Glossary: Fair Housing and Trade Practices +8New York · Real Estate · English

Blockbusting is the illegal practice of inducing homeowners to sell quickly, often below market, by creating fear that entry of a minority group will cause a decline in property values. Racial Steering is the unlawful practice of influencing a person's housing choice based on their race.

• ✓Blockbusting induces panic selling based on fear of minority entry — illegal
• ✓Racial steering unlawfully directs buyers based on race
• ✓Both practices violate fair housing law

Red-lining is the refusal to lend money within a specific area for various reasons. This practice is illegal under fair housing/lending law.

• ✓Red-lining is the illegal refusal to lend within a specific geographic area
• ✓Red-lining is expressly prohibited by law

A Cease and Desist Zone is a rule by the Secretary of State prohibiting direct solicitation of homeowners on a cease and desist list. The Cease and Desist List contains homeowners who filed statements expressing their wish not to be solicited; soliciting them is prohibited and violators face suspension or revocation. A Nonsolicitation Order prohibits any or all solicitation in a defined area, adopted after a public hearing when solicitations caused fear of value decline due to different backgrounds moving in.

• ✓Soliciting homeowners on a cease and desist list is prohibited and grounds for suspension/revocation
• ✓A Nonsolicitation Order requires a public hearing before adoption
• ✓Both are adopted/enforced by the Secretary of State

Several practices restrict trade illegally: Price Fixing (conspiring to establish fixed fees/prices), Market Allocation (agreeing to avoid competition in specific areas), Group Boycott (excluding members from fair trade participation), Tie-in Arrangement (a contract where one transaction depends on another), and Restraint of Trade (practices designed to restrict competition or create monopoly).

• ✓Price fixing (conspiring on fees/prices) is an illegal restraint of trade
• ✓Market allocation and group boycotts unlawfully restrict competition
• ✓Tie-in arrangements make one transaction depend on another

A Cease and Desist Zone is a rule adopted by the Secretary of State prohibiting direct solicitation of homeowners on a cease and desist list, adopted when homeowners in a defined area have been subject to intense and repeated solicitation. The Cease and Desist List contains homeowners who filed statements expressing their wish not to be solicited. Soliciting listed homeowners is prohibited.

• ✓Soliciting homeowners on the cease and desist list is prohibited for licensees
• ✓Violators are subject to license suspension or revocation
• ✓The Secretary of State establishes these zones after determining intense/repeated solicitation occurred

Commingling is mixing a client's funds with the broker's personal or general account. This is a prohibited practice. Related fiduciary concepts include Commission (sum due a broker for services) and Caveat Emptor ('let the buyer beware' — buyer buys at their own risk).

• ✓Commingling client funds with the broker's personal or general account is prohibited
• ✓Caveat emptor means the buyer must examine the property and buys at their own risk

Constructive Notice is knowledge imputed by law because a person could have discovered a fact through proper diligence (e.g., via public records). A Contract is a legally enforceable agreement between competent parties. A Contingency requires a specific event to occur before a contract can be completed. Consideration is anything given to induce another to enter a contract.

• ✓Constructive notice is imputed by law through recorded public records
• ✓A valid contract requires competent parties and is legally enforceable
• ✓A contingency must be satisfied before the contract can be completed

Condemnation is the taking of private property for public use with fair compensation, exercising the right of eminent domain. A Certificate of Occupancy (CO) is issued by a governmental authority certifying a building is fit for occupancy. A Conditional Sales Contract keeps title in the seller until contract conditions are fulfilled.

• ✓Condemnation requires fair compensation to the owner for public-use taking
• ✓A Certificate of Occupancy certifies a building is ready and fit for occupancy
• ✓Under a conditional sales contract, title remains with the seller until conditions are met

Each licensed broker must maintain a definite place of business within the state and conspicuously post a sign readable from the sidewalk indicating the name and business as a licensed real estate broker. In apartment/hotel buildings, the name and words 'licensed real estate broker' must be posted where occupants' names are listed. Supplemental license required for each branch office.

• ✓Broker must maintain a definite place of business within the state
• ✓Sign must be readable from the sidewalk with name and business
• ✓Each branch office requires a supplemental license and fee
• ✓Branch office must be under direct supervision of the broker or appointed office manager
• ✓Principal residence is not a place of business solely for including residence phone on cards

The license term is a period of two years. The broker's license must be conspicuously displayed in the principal place of business at all times, and branch office licenses displayed therein. Displaying an expired license is prohibited.

• ✓License term is two years
• ✓Broker's license must be conspicuously displayed in principal place of business
• ✓Displaying an expired license is prohibited

Whenever a licensed broker or salesperson is convicted of a felony, sex offense or sexually violent offense, they must within five days of imposition of sentence transmit a certified copy of the judgment of conviction to the department of state.

• ✓Must report within five days of imposition of sentence
• ✓Transmit certified copy of judgment of conviction to department of state
• ✓Applies to felony, sex offense or sexually violent offense

Each licensed broker must maintain a definite place of business in NY and post a conspicuous sign readable from the sidewalk. Branch offices require supplemental licenses. A principal residence is not deemed a place of business solely due to a residence phone number on business cards.

• ✓Broker must maintain a definite place of business in New York
• ✓Sign must be readable from the sidewalk showing name and 'licensed real estate broker'
• ✓Each branch office requires a supplemental license and direct supervision

A broker's license must be conspicuously displayed at the principal place of business. Written notice of address change must be filed with a $10 fee per licensee; failure to notify suspends the license.

• ✓License must be conspicuously displayed at principal place of business
• ✓Address change requires written notice and $10 filing fee per licensee
• ✓Failure to notify address change suspends the license

The department issues a pocket card containing photo, name, and business address that must be shown on demand. Duplicate cards cost $10. The license term is a period of two years.

• ✓Pocket card must be shown on demand
• ✓License term is two years
• ✓Duplicate pocket card fee is $10

A licensee convicted of a felony, sex offense, or sexually violent offense must transmit a certified copy of the judgment of conviction to the department within five days of sentencing.

• ✓Must report felony/sex offense conviction within 5 days of sentencing
• ✓Certified copy of judgment must be transmitted to Department of State

Written notice must be given to the department for any change in principal business address, with a $10 fee per licensee. Change of address fee is $10; changing name/status of broker license is $150; changing salesperson's name is $50; filing a record of association is $20.

• ✓Change of address fee is $10 per licensee
• ✓Change of name/status for broker license is $150
• ✓Salesperson name change fee is $50; record of association fee is $20
• ✓Failure to notify of address change suspends the license

A license issued to a sole proprietor broker may be used after death by the duly appointed administrator/executor for up to 120 days to complete unfinished transactions, extendable by an additional 120 days for good cause. The license is endorsed 'deceased' with date and name of executor.

• ✓License usable up to 120 days after death of sole proprietor broker
• ✓May be extended additional 120 days for good cause
• ✓Only to complete unfinished realty transactions in process before death
• ✓License endorsed with 'deceased', date of death and executor name

The department issues a pocket card to each licensee containing the photo, name, business address and (for salespersons) the broker's name and address. Cards must be shown on demand. A duplicate may be issued for $10 upon proof of loss.

• ✓Pocket card must be shown on demand
• ✓Contains photo, name, business address of licensee
• ✓For salesperson, includes broker's name and business address
• ✓Duplicate card fee is $10

A deceased sole proprietor broker's license may be used by an administrator/executor for up to 120 days (extendable) to complete pending transactions. Name/status changes cost $150 for brokers, $50 for salespersons; record of association fee is $20.

• ✓Deceased sole proprietor's license usable up to 120 days by estate
• ✓Broker name/status change fee is $150; salesperson name change is $50
• ✓Record of association filing fee is $20

A contract is a legally enforceable agreement between competent parties to do or not do certain things, whereby each party acquires a right. Consideration is anything given to induce another to enter a contract. A Meeting of the Minds occurs when all parties agree to the substance and terms. Contracts may be void (no force), voidable (capable of being adjudged void but valid until acted upon), or valid (legally sufficient).

• ✓A valid contract requires competent parties, consideration, and a meeting of the minds
• ✓Consideration is anything given to induce another to contract
• ✓Void = no force; voidable = valid until action makes it void

The Statute of Frauds requires certain contracts to be in writing to be enforceable at law. Specific Performance is a court of equity remedy compelling a defendant to carry out the terms of an agreement. An Action for Specific Performance is a court action to compel a defaulting principal to comply with contract provisions.

• ✓The Statute of Frauds requires certain contracts to be in writing to be enforceable
• ✓Specific performance compels carrying out the terms of a contract

A Deed is a written instrument, duly executed and delivered, conveying title to real property. A Warranty Deed warrants title to the grantee. A Quit Claim Deed conveys only the grantor's interest with no covenants, often used to remove a cloud on title. A Referee's Deed conveys property sold by judicial order in foreclosure or partition. The grantor conveys; the grantee receives title.

• ✓A deed must be duly executed and delivered to convey title
• ✓A warranty deed warrants title; a quit claim deed conveys only existing interest with no covenants
• ✓A quit claim deed is often used to remove a cloud on title

An Agreement of Sale (Sales Contract) is a written agreement where the purchaser agrees to buy and the seller agrees to sell on set terms. A Binder is an agreement covering the down payment as evidence of good faith. Earnest Money is a down payment showing good faith. An Option is a right, given for consideration, to purchase or lease property on specified terms within a specified time; if not exercised, the holder has no liability.

• ✓An agreement of sale is a written contract binding buyer and seller to terms
• ✓Earnest money/binder demonstrates the purchaser's good faith
• ✓If an option is not exercised, the holder faces no liability for damages

The Habendum Clause is the 'to have and to hold' clause that defines or limits the estate granted. A Deed Restriction limits land use (e.g., against liquor sale or on building size/type/value). A Restriction is a limitation in the deed or chain of title. Covenants are agreements written into deeds promising performance or nonperformance of certain acts.

• ✓The habendum clause defines/limits the quantity of the estate granted
• ✓Deed restrictions and covenants limit the use of property
• ✓Restrictions appear in the deed or written instruments in the chain of title

Title is evidence of lawful ownership/possession. Marketable Title is so free from defect a court of equity will enforce its acceptance. A Cloud on the Title is an outstanding claim that would impair the owner's title. Color of Title appears to be good title but is not title in fact. Recording is entering an instrument in public record. Constructive Notice is knowledge imputed by law because it could be discovered through public records.

• ✓Marketable title is free enough from defect that a court will enforce its acceptance
• ✓A cloud on title is an outstanding claim impairing ownership
• ✓Recording provides constructive notice via public records

A Title Search examines public records to determine ownership and encumbrances. Title Insurance indemnifies the holder for loss from title defects. An Abstract of Title summarizes all recorded instruments affecting title in recording order. Chain of Title is the history of conveyances from the original patent. Torrens Title is a state land title registration system showing ownership/encumbrances without searching public records.

• ✓Title insurance indemnifies the holder against loss from title defects
• ✓An abstract of title summarizes recorded instruments in chronological order
• ✓Torrens title registers land titles for readily ascertainable status

A Deed is a written instrument, duly executed and delivered, that conveys title to real property. A Deed Restriction limits the use of land (e.g., against liquor sales or on size/type/value of improvements). A Defeasance Clause in a mortgage permits the mortgagor to redeem property upon paying obligations to the mortgagee.

• ✓A deed must be executed and delivered to convey title
• ✓Deed restrictions limit permitted uses of the land
• ✓A defeasance clause allows the mortgagor to redeem the property upon full payment

Dual Agency means representing both principals — seller and buyer — to a transaction. Duress is unlawful constraint forcing a person to act against their will. A Dispossess Proceeding is a summary process by a landlord to oust a tenant for nonpayment of rent or lease breach.

• ✓Dual agency is representation of both seller and buyer in the same transaction
• ✓Duress is unlawful constraint that can invalidate consent
• ✓Dispossess proceedings allow a landlord to remove a tenant for nonpayment or breach

Eminent Domain is the government's right to acquire property for necessary public use by condemnation with fair compensation. Escheat is reversion to the State when an owner abandons or dies intestate without distributees. Escrow is a written agreement placing instruments or property with a third party for delivery upon fulfillment of a condition (see Rule 175.1).

• ✓Eminent domain requires necessary public use and fair compensation
• ✓Escheat reverts property to the State when there are no heirs and no will
• ✓Escrow involves a neutral third party holding property/instruments pending condition fulfillment

An Exclusive Agency employs a broker to the exclusion of all other brokers, but if the owner sells the property themselves, no commission is owed. An Exclusive Right to Sell grants the broker compensation even if the owner or another broker sells during the term. Both reference Rule 175.24.

• ✓Under exclusive agency, the owner can sell personally without owing commission
• ✓Under exclusive right to sell, the broker earns commission regardless of who sells
• ✓Both listing types are governed by Rule 175.24

Descent occurs when an owner dies intestate and property passes by operation of law to distributees. Devise is a gift of real estate by will; the Devisee receives it and the Devisor bequeaths it. Depreciation is loss of value from age, physical deterioration, or functional/economic obsolescence.

• ✓Descent applies when an owner dies intestate (without a will)
• ✓A devise is a gift of real estate made by will
• ✓Depreciation can be physical, functional, or economic (obsolescence)

An Easement is a right exercised by the public or individuals on, over, or through the land of others. An Encroachment is a building or obstruction that intrudes upon a highway/sidewalk or trespasses on another's property. An Encumbrance is any right or interest in land interfering with its use or transfer. Earnest Money is a down payment evidencing good faith.

• ✓An easement grants use over another's land without ownership
• ✓An encroachment is an unauthorized intrusion onto another's property
• ✓An encumbrance interferes with the use or transfer of land

Eviction is a legal proceeding by a landlord to recover possession. Actual Eviction is where one is physically put out of possession by force or legal process. Constructive Eviction is any disturbance by the landlord rendering the premises unfit for the leased purpose.

• ✓Actual eviction physically removes the tenant from possession
• ✓Constructive eviction occurs when the landlord makes the premises unfit for use
• ✓Eviction is a legal proceeding to recover possession of real property

The broker license fee is $155 plus a $30 anti-discrimination in housing surcharge. The salesperson license fee is $55 plus a $10 surcharge. Surcharges are deposited into the anti-discrimination in housing fund for statewide fair housing testing efforts.

• ✓Broker license fee is $155 plus $30 surcharge
• ✓Salesperson license fee is $55 plus $10 surcharge
• ✓Surcharges fund statewide fair housing testing efforts
• ✓Examination fee is $15

The broker license fee is $155 plus a $30 surcharge for the anti-discrimination in housing fund. The salesperson license fee is $55 plus a $10 surcharge. Examination fee is $15.

• ✓Broker fee: $155 plus $30 anti-discrimination surcharge
• ✓Salesperson fee: $55 plus $10 anti-discrimination surcharge
• ✓Examination fee is $15

If licensee is a corporation, the license entitles the president or designated officer to act as broker; additional licenses required for each other officer. Same applies to partnerships (one member) and LLCs (one member/manager). No salesperson license may be issued to an officer, member, manager or partner licensed as a broker.

• ✓Each additional officer/member/manager acting as broker requires separate license
• ✓No salesperson license to an officer, member, manager, or partner licensed as broker
• ✓Additional licenses expire same date as the entity license

A corporation license entitles the president or designated officer to act as broker; additional officers need separate licenses. Salesperson licenses cannot be issued to officers, LLC members/managers, or partnership members of a licensed broker.

• ✓Additional officers/members require separate broker licenses at same fee
• ✓No salesperson license may be issued to a corporate officer, LLC member/manager, or partner
• ✓Individual broker becoming officer/member must apply as representative

The department may revoke or suspend a license, or impose a fine not exceeding $2,000, or a reprimand upon conviction of a violation, material misstatement in application, fraud/fraudulent practices, dishonest/misleading advertising, demonstrated untrustworthiness or incompetency, or violation of Article 15 of the executive law (human rights).

• ✓Maximum fine is $2,000 payable to department of state
• ✓50% of fine moneys go to anti-discrimination in housing fund
• ✓Grounds include fraud, untrustworthiness, incompetency, misleading advertising
• ✓Violation of Article 15 executive law (human rights) is a ground for discipline

All licenses and pocket cards must be returned to the department within five days after receipt of notice of revocation or suspension. Whenever a license is revoked, the person is ineligible to be relicensed until after expiration of one year from the date of revocation.

• ✓Licenses and pocket cards returned within 5 days of revocation/suspension notice
• ✓One-year ineligibility for re-licensing after revocation
• ✓Display of revoked/suspended license is prohibited

A license shall be suspended for failure to comply with a summons/subpoena/warrant relating to child support or arrears in child/spousal support referred by a court. Suspension is not lifted until the court or support collection unit issues notice that all arrears have been paid.

• ✓License suspended for child support arrears or failure to comply with support proceedings
• ✓Hearing determines only whether arrears have been paid
• ✓Suspension not lifted until full payment established

Joint Tenancy is ownership by two or more with undivided interest and right of survivorship. Tenancy in Common is ownership with undivided interest WITHOUT right of survivorship. Tenancy by the Entirety exists only between husband and wife with right of survivorship. Right of Survivorship lets the surviving co-owner succeed to the deceased's interest.

• ✓Joint tenancy and tenancy by the entirety include the right of survivorship
• ✓Tenancy in common has NO right of survivorship
• ✓Tenancy by the entirety exists only between husband and wife

Fee (Fee Simple/Fee Absolute) is absolute ownership with unconditional power of disposition, descending to heirs. An Estate is the degree, quantity, nature and extent of interest in real property. A Life Estate conveys title for the duration of the grantee's life; the Life Tenant holds it. A Remainder takes effect after a prior estate ends, going to the Remainderman. An Estate in Reversion (Reversionary Interest) is the residue left for the grantor.

• ✓Fee simple is absolute ownership with unconditional power of disposition
• ✓A life estate lasts for the duration of the grantee's life
• ✓Upon termination of a prior estate, a remainder passes to the remainderman; a reversion returns to the grantor

Estate at Will is occupation for an indefinite period terminable at will by either party. Leasehold is the estate a lessee has under a lease. A Freehold is an interest not less than an estate for life (term discontinued Sept. 1, 1967). Seizin is possession of land by one claiming at least a life estate.

• ✓An estate at will is terminable at will by one or both parties
• ✓A leasehold is the tenant's interest under a lease
• ✓Freehold refers to an interest not less than an estate for life

The department may revoke or suspend a license, impose a fine not exceeding $2,000, or reprimand upon conviction for a violation, material misstatement, fraud, misleading advertising, untrustworthiness, incompetency, or violation of the Human Rights Law. Fifty percent of fines go to the anti-discrimination housing fund.

• ✓Maximum fine is $2,000 payable to Department of State
• ✓Grounds include fraud, untrustworthiness, incompetency, and fair housing violations
• ✓50% of fine moneys go to anti-discrimination in housing fund

Upon revocation/suspension, licenses and pocket cards must be returned within 5 days. Displaying a revoked/suspended license is prohibited. A revoked licensee is ineligible for relicensure for one year from revocation date.

• ✓License and pocket card must be returned within 5 days
• ✓Revoked licensee ineligible for relicensure for one year
• ✓Display of revoked/suspended license is prohibited

Licenses may be suspended for failure to comply with child support summons/subpoena or arrears. A hearing determines only whether arrears have been paid; suspension is lifted only upon court/support unit notice of full payment.

• ✓License suspended for child support arrears after court referral
• ✓Hearing only determines whether arrears have been paid
• ✓Suspension lifted only upon proof of full payment