NY RE Broker key terms

New York's statutory framework, primarily Article 12-A of the Real Property Law, that governs who may broker real estate transactions, how licenses are issued, and what conduct is prohibited.

The New York state agency that administers real estate licensing, issues and renews licenses, investigates complaints, and imposes discipline on licensees through its Division of Licensing Services.

A person who holds a valid New York real estate broker or salesperson license and is therefore authorized to perform brokerage activities under the supervision rules that apply to that license type.

A person licensed to negotiate real estate transactions for others for compensation and to supervise licensed salespersons and associate brokers operating under the broker's authority.

A licensed broker who chooses to work under another broker rather than operate independently, and who may supervise salespersons only when the employing broker delegates that authority in writing.

A licensee who performs brokerage activities solely under the supervision of a licensed broker and cannot independently collect commissions or hold themselves out as a broker.

The heightened legal obligation a licensee owes a client, including loyalty, confidentiality, disclosure, obedience to lawful instructions, reasonable care, and accounting for funds.

The required written notice explaining to a consumer, at the first substantive contact, which party the licensee represents and how that representation affects the consumer's rights.

A situation in which one broker represents both buyer and seller, or both landlord and tenant, in the same transaction, requiring full written disclosure and informed consent from both parties.

A party's agreement to a brokerage arrangement given after receiving a clear written explanation of the material facts and risks, including any conflict of interest the licensee has.

Illegally mixing client money, such as a deposit or rent payment, with the broker's own business or personal funds instead of holding it in a separate escrow account.

The unauthorized use or misappropriation of money or property entrusted to a licensee, such as spending a client's escrow deposit for personal or business expenses.

A separate bank account a broker maintains for the safekeeping of funds belonging to clients or other parties until the transaction closes or the funds are properly disbursed.

The most severe disciplinary penalty the Department of State can impose, permanently canceling a license and requiring the former licensee to apply anew for any future license.

A disciplinary penalty that temporarily withdraws a licensee's authority to practice, after which the license may be reinstated if the licensee satisfies the conditions the Department of State sets.

The federal law, enforced by HUD, that prohibits discrimination in the sale, rental, and financing of housing based on protected characteristics and also governs advertising and brokerage practices.

New York's civil rights statute, administered by the Division of Human Rights, which prohibits housing discrimination on state-protected grounds that are broader than the federal list.

A group of people singled out by law for protection from discrimination in housing; the exact list differs between federal and New York law, so licensees must follow the broader state list.

Directing or limiting a buyer or renter toward or away from particular neighborhoods based on protected characteristics, rather than letting the customer choose freely among available properties.

Inducing homeowners to sell by suggesting that members of a protected class are moving into the neighborhood and that property values will fall as a result.

Refusing or restricting real estate services, loans, or insurance in specific geographic areas, typically minority neighborhoods, regardless of an individual applicant's qualifications.

A change in rules, policies, practices, or services, or a structural modification, that allows a person with a disability equal opportunity to use and enjoy a dwelling.

Unwelcome sexual conduct in a housing context, such as by a landlord, property manager, or broker, that creates a hostile environment or is tied to housing decisions; it is a form of sex discrimination.

Any listing or marketing material that states a preference, limitation, or exclusion based on a protected class, or that uses words or images with that effect, whether intentional or not.

Regulations requiring real estate advertising to be truthful, non-discriminatory, and to identify the licensed broker or brokerage firm responsible for the advertisement.

A brand used by a group of licensees within a brokerage; the team name must be registered with the Department of State and shown together with the brokerage's licensed name in advertising.

Marketing conducted online, including websites and social media, which is subject to the same truthfulness, disclosure, and fair housing rules as print advertising.

Written policies a brokerage must maintain and make publicly available describing how it handles prospective clients, including requirements for identification and exclusivity agreements before showing properties.

A written contract between a buyer and a broker setting out the scope of representation, the term, and how compensation is earned and paid.

The education a candidate must complete before taking the broker or salesperson exam, covering topics such as license law, contracts, finance, and fair housing as set by the state curriculum.

Ongoing coursework licensees must complete within each renewal cycle, including required fair housing and agency topics, to keep their licenses active.

The minimum period of active, licensed experience, typically as a salesperson, that an applicant must document before qualifying for a broker license examination.

The periodic process by which a licensee submits an application and fee, and certifies completion of required education, to keep the license in force for the next term.

A secondary business location of a licensed brokerage that must be registered with the Department of State and placed under the supervision of a licensed broker.

The licensed broker responsible for day-to-day supervision of a real estate office, ensuring licensees comply with license law and brokerage policy.

A broker's legal duty to oversee the licensed and unlicensed personnel in the office, review their conduct and advertising, and ensure compliance with license law and fair housing requirements.

A non-licensed employee who may perform clerical and administrative tasks but may not negotiate, show properties, or otherwise perform activities that require a real estate license.

The tax and employment arrangement under which many salespersons work for a broker, which affects withholding and expenses but does not remove the broker's supervisory obligations under license law.

The formal administrative proceeding before the Department of State at which evidence of alleged license law violations is presented and a penalty such as suspension or revocation may be decided.