Broker Karen receives a personal check for $8,000 as earnest money from buyer Thompson on a Tuesday. When she attempts to deposit the check on Wednesday, the bank informs her that Thompson's account has insufficient funds. Under New York DOS regulations, what is Karen's primary obligation?
Correct Answer
A) Immediately notify the seller and listing agent of the insufficient funds situation
When earnest money funds are not available due to insufficient funds, the broker has a fiduciary duty to immediately notify all parties to the transaction, including the seller and listing agent, as this materially affects the buyer's ability to perform under the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An easement is a legal right to use another person's land for a specific purpose without owning it. It is a nonpossessory interest in real property that typically runs with the land.
An easement by necessity is created by court order when a property is landlocked and has no access to a public road. It arises from the necessity of accessing the property, not from long-term use.
An easement by prescription is acquired through continuous, open, notorious, hostile, and uninterrupted use of another's land for a statutory period. It is similar to adverse possession but grants use rights, not ownership.
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- → Under New York Department of State fee schedules, what is the fee required to sit for the real estate salesperson licensing examination?
- → Broker Martinez holds an active NY broker license and operates a principal office. She opens a branch office managed day-to-day by Associate Broker Thompson. A competing broker claims Martinez is violating DOS regulations because the branch office lacks proper licensing. Which of the following best evaluates this claim?
- → A prospective salesperson candidate completed portions of the required 77-hour pre-licensing curriculum at two separate DOS-approved real estate schools. Under NY DOS regulations, which statement best describes the candidate's examination eligibility?
- → Amanda completed her 77-hour pre-licensing course in January 2024. She is now ready to take her exam in March 2026. Is her education still valid?
- → A salesperson has completed 20 of the required 22.5 hours of continuing education before her license renewal deadline. Which of the following would satisfy her remaining 2.5-hour requirement?
- → A New York salesperson wants to open an independent brokerage office without associating with a sponsoring broker. Which licensing distinction determines whether that is permitted?
- → A New York broker receives client money that must be held separately from the broker's own operating funds. What type of account must the broker use under the DOS rule?
- → A New York applicant is selecting a path to complete the 77-hour pre-licensing requirement. Which listed method is not acceptable under New York law?
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