Transcript Chapter 1
New York Real Estate for th Salespersons, 5 e By Marcia Darvin Spada Cengage Learning © 2013 All rights reserved. Chapter 1 License Law and Regulations 1 Chapter 1 License Law and Regulations © 2013 All rights reserved. Chapter 1 License Law and Regulations 2 Chapter 1 Key Terms Administrative discipline Continuing Education Apartment information Commingling vendor Escrow Apartment sharing agent Exemptions Appraiser Home inspector Article 12-A Listing agreement Article 78 proceeding Kickback Associated real estate broker Misdemeanor © 2013 All rights reserved. 3 Chapter 1 Key Terms (continued) Multiple listing service Sponsor Net listing Terminate Pocket card Termination of association Real estate broker/salesperson Suspension Violation Reciprocity Revocation © 2013 All rights reserved. 4 Categories of Licensure Broker Salesperson © 2013 All rights reserved. Associate broker Chapter 1 License Law and Regulations 5 Requirements for Salesperson Licensure 18 years old Citizenship; legally present Requirements English language 75 hrs of qualifying education Chapter 1 License Law and Regulations © 2013 All rights reserved. Certificate of relief if applicable 6 Broker Licensure Requirements Two year’s experience as a 120 hours of salesperson or three year’s equivalent experience 20 years old or older qualifying education Pass the NYS exam © 2013 All rights reserved. Chapter 1 License Law and Regulations 7 Registering for the Licensure Exam eAccessNY: http://www.dos.ny.gov/licensing/eaccessny.html © 2013 All rights reserved. Chapter 1 License Law and Regulations 8 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. Chapter 1 License Law and Regulations 9 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. © 2013 All rights reserved. Chapter 1 License Law and Regulations 10 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 © 2013 All rights reserved. Chapter 1 License Law and Regulations 11 Duties that Require Licensure Real estate transactions for others and for compensation, such as: Listing Selling Purchasing Negotiating Leasing and renting Auctioning Exchanging © 2013 All rights reserved. Chapter 1 License Law and Regulations 12 SALESPERSON AND BROKER APPLICATION Salesperson Application: Broker application: First, pass exam Submit hard copy application Most applications Include business organization submitted online Experience points Application fee: $150 First, pass exam Application fee: $50 © 2013 All rights reserved. Chapter 1 License Law and Regulations 13 The Broker Point System 14 © 2013 All rights reserved. Chapter 1 License Law and Regulations 14 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 © 2013 All rights reserved. Chapter 1 License Law and Regulations 15 Point System Experience o 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 © 2013 All rights reserved. . Chapter 1 License Law and Regulations 16 Licensure Requirements Broker, Associate broker Requirement Salesperson Pocket card License Must carry Kept by broker Must carry Kept by broker Education (Total hours) Experience 75 120 None 2 yr salesperson, 3 yrs equivalent Fee/term of license Continuing Ed $50/ 2 years $150/2 years 22.5 hrs every 2 yrs NY DOS 22.5 hrs every 2 yrs , unless exempt NY DOS Article 12-A, Rules and Regs Article 12-A Rules and Regs. Licensing agency License Law © 2013 All rights reserved. Chapter 1 License Law and Regulations 17 Maintaining the License All broker’s licenses must Professional liability be displayed and insurance - called errors salesperson’s licenses must and omissions be kept by the broker Branch offices must be supervised by the broker and managed by a broker or associate broker © 2013 All rights reserved. Chapter 1 License Law and Regulations 18 Office Requirements Change of address, status, name Branch office requirements Termination of Association License renewal Dual licensure © 2013 All rights reserved. Chapter 1 License Law and Regulations 19 Responsibilities of Sponsoring Brokers Brokerage firm records must be maintained for 3 years Written employment agreement between broker and salesperson © 2013 All rights reserved. Broker responsible for actions of licensee Brokers must supervise licensees Chapter 1 License Law and Regulations 20 Licensure Fees LICENSURE Salesperson license Associate broker/broker license Each broker branch office Exam fee Change of salesperson name Change of broker name or status Change of address Termination of association New association Duplicate license/pocket card © 2013 All rights reserved. Chapter 1 License Law and Regulations FEE $ 50 $150 $150 $ 15 $ 50 $150 $ 10 $ 10 $ 10 $ 10 21 Reciprocity New York has reciprocity with the following states: Arkansas Colorado Connecticut Georgia Massachusetts Mississippi Oklahoma Pennsylvania West Virginia © 2013 All rights reserved. Chapter 1 License Law and Regulations 22 Licenses related to Real Estate Apartment information vendor Apartment sharing agent Real estate appraiser Home inspector Mortgage broker Mortgage banker Mortgage loan originator © 2013 All rights reserved. Chapter 1 License Law and Regulations 23 NY State Real Estate Appraiser Licensure/Certification State Licensed Appraiser Assistant The appraiser assistant license requires no State Licensed Real Estate experience Appraiser State Certified Residential Appraiser State Certified General Appraiser © 2013 All rights reserved. Chapter 1 License Law and Regulations 24 Home Inspection Licensure 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 © 2013 All rights reserved. Chapter 1 License Law and Regulations 25 Violations of the License Law Conduct that Making false demonstrates untrustworthiness, incompetence Failure to provide clients with copies of listing agreement or contract of sale © 2013 All rights reserved. promises or misrepresentations Commingling the money or property of others Engaging in net listing agreements Publishing blind ads Chapter 1 License Law and Regulations 26 Accounting Practices for the Brokerage Firm Company dollar Trust or escrow Portion of revenue that account ends up belonging to the For all monies received brokerage firm from clients such as Commingling deposits and down Mixing the funds of others payments with the business of personal account © 2013 All rights reserved. Chapter 1 License Law and Regulations 27 What is wrong with these ads? Ad 1 2-Family, ½ acre lot $350,000 Call (609) 777-1234 Ad 3 3-story Colonial $450,000 Private professional community (201) 767-0234 Ad 2 Brownstone $4,000,000 Lydia Dupree, Liberty Park Brokerage (201) 777-4567 Ad 4 2 bedroom apt. for rent in upscale building $1,600/month No children or pets (973) 459-9999 Lucy Baynes Brokerage, Inc. © 2013 All rights reserved. Chapter 1 License Law and Regulations 28 Penalties for Violation of License Law NYS DOS Revoke license © 2013 All rights reserved. Suspend license Chapter 1 License Law and Regulations Refuse license 29 Seller Property Condition Disclosure Presented before buyer signs contract of sale May help protect licensees from liability © 2013 All rights reserved. Chapter 1 License Law and Regulations 30 What is a natural gas well? A natural gas well is a type of well that Three types: Oil wells is dug or drilled that yields or has yielded natural gas. © 2013 All rights reserved. Natural gas wells Condensate wells Chapter 1 License Law and Regulations 31 Dangers of Uncapped Wells Falling in Leakage of gas Combustion/Explosion © 2013 All rights reserved. Chapter 1 License Law and Regulations 32 Disclosure Requirements for uncapped natural gas wells Disclosure is made before buyer and seller enter into a contract of sale. Cost of capping should not be passed to new property owner Seller must disclose to buyer the existence of any uncapped natural gas wells on the property of which the seller has actual knowledge. © 2013 All rights reserved. Chapter 1 License Law and Regulations 33 The Well Head Mounted at the opening of the well to regulate and monitor the extraction of hydrocarbons from underground. Source: NETL – DOE Prevents leaking of oil or natural gas out of the well. Prevents blowouts due to high pressure formations. © 2013 All rights reserved. Chapter 1 License Law and Regulations 34 Stigmatized Property Disclosure Occupants 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 © 2013 All rights reserved. Chapter 1 License Law and Regulations 35