New York Real Estate for Salepersons » (4th Edition)

Marcia Darvin Spada is the owner of the Albany Center for Real Estate Education, a New York-licensed proprietary school. A professional educator, Marcia teaches real estate and has developed curricula for numerous real estate courses used widely in colleges, real estate related organizations, and proprietary schools throughout New York. She is the author of several Cengage Learning books including New York Real Estate for Salespersons, New York Real Estate for Brokers, Cram for the Exam: Your Guide to Passing the New York Real Estate Broker Exam and Cram for the Exam: Your Guide to Passing the New York Real Estate Salesperson Exam, New Jersey Real Estate, Environmental Issues for Real Estate, and The Home Inspection Book: A Guide for Professionals. Spada has a B.A. and an M.A. in English from the State University of New York at Albany and a B.S. in Real Estate Studies from Empire State College.

Using a variety of learning activities, NEW YORK REAL ESTATE FOR SALESPERSONS, 4e, matches content and chronology of the new state required 75-hour syllabus for real estate salespersons in New York. Accurate and well-researched, it follows the NYS syllabus exactly — including order of presentation, learning objectives, key terms, and outline of material. A host of engaging learning supplements—including the popular Cram for the Exam — not only help you learn, review, and retain required information, but also practice applying the concepts and taking practice licensing exams. Now easier to read and understand, the new edition presents all material in simple language using a direct writing style balancing reading comprehension with visual reinforcement. The workbook approach is punctuated with numerous examples, illustrations and website listings throughout each chapter to engage you and give you real-life experience.

Preface     xvi
Introduction
Your Career in Real Estate     1
Your Career in Real Estate     1
Real Estate Organizations     4
Real Estate Licensees     6
Summary of Important Points     8
License Law and Regulations     9
Introduction and Purpose of the License Law     10
Categories and Responsibilities of Licensure     10
Education and Other Requirements for Licensure     10
Duties That Require Licensure     13
The Salesperson Application     14
Maintaining a License     18
Licensure of Nonresident Brokers and Salespersons     20
Other Licenses or Registrations Related to Real Estate     22
Department of State Regulations     23
Dos Hearings and Appeals     29
Required Disclosures     29
Summary of Important Points     34
Law of Agency     40
Law of Agency     41
The Real Estate Agent     41
Basic Agency Relationships     41
Agency and Brokerage-Are They Synonymous?     45
Creation of Agency     46
Agency Alternatives     50
Subagency/Subagent or Buyer's Broker     50
Dual Agency     53
Agency Relationships     60
Forms and Disclosure Policy     65
Agency Disclosure-Requirements Under Section 443 of the Real Property Law     71
Other Types of Disclosure     77
The Independent Contractor Employee     78
Supervision of Salespersons by Broker     78
The Independent Contractor Relationship-Independent Contractor or Employee?     78
Summary of Important Points     83
Legal Issues     94
Estates and Interests     95
Introduction/Bundle of Rights     95
Land Rights     96
Uses of Real Property     97
Characteristics of Real Property     98
Estates in Real Property     99
Forms of Ownership of Real Property     103
Ownership of Real Estate by Business Organizations     108
Liens and Easements     110
Liens-Voluntary, Involuntary     110
Effects of Liens on Title     113
Easements     114
Easements Appurtenant     114
Encroachments     117
Appurtenances     118
Deeds     119
Deeds-Voluntary and Involuntary Alienation      119
Definition and Purpose of a Deed     119
Legal Description     123
Forms of Deeds     125
Conveyance After Death     130
Dedication by Deed     130
Adverse Possession     131
Title Closing and Costs     132
Significance of the Title Closing     132
The Title Closing     133
Deeds and Other Closing Documents     133
Recording Acts     134
Closing Preparations     136
Real Estate Settlement Procedures Act (RESPA)     140
Closing Costs and Adjustments-Preparation of Closing Statements     141
Purchaser Closing Costs     148
Adjustments-Prorations at Closing     150
Summary of Important Points     151
The Contract of Sale and Leases     167
Leases     168
Definition of a Lease     168
Types of Leasehold Estates     168
Standard Lease Provisions     170
Lease Requirements     175
Termination of the Lease     177
Types of Leases     180
Contracts     181
Definition of Contracts     181
Essential Elements of a Contract      184
Discharge of Contracts     185
Contract Remedies     186
Sales Contracts     187
The Use of Binders     194
Installment Sales Contract     194
Lease with Option to Buy     198
Contracts Affecting Brokers     198
Contract Preparation     199
What form of Contract to Use     199
Contract Procedures     204
Summary of Important Points     207
Real Estate Finance     227
Mortgages     228
Duties and Rights of Borrower (Mortgagor) and Lender (Mortgagee)     234
Sale of Property That has a Mortgage     235
Recording the Mortgage     235
General Types of Mortgages     235
Specific Loans and Payments     236
Sale Leaseback Financing     241
Government Loans     241
Secondary Mortgage Market     245
Truth in Lending Act (TILA)     246
Lender Criteria for Granting a Loan     248
Predatory Lending Practices-What is it?     254
Summary of Important Points     255
Land Use Regulations     261
Bundle of Rights and As-of-Right Zoning     262
The Need to Plan for the Future     262
Private Land Use Controls     262
Public Land Use Controls-Police Power     264
The Planning Board-Planning Defined     273
Variances     276
Summary of Important Points     278
Construction and Environmental Issues     285
Construction     286
Land Use     286
Site Requirements     287
Site Use     290
Structure     291
Structural Tie-In of All Components     294
Energy Efficiencies     298
Major Mechanical Systems     300
Mandated Guarantees, Warranties, and Installations     307
Environmental Issues     310
Long-Standing Issues     310
Contemporary Issues     314
Agent's Role     327
Summary of Important Points     328
Valuation Process and Pricing Properties     339
Appraisal, Valuation, Evaluation, and Market Value     340
Difference Between Value, Price, and Cost     342
Comparative Market Analysis (CMA)     343
Residential Market Analysis     344
Salesperson's Role     346
Highest and Best Use      347
Site Valuation     348
The Three Appraisal Approaches to Value     348
Pricing Properties     352
Summary of Important Points     356
Human Rights and Fair Housing     361
Testers     362
Pressure from Society     362
Broker's Responsibility to Uphold Fair Housing     362
Federal Antidiscrimination Laws     364
The Federal Fair Housing Act of 1968     367
The Americans with Disabilities Act     370
New York State Laws     370
Types of Discrimination     374
Legal Responsibilities     375
Cease and Desist Lists and Nonsolicitation Orders     378
Summary of Important Points     379
Real Estate Mathematics     387
General Practice in Real Estate Math     388
Calculating Area and Length     392
Basic Mortgage Qualifying     396
Rates     398
Municipal Agencies     404
Government Agencies     405
Summary of Important Points     415
Property Insurance     420
The Purpose of Property Insurance     421
Standard Types of Home Property Insurance     422
The Amount of Insurance Needed     423
Basic Amounts of Coverage     425
Problems in Obtaining Insurance     426
Cancellation and Nonrenewals of a Policy     428
The Cost of Homeowners Insurance     428
Other Types of Property Insurance     429
Real Estate Agent's Role     429
Summary of Important Points     430
Taxes and Assessments     435
Purpose of Taxation     436
Calculation of Real Estate Taxes     438
Assessed Value     438
Tax Rate     442
Various Taxing Jurisdictions     443
Equalization     443
Property Tax Exemptions     444
Protesting Assessments     445
Small Claims Assessment Review     451
Real Property Tax Liens     452
Agents' Responsibilities     453
Summary of Important Points     453
Condominiums and Cooperatives     459
Cooperatives     460
Cooperative Board Application and Interview Preparation     466
Primary Residency Versus Subletting Issues in the Cooperative     468
The Difference Between a Condop and a Condominium and Cooperative Property      469
Condominiums     470
Price Changes     473
Flipping/Simultaneous Closing-Developer's Policy     475
Title Issues in the Purchase of Condominiums     475
Closing Costs     476
Buyer's Financial Ability to Purchase a Cooperative or Condominium Residence     478
Summary of Important Points     478
Commercial and Investment Real Estate     484
Real Estate Investment     485
Characteristics of Real Estate Investments     485
Types of Investment Properties     487
Unimproved Land     487
Property Analysis and Terminology     491
Commercial Leases     496
Marketing Investment Properties     502
Summary of Important Points     503
Income Tax Issues in Real Estate Transactions     509
Taxpayer Relief Act of 1997     510
Capital Gains     511
Federal Tax Rules on Acquisition and Subsequent Financing     516
Tax Depreciation     521
Summary of Important Points     522
Mortgage Brokerage     529
What is a Mortgage Broker?     530
Mortgage Brokers Versus Mortgage Bankers     533
The Role of the Mortgage Broker/Consultant in the Real Estate Transaction     534
Summary of Important Points     537
Property Management     542
Introduction-What is Property Management?     543
What are the Functions of a Property Manager?     543
Skills Required of a Property Manager     545
Differences Between the Markets     548
Obligations to the Owner     550
The Management Field     555
Summary of Important Points     555
Sample Salesperson Exam     561
Glossary     572
Index     594