When two brokers agree to the MLS cooperative arrangement, what type of agency is created

Article 12-A of the NYS Real Property Law primary purpose is to? Age requirement for salesperson? Broker?

- Primary purpose to "Protect Public"
- Salesperson to be 18 yrs or older
- Broker to be 20 years or older

A licensed real estate broker that holds the license of a salesperson.

“Summary of Your Submission”

Obtained after you register for the New York State Salesperson exam using eAccessNY. You must bring your “Summary of Your Submission” with you when taking the State exam.

A crime punishable by up to a year in prison and/or a $1000 fine.

An employment contract between principal and agent, authorizing the agent to perform services for the principle involving the latter's property.

A card issued by the DOS to each licensee which contains the photo, name and business address of the licensee, and, in the case of a real estate salesperson, the name and business address of the broker associated and shall certify that the person whose name appears there is a licensed salesperson. Carried at all times.

Which department is responsible for issuing real estate licenses?

The client - buyer or seller depending on the transaction to the brokers involved. Usually 6% but can be negotiable.

Mark (the broker), is selling Maria’s house (the client). Who determines the amount of commission paid in a transaction?

Principal/Client and the Broker

An ad that remains anonymous as to who is advertising. These are illegal.

A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence & trust.

Obedience Loyalty Disclosure Confidentiality Accountability Reasonable Care

Disclosure Regarding Real Estate Agency Relationships Form

A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction. - First document to be submitted to all prospective clients

An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding exclusive agency is entitled to commissions in addition to the commissions payable to the broker who effected the transaction - Made between a broker and a seller

The employer of an agent or broker; the broker’s or agent’s client.

Conspiring to establish fixed fees or prices for services or products.

An agreement between members of a trade to refrain from competition in specific market areas.

Independent Contractor Relationship

A person that provides services to another under terms specified in a contract or within a verbal agreement. An independent contractor is not an employee. - The agent does not have to work in a specific location - The broker cannot control the agent’s work activities

According to section 175.25 of Article 12-A, all advertisements must:

1. indicate advertiser is a broker and give name of broker & phone number 2. Indicate the name of the geographical area in which such property is located.

If a broker's license is revoked then...

The revocation or suspension of a broker’s license suspends the license of the salespersons and associate brokers affiliated with the broker.

Agent must act in accordance to clients demands/instructions

Agent must work in the best interest of his client

Disclosure of Information

Agent must communicate with client / must present all offers

All confidential information as described by client must remain so unless given permission in writing.

One of the more serious fiduciary responsibilities.

Reasonable Care and Duty to Account

Agent may be liable for costly mistakes.

A seller tells the listing agent he filed for bankruptcy the previous year. The seller ends up not listing the property with the agent. Still, what fiduciary duty does the agent owe the seller?

Key Points about Agency Disclosure Form:

– The Agency Disclosure Form is signed at the first substantive contact. – Outlines the agent’s duties to the client – Explains that an agent owes a fiduciary duty to the client – Allows for advance consent to dual agency

Where should someone look to find a description of the agency relationship (who he or she represents) of the salesperson?

When should the Agency Disclosure Form be submitted?

At the first substantive contact

Property Condition Disclosure Statement

The Property Condition Disclosure Act requires the seller to submit to the buyer, a ‘Property Condition Disclosure Statement, prior to signing the contract of sale. If the statement is not signed, the buyer shall receive a $500 credit against the purchase price of the property.

If the seller refuses to provide a property condition disclosure statement to the buyer, how much should the seller reimburse the buyer?

Real estate agent is found to be the agent of both the buyer and seller, but without the knowledge and informed consent of both parties, ILLEGAL
-The agent should notify both parties and have them sign the Agency Disclosure form, which states that the agent is acting as a dual agent. AKA Advance Consent to Dual Agency.

What occurs when the agent represents the seller but also works in the best interests of the buyer?

What are the two types of agents?

Someone authorized to transact every kind of business for the principal. Example: Property Manager

An agent with limited authority to act on behalf of the principal, such as created by a listing. Example: Real Estate Agent / Real Estate Broker

A real estate agent serves as what type of agent?

An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell is nevertheless entitled to compensation.

What type of listing agreement is it where the listing broker earns a commission for the sale of the property, even if the owners themselves sell the property?

Who is the agent and client in the relationship?

The buyer and/or seller is known as the Principal or Client The salesperson or broker is known as the Agent.

The individual who hires the Agency is also known as who?

Salesperson / Broker Relationships & How Commissions are Collected:

Real Estate Salespersons/Agents DO NOT collect money or commissions.
Any commissions earned are paid to the salesperson’s broker, who in turn, pays the salesperson his portion of the commission.
This also applies to any referral fees paid from another broker / salesperson / mortgage broker.

An agent can NOT do which of the following?

Collect money directly from the client or customer

Buyer Agency / Buyer Brokerage

Occurs when a purchaser hires a broker to represent them. The purchaser employs a broker to locate a property. In this relationship, the buyer is the principal and the broker is the agent.

A person appointed by an agent with permission of the principal (seller) to assist in performing some or all of the tasks of the agency. Subagency typically occurs with properties listed on the MLS. When the seller’s broker posts a listing on the MLS, he/she are essentially inviting other brokers to join as a subagent. Agent showing the property become subagents for the listing broker (and the seller).

Elements of an Independent Contractor:

– Pay their own taxes (social security and self-employment taxes) – Have no set work hours or job location – Can be employed with another company or employer – Covers his/her own expenses (transportation, cell phone) – Either party can terminate the relationship at time

As independent contractors, what can sales agents be provided by their sponsoring broker? a) A salary b) Office phone c) Free transportation d) Free advertising

Any person who, for a fee, arranges, conducts, coordinates, handles or causes meetings between a customer and the current owner or occupant of legally occupied real property, including apartment housing, who wishes to share that housing with one or more individuals is known as who…?

A price below which an owner will not sell the property, and at which price a broker will not receive a commission is referred to as what…?

How many hours of Fair Housing training must a real estate salesperson get every two years…?

According to Article 12-A of the NYS Real Property Law, which of the following acts does NOT require a real estate license…?

Review a prospective investment property on behalf of another

An act, deed or conditions contrary to law or permissible use of real property is known as a what…?

When is a real estate salesperson required to give notice to the Department of State….?

When a salesperson changes his or her name

An act of recalling a power of authority conferred a license, an agency, etc is known as what…?

John wants to verify the license fees required by New York State. Where should John search to find this information…?

Article 12-A of the NYS Real Property Law

Within how many business days does the Department of State require a salesperson to report any changes in name, status, or brokerage firm…?

Which of the following is considered a Principal in an agency relationship...?

The seller or buyer agrees to dual agency before it occurs by indicating the same on the agency disclosure form is known as...?

Advance Consent to Dual Agency

According to this doctrine, a principle cannot claim that an implied agency relationship did not exist?

According to which fiduciary duty is an agent prohibited from forcing on his or her client a sale, lease or opportunity to buy...?

An agreement between members of a trade to exclude other members from fair participation in the trade is known as...?

According to this concept, the principal must act to defend the agent in case the agent is sued while acting on behalf of the principal...?

Mark, a property owner, signed an agency agreement with Andrew, a real estate broker, to sell his house. What type of agency was created between Mark and Andrew...?

As a Specific Agent in a transaction, a real estate salesperson cannot do which of the following on behalf of the owner...?

negotiate the terms of the contract

According to which fiduciary duty is an agent prohibited from not showing a lower offer to the seller in an effort to obtain a higher commission...?

An agent with the full authority over one property of the principal, such as a property manager is known as...?

The principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person or by a previous pertinent judicial determination is known as...?

A listing given to any number of brokers without liability to compensate any except the one who first secures a buyer ready, willing and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory offer is known as...?

Which of the following fiduciary duties is conversely related to the duty of Disclosure...?

Who can benefit from confidential information in a transaction...?

A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction is known as...?

A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction is known as...?

Which of the following fiduciary duties is conversely related to the duty of Confidentiality...?

The fiduciary duty that prohibits the agent from advancing any interests adverse to the principal’s interest or conducting the principal’s business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principal’s interest unless required by statute, regulation or common law is known as...?

Which of the following is an example of obedience, one of the six fiduciary duties an agent owes his/her client...?

Only showing the type/size of house the client is looking for

As an agent to a cooperative board, Jason has the authority to negotiate contracts with 3rd party vendors to service the building. This level of authority suggests that Jason is what type of agent...?

What is single agency?

Which agency relationship can most easily result in a conflict of interest for the broker?

What is NYS agency disclosure form?

Which one of the following provides the best example of single agency?