New York Real Estate Study Guide 2026 — Free Cheat Sheet

Under §440(1), a real estate broker is any person, firm, LLC or corporation who, for another and for a fee/commission/valuable consideration, lists, sells, exchanges, buys or rents real estate, negotiates or offers to negotiate such transactions, collects rent, negotiates non-residential mortgage loans, engages in tenant relocation, or handles resale of condominium property. 'Interest in real estate' includes the sale of a business where the real estate value is not merely incidental, but excludes lease assignments and securities-regulated transactions.

• ✓A broker acts 'for another and for a fee, commission or other valuable consideration'
• ✓Interest in real estate includes sale of a business where real estate value is not merely incidental to the transaction
• ✓Lease assignments and securities-regulated sales are excluded from broker activity

An associate real estate broker (§440(2)) is a licensed broker who elects to work under the name and supervision of another individual broker or firm. Although they retain a broker's license, their practice as an associate broker is governed exclusively by the provisions applying to salespersons. They may also separately retain their own broker's license.

• ✓An associate broker holds a broker's license but works under another broker's supervision
• ✓Their sales/brokerage practice is governed by the rules pertaining to salespersons
• ✓They may separately retain their own broker's license

A salesperson (§440(3)) is a person associated with a licensed broker to list, sell, buy, negotiate purchases/sales/exchanges of real estate, negotiate non-mortgage loans, lease/rent, or collect rent on behalf of the broker. A salesperson must always act for and on behalf of their sponsoring broker.

• ✓A salesperson must be associated with a licensed broker
• ✓A salesperson performs licensed activities only on behalf of their broker

Under §440-a, no person or entity may act as a real estate broker or salesperson in New York without first procuring a license. A broker applicant must be at least 20 years old; a salesperson applicant must be over 18 years old. A conviction of a crime does not automatically bar licensure unless the Secretary makes a finding (under Correction Law Article 23-A) that the conviction bars licensure. Tenant associations and certain NYC not-for-profits managing city-owned residential property are exempt.

• ✓Broker applicants must be at least 20 years of age; salesperson applicants must be over 18
• ✓No license unless first procured as provided in the article
• ✓A criminal conviction is not an automatic bar—Secretary must make a finding under Correction Law Article 23-A

Under §441(1)(b), a broker applicant must pass a written exam and complete at least 152 hours of an approved real estate course, including fair housing, discrimination, and cultural competency instruction. The applicant must also have either (a) actively participated as a licensed salesperson under a broker for at least 2 years, or (b) equivalent general real estate experience for at least 3 years. Up to 77 hours of prior salesperson coursework may be credited if completed within 8 years.

• ✓Broker applicants must complete at least 152 hours of approved real estate courses
• ✓Must have 2 years' experience as a licensed salesperson OR 3 years' equivalent real estate experience
• ✓Course must include fair housing, discrimination, and cultural competency instruction

Under §441(1-A)(d), no salesperson's license is issued unless the applicant completed at least 77 hours of an approved real estate course and passed the written examination. The exam tests knowledge of contracts, real property, agency, this article, fair housing/discrimination laws, ethics, and the general obligations law.

• ✓Salesperson applicants must complete at least 77 hours of approved real estate courses
• ✓Must pass a written examination covering contracts, real property, agency, fair housing and ethics

Under §441(3), no renewal is issued unless the licensee completed at least 22.5 hours of approved continuing education within the two years preceding renewal, including at least 2 hours cultural competency, 3 hours fair housing/discrimination, 2 hours implicit bias, 2.5 hours ethical business practices, 1 hour recent legal matters, and 1 hour law of agency (2 hours agency for the initial licensing term).

• ✓At least 22.5 hours of continuing education required every two years for renewal
• ✓Must include 3 hours fair housing/discrimination, 2 hours implicit bias, 2 hours cultural competency
• ✓Initial-term salespersons must complete 2 hours of agency instruction (vs. 1 hour otherwise)

Under §441-c(1)(a), the DOS may revoke or suspend a license, impose a fine up to $2,000, or issue a reprimand for: violating any provision of the article, material misstatement in the application, fraud or fraudulent practices, dishonest or misleading advertising, demonstrated untrustworthiness or incompetency, or violating Executive Law Article 15 (Human Rights Law) as a licensee. Tenant relocators disturbing tenants' quiet enjoyment are deemed untrustworthy/incompetent.

• ✓DOS may revoke/suspend a license or impose a fine up to $2,000 for violations, fraud, misleading advertising, or untrustworthiness
• ✓Violation of Human Rights Law (Executive Law Article 15) as a licensee is grounds for discipline
• ✓50% of fines are deposited into the anti-discrimination in housing fund

Under §442, a broker may only pay a portion of a commission to a duly licensed salesperson regularly associated with that broker, a duly licensed broker, or a person regularly engaged in real estate brokerage in another state. A broker may not pay a commission to any unlicensed person who is or is to be a party to the transaction, but may offer part of a commission to the seller/buyer/landlord/tenant provided they perform no activity requiring a license.

• ✓A broker may only split commissions with its own associated salespersons, other licensed brokers, or out-of-state brokers
• ✓A broker may not pay a commission to an unlicensed party to the transaction
• ✓A broker may rebate part of a commission to a principal who performs no licensed activity

Under §442-a, a salesperson may only receive or demand compensation from the duly licensed broker with whom they are associated—never directly from a buyer, seller, or other party—for any real estate service rendered.

• ✓A salesperson may only be paid by their own associated broker
• ✓A salesperson may not receive compensation directly from a buyer, seller, or other party

Under §442-d, no person or entity may bring an action in a New York court to recover compensation for real estate services without alleging and proving they were a duly licensed broker or salesperson on the date the cause of action arose.

• ✓Only a duly licensed broker/salesperson may sue to recover a real estate commission
• ✓Licensure must have existed on the date the cause of action arose

Under §442-h, after a hearing and investigation, the Secretary of State may issue a nonsolicitation order barring solicitation in a defined area subject to blockbusting-type solicitation, effective up to five years. Alternatively, a cease-and-desist zone allows owners to file statements barring solicitation of their property; licensees may not solicit listings from owners on the current cease-and-desist list. Both tools address discriminatory solicitation and blockbusting.

• ✓A nonsolicitation order bars all solicitation in a defined area for up to five years
• ✓Licensees may not solicit owners who have filed statements on a cease-and-desist list
• ✓These tools combat blockbusting/discriminatory solicitation

Under §443(1), agency relationships are defined: seller's/landlord's agent (represents seller/landlord), buyer's/tenant's agent (represents buyer/tenant), dual agent (represents both parties in the same transaction), designated sales agent (a salesperson/associate broker assigned to represent one client when the broker also represents the other), and broker's agent (cooperates with but does not work for the same firm as the listing/buyer/tenant agent). This section applies only to residential real property (1-4 family, condo, or co-op).

• ✓A dual agent represents both sides in the same transaction and cannot provide full fiduciary duties
• ✓Designated sales agents work under one broker to represent opposing clients separately
• ✓Section 443 applies only to residential real property (1-4 family dwellings, condos, co-ops)

Under §443(3), a listing agent must provide the disclosure form to a seller/landlord before entering into a listing agreement. A seller's/landlord's agent must provide it to a buyer/tenant at first substantive contact. A buyer's/tenant's agent must provide it to their client before an agency agreement and to the other side at first substantive contact. A signed acknowledgment must be obtained; if refused, the agent files a written declaration under oath. Records must be kept for at least three years.

• ✓Listing agent provides the disclosure form before entering a listing agreement
• ✓Buyer's/seller's agent provides it to the other side at first substantive contact
• ✓If a party refuses to sign, the agent files a sworn written declaration; records kept 3 years

A broker may represent both buyer and seller (or landlord and tenant) only with both parties' informed written consent. In dual agency, the agent cannot provide the full range of fiduciary duties, and consenting parties give up their right to undivided loyalty. Advance informed consent to dual agency (or dual agency with designated sales agents) may be indicated on the disclosure form.

• ✓Dual agency requires informed written consent from both principals
• ✓A dual agent cannot provide undivided loyalty or the full range of fiduciary duties
• ✓Advance informed consent may be given on the disclosure form

A seller's, buyer's, landlord's, or tenant's agent owes the client, without limitation, the fiduciary duties of reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and duty to account. In dealings with the other party, the agent must exercise reasonable skill and care, deal honestly and in good faith, and disclose material facts affecting value/desirability (or ability/willingness to perform).

• ✓Agents owe clients reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and accounting
• ✓Agents must deal honestly and in good faith with the opposing party and disclose material facts affecting value

Under §443-a, it is not a material defect that an owner/occupant is or was suspected of being infected with HIV/AIDS or another disease unlikely to be transmitted through occupancy, or that the property was the site of a homicide, suicide, death, or felony. No cause of action arises against an owner/occupant or agent for failing to disclose these facts, and such failure is not grounds for disciplinary action. This section preempts inconsistent local laws.

• ✓HIV/AIDS status of an occupant and a property's history as a homicide/suicide/death/felony site are NOT material defects
• ✓No liability or discipline arises from failing to disclose these stigmatizing facts
• ✓A buyer may submit a written inquiry, but the seller may choose whether to respond; §443-a preempts inconsistent local law

An office manager (§440(6)) is a licensed associate broker who elects to work as an office manager under another broker's name and supervision. The associate broker must have been active for at least two of the four years preceding appointment. The office manager must exercise the same duty of supervision over salespersons and associate brokers as a licensed broker.

• ✓Must have been active as a licensed associate broker for at least 2 of the 4 years preceding appointment
• ✓Must exercise the same supervisory duty over salespersons/associate brokers as a broker

Under §441-a(7), a license is issued or reissued for a two-year term. A renewal period is two years from expiration. Applicants who do not renew within that period may be required to pass the written exam again. Persons who failed to renew due to military induction/enlistment are exempt from re-examination.

• ✓Licenses are issued for a two-year term
• ✓Failure to renew within the renewal period may require passing the written exam again
• ✓Military induction/enlistment excuses the re-examination requirement

Under §441-a(3), each licensed broker must maintain a definite place of business within New York and post a conspicuous sign readable from the sidewalk showing their name and business as a licensed broker. Each additional/branch office requires a supplemental license (with fee) and must be under the direct supervision of the broker, a representative broker, an LLC manager, or a duly appointed office manager. A broker's principal residence is not a place of business solely because a residence phone number appears on business cards.

• ✓Each broker must maintain a definite place of business in NY with a conspicuous exterior sign
• ✓Each branch office requires a supplemental license and direct broker supervision
• ✓Broker's license must be conspicuously displayed at the principal place of business

Under §441-a(5), a broker must notify the Department of State in writing of any change in principal business address for themselves and each associated salesperson, with a $10 fee per licensee. Failure to notify suspends the license until vacated. Under §441-a(11), when a salesperson leaves a broker, the broker must file a termination of association notice, and the license may be endorsed to a new sponsoring broker upon a new record of association ($20 fee).

• ✓Broker must notify DOS in writing of any change in principal business address or license is suspended
• ✓When a salesperson leaves, the broker must file a termination of association notice
• ✓Salesperson's license may be endorsed to a new sponsoring broker upon a new record of association

Under §441-b(2), a corporate license entitles the president or a designated officer to act as broker; each additional officer wishing to act needs a separate license. A partnership license entitles one member; each additional member needs a separate license. An LLC license entitles one member or manager; additional members/managers need separate licenses. No salesperson license may be issued to an officer, LLC member/manager, or partner of a licensed brokerage entity.

• ✓Corporate/partnership/LLC licenses cover one representative; each additional acting officer/member needs a separate license
• ✓No salesperson license may be issued to an officer, partner, or LLC member/manager of a licensed brokerage

Under §441-c(2), upon revocation/suspension, all licenses and pocket cards must be returned to DOS within five days, or an affidavit of loss/destruction filed. Displaying a revoked/suspended license is prohibited (§441-c(3)). Under §441-c(4), a person whose license is revoked is ineligible for relicensure as a broker or salesperson for one year from the date of revocation.

• ✓Licenses and pocket cards must be returned to DOS within 5 days of revocation/suspension
• ✓A revoked licensee is ineligible for relicensure for one year from the revocation date
• ✓Displaying a revoked or suspended license is prohibited

Under §441-d, revocation or suspension of a broker's license operates to suspend the license of each salesperson associated with that broker, pending a change of association or the end of the broker's suspension. This suspension is deemed a discontinuance of the salesperson's association.

• ✓Revocation/suspension of a broker's license automatically suspends associated salespersons' licenses
• ✓The salesperson's suspension is deemed a discontinuance of association with the broker

Under §441-e, DOS must notify an applicant in writing of the reasons before finally denying a license and afford an opportunity to be heard. If the applicant fails to request a hearing within 30 days, the denial notice becomes final. Before revocation/suspension/fine, DOS must give at least 10 days' written notice of charges and an opportunity to be heard. Judicial review is available under Article 78 of the CPLR (§441-f).

• ✓DOS must give written notice and a hearing opportunity before denying a license
• ✓Failure to request a hearing within 30 days makes the denial final
• ✓At least 10 days' notice of charges is required before revocation/suspension/fine; review is via CPLR Article 78

Under §442-c, a salesperson's violation is not cause for revoking/suspending the broker's license unless the broker had actual knowledge or retained the benefits/proceeds after notice of the misconduct. A broker is guilty of a misdemeanor for having an unlicensed person associated who lacks the required license.

• ✓A broker is disciplined for a salesperson's violation only if the broker had actual knowledge or retained the proceeds after notice
• ✓A broker commits a misdemeanor for employing an unlicensed person requiring a license

Under §442-e, any violation of the article is a misdemeanor; a single prohibited act constitutes a violation, prosecuted by the Attorney General. A person aggrieved may recover a penalty of not less than the commission received and up to four times that sum. Performing any §440 act for another is presumed to be for a fee, except that the presumption does not arise from a single transaction absent repeated acts.

• ✓Any violation of the article is a misdemeanor, prosecuted by the Attorney General
• ✓An aggrieved person may recover from 1x up to 4x the commission received
• ✓Unlicensed §442-h violations may draw fines of $150 (1st), $500 (2nd), $1,000 (3rd+)

Under §442-f, the article does not apply to receivers, referees, administrators, executors, guardians or others acting under court order, public officers performing official duties, or attorneys at law.

• ✓Court-appointed fiduciaries acting under court order are exempt from licensing
• ✓Attorneys at law and public officers performing official duties are exempt

Under §442-l, no broker or salesperson may demand or receive a referral fee for finding a seller after a listing agreement is signed, finding a buyer after an offer is accepted, or finding a property after a buyer's agency agreement is signed, unless reasonable cause exists. A violation is also a deceptive act under GBL §349.

• ✓No referral fee may be collected after a listing, accepted offer, or buyer's agency agreement, absent reasonable cause
• ✓Violation constitutes a deceptive act or practice under General Business Law §349

A broker's agent cooperates with but does not work for the same firm as the listing/buyer/tenant agent, and has no direct relationship with the principal. The seller/buyer/landlord/tenant therefore has no vicarious liability for the broker's agent's acts; instead, the listing/buyer/tenant agent who directs the broker's agent bears that liability.

• ✓A broker's agent has no direct relationship with the principal, who bears no vicarious liability for its acts
• ✓The listing/buyer/tenant agent directing the broker's agent bears liability for the broker's agent's acts

Under §441-a(8), a license issued to a broker who was the sole proprietor of a brokerage may be used after death by the duly appointed administrator/executor in the estate's name for up to 120 days (extendable for good cause an additional 120 days) to complete unfinished transactions in negotiation prior to death. The license is endorsed 'deceased' with the date and the representative's name.

• ✓A sole proprietor broker's license may be used by an executor/administrator for up to 120 days after death
• ✓The period may be extended an additional 120 days for good cause
• ✓The license is used only to complete transactions already in negotiation before death

Under §441-c(1)(b), a broker/salesperson who fails to comply with a child support summons/subpoena/warrant or is in arrears may have their license suspended following a hearing whose sole issue is whether arrears have been paid. Suspension is not lifted until the court or support collection unit certifies full payment.

• ✓License may be suspended for child support arrears after a hearing on payment status
• ✓The only issue at the hearing is whether arrears have been paid
• ✓Suspension is not lifted until full payment is certified by the court/support collection unit

When a broker represents both landlord and tenant (or buyer and seller) as a dual agent, with the informed written consent of both principals, the broker may designate one sales agent to represent each party. Each designated agent advocates for their respective principal in negotiations, but because they work under the supervising dual-agent broker, they cannot provide undivided loyalty or the full range of fiduciary duties.

• ✓Designated sales agents require informed written consent of both principals
• ✓A designated sales agent cannot provide undivided loyalty or the full range of fiduciary duties
• ✓Advance informed consent to dual agency with designated sales agents may be indicated on the disclosure form
• ✓One designated agent represents the tenant/buyer and another represents the landlord/seller

The New York agency disclosure form requires the licensee to identify who they represent and in what capacity. Options include acting for the landlord (as landlord's agent, broker's agent, or dual agent) or for the tenant (as tenant's agent, broker's agent, or dual agent with designated sales agents). The form documents receipt and the advance informed consent choices.

• ✓The form must state the printed name of licensee and company/brokerage providing it
• ✓Licensee must check whether acting in the interest of the landlord or tenant and the specific relationship
• ✓Principals sign to acknowledge receipt of the disclosure form
• ✓Advance informed consent to either dual agency or dual agency with designated sales agents is elected on the form

Under §443-a, certain facts are NOT considered material defects requiring disclosure: that an owner/occupant is or was suspected to be HIV-infected or diagnosed with AIDS or another disease unlikely to be transmitted through occupancy, or that the property was or is suspected to be the site of a homicide, suicide, or other death, or any crime punishable as a felony. No cause of action arises and no disciplinary action can be taken for failure to disclose these facts.

• ✓HIV/AIDS status of an owner/occupant is not a material defect requiring disclosure
• ✓A death (homicide, suicide, accidental/natural) or felony crime on the property is not a material defect
• ✓Failure to disclose these facts is not grounds for a lawsuit or disciplinary action against the agent/broker
• ✓This section preempts any inconsistent local law

The agency disclosure provisions of §443 do not apply to a licensee who works with a buyer or seller in a capacity other than as an agent, per terms agreed to by the licensee and the party. Nothing in the section limits or alters the common law of agency for residential transactions.

• ✓Disclosure requirements don't apply to licensees working in a non-agent capacity by agreement
• ✓The section does not limit or alter the common law of agency for residential real estate

Even though §443-a facts are not material defects, if such information is important to the buyer's decision, the buyer may submit a written inquiry when negotiating or making a bona fide offer. The seller may choose whether or not to respond. The seller's agent, with the seller's consent and subject to privacy laws, must report any response to the buyer or buyer's agent.

• ✓Buyer may submit a WRITTEN inquiry for stigma information when making a bona fide offer
• ✓The seller may choose whether or not to respond to the inquiry
• ✓The seller's agent must report any response with the seller's consent, subject to privacy laws
• ✓Written request goes to the seller's agent, or the seller directly if there is no seller's agent

Any person or entity offering to sell real property to which no utility electric service is provided must give written notice clearly indicating this fact to the prospective purchaser or their agent before accepting a purchase offer. A purchaser who suffers a loss from a violation may recover actual damages. This does not apply where the property lies within the applicable free footage allowance or service lateral specified by the Public Service Commission.

• ✓Written notice of no utility electric service must be given before accepting a purchase offer
• ✓A purchaser suffering loss may recover actual damages from the seller
• ✓Exception applies within Public Service Commission free footage allowance or service lateral

A seller of property subject to an electric or gas utility surcharge (for line-extension or related-facility costs) must provide written notice before accepting a purchase offer stating the property is subject to the surcharge, including its type, purpose, amount, and payment frequency. Additionally, a seller with actual knowledge of uncapped natural gas wells on the property must inform the purchaser before entering into a contract.

• ✓Written surcharge notice must state type, purpose, amount, and payment basis before accepting an offer
• ✓Purchaser suffering loss from a surcharge disclosure violation may recover actual damages
• ✓Seller with actual knowledge of uncapped natural gas wells must disclose them before contract

Article 14 is cited as the 'Property Condition Disclosure Act.' It defines key terms used throughout the disclosure requirements. 'Agent' is a licensed broker or salesperson acting in a fiduciary capacity. 'Knowledge' means only the seller's actual knowledge of a defect or condition. 'Residential real property' is real property improved by a one-to-four family dwelling used or intended as a home, but excludes unimproved land, condominium units, cooperative apartments, and property in a homeowners' association not owned in fee simple by the seller.

• ✓The Act applies to one-to-four family residential dwellings only
• ✓'Knowledge' means the seller's actual knowledge, not constructive knowledge
• ✓Condos, co-ops, unimproved land, and HOA property not owned in fee simple are excluded from 'residential real property'
• ✓A 'binding contract of sale' requires the buyer to accept transfer of title upon signing, subject to contingencies

Under §462, every seller of residential real property under a real estate purchase contract must complete and sign a property condition disclosure statement and deliver it (or a copy) to the buyer or buyer's agent BEFORE the buyer signs a binding contract of sale. A copy signed by both seller and buyer must be attached to the real estate purchase contract. The statute provides the exact statutory disclosure form the seller must use.

• ✓The disclosure statement must be delivered prior to the buyer signing a binding contract of sale
• ✓A copy signed by both seller and buyer must be attached to the purchase contract
• ✓The statement is not a warranty and does not substitute for buyer's own inspections
• ✓Nothing prevents parties from agreeing to sell property 'as is'

Under §465, the Act does not limit any existing legal cause of action or remedy. A seller who provides (or fails to provide/revise) a disclosure statement is liable only for a WILLFUL failure to perform the Act's requirements. For a willful failure, the seller is liable for the buyer's actual damages in addition to any other equitable or statutory remedy. Note: earlier practice allowed a $500 credit at closing in lieu of providing the statement, but liability now attaches for willful failures.

• ✓A seller is liable only for a willful failure to perform the Act's requirements
• ✓Remedy for willful failure is the buyer's actual damages plus other equitable/statutory remedies
• ✓The Act does not limit any pre-existing legal cause of action or remedy

Under §466, a listing broker (agent representing the seller) has a duty to timely inform each seller of the seller's obligations under the Act. The agent representing the buyer — or, if the buyer is unrepresented, the seller's agent dealing with the buyer — must timely inform the buyer (before the buyer signs a binding contract of sale) of the buyer's rights and obligations under the Act. An agent who performs these duties has no further duties and is not liable for a violation of the Act.

• ✓A listing broker must timely inform the seller of the seller's disclosure obligations
• ✓The buyer's agent (or seller's agent dealing with an unrepresented buyer) must inform the buyer of rights/obligations before a binding contract is signed
• ✓An agent who fulfills these duties has no further liability under the Act

The statutory form requires the seller to answer questions based on actual knowledge covering general information, environmental conditions, structural systems, and mechanical systems. Questions include flood zone/FEMA designations, flood insurance history, wetlands, agricultural districts, fuel storage tanks, asbestos, lead plumbing, radon, mold, structural defects, and mechanical systems. Sellers answer Yes, No, Unknown (Unkn), or Non-applicable (NA). A knowingly false or incomplete statement may subject the seller to buyer claims before or after transfer of title.

• ✓Sellers must answer all questions based on actual knowledge
• ✓Answers use Yes/No/Unkn/NA and the seller must complete the form personally
• ✓A knowingly false or incomplete statement can subject the seller to buyer claims
• ✓Recent amendments added extensive FEMA flood zone and flood insurance disclosure questions

Under §462(3), nothing in the Act requires a seller to investigate or inspect the property or check public records. Under §464, if a seller later acquires knowledge that makes a previously provided disclosure statement materially inaccurate, the seller must deliver a revised statement to the buyer as soon as practicable. However, no revised statement is required after transfer of title or buyer occupancy, whichever is earlier.

• ✓Sellers are not required to investigate, inspect, or check public records
• ✓A revised disclosure statement is required if the seller gains knowledge making it materially inaccurate
• ✓No revised statement is required after title transfer or buyer occupancy, whichever occurs first

Under §463, a property condition disclosure statement is not required for certain transfers, including: transfers by court order (probate, bankruptcy, eminent domain, specific performance); deed in lieu of foreclosure; foreclosure or power-of-sale transfers; transfers by fiduciaries administering estates, guardianships, conservatorships, or trusts; transfers between co-owners; transfers to a spouse or lineal relatives; transfers as a result of divorce/separation; transfers to or from government entities; newly constructed uninhabited property; transfers by a sheriff; and partition actions.

• ✓Court-ordered, foreclosure, and estate/fiduciary transfers are exempt
• ✓Transfers between spouses, co-owners, or lineal relatives are exempt
• ✓Newly constructed property never inhabited is exempt
• ✓Transfers to or from a governmental entity are exempt

Under RPL §465, a seller who provides or fails to provide (or revise) a property condition disclosure statement is liable only for a WILLFUL failure to perform the requirements of the article. If willful, the seller is liable for the buyer's actual damages plus any other equitable or statutory remedy. The article does not limit any existing legal cause of action or remedy at law, in statute, or equity.

• ✓Seller liable ONLY for willful failure to perform disclosure requirements
• ✓Willful failure exposes seller to buyer's actual damages plus other remedies
• ✓Article does not limit any existing legal cause of action or remedy

Under RPL §466, a listing broker representing a seller must timely inform each seller of the seller's obligations under the property condition disclosure article. A buyer's agent — or, if the buyer is unrepresented, the seller's agent dealing with the prospective buyer — must timely inform the buyer of the buyer's rights and obligations, in any event BEFORE the buyer signs a binding contract of sale. An agent who performs these duties has no further duties under the article and is not liable to any party for a violation.

• ✓Listing broker must timely inform seller of disclosure obligations
• ✓Buyer must be informed of rights/obligations before signing a binding contract of sale
• ✓If unrepresented buyer, seller's agent dealing with buyer must inform them
• ✓Agent who performs these duties has no further liability under the article

A broker must never mix a principal's money or property with the broker's own. Funds must go into a separate, special, federally insured bank account used exclusively for such deposits, made within three business days; until deposited, funds must be safeguarded in a secure location to prevent loss or misappropriation. Funds may not be placed in any depository, fund or investment other than a federally insured bank account. Accrued interest may not be retained by or for the benefit of the broker except when applied to and deducted from earned commission with the consent of all parties.

• ✓Client money must be kept in a separate, special, federally insured bank account used exclusively for such deposits
• ✓Deposits must be made within three business days; before deposit funds must be secured against loss
• ✓Broker may not commingle principal's money/property with broker's own
• ✓Broker may not retain accrued interest except when applied to earned commission with all parties' consent

A broker who buys property listed with him, or acquires any interest, must first make his true position clearly known to the listing owner. Before buying property for a client in which the broker has an interest, the broker must disclose that interest to all parties. Before selling property in which the broker owns an interest, the broker must make that interest known to the purchaser.

• ✓Broker buying property listed with him must disclose his true position to the listing owner
• ✓Broker must disclose his interest to all parties before buying property for a client
• ✓Broker must disclose ownership interest to the purchaser before selling such property

A broker must make clear for which party he is acting and may not receive compensation from more than one party except with the full knowledge and consent of the broker's client.

• ✓Broker must make clear which party he represents
• ✓Broker may not accept compensation from more than one party without the client's full knowledge and consent

No broker may be a party to an exclusive listing contract that contains an automatic continuation of the listing period beyond the fixed termination date set forth in the contract.

• ✓Exclusive listing contracts may not contain automatic-continuation (auto-renewal) clauses
• ✓A fixed termination date is required

No broker or salesperson may induce or attempt to induce an owner to sell, lease or list residential property by making representations about the entry or prospective entry into the neighborhood of persons of a particular race, color, religion, national origin, age, sex, sexual orientation, disability, gender identity, military status, familial status or any other protected category. Residential property means one-, two- or three-family houses, including cooperative apartments or condominiums.

• ✓Blockbusting/panic-selling based on protected characteristics is prohibited
• ✓Residential property = one-, two-, or three-family houses, including co-ops and condos
• ✓Applies to protected categories under federal, state or local law

No broker or salesperson may engage in an unlawful discriminatory practice proscribed by federal, state or local law applicable to real estate licensees. A finding by any competent agency or court that a licensee engaged in unlawful discriminatory practice in licensed activities is presumptive evidence of untrustworthiness and subjects the licensee to discipline, including revocation, without limiting the DOS's authority under RPL §441-c.

• ✓Engaging in unlawful discrimination in licensed activity is prohibited
• ✓An agency/court finding of discrimination is presumptive evidence of untrustworthiness
• ✓Discipline may include revocation under RPL §441-c

For exclusive listings of residential property (one-to-four-family, condo, or co-op), the commission agreement must include, signed or initialed by the owner, an explanation in at least six-point type. 'Exclusive right to sell' means the owner owes commission even if the owner or another broker finds the buyer. 'Exclusive agency' means the owner owes no commission if the owner finds the buyer, but owes commissions to both brokers if another broker finds one. If the listing broker is in an MLS, the agreement must give the owner the option to have offers submitted through the listing broker or the selling broker.

• ✓Six-point-type explanation must be signed/initialed by owner on residential exclusive listings
• ✓Exclusive right to sell: owner owes commission even if owner finds the buyer
• ✓Exclusive agency: owner owes no commission if owner finds the buyer
• ✓MLS listings must give owner the option of submitting offers through listing or selling broker

A broker must ensure each associated licensee provides prospective purchasers, tenants, sellers, or landlords, upon first substantive contact, a Department-furnished disclosure notice containing substantive New York State Human Rights Law provisions and how to file complaints. Notice may be given by email, text, electronic messaging, fax, or hardcopy (a link with explanatory text is allowed); oral disclosure does not satisfy the requirement. The notice applies to all real property, including condos, co-ops, vacant land, and commercial property. Hardcopy delivery requires a signed acknowledgment retained at least three years; if the consumer declines to sign, the licensee must make a sworn written declaration retained three years.

• ✓Fair Housing/Human Rights Law disclosure must be given upon first substantive contact
• ✓Oral disclosure is insufficient; must be written/electronic; applies to all real property
• ✓Signed acknowledgment (or sworn declaration if declined) must be retained at least three years

A broker must, within a reasonable time, render an account to the client and remit any monies collected for the client that are unexpended for the client's account.

• ✓Broker must account to client within a reasonable time
• ✓Broker must remit all unexpended monies collected for the client

When managing property as agent, a broker may not accept any commission, rebate or profit on expenditures made for the client without the client's full knowledge and consent. A broker holding a tenant's security deposit must handle and dispose of it (including required interest) in compliance with GOL §7-103; failure to comply, including failure to pay required interest, is grounds for disciplinary action by the Secretary of State.

• ✓No commission, rebate or profit on client expenditures without client's full knowledge and consent
• ✓Tenant security deposits must be handled per General Obligations Law §7-103, including required interest
• ✓Noncompliance is grounds for discipline by the Secretary of State

A broker may not negotiate a sale, exchange or lease directly with an owner/lessor if he knows the owner has an existing written exclusive-authority contract with another broker. A broker may not induce any party to a contract of sale or lease to break it in order to substitute a new contract with another principal.

• ✓No direct negotiation with an owner known to have an exclusive written contract with another broker
• ✓No inducing a party to break a sale or lease contract to substitute a new one

A broker may never offer a property for sale or lease without the owner's authorization, and may not place a sign on any property without the owner's consent.

• ✓Broker must have owner authorization before offering property for sale or lease
• ✓No sign may be placed on property without the owner's consent

A broker must immediately deliver a copy of any instrument to any party executing it where the instrument was prepared by or under the broker's supervision and relates to the broker's employment or the consummation of a real estate transaction in which the broker participates.

• ✓Broker must immediately deliver copies of executed instruments to the executing parties
• ✓Applies to instruments prepared by or under the broker's supervision relating to the transaction

Upon termination of association with a broker, a salesperson must forthwith turn over to the broker all listing information obtained during the association, whether given by the broker, copied from broker records, or acquired by the salesperson.

• ✓Salesperson must turn over all listing information upon termination
• ✓Applies regardless of how the salesperson acquired the information

A licensee may not solicit the sale, lease, or listing of residential property after receiving written notice that the owner does not wish to sell, lease or list; notice to a broker constitutes notice to all associated brokers and salespersons. Licensees also may not solicit owners in a designated cease-and-desist zone who have filed a cease-and-desist notice with the Department of State. The County of Kings zone expires July 1, 2028. Solicitation includes phone, mail, delivery services, and personal contact, but excludes classified ads in non-real-estate periodicals, public-view advertisements not otherwise violating the rule, and radio/TV ads. A licensee is not untrustworthy for soliciting an owner whose name is not on the current cease-and-desist list.

• ✓No solicitation after written owner notice; notice to broker binds all associated licensees
• ✓No solicitation of owners on the DOS cease-and-desist list in designated zones
• ✓Solicitation excludes classified ads in non-real-estate periodicals and radio/TV ads
• ✓Not a violation to solicit an owner absent from the current cease-and-desist list

A broker may not use a trade or corporate name so similar to another licensed broker's name that public confusion will result. A net listing is an agreement authorizing sale at a specified net amount with the broker retaining the difference as compensation; brokers are prohibited from making or entering into net listing contracts.

• ✓No trade/corporate name so similar to another broker's that public confusion results
• ✓Net listing contracts are prohibited

Every branch office must be owned, maintained and operated only by the licensed broker to whom the license is issued and be under that broker's direct supervision (or a representative broker); it may not be operated so a salesperson/employee bears its expenses or effectively runs a brokerage for personal benefit. A broker may not relocate a principal or branch office without prior DOS approval. No salesperson may own, singly or jointly, directly or indirectly, any voting stock in a licensed brokerage corporation with which he is associated.

• ✓Branch offices must be owned and directly supervised by the licensed broker
• ✓Relocation of principal or branch office requires prior DOS approval
• ✓Salespersons may not own voting stock in the associated brokerage corporation

Supervision under RPL §441(1)(d) requires regular, frequent and consistent personal guidance, instruction, oversight and superintendence by the broker over the brokerage business. Broker and salesperson must keep written records of all listings, sales and transactions during the association, submitted with a salesperson's broker-license application. Qualifying participation as a salesperson requires active service under broker supervision of at least 35 hours per week for 50 weeks in each required year.

• ✓Supervision must be regular, frequent, and consistent personal guidance and oversight
• ✓Written records of listings and transactions must be kept and submitted for a broker license
• ✓Qualifying experience = at least 35 hours/week for 50 weeks per required year

Each broker must keep for three years paper and/or electronic records of each transaction through the office for sale of residential property (one-to-four-family dwelling, condo, or co-op), including names/addresses of seller and buyer, the contract or purchase price and deposit, commission paid, gross profit if bought for resale, any Article 12-A document, and the listing/commission/buyer-broker agreement. If the broker is not provided a required document, the broker is not deemed in violation.

• ✓Transaction records must be kept for three years (paper or electronic)
• ✓Records must include parties, contract/price/deposit, commission, and agreements
• ✓No violation where the broker was never provided a required document

Only a real estate broker may place or cause advertisements for the sale or lease of property; salespersons, associate brokers, and teams may advertise only property listed with their broker and with the broker's approval. No property may be advertised without the owner's authorization, and a broker may not advertise property under another broker's exclusive listing without the listing broker's permission. Website photos of property may not be reproduced without written permission from the copyright holder.

• ✓Only a broker may place ads for the sale/lease of property; licensees advertise only with broker approval
• ✓No advertisement of property without owner authorization
• ✓No advertising another broker's exclusive listing without permission

Advertisements must identify the advertiser as a broker or provide the broker/brokerage name plus either full address or telephone number. Where a licensee's or team's name appears, the broker/brokerage name must also appear. Licensees must advertise under their licensed name (nicknames allowed if full licensed name is clear); license type must be stated accurately, and titles 'sales associate,' 'licensed sales agent,' or simply 'broker' are prohibited. Ads must give an honest, accurate property description and the actual geographic area, may not mislead, and may not guarantee future profits.

• ✓Ads must include broker/brokerage name and either full address or phone number
• ✓Licensee/team names in ads must include the broker/brokerage name
• ✓Prohibited titles: 'sales associate,' 'licensed sales agent,' or simply 'broker'
• ✓Ads must be honest, non-misleading, and may not guarantee future profits

A broker must display and maintain a Department-furnished Human Rights Law notice at every office and branch office, prominently in the window if the office also posts listings and visible from the adjacent sidewalk (otherwise where the business license is posted). All licensee, team, and brokerage websites must prominently display a homepage link to the Department's notice, and the notice must be displayed at all open houses and available at all open houses and showings.

• ✓Human Rights Law notice must be posted at every office and branch office
• ✓Websites must display a homepage link to the Department's Fair Housing notice
• ✓Notice must be displayed at open houses and available at open houses and showings

To be licensed as a real estate salesperson, an applicant must complete an approved 77-hour salesperson's course (with a 3-hour final exam, totaling 80 hours). All approved schools must use the prescribed course syllabus with mandated subject-hour allocations covering License Law, Law of Agency, Legal Issues, Human Rights and Fair Housing, and other topics.

• ✓Salesperson qualifying course = 77 hours of instruction plus 3-hour final exam (80 hours total)
• ✓Required subjects include License Law and Regulations (3), Law of Agency (11), Legal Issues (10), and Human Rights and Fair Housing (6)
• ✓All approved courses must use the prescribed course syllabus

Licensure as a real estate broker requires completion of an approved salesperson's course PLUS an approved 75-hour broker's course (3-hour final exam, 78 total). Before enrolling a student in the broker course, the education coordinator must obtain a signed statement that the student completed the salesperson's course and keep proof on file. Salespersons licensed before Nov. 1, 1979 may substitute 77 hours of approved continuing education for the salesperson's course.

• ✓Broker license requires completing an approved salesperson's course AND an approved 75-hour broker's course
• ✓Broker course = 75 hours instruction plus 3-hour final exam (78 hours total)
• ✓Education coordinator must obtain and keep proof of salesperson course completion before enrolling a student in the broker course
• ✓Salespersons licensed prior to Nov. 1, 1979 may substitute 77 hours of continuing education for the salesperson course

No renewal license is issued to a broker or salesperson unless the licensee completes 22½ hours of approved continuing education within the two-year period immediately preceding renewal, as required by Article 12-A of the Real Property Law. Only Department-approved courses count for credit.

• ✓22½ hours of approved continuing education required within the two years immediately preceding each renewal
• ✓Applies to both brokers and salespersons per RPL Article 12-A
• ✓Only courses approved by the Department may be credited

Real estate qualifying courses may only be given by specific approved entities. Critically, no course of study seeking approval may be affiliated with or controlled by any real estate broker, salesperson, appraiser, firm, company, or franchise (or their subsidiaries). This ensures independence of education from brokerage business interests.

• ✓Approved providers: accredited colleges/universities, public and private vocational schools, real estate boards, and real estate-related professional societies/organizations
• ✓No approved course may be affiliated with or controlled by any real estate broker, licensed salesperson, appraiser, firm, company, or franchise, or a subsidiary of such

For all qualifying and continuing education, an instructional 'hour' equals 50 minutes. In qualifying courses, every 50 minutes of instruction requires an additional 10-minute break; breaks are mandatory and cannot be used to release class early.

• ✓One instructional hour equals 50 minutes
• ✓In qualifying courses, each 50-minute hour requires an additional 10-minute break; breaks are not optional and cannot release class early

A licensed person receives no credit for a classroom course/module if absent for more than 10% of the prescribed time, and absences must be for reasonable and unavoidable cause. Final exams cannot be taken until attendance requirements are met, and failing the final exam means failing the course.

• ✓No credit if absent more than 10% of prescribed course/module time
• ✓Absence must be for reasonable and unavoidable cause
• ✓Final exam may not be taken until attendance requirement is satisfied
• ✓Failure of the final exam constitutes failure of the course

Distance education (CD-ROM, disk, online) providers must have programs separately approved. Programs require a time-default mechanism preventing credit for inactivity, a signed student statement of personal completion of each module, three-year record retention, an available approved instructor, and a proctored final exam held at a Department-approved New York State location. Students must complete within 12 months of starting.

• ✓Distance learning programs require separate Department approval
• ✓Must include a time-default inactivity mechanism so students are not credited when not actively participating
• ✓Must have a proctored final exam at a Department-approved location within New York State
• ✓Student must successfully complete the course within 12 months of starting

Continuing education may include competency-increasing sales or technology courses, but certain instruction is NOT acceptable: exam-prep training, mechanical office/business skills (typing, basic computer, speed reading, memory, salesmanship, sales psychology), sales promotion meetings, and non-real-estate-related subjects.

• ✓Exam preparation not part of an approved Part 176 course is not acceptable for CE credit
• ✓Mechanical office/business skills, sales promotion meetings, and non-real-estate subjects do not qualify for CE credit
• ✓Courses must increase competency as it relates to the real estate transaction

CE is accepted on the basis of attendance only. A licensee who teaches an approved course earns two hours of credit per hour of actual teaching. No CE course may be counted for credit more than once within the same two-year renewal cycle, and supplemental-course excess hours cannot be carried over to a subsequent cycle.

• ✓CE courses are credited on the basis of attendance only
• ✓Teaching an approved course earns two hours credit per hour of actual teaching
• ✓No CE course counts for credit more than once within a two-year renewal cycle
• ✓Excess supplemental-course hours cannot be carried over to a subsequent renewal cycle

Every entity approved to provide instruction on fair housing and/or discrimination in the sale or rental of real property must create a full video-and-audio recording of each such course and maintain it for at least one year (longer if litigation is known or suspected). The recording may be audited by the Department.

• ✓Fair housing/discrimination CE courses must be recorded in full with both video and audio
• ✓Recording must be kept at least one year after the course, or longer if litigation is known or suspected
• ✓Recordings are subject to Department audit

• A. The abatement transfers automatically to the buyer upon closing without any action required
• B. The abatement is a reduction of the co-op corporation's real property tax bill, which is then passed through to qualifying unit owners as a credit on their maintenance; it does not transfer with the shares and must be re-applied for by the new owner ✓ Answer
• C. The abatement applies only to condominiums, not to cooperative apartments
• D. The seller must repay all prior years' abatement amounts to the city at closing as a condition of transfer

• A. It sets the maximum tax rate a municipality may levy on assessed property values
• B. It represents the ratio of a municipality's total assessed value to the total full (market) value of all taxable property, used to ensure equitable distribution of county and school tax levies across municipalities ✓ Answer
• C. It determines the income eligibility thresholds for the STAR exemption in each municipality
• D. It establishes the rate at which non-resident sellers must withhold estimated income tax on gains from property sales

• A. The transfer is fully taxable because all conveyances require payment of transfer tax regardless of consideration
• B. The transfer may be exempt if it qualifies as a distribution from a trust to a beneficiary where no consideration passes, under the applicable exemption in Tax Law Section 1405 ✓ Answer
• C. The transfer is exempt only if the beneficiary is a spouse of the grantor
• D. The transfer is subject to tax at a reduced rate of 0.5% because consideration is less than full value

• A. A letter from the New York Department of State confirming the exemption
• B. A completed Schedule B of the TP-584 identifying the specific exemption claimed under Tax Law Section 1405 ✓ Answer
• C. A copy of the seller's federal income tax return for the prior year
• D. A notarized affidavit from both buyer and seller filed separately with the Office of Real Property Tax Services

• A. The tax roll abstract
• B. The assessment roll ✓ Answer
• C. The equalization schedule
• D. The property transfer report

• A. The seller pays both the state mansion tax and the NYC supplemental mansion tax
• B. The buyer pays both the state mansion tax and the NYC supplemental mansion tax ✓ Answer
• C. The seller pays the state mansion tax and the buyer pays the NYC supplemental mansion tax
• D. The buyer pays the state mansion tax and the seller pays the NYC supplemental mansion tax