License Law is the single most tested topic on the NY Real Estate Exam. You need to know the requirements for getting, keeping, and losing a license under RPL Article 12-A.
To get a NY salesperson license: be at least 18, complete 75 hours of approved education, pass the state exam, and be sponsored by a licensed broker. For a broker license: be at least 20, complete an additional 45 hours, have 2 years of salesperson experience (or 3 years of equivalent experience), and pass the broker exam.
Commingling is mixing client funds with personal or business funds. Even briefly depositing a client check into a personal account is commingling. Conversion is actually using client funds for personal purposes. Both are violations, but conversion is the more serious offense.
Licenses are valid for 2 years. Renewal requires 22.5 hours of continuing education, including 3 hours of fair housing, 2 hours of agency, 1 hour of ethics, and 2 hours of legal matters. Failure to renew on time means the license lapses.
A license can be suspended or revoked for: commingling, conversion, untrustworthiness, incompetence, fraud, demonstrating bad faith, or advertising without the owner's consent. The DOS can also impose fines up to $1,000 per violation.
1. A person helps their neighbor sell a home, handles all negotiations, and the deal closes. They had no real estate license. Can they collect a commission?
In New York, acting as a real estate broker without a license means no right to collect a commission. No exceptions, regardless of the services performed or any written agreement.
2. A NY real estate salesperson license is valid for how long?
Both salesperson and broker licenses in NY are issued for a 2-year term and must be renewed every two years, with 22.5 hours of continuing education.
3. How many hours of qualifying education are required to obtain a NY real estate salesperson license?
NY requires 75 hours of approved qualifying education for a salesperson license. The broker license requires an additional 45 hours, plus 2 years of salesperson experience.
Broker
A licensed individual or firm authorized to operate a real estate business and employ salespersons.
Commingling
The illegal mixing of a client's funds with a broker's personal or business funds.
Commission
The fee paid to a real estate broker for services in a transaction, typically a percentage of the sale price.
Conversion
The illegal act of a broker using a client's entrusted funds for personal purposes.
Escrow
A neutral third-party arrangement where funds or documents are held until conditions of a real estate transaction are met.
Salesperson License
The entry-level NY real estate license, allowing the holder to perform brokerage activities under a sponsoring broker's supervision.
Trust Account
A separate bank account where a broker holds client funds, keeping them segregated from the broker's personal or business money.
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