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NY RE
NY real estate salesperson exam
151
Real Estate & Planning
Not Applicable
07/29/2020

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
If you have been convicted of a felony and want to apply for a real estate license you need one of three things. Name the three
Definition
Executive Pardon

Certificate of Good Conduct

Certificate of relief from disabilities
Term
What must you do if you have a real estate license and you get a sex offender conviction
Definition
submit Judgment of Conviction to DOS within 5 days.
Term
citizenship requirements to become a broker
Definition
U.S. citizen or permanent resident
Term
citizenship requirements to become a salesperson
Definition
u.s. citizen, permanent resident, or work authorization
Term
Requirements to become a broker (experience and education)
Definition
2 years as a sales person, or three years of general real estate experience

120 hr class (75 salesperson plus 45 hr broker)
Term
Where must a salesperson keep his/her license?
Definition
Salesperson must have pocket card license on person at all times during real estate business and must display card upon request
Term
where must broker keep his/her license?
Definition
Broker must display broker license at all branch locations. In addition, broker must store licenses for all sponsored salespersons and associate brokers
Term
renewal requirements for broker
Definition
$155 every 2 years, 22.5 hours in C.E.
Term
renewal requirements for salesperson
Definition
$55 every 2 years, 22.5 hours in C.E
Term
What Agency regulates the following license types: Apartment Information, Vendors, Apartment Sharing Agent, Appraisals, home inspectors
Definition
NYS DOS
Term
what agency regulates the licenses of mortgage brokers, bankers, and originators
Definition
NY Dept of financial services
Term
INDEPENDENT CONTRACTOR
Definition
Worker who holds non-employee status under federal law.
Term
STATUTORY NON- EMPLOYEE (define and name three examples)
Definition
Defined in statute as independent contractor, not employee.

R.E. agents
direct sellers
certain companion sitters
Term
STATUTORY EMPLOYEE
Definition
Independent treated as an employee by statute for certain employment tax withholdings.
Term
What is the 1986 New York Independent Contractor Law and how does it apply to real estate licensees.
Definition
Requires written contract between broker and licensee specifying terms of relationship.

Must be updated at least every 15 months.
Term
regulation DOS 175.21
Definition
Brokers must provide regular, frequent and consistent guidance, instruction and oversight.
Term
regulation DOS 175.23
Definition
Brokers must maintain commission records for three years.
Term
In order to qualify as an independent contractor, what percentage of income must come from production
Definition
90 percent
Term
4 things an independent contractor needs to know concerning taxes
Definition
Use Schedule C
File W-9 for income above $600 a year
pay self-employment taxes
if treated as employee, this would jeopardize independent contractor status
Term
RATIFICATION
Definition
Acceptance after the fact
Term
What is required for dual agency?
Definition
informed consent from both parties
Term
CONTINGENCY
Definition
Provision in a contract that provides that the contract will cease to exist if a specific event does or does not occur.
Term
What is the difference between land, real estate, and real property?
Definition
LAND: Earth, soil, air
REAL ESTATE: Land plus fixtures on land (permanently attached to land)
REAL PROPERTY: real estate plus bundle of rights
Term
BUNDLE OF RIGHTS (6)
Definition
Right to mortgage and encumber
Right to profit
Right to use and possess
Right to exclude others
Right to dispose
Air, water, minerals, crops, fixtures
Term
4 Unities of ownership
Definition
Time
Title
Interest
Possession
Term
CHATTEL
Definition
personal property
Term
fixture
Definition
permanently attached to land
Term
remainderman
Definition
receives title after death of life tenant
Term
curtesy
Definition
Property held by a widower
Term
dower
Definition
property held by widow
Term
estate at sufference
Definition
tenant stays after lease terminates
Term
estate in severalty
Definition
one person owns the property
Term
act of waste
Definition
diminishing value of real property as a life tenant
Term
Tenancy in the entirety
Definition
Each holds undivided interest, right of survivorship
Term
qualified fee
Definition
ownership based on condition
Term
fee simple
Definition
An inheritable estate with ownership
Term
fee absolute
Definition
broadest form of ownership conveying all bundle of rights
Term
tenancy in common
Definition
Co-ownership with inheritance rights (each can sell without permission from others)
Term
joint tenancy
Definition
co-ownership with right of survivorship
Term
trustor
Definition
person creates the trust
Term
trustee
Definition
responsible for carrying out the terms of the trust
Term
beneficiary
Definition
gets benefits of trust
Term
Reversionary interest
Definition
title reverts back upon death of life tenant
Term
per se
Definition
act is illegal on its face ( no further explanation needed, no defense)
Term
group boycotting
Definition
Two or more individuals or firms refuse to do business with a third
Term
price fixing
Definition
Conspiracy between competitors to set: prices, listing length term, co-op commission rates
Term
Conversion
Definition
stealing or using client money for personal use
Term
misrepresentation
Definition
A false statement of a material fact in a real estate transaction, either intentionally or through lack of proper care
Term
Types of misrepresentation
Definition
Intentional: Concealment, intentional false statements

Unintentional: Making an inadvertent misstatement (still liable)

Self-Dealing: Undisclosed personal interest in a transaction
Term
4 elements of misrepresentation
Definition
False statement
Knew it was false
Another relied on the false statement
That person was harmed
Term
tie-in arrangement
Definition
An antitrust violation in which the provider of a service requires the customer or client to purchase another service as a condition of the transaction
Term
market allocation
Definition
The illegal process of dividing up a market by geography, price point, etc., to limit competition
Term
5 possible fines/penalties for committing antitrust violation
Definition
$1 million/individual
$100 million/business
Monetary damages
Restitution to victims
Prison sentences
Term
Who investigates antitrust
Definition
Department of Justice
Citizen Complaint Center of the Antitrust Division (CCC)
Term
Lis Pendens
Definition
public notice that judgement is pending
Term
subordination agreement
Definition
lenders agree to subordinate their mortgage lien to another mortgage if they are certain property value will pay off both mortgages if foreclosure becomes necessary
Term
easement
Definition
Authorized use of another's property for a specific use
Term
dominate estate
Definition
The one who holds the easement (has the right to use property)
Term
servient estate
Definition
One who must allow the other to use their property (easement)
Term
easement appurtenant
Definition
two landowners with adjoining property, one dominant, one servient
Term
easement in gross
Definition
easement owner does not own land adjacent to property (mostly applies to govt or public utilities)
Term
easement by necessity
Definition
easement is necessary to access road or waterway (mostly to benefit a landlocked property owner)
Term
easement by prescription
Definition
easement created by years of use
Term
adverse possession
Definition
ownership due to use for statutory period of time
Term
encroachment
Definition
fixture extends beyond property line
Term
mechanics/ materialman's lein and filing deadlines
Definition
lein placed on property when owner has not paid for contracted work or supplies. must be filed within 4 months, expires in 1 year if not renewed
Term
priority of liens
Definition
1.
Term
4 ways that an easement can be terminated
Definition
Deadline expires

Necessity no longer exists

Parcels combined

Use is abandoned
Term
easement by implication
Definition
created by conduct of parties (ex. if you give oil rights, it is implied you are allowing the right to drill for oil on your land.
Term
easement by condemnation
Definition
govt takes the property (ex. a road widens into land of private property
Term
covenant of seisin
Definition
deed warranty that the seller is the actual owner and has the right to sell it
Term
further assurances
Definition
covenant that the grantor will correct defects
Term
full covenant and warranty deed aka general warranty deed
Definition
a deed that grants the most protection to the buyer because it carries all the possible covenants of the grantor
Term
warranty (covenant)
Definition
a deed that grants the most protection to the buyer because it carries all the possible covenants of the grantor
Term
Covenant against encumbrances
Definition
Guarantees the only encumbrances (limitations, easements, liens) are those listed in the deed
Term
quitclaim deed
Definition
deed that does not offer any warranties but simply releases current owners claim to property ("quit-claim")
Term
warranty deed
Definition
provides some warranties but is not a full warranty deed
Term
referees deed/ sheriffs deed
Definition
no warranties or covenants but does imply ownership. Often used in bankruptcy proceedings and foreclosures
Term
executor's deed
Definition
conveys real property from decendant's estate to buyer
Term
habendum clause
Definition
(deed) "to have and to hold)
Term
subject to clause
Definition
(deed) restrictions
Term
conveyance clause
Definition
(deed) " does hearby convey, grant..."
Term
4 types of legal descriptions for a deed
Definition
metes and bounds
lot and block
monuments
rectangular government survey (not in New York)
Term
Can a property address be used as a legal description on a deed?
Definition
No.
Insufficient
May be included but does not suffice as a legal description on a deed
Term
promissory note
Definition
Accompanies mortgage and specifies terms of repayment, loan period, late fees, prepayment penalties, and actions that will be taken if borrower defaults
Term
lien theory
Definition
borrower holds title, lender places lien on property. NY is a lien theory state
Term
title theory
Definition
lender holds the title
Term
mortgagor
Definition
the borrower
Term
mortgagee
Definition
the lender
Term
negotiable instrument
Definition
the holder may transfer the right to receive payments to a third party (ex. a mortgage promissory note
Term
due on sale clause/alienation clause
Definition
borrower must repay the loan before selling property (or transferring ownership)
Term
acceleration clause
Definition
gives lender the right to make all money owed due immediately in the event of default
Term
defeasance clause
Definition
lender agrees to discharge mortgage after loan is paid in full
Term
triggering term
Definition
a term that requires disclosure of other terms related to the loan
Term
discount points
Definition
points a lender charges at closing, sometimes buyers pay points to get a lower interest rate or buy down interest rate
1% of the loan amount
Term
assumption
Definition
buyer agrees to in writing to take over sellers loan payments
Term
loan to value ratio
Definition
the ratio of a loan amount to the value of the property being purchased
Term
Private Mortgage Insurance
Definition
with most conventional loans if the LVR (loan to value ratio) exceeds 80% the lender will require the borrower to take out mortgage insurance. It protects the portion of the mortgage loan not covered by the down payment
Term
mortgage insurance premium
Definition
comes with FHA loan. It is a part of the mortgage payment. In place for the life of the loan
Term
balloon payment
Definition
lump sum payment usually at end of loan payment
Term
wrap-around mortgage
Definition
a form of seller financing where the seller mortgage remains in place and the buyer pays money to the seller who pays the lender. Seller is given a promisory note to enforce this and if new buyer defaults, seller can foreclose and get property back
Term
blanket loan
Definition
(commercial) two or more properties are pledged as security for repayment of loan
Term
package loan
Definition
personal property is included with the real property in the sale
Term
sale-leaseback
Definition
buildings owner will sell the building and lease it back from new owner
Term
adjustable rate mortgage
Definition
mortgage rate that adjusts based on a market index
Term
amortization
Definition
paying off a debt with regular installments over a fixed repayment schedule
Term
graduated loan
Definition
fixed rate mortgage where payments increase over time according to a set schedule
Term
VA loan (3)
Definition
guarantees loans up to 100% of sales price or VA appraised value - whichever is less

will guarantee 25% of home loan amount

funding fee if you do not put money down
Term
FHA loan (3)
Definition
insures lenders against buyer default


3.5% or more down payment required

must pay MIP for life of loan
Term
SONYMA
Definition
loan for NY first time home buyers

below market interest rate loans

a portion of SONYMA funds must be used in economically distressed areas.
Term
Who leads closings in New York State
Definition
IN NYC (and surrounding counties) the sellers attorney take the lead

upstate closing often conducted by title representative with seller signing papers in advance and are not at closing
Term
RESPA
Definition
Real Estate Settlement Procedures Act

no kickbacks or undisclosed fees

ensures a buyer that has a federally involved loan is made aware of all settlement costs
Term
proration
Definition
a division of expenses between buyer and seller based on who owes what to whom
Term
Binder
Definition
Written outline of sales contract; may or may not be enforceable in court
Term
Apportionment
Definition
Prorates for taxes, utilities, water and sewer
Term
equitable rights
Definition
rights to ownership without the possession of title
Term
valid contract
Definition
contract that has all the essential elements
Term
invalid contract
Definition
one or more of the essential elements are missing
Term
void contract
Definition
contract with no legal force or effect
Term
voidable contract
Definition
contract that can be cancelled for one or more reasons
Term
executory
Definition
a contract in progress but one or more terms remain undone
Term
Seller Property Condition Disclosure Statement
Definition
Seller must provide this or give buyer $500 at closing
Term
Article 12-D
Definition
NY General business law
registration requirements for mortgage brokers, bankers, loan servicers
Term
Article 12 E
Definition
NY General business law
registration requirements for mortgage loan originators
Term
education and experience for mortgage broker
Definition
2 years of experience in credit analysis plus two years experience in underwriting plus register with state
Attorney and brokers are exempt. Salespersons must have two years experience in residential mortgages
Term
front-end compensation
Definition
fee paid by borrower directly to mortgage broker
Term
back-end compensation
Definition
lender rebates to mortgage broker
Term
conforming loan
Definition
Meets federal underwriting guidelines
Easier to sell on secondary market
Term
non-conforming loan
Definition
Does not meet federal underwriting guidelines
Higher rates
Term
pre-qualification letter
Definition
letter from lender saying buyer will likely qualify for loan
Term
pre-approval letter
Definition
lender has applied for loan, it has been reviewed and pre-approved by underwriter.
Term
Housing for older persons act (1995)
Definition
exempted housing designated for seniors
Term
lead agency
Definition
the association that oversees an entire project and makes decisions relating to the environmental impact of a proposed action
Term
conditions, covenants, and restrictions (CC&R's)
Definition
The rules of an association, such as a homeowners association or cooperative
Term
condemnation
Definition
taking of property under eminent domain
Term
taking
Definition
gov't appropiation of property- may or may not use power of eminent domain
Term
incentive zoning
Definition
muncipality will allow an otherwise prohibited type of construction if developer will give them something back
Term
FAR- floor area ratio
Definition
total net floor divided by the total lot area
Term
plat map
Definition
map that shows the location of a piece of property in context to its adjourning lots, roads, and landmarks. includes lot street and block identifiers
Term
FAR- floor area ratio
Definition
total net floor divided by the total lot area
Term
plat map
Definition
map that shows the location of a piece of property in context to its adjourning lots, roads, and landmarks. includes lot street and block identifiers
Term
Interstate land sales full disclosure act

(5)
Definition
prevents fraudulent sale of property across state lines

land developers must register subdivisions of 100 or more non-exempt lots or condo lots

requires developers provide property disclosure report to buyers

gives buyers 7 days to rescind purchase after signing

regulated by CFPB
Term
SEQRA
(3)
Definition
State environmental quality review act

Gives states environmental control over private development

requires environmental impact be considered

overseen by department of environmental conservation
Term
Special use
Definition
use contrary to zoning ordinance
Term
variance
Definition
use or structure that would otherwise be prohibited (zoning) - Must demonstrate hardship
Term
what agency regulates public water and wells
Definition
Health department
Term
who regulates onsite wastewater (sewage/septic)
Definition
less than 1000 gallons a day - dept of health

more than 1000 gallons a day - DEC
Term
energy conservation construction code of new york - ECCCNY
Definition
Establishes minimum energy efficiency requirements for building envelopes (materials in buildings interior)in the design of new buildings or renovations
/additions to existing buildings
Term
warranty length for construction defect
Definition
1 yr
Term
warranty length for HVAC, plumbing, electrical
Definition
2 yrs
Term
warranty length for material defects
Definition
6 yrs
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