chapter 1 license law and regulations 1 new york real estate for salespersons, 5 th e by marcia...
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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 Regulations2
Chapter 1
License Law and Regulations
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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
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Chapter 1 Key Terms (continued)
Multiple listing service
Net listingPocket cardReal estate
broker/salespersonReciprocityRevocation
Sponsor SuspensionTerminateTermination of
associationViolation
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Chapter 1 License Law and Regulations5
Categories of Licensure
Broker
Associate brokerSalesperson
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Requirements for Salesperson Licensure
Citizenship;legally present
English language
75 hrs ofqualifying education
Certificate ofrelief if
applicable
18 years old
Requirements
Chapter 1 License Law and Regulations6
Chapter 1 License Law and Regulations7
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
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Registering for the Licensure Exam
eAccessNY:
http://www.dos.ny.gov/licensing/eaccessn
y.html
Chapter 1 License Law and Regulations8
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Chapter 1 License Law and Regulations9
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.
Chapter 1 License Law and Regulations10
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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
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Chapter 1 License Law and Regulations12
Duties that Require LicensureReal estate transactions for others and for compensation, such as:
Listing
Selling
Purchasing
Negotiating
Leasing and renting
Auctioning
Exchanging
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Chapter 1 License Law and Regulations13
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
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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
Chapter 1 License Law and Regulations15
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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
Chapter 1 License Law and Regulations17
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.
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Chapter 1 License Law and Regulations18
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
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Chapter 1 License Law and Regulations19
Office Requirements
Branch office
requirements
Termination ofAssociation
Change of address,
status, name
Dual licensure
Licenserenewal
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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
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Chapter 1 License Law and Regulations21
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
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Chapter 1 License Law and Regulations22
ReciprocityNew York has reciprocity with the following states:
ArkansasColoradoConnecticutGeorgiaMassachusettsMississippiOklahomaPennsylvaniaWest Virginia
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Chapter 1 License Law and Regulations23
Licenses related to Real Estate Apartment information vendor Apartment sharing agent Real estate appraiser Home inspector Mortgage broker Mortgage banker Mortgage loan originator
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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
Chapter 1 License Law and Regulations24
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
Chapter 1 License Law and Regulations25
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Chapter 1 License Law and Regulations26
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
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Chapter 1 License Law and Regulations27
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
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Chapter 1 License Law and Regulations28
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.
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Chapter 1 License Law and Regulations29
Penalties for Violation of License Law
NYS DOS
Revoke license
Suspend license
Refuse license
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Chapter 1 License Law and Regulations30
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
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Chapter 1 License Law and Regulations31
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
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Chapter 1 License Law and Regulations32
Dangers of Uncapped Wells Falling in
Leakage of gas
Combustion/Explosion
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Chapter 1 License Law and Regulations33
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
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Chapter 1 License Law and Regulations34
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
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