STUDY GUIDE FOR THE NY REAL
ESTATE EXAM WITH CERTIFIED
SOLUTIONS
Independent contractor must pay their own expenses. ✔✔According to IRS code section 3508[A,
B],
real estate agents are statutory non-employees and are
...
STUDY GUIDE FOR THE NY REAL
ESTATE EXAM WITH CERTIFIED
SOLUTIONS
Independent contractor must pay their own expenses. ✔✔According to IRS code section 3508[A,
B],
real estate agents are statutory non-employees and are therefore independent contractors.
The code also states that there must be a written contract between the broker and the sales
associate, also reviewed every 12-15 months
· All records must be kept for 3 years
· If sales associate not deemed independent then they will not be able to file "SCHEDULE C' of
the federal return
· The Independent Contractor Relationship
Ø Salespersons are free to engage in outside employment
Ø Either party may terminate the relationship at any time
License Law & Regulations ✔✔The New York Department of State, Division of licensing
Services is the regulatory agency that oversees and administers the licensure process.
Most of the law pertaining to salespersons and brokers is contained in Article 12-A of the real
property law.
A real estate broker ✔✔is any person, partnership, association or corporation who, for another,
and for compensation of any kind, negotiates any form of real estate transaction.
Real estate brokers supervise and are responsible for the activities of associate brokers and
salespersons in their employ.
A salesperson or an associate broker ✔✔cannot operate independently. Although licensed, they
must work under a licensed Real Estate Broker
Duties That Require Licensure ✔✔* Selling or purchasing real estate at an auction
*Negotiating the sale of a business for which the values of the real estate transferred is not
merely incidental to the transaction (RE value is worth more than the business
* Salespersons must be 18 years of age.
* Brokers must be 20 years old with 2 years experience
* Points for Broker License work as salesperson & 3500 points or 3 years and 5250 points.
*Licenses are renewed every two{2} years
Exemptions to Licensure ✔✔Building superintendents or mai
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