WHO NEEDS TO BE LICENSED
Anyone, who, for another and a fee, commission or other valuable consideration, engages in any of the following activities:
- Negotiates any form of a real estate transaction including a mere portion of interest rather than full ownership
- Sell at auction or by other means, an interest in real estate x List or tries to list real estate (telemarketing included)
- Negotiate mortgages other than residential loans (negotiating residential mortgage loans on one to four-family homes requires a person to be licensed through the New York Banking Dept. as a mortgage broker). This is covered in-depth in another chapter.
- Collection of rents. A license is required if, as an example, a property owner hires a management company to take care of their apartment building. Their obligations would include collecting rent. A real estate license is required. However, if an owner or the relative or friend of the owner is collecting the rent and it is only being done for this one landlord, no license is required. This will be explained in-depth in other chapters.
- Making of leases, leasing, renting or offering to rent.
- Relocation of tenants or owners in commercial or residential real estate
- Exchange of real property of any sort, Negotiating the sale of a business where the real estate is an essential part of the sale. The sale of a business that does not include real estate as an essential part of the transaction does not require a license as a broker. It is important to understand that a licensed broker may not employ an unlicensed person to assist in the negotiation of a real estate transaction. If the broker does, the broker forfeits rights to a commission on the transaction, is guilty of a misdemeanor and may have his/her license revoked. Simply put, everyone involved in the transaction, from start to finish must have a current real estate license.
TYPES OF LICENSES
Definition of a real estate broker: any person, firm, limited liability company, corporation, or other legal entity who, for another and for a fee, commission or other valuable consideration,
- Lists for sale
- Sells or attempts to sell real estate at auction or otherwise
- Sells or attempts to sell real estate in an exchange
- Buys or rents an interest in real estate
- Purchases or rents an estate or interest in real estate
- Collects or offers or attempts to collect rent for the use of a real estate
- Engages in the business of a tenant relocator
- Engages in the sale of condominiums
- Engages in the sale of cooperatives
- Engages in the sale of vacant land under the provisions of article 9-A
- Who sells or exchanges, or offers or attempts or agrees to negotiate the sale or exchange, of any such lot or parcel of real estate.
- Sells a business where the value of the real estate transferred is part of the value of the business.The broker is the party responsible for all of the actions resulting from his salespeople dealing with the
public. In the simplest explanation, the broker:
- Can own and operate a real estate office
- Hire and pay his salespeople
- Collect and disburse commissions
- Represent the public in a real estate transaction