REAL ESTATE BROKER
SCOPE OF SYLLABUS
1. THE BROKER'S OFFICE-OPERATION, MANAGEMENT AND SUPERVISION - 10 HOURS
2. REAL ESTATE AGENCY DISCLOSURE (REVIEW) - 4 HOURS
3. REAL ESTATE FINANCE II - 5 HOURS
4. REAL ESTATE INVESTMENTS - 5 HOURS
5. GENERAL BUSINESS LAW - 5 HOURS
6. CONSTRUCTION & DEVELOPMENT - 4 HOURS
7. CONVEYANCE OF REAL PROPERTY & TITLE CLOSING & COSTS REVIEW) - 3 HOURS
8. REAL ESTATE PROPERTY MANAGEMENT - 5 HOURS
9. TAXES AND ASSESSMENTS - 2 HOURS
10. LOCAL CONCERNS - 2 HOURS
- Cease & Desist regulations
- Non-solicitation orders
- Illegal entities/conversions
- rent regulations (rent control, rent stabilization)
- farm land
- sign ordinances
- waterfront property
- environment problems in an area
Program coordinators are not limited to the above.
They must submit an outline and learning objectives for the two hours. TOTAL 45 HOURS
THE BROKER'S OFFICE - OPERATION, MANAGEMENT AND SUPERVISION (10 HOURS)
1. WHO NEEDS A LICENSE AND WHY? - STRESS THE RESPONSIBILITY OF MANAGEMENT
A. All agents, mortgage brokers, property managers, etc. Also attorneys who sponsor agents and auctioneers.
B. Additional licensing and/or registration
2. OBTAINING A LICENSE - REVIEW OF LICENSE LAW
B. Licensed real estate brokers - corporate officers, owners, partners, etc.
C. Licensed Associate Brokers
3. MAINTAINING LICENSE
A. Salespersons and Licensed Broker Associates
B. Responsibility of Brokers
C. Licensure renewal and continuing education
D. Format of approved courses
E. Department of State regulations
F. Liabilities and penalties
4. ORGANIZATION OF BROKER'S OFFICE
D. Business names and trade names
5. ANTI-TRUST LAW SECTION
A. Three elements required
B. What are Anti-Trust Laws
C. Legislative Action
D. Liability under the law
E. The right of the public to sue (Class Action lawsuits)
6. RULE OF REASON VS. PER SE ILLEGALITY
A. Price fixing
B. Group boycott
C. Market allocation
D. Tie-in arrangements
7. ANTI-TRUST LAWS FIND THE REAL ESTATE BROKERAGE INDUSTRY
A. Intra-state vs. Interstate Commerce (United States vs. National Association of Real Estate Boards (399 U.S. 485 (1950) "The concept of trade as used in the phrase restraint of trade encompasses the real estate brokerage business."
B. Schedules of fixed or mandatory real estate commission or fees established by real estate boards violate the Sherman Anti-Trust Act.
C. Anti-Trust crisis of the 1970's
D. Real Estate and Anti-Trust Law - What is permissible and what is not?
8. INDEPENDENT CONTRACTOR VS. EMPLOYEE
A. The nature of the Independent Contractor Relationship
B. Independent Contractor vs. Employee
C. Common Law
D. 1986 Independent Contractor Laws - New York State
E. Compliance with 1986 law
F. Elements of Independent Contractor Relationship
G. Both Federal and State Law requires a Written Contract
H. Consequences of Non-Compliance
I. Review of recommended forms
J. Substance over form - written documentation will not overcome Broker's direction and control of salesperson
K. Balancing the need to supervise
L. Department of State Regulation 175.21 - Supervision of salesperson by a broker
M. Department of State Regulation 175.23 - Records of transaction to be maintained
N. Implications for the future - will licensees become employees?
9. MULTIPLE LISTING SERVICES (Benefits/Disadvantages)
10. INTERACTION WITH OTHER BROKERAGE FIRMS
A. Sharing commissions
B. Relocation companies
C. Relocation management companies
D. Non-Resident licensees
REAL ESTATE AGENCY DISCLOSURE (4 HOURS)
1. THE REAL ESTATE AGENT
Who is the agent
Client or customer
The role of a salesperson
2. THE CREATION OF AGENCY
3. AGENCY ALTERNATIVES
4. VICARIOUS LIABILITY
5. LIST AGREEMENTS
Exclusive right to sell
Exclusive right to rent
Release from agreements
6. AGENCY DISCLOSURE
Section 443 of the Real Property Law
How to explain the Agency Disclosure documents
Agency Disclosure Form prior to January 1, 2011
Agency Disclosure form effective January 1, 2011
7. COMPLETING THE SIGNATURE PAGE
When is the first substantive meeting?
Have you made your role clear?
Refusal to sign
REAL ESTATE FINANCE II (5 HOURS)
1. THE MORTGAGE
A. The mortgage is the basis of all real estate financing in New York State
B. A discussion of the mortgage origin, requirements, and types
C. The one family home mortgage
D. The commercial mortgage
2. SPECIAL TYPES OF MORTGAGES
A. Purchase money mortgage
B. The gap mortgage
C. The wraparound mortgage
D. Subordinate mortgage
E. Convertible mortgage - converting mortgage to equity
F. The home equity loan as a second mortgage or as a first mortgage
3. CONSTRUCTION LOANS
A. The hardest loan to underwrite
B. The structured payback and inspection to guarantee a good product
C. Release land sub-division financing
4. SALES LEASEBACK - LEASE FINANCING
A. A discussion of the lease as a form of financing property
B. Desire to retain land
C. Leases (major obligations of corporation)
D. The subordinate lease
E. The long-term lease as a way of controlling property without buying it
5. FHA FINANCING
A. The development, history, and use of GNMA
B. Mortgage money for a one family home in a capital short mortgage
C. How to secure FHA financing
6. ECONOMY AND HOW IT AFFECTS THE REAL ESTATE MARKET
B. Interest rates/indices
C. Stock market
E. Affordability /Buyers
7. KEY TERMS BROKERS MUST UNDERSTAND TO PREDICT AND PREPARE FOR REAL ESTATE CYCLES
8. UPDATE OF LENDING POLICIES
A. Non-income verification loans
B. LTV (loan to value)
F. Commercial property
H. Programs for first-time home buyers
I. Time it takes to process loans and how it affects buyers and sellers
BASIC FUNDAMENTALS OF REAL ESTATE INVESTMENTS (5 HOURS)
A. Background of industry
B. Fundamentals of investments
C. Statistical data
2. INVESTMENT ANALYSIS
A. Knowledge of operating statements
B. Current rent roll
C. Pro-forma schedule
3. INVESTMENT STRATEGY
A. Ownership planning
B. Holdings period planning
C. Property disposition and timing planning
D. Available financing
4. PROPERTY TYPE SELECTION
A. Land acquisition and banking
B. Retail: strip, community, neighborhood and regional malls
C. Office - urban or suburban
D. Apartment - rentals
E. Mix - developments
5. ANALYSIS PROFILE
A. Risk/return analysis
D. Rate of return
E. Portfolio development and securitization
F. Sensitivity analysis
G. Special risks
H. Special financing
6. TAX CONSIDERATIONS
A. Pre-tax cash flow
B. After tax cash flow
C. Cash flow shelter
D. Property exchange
GENERAL BUSINESS LAW (5 HOURS)
1. SOURCES OF LAW
A. U.S. Constitution
B. State Constitution
C. Federal Laws
D. State Laws
E. Local Ordinances
F. Court Decisions
2. UNIFORM COMMERCIAL CODE
3. NEGOTIABLE INSTRUMENTS
D. Certificates of Deposit
4. BUSINESS ORGANIZATIONS
B. Limited Partnership
- General Partnership
- Limited Partnership
- termination and dissolution
D. Limited Liability Corporation
Limited Liability Partnership
5. REAL ESTATE INVESTMENT TRUSTS
6. PUBLIC/PRIVATE OFFERINGS
7. FEDERAL COURT SYSTEM
U.S. Court of Appeals
8. NEW YORK COURT SYSTEM
Court of Appeals
Court of Claims
Small Claims Court
Small Claims (Taxation)
City, Town, Village
9. SUBSTANTIVE AND PROCEDURAL LAW
A. Law of Agency
B. Real Property Law
C. Administrative Law
D. Commercial Law
E. Constitutional Law
F. Law of Contracts
G. Corporation Law
H. Criminal Law
I. Personal Property Law
K. Trusts & Wills
L. Torts - Civil Law
M. Civil Procedures
10. DISPUTE RESOLUTION
A. Federal Proceedings
B. Automatic Stay
D. Bankruptcy Trustees
E. Secured Creditor and Unsecured
F. Claims not Discharged
G. Discharge and dismissal
A. Administered by
13. ESTATES AND GIFT TAXES
A. Federal Government
B. New York State
A. Marital Property
B. Marital Litigation
15. STATUTE OF LIMITATIONS
A. Contracts (commissions)
B. Mechanics Lien
CONSTRUCTION & DEVELOPMENT (4 HOURS)
1. CONSTRUCTION STANDARDS
How do each affect real estate transactions and pre-contract building and environmental inspections?
2. LAND USE
A. Building permits
B. Site plan
E. Types of Zoning
- PUD-mixed use
- exclusionary zoning
- non conforming use
- spot zoning
- historic preservation districts
F. Transfer of development rights
G. Eminent domain and regulatory taking
H. Environmental Issues
3. BUILDING INSPECTIONS AND DISCLOSURE LAWS
A. Building inspections:
B. Building inspections for sellers:
C. Disclosure laws/regulations;
D. Why investigations by real estate brokers prior to listing of properties are important.
- foundation cracks and types
B. Determination of use
C. What determines the value of land?
D. Planning board
E. Zoning Board of Appeals
5. DEVELOPMENT PROCESS
A. market study
C. environmental review
6. COSTS, FINANCING, AND ACQUISITION OF A SUBDIVISION
A. municipal fees
B. completion bonds
C. development costs
D. mortgage, construction loan
E. owner participation
F. lot release provision
G. Structuring the acquisition and financing
- is it a purchase money mortgage?
- is it subordination?
- is there a lot release provision?
H. Costs of approval
7. RESTRICTIVE COVENANTS
8. DEVELOPMENT AND PURCHASE OF CONDOMINIUMS AND COOPERATIVES
A. Requirements of filing an offering plan with the attorney general
B. Requirements of offering plan/prospectus
C. Purchasing a condominium
D. The elements of a condominium
E. The cooperative lease
F. Financing the purchase of a cooperative
G. Awareness of liabilities, building debt, taxes and maintenance charges on the cooperative building.
CONVEYANCE OF REAL PROPERTY & TITLE CLOSING & COSTS (REVIEW) (3 HOURS)
1. WHAT IS BEING CONVEYED? (TITLE)
A. What is title and what does it encompass?
B. "Bundle of Rights"
2. HOW IS TITLE CONVEYED DURING GRANTOR'S LIFE?
C. Partition - definition, result affecting title to property, who can start such an action
D. Adverse possession - definition, common law justification, requirements and procedure
3. HOW CAN PROPERTY BE CONVEYED AFTER DEATH?
A. By use of a will (voluntarily)
B. If no will - by way of the Laws of Intestacy
C. Procedures in conveyance
D. Rights of those to whom real property is devised via the Will
4. HOW IS REAL PROPERTY CONVEYED WITHOUT A WILL?
A. Laws of intestacy
B. How these Laws differ from a Will
C. Who would receive the property under these rules/laws of intestacy?
D. How does it happen? (e.g.) how is the real property conveyed when there is no Will?
E. The procedures of an administration
5. TITLE CLOSING AND COSTS (FROM SALES COURSE)
A. Significance of the closing: what is a title closing and why is it important to those who attend?
B. Functions of those who will attend a closing, the importance of recording acts and what will be done at the closing.
THE TITLE CLOSING
A. Consummation of a real estate transaction
B. The seller is paid the balance of the purchase price
C. Existing liens against the real property are satisfied
D. The purchaser normally will pay the balance of the purchase price through a combination of funds obtained through an acquisition mortgage and the purchaser's own funds.
E. Significance of:
F. Where closing are held?
G. A broker or salesperson's role prior to closing involves inspection of the property with the purchaser
H. Payment of the commission
I. Homeowner's insurance
K. Closing statement
CLOSING COSTS AND ADJUSTMENTS
A. Seller's closing costs
B. Purchaser's closing costs
REAL ESTATE PROPERTY MANAGEMENT (5 HOURS)
A. What is property management?
B. What are the functions of a property manager?
C. What types of property are managed?
D. When is a license required?
2. THE MANAGEMENT AGREEMENT
A. The management agreement creates an agency
B. Property manager becomes a general agent and as such owes loyalty to the owner
C. The management agreement is a contract and should be in writing, as well as signed and contain some or all of the following:
3. SKILLS REQUIRED OF A PROPERTY MANAGER
A property manager must be able to:
4. DIFFERENCES BETWEEN MARKETS
A. Office building management
B. Retail management
C. Residential management
D. Condominium and cooperatives
E. Management office operations
5. OBLIGATIONS TO OWNER
B. Maintenance criteria
C. Future of the project
6. THE MANAGEMENT FIELD
A. How does one become a property manager?
B. Education and designation
TAXES & ASSESSMENTS (2 HOURS)
A. What property is subject to assessment?
B. What assessable property is subject to taxation?
A. By whom made?
B. As of when?
C. How made?
D. Assessment standards - evidence
3. PROTESTING ASSESSMENTS
A. to whom?
D. by whom?
E. small claims protects for homeowner - occupants
4. SPECIAL IMPROVEMENT ASSESSMENTS
A. for what?
B. against whom?
5. TAX RATE FIXATION
B. who sets the rate - how?
C. multiple tax districts - billing
B. in REM tax sale
C. personal liability
LOCAL CONCERNS (2 HOURS)
Cease and desist regulations
rent regulations (rent control, rent stabilization)
Program coordinators are not limited to the above local concerns. An outline and learning objectives must be submitted for this two hour subject.