New York Real Estate Salesperson — All Questions

Licensed and certified appraisers must follow the:

• a.The Statute of Frauds, which requires certain contracts in writing
• b.The Fair Housing Act and nothing else
• c.The Truth in Lending Act (Regulation Z)
• d.Uniform Standards of Professional Appraisal Practice (USPAP)✓

Appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP), which sets ethical and performance standards for developing and reporting appraisals. Compliance is required for federally related transactions.

'Market value' is best described as the:

• a.Most probable price a willing buyer and seller would agree to in an arm's-length sale✓
• b.Original price that the current seller actually paid when they first bought the property
• c.Assessed value that the local municipality assigns to the property for annual tax purposes
• d.Cost that would be required to completely rebuild the structure using current materials

Market value is the most probable price a property should bring in a competitive, open market between a willing, informed buyer and seller acting without undue pressure. It differs from price paid, assessed value, and replacement cost.

A multiple listing service (MLS) primarily allows member brokers to:

• a.License new salespersons for the Department of State
• b.Share listings and offers of cooperation and compensation✓
• c.Avoid the agency disclosure requirement
• d.Set uniform commission rates that all member brokerages must charge

An MLS is a cooperative database where member brokers share listing information and offers of cooperation and compensation, broadening exposure for sellers and choices for buyers. It does not set commissions, which must remain independently determined.

New York's Property Condition Disclosure Act generally requires a seller of a one-to-four-family home to:

• a.Personally guarantee to the buyer that the home is completely free of any and all defects
• b.Provide the buyer a completed property condition disclosure statement, subject to current law✓
• c.Pay in full for the buyer's professional home inspection before the closing takes place
• d.Waive all implied warranties that would otherwise apply to the condition of the property

New York's Property Condition Disclosure Act generally requires sellers of one-to-four-family homes to give buyers a completed disclosure statement about the property's condition. The law has been amended in recent years, so licensees should confirm the current requirements and remedies.

Regarding registered sex offender information, a New York agent should generally:

• a.Guarantee to the buyer that no registered offenders live anywhere near the subject property
• b.Refuse to discuss the neighborhood in any way to avoid saying anything about its residents
• c.Personally investigate the surrounding area and disclose every registered offender to buyers
• d.Refer buyers to the publicly available state registry for that information✓

Under Megan's Law, sex offender registry information is publicly available, and agents typically refer buyers to the official registry rather than investigating or guaranteeing anything. This avoids inaccuracy while directing buyers to the authoritative source.

In a typical New York purchase, ordering the title search and clearing title is usually coordinated by the:

• a.Buyer's attorney and the title company✓
• b.The lender's appraiser
• c.The building's property manager
• d.The listing salesperson acting alone, with no attorney involved

New York is an attorney-closing state, so the buyer's attorney, working with a title company, typically orders the title search and coordinates clearing any title issues before closing. The salesperson facilitates but does not perform these legal and title functions.

A New York salesperson who drafts custom contract clauses and gives legal advice to clients risks:

• a.Committing a fair housing violation
• b.Engaging in the unauthorized practice of law✓
• c.Earning a higher commission for the service
• d.Nothing at all, because salespersons count as attorneys

Drafting custom legal provisions and giving legal advice can constitute the unauthorized practice of law, which salespersons are not permitted to do. Licensees should use standard forms and refer legal questions to an attorney, especially in an attorney-closing state like New York.