STUDY GUIDE FOR THE NY REAL ESTATE EXAM QUESTIONS WITH CORRECT ANSWERS

STUDY GUIDE FOR THE NY REAL ESTATE EXAM QUESTIONS WITH CORRECT ANSWERS Independent contractor must pay their own expenses. - Answer ️️ -According to IRS code section 3508[A, B], real estate agents are statutory non-employees and are therefore independent contractors. The code also states that there must be a written contract between the broker and the sales associate, also reviewed every 12-15 months · All records must be kept for 3 years · If sales associate not deemed independent then they will not be able to file "SCHEDULE C' of the federal return · The Independent Contractor Relationship Ø Salespersons are free to engage in outside employment Ø Either party may terminate the relationship at any time License Law & Regulations - Answer ️️ -The New York Department of State, Division of licensing Services is the regulatory agency that oversees and administers the licensure process. Most of the law pertaining to salespersons and brokers is contained in Article 12-A of the real property law. A real estate broker - Answer ️️ -is any person, partnership, association or corporation who, for another, and for compensation of any kind, negotiates any form of real estate transaction. Real estate brokers supervise and are responsible for the activities of associate brokers and salespersons in their employ. A salesperson or an associate broker - Answer ️️ -cannot operate independently. Although licensed, they must work under a licensed Real Estate Broker Duties That Require Licensure - Answer ️️ -* Selling or purchasing real estate at an auction *Negotiating the sale of a business for which the values of the real estate transferred is not merely incidental to the transaction (RE value is worth more than the business * Salespersons must be 18 years of age. * Brokers must be 20 years old with 2 years experience * Points for Broker License work as salesperson & 3500 points or 3 years and 5250 points. *Licenses are renewed every two{2} years Exemptions to Licensure - Answer ️️ -Building superintendents or maintenance workers who perform tasks such as rent collecting for one owner, company or entity. Classes of Licensure for Brokers - Answer ️️ -Ø Each officer of a corporation or member of a co-partnership must be licensed as a broker. Ø Salespersons licenses are not issued to officers of corporations or members of co-partnerships. Ø Salespersons and associate brokers may not be principals in the brokerage firm and may not own voting stock in the licensed brokerage corporation. License and Pocket Card - Answer ️️ -Ø Pocket Cards must be carried at all times and shown on demand. · Fees, Office Requirements, and Terms of Licensure Ø Brokers must pay $150.00 and Salespersons $50.00 for each term. Ø Additional licenses for each branch office cost $150.00. An apartment-sharing agent - Answer ️️ -is an individual who, for a fee, arranges and coordinates meetings between the current owners of real property, including apartment housing who wish to share their housing with others. A mortgage banker - Answer ️️ -is an individual or entity licensed by the New York Banking Department to engage in the business of making residential mortgage loans. Licensed and lends. Compensation and Fee Splitting - Answer ️️ -Ø Salespersons may not accept compensation except from their sponsoring brokers Ø If brokers improperly pay any part of compensation to anyone who is not licensed or who is not exempt from the license law, they are in violation of the license law, this payment is called a kickback. Lawsuits for Commissions - Answer ️️ -An unlicensed person, co-partnership or corporation cannot bring about a lawsuit to collect compensation for real estate s