New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsEasy
A licensed real estate broker in New York decides to open their own brokerage. Which of the following is a mandatory requirement for establishing and operating a real estate brokerage in New York?
- AObtain a separate mortgage broker license.
- BMaintain a definite place of business within New York State.
- CPost a surety bond of at least $100,000 with the Department of State.
- DEmploy at least one licensed real estate salesperson.
Show answer & explanationAnswer & explanation
Correct answer: B. Maintain a definite place of business within New York State.
New York Real Property Law requires every licensed real estate broker to maintain a definite place of business in the state, which must be clearly identifiable and accessible to the public.
Why the other options are wrong
- A. A real estate broker license does not automatically permit mortgage brokering; a separate license is required for that activity.
- C. New York State does not generally require real estate brokers to post a surety bond of this nature for standard brokerage operations.
- D. While many brokers employ salespersons, it is not a mandatory requirement to operate a brokerage; a sole proprietor broker can operate alone.
Definite Place of Business
A physical office location required for all licensed real estate brokers in New York State, which must be registered with the Department of State and clearly visible to the public.
- Mandatory for all brokers.
- Must be in NYS.
- Registered with DOS.
Memory trick: Broker's business, definite place, licensed grace.