blowouts due to high pressure formations.

Source: NETL – DOE


Stigmatized Property DisclosureOccupants who have AIDS or other

illnesses not transmitted through occupancy

Properties that were a site of death due to natural causes, accidents, suicide, homicide, crime, and other reasons



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