Realty Institute

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New York 22.5 Hour Package B Continuing Education

$59.00

Description

NYS 22.5 PACKAGE B

This package contains all the new continuing education requirements, and has been approved by the Department of State of New York. It contains the mandatory:

Fair Housing
Law of Agency
Ethical Business Practices
Recent Legal Matters

The balance of the course are elective topics

Learning objectives.

CHAPTER ONE CO-OPS AND CONDO’S

SECTION 1: Overview

Key terms

SECTION 2: Defining condominiums

Common elements and common interests
Creating a condo community
Role of the sponsor
CPS1 phase
Bylaws and house rules
Appointing board members
Limitations of sponsor control
Appointing a managing agent
New development
Reading an offering plan
Special risks
Real estate tax validation
Floor plans
Price increases
Hidden fees
Closing date
Letter of intent – non binding
Written offers
Price changes
Why and when developers raise prices
Current market practices
Certificate of occupancy
Requirements for obtaining c of o
Developer’s policy on flipping
Title issues in purchasing a condominium
Right of first refusal
Closing costs – buyer
Common charges
Closing costs – seller
Closing costs – sponsor
Recording tax and other charges
Mansion tax
Deducting real estate taxes
Can the buyer afford the condo?

SECTION 3: Cooperatives

Defining cooperative
Co-op conversions
Eviction plan
Non-eviction plan
Buying in
Share loans and UCC statements
Co-op lien search
Lender co-op recognition agreement
Maintenance fees
Equity or lack of it
Buyer due diligence
Share cost
Share loan financing
Monthly maintenance fees and increases
Maintenance tax deductions
Underlying mortgage details
Reserve fund
Special assessments
Capital improvements
Alteration agreement
Sponsor owned apartments and flipping
Board of directors
House rules
Subletting
Security
Understanding the financial statement
The balance sheets
The income statements
Cash flow statement
Membership privileges and responsibilities
Taxes and interest
Capital gains tax
Homeowner’s insurance
Board of directors
Documents necessary for the agent
Proprietary lease
Stock certificate
Offering plan
Why agents should know the house rules
Alteration agreement

SECTION 4: Screening process

Board package
Application form
Contract of sale
Acceptable/non acceptable income
Financial statements including 3 yrs. tax returns
Retirement accounts
Stocks
Bonds
401k
Alimony
Trust funds
Other acceptable income
Letters of reference
Employment verification
Criminal record search
Credit search
NY state disclosure forms
Financing requirements
The interview
Primary residence vs. subletting
Sponsor shares
Holder of unsold shares
Sold shares
Condops
Why create a condop?
Summary

CHAPTER 2 HUMAN RIGHTS AND FAIR HOUSING

SECTION 1: In the Beginning

In the Beginning
A look back at how discrimination began

SECTION 2 Federal Laws and their Exemptions

Laws and exemptions
Fair housing regulations
Religious organizations
Persons with disabilities
Familial status

SECTION 3: Other Discriminatory Practices and Enforcement of the Laws

Other prohibited practices
Denying access
Steering
Redlining
Code words
Fair housing act 1968
Fair housing amendments 1988
Blockbusting
Cease and desist
Refusing to sell or rent based on covered classes
Represent that a premise is not available based on covered classes
Renting in one’s own home
Religious organization exemption
Private club exemption
Changing credit criteria

SECTION 4: Lawful and Unlawful Questions and Statements

Megan’s law
Age
Disability
Marital status
National origin
Race
Religion
Age
Sex
Familial status

SECTION 5: Advertising Guidelines and Restrictions

Guidelines and restrictions
Responsibility of brokers and salespeople
Proper handling of buyers
Enforcing the law

SECTION 6: Reviewing Discrimination: It’s History and Practices

Legacy of segregation
Role of government
Role of private industry
Working with sellers
Working with buyers
Possible discriminatory situations
Steering
Avoiding illegal steering
Harassment

Section 7

Case studies 1-12

Section 8: Recent Legal Matters

Recent investigation and rulings of Housing bias
Overview, findings and rulings and Regulations
Steering
Testers
Unequal treatment by agents
Racial inequities
Instruction 177.9
Advertising 175.25
Explanation
What’s covered
Check list
Fair Housing Recording Regulation Section 175.28
Notification of Fair Housing Laws Section 175.29
All posters and disclosers and check lists relating to:
All regulations posted above with explanation
Website requirements
Video and Recording Record Preservation

Chapter 3 LAW OF AGENCY

SECTION 1: Introduction and Key Terms

SECTION 2: Agency and agency agreements

Myths vs. facts
Agency defined
Types of agencies

  • Universal agency
  • General agency
  • Special agency

Understanding the use responsibilities of each

AUTHORIZATION/EMPLOYMENT

What do we need in order to establish this employment?
Mandatory agency disclosure form

SUMMARY SECTION 2: Types of agencies

SECTION 3: Ethical responsibilities of the agent

Fiduciary responsibilities
Statements that could violate legal and ethical rights

SECTION 4: Who is my client/customer?

Who must be a client/who should be a client?
How does the buyer agent get paid?
Advantages of buyer brokerage
Benefits to the buyer broker
Fiduciary responsibilities
Buyer relationships
Dual agency
Unintentional dual agency
Undisclosed dual agency
Self-dealing
Who is my client?
Who is my customer?
Vicarious liability
Summary of duties to clients and customers
Ethical Responsibilities

SUMMARY SECTION 4: Who is my client/customer?

Who must be a client/who should be a client?
How does the buyer agent get paid?
Advantages of buyer brokerage
Benefits to the buyer broker
Fiduciary responsibilities
Buyer relationships
Dual agency
Unintentional dual agency
Undisclosed dual agency
Self-dealing
Who is my client?
Who is my customer?
Vicarious liability
Summary of duties to clients and customers
Ethical Responsibilities

Section 5 Creating and Terminating Written Agreements and Agency Disclosure Forms:

New York state mandatory agency disclosure form
Reviewing the agency disclosure form
Summary of Dual Agency
Summary of Broker’s Agent
Purchase offer agreement
Property condition disclosure
Creating and terminating the listing agreement
Open listing
Exclusive agency
Exclusive right to sell
Explanation of types of listing
Understanding the need for exact implementation of choice
Legal ramifications for misuse
Multiple listing service
Sub-agency
Presenting an offer
Termination of an agency agreement
Reasons for termination
Types of releases and terminations
Landlord/tenant agreements
Summary Ethical Responsibilities
Summary section 5

SECTION 6: Lead paint, stigmatized property, latent defects

Definition and effects of lead
Steps to take to avoid lead poisoning
History of lead disclosure guidelines
Effects of lead on humans
Ways to protect ourselves from lead
Fines for non-disclosure are as follows
Stigmatized properties
Latent defects
Other examples of misrepresentation:
Advertising
Price
Geography
Market conditions
Megan’s law

SECTION 6: Summary, including legal and ethical responsibilities

SECTION 7: Commission and Deposit Money

Commission
Compensation of the salesperson
Buyer pays the commission directly
Who really pays the commission?
Procuring cause
Protect our procuring cause status
Disclosure of customer
Exceptions to the rule
The commission escrow act
Summary of the commission escrow act
Referring experts
Deposit money

SECTION 7: Summary

SECTION 8: NATIONAL ASSOCIATION OF REALTORS®

NAR Code of Ethics and Standards of Practice
Avoiding Risk
Code of Ethics Articles
Duties to Clients and Customers
Duties to the Public
Duties to Realtors
Standards and Practices
Implementation of the Code of Ethics to avoid unethical and/or illegal behavior
Code of Ethics summary

SECTION 9: Anti-trust laws

Anti-trust
Price fixing
Boycott
Market allocation
Tie in arrangements
Referral fees and kickbacks
Mortgage broker referral fees
Kickbacks
Group boycotts
Anti-trust lawsuit
Summary

SECTION 10 and 10A: Risk Management

Explanation of Risk Management
Property disclosure
Caveat emptor
Fraud and misrepresentation
Vicarious liability
Home inspections
Penalties
Stigmatized properties
As is condition
Self-dealing
Misleading and deceptive advertising
Earnest money
Placing for sale signs
Duplicate signed documents
Rebates, kickbacks, commission
NAR Code of Ethics Recap
Multiple offers recap
Anti-trust recap

SECTION 10A: Continuation and Summary

Placing for sale signs
Duplicate signed documents
Rebates, Kickbacks and Commissions
Duties an agent would provide a client
Lead disclosure guidelines
Multiple offers
Anti-trust
Price fixing
Summary risk management

SECTION 11: New York Dept. Of State Lawsuits

Complaint, Finding of Facts, and Determinations

Changes to the Agency disclosure law.

CHAPTER 4 UNDERSTANDING REAL ESTATE FINANCING

SECTION 1: Understanding RE financing

Mortgage Basics
Mortgage banker vs. mortgage broker
Dual agency
Definition of mortgage
Types of mortgages
Types of amortization
Essentials of a valid mortgage
Loan programs:
Secured loans
FHA
HUD
VA
Fixed rate loans
Adjustable-rate loans
Home Equity loans
Reverse mortgage
Provisions of a commercial loan
Bridge loans
Amortized loans
Balloon mortgage
Blanket mortgage
Package loan
Subordinate mortgage
Construction mortgage
Hard money loans

SECTION 2: Mortgage Process

Mortgage underwriting
FICO
Capacity to repay
Collateral
Common Sense
Cost
Price
Value
Subprime market
Secondary mortgage market
Fannie Mae
Freddie Mac
Mortgage-backed securities
Automated underwriting
Approve or decline
General loan procedures and requirements
Documentation
Borrower criteria
Loan property criteria
General requirements
Types of transactions
Preliminary title report
Classifications of real estate
Real estate appraisal
Other types of value
Cost approach
Income approach
Market data approach
Highest and best use
Proximity and Marketability
Derogatory or adverse information
Foreclosure actions
Acceleration clause
Repossession
Bankruptcy

SECTION 3: The Mortgage Loan

Mortgage calculations
Disposable income
Amortization
Loan to value
Debt payment

SECTION 4: Closing the Loan

RESPA
Disclosures, fees and closing costs:
Points
Index
Margin
Closing costs
Commission
Appraisal fee
Inspections
Warranties
Insurance
Pro ration
Title report and title insurance
Abstract
Chain of title
Suit to quiet title
Title insurance
Types of title policies

SECTION 5: Frauds, Scams and Red Flags

Mortgage fraud
Straw borrows schemes
Property flip schemes
Double escrows
Equity skimming
Foreclosure bailout
Builder bailout
Loan application red flags
Verification of deposit red flags
Tax return red flags
W 2 red flags
Appraisal red flags
Phony employment, credit or income
Verification of employment red flags
Title report red flags
Escrow/closing red flags
Credit report red flags
Pay stub red flags

CHAPTER 5 TAXES AND ASSESSMENTS

SECTION 1: Introduction and key terms

SECTION 2: Taxation

Purpose of taxation
Calculating property tax
Tax calculating and overview
Estimating market value
Sales comparison approach
Cost approach
Income approach
Outline of income analysis
Other methods
Summary of estimating market value
Determining assessed value
Tax Rolls and Tax Rates
Summary of real property tax calculation

Also included are references to the following:
Municipality
Taxing jurisdictions
Infrastructure
Known base
Predictable income
Real estate hard to conceal
Applies to all types of real estate
Pays for governmental operations
Burden of property taxes
Tax grievance
Calculating real estate taxes
Approved assessing units
Office of real property services
Market value
Sales comparison approach
Arm’s length transactions
Examples
Cost approach
Depreciation
Lack of sales
Income approach
Apartment buildings
Commercial property
Income analysis
Capitalization rates
Mass appraisals
Determining total assessed value
Exemptions
Uniform percentage of market value
Level assessments
Tax rolls and tax rates
Tax levy
Assessment ratios

SECTION 3: Taxation

Tax liens
Key terms
Non possessory interest
In rem
Equitable right of redemption
Statutory right of redemption
Special assessments
Special assessment districts
Back taxes
Tax exemptions
Examples of exemptions
Groups entitled to exemptions
Veterans exemption
Gold Star Parents
Disability
Homestead/non homestead
Requirements for tax exemptions
STAR exemption
Calculating taxes
Unequal assessments
Changes in market conditions
Undeclared improvements
New construction assessments
Community wide reassessments
Reassessment upon sale
Illegal assessments
Building permits and assessments

SECTION 4: Tax grievances

Key terms
Filing
Administrative review
Judicial review
Assessment review board
Grievance board
Burden of proof
Full denial
Full re assessment as per application
Partial reassessment
Grounds for complaints
Excessive assessment
Unequal assessment
Unlawful assessment
Misclassified assessment
Approved assessing units
Grounds for challenging assessments
Judicial review

SECTION 5: The tax grievance process

Introduction and key terms
Administrative review
Types of decisions
Grounds for challenging assessments
Excessive assessments
Unequal assessments
Unlawful assessments
Misclassified assessments
Approved assessing units
Grounds for challenging assessments
Filing an administrative review
Judicial review

SECTION 5: Scar, Certiorari, Assessment Ratios, Equalization

SCAR small claims assessment review
Putting SCAR to work
Summary of SCAR
Appeal of a SCAR decision
Certiorari proceedings
Residential assessment ratio
Equalization
Understanding and calculating tax bills
Property qualified and not qualified
SCAR filings
SCAR decisions
Hearing officers
Summary of SCAR
Appealing SCAR decisions
Article 78 proceeding
Definition
Who qualifies?
What property qualifies
Explanation of certiorari proceedings
Burden of proof
Summary of certiorari proceedings
Residential assessment ratio
Measure equity of assessed values
Calculation of residential assessment values
Criteria for selection of property
Examples of calculations
Who uses residential assessment ratios?
What are they not used for?
Equalization
Explanation and examples
Equalization rates
ORPS
Relationship of assessed market value to rate
Use of equalization rates
Apportionment
Special purpose distribution
Relationship to level of assessment
Summary of equalization

*No partial credit can be given for this course.