New York Real Estate Salesperson Cheat Sheet.
The night-before summary, built like the exam.

New York Real Estate Salesperson Exam — Condensed Cheat Sheet

Fair Housing (High-Yield)

• 7 federally protected classes: race, color, religion, national origin, sex, familial status, disability.
• Fair Housing Act = part of the Civil Rights Act of 1968, amended 1988; bans discrimination in sale, rental, and financing.
• Civil Rights Act of 1866 — bars ALL racial discrimination in property, no exemptions.
• Familial status protects households with children under 18 and pregnant persons.
• Prohibited practices: Steering (channeling by protected class), Blockbusting (inducing sales by claiming protected-class move-in), Redlining (denying loans/insurance by area).
• Discriminatory advertising is illegal even if the transaction is exempt.
• Mrs. Murphy exemption (owner-occupied, ≤4 units): NEVER applies to race, and never with discriminatory advertising or a licensee.

Agency & Fiduciary Duties

• OLD CAR = Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care.
• Agency = principal authorizes agent to act on their behalf with third parties.
• Loyalty: principal's interests above the agent's; avoid conflicts of interest.
• Confidentiality survives termination — never reveal the seller's lowest acceptable price.
• Accounting: safeguard entrusted funds; no commingling with agent's own money.
• Dual agency: legal only with informed written consent of both parties; the dual agent cannot advocate for one side.
• Customer vs. client: customers get only honesty, fair dealing, and disclosure of known material defects — no fiduciary duties.
• Termination: completion, expiration, mutual agreement, revocation, renunciation, or operation of law (death/incapacity).

Listings & Contracts

• Listing = employment contract to market and find a ready, willing, and able buyer.
• Exclusive-right-to-sell: broker paid if property sells during term — regardless of who finds the buyer.
• Exclusive-agency: broker paid unless the seller personally finds the buyer.
• Open listing: non-exclusive; only the procuring broker is paid; may list with multiple brokers.
• Valid contract: competent parties, mutual assent, consideration, lawful object, and a writing (Statute of Frauds).
• Any change to an offer = counteroffer, which rejects/terminates the original.
• Earnest money = good-faith deposit held in the broker's trust account.
• Contingencies (financing, inspection, appraisal): buyer may cancel and recover the deposit if unmet.
• Time is of the essence: deadlines strictly enforceable; missing the date = breach.

Deeds & Title

• Deed = written instrument conveying title from grantor to grantee.
• Valid deed: competent parties, words of conveyance, adequate legal description, grantor's signature — plus delivery and acceptance.
• General warranty deed = greatest protection; warrants against ALL defects at any time (even before grantor owned it).
• Special warranty deed = warrants only against defects during the grantor's ownership.
• Quitclaim deed = conveys only whatever interest exists, no warranties; clears clouds on title.
• Recording gives constructive notice to the world and priority — protects the first to record.
• Title insurance covers losses from defects that existed but were unknown at policy issuance.
• Marketable title = free from reasonable doubt/serious defects a prudent buyer would accept.

Financing

• Mortgage / deed of trust pledges the property as security for a promissory note.
• Lien theory: borrower keeps title, lender holds a lien. Title theory: lender/trustee holds title until debt repaid.
• Loan types: Conventional (not government-backed), FHA insured, VA guaranteed (eligible veterans).
• PMI generally required on conventional loans when down payment < 20%.
• Fixed-rate = one rate for the term; ARM = rate changes on an index + margin.
• Amortization: early payments mostly interest, later payments mostly principal.
• Due-on-sale clause: lender can demand full repayment on sale; blocks assumption without approval.
• Discount points: prepaid interest to lower the note rate; 1 point = 1% of the loan.

Math & Formulas (Memorize)

• Commission = Sale Price × Rate. Ex: $300,000 × 6% = $18,000.
• LTV = Loan ÷ lesser of appraised value or price. Ex: $240,000 on $300,000 = 80% LTV (20% down).
• Proration splits shared costs (taxes, rent, interest) at the closing date.
• Banker's year: 360 days, 30-day months; daily rate = annual ÷ 360.
• Prepaid → buyer reimburses seller for unused portion. Arrears → seller credits buyer for seller's share.
• Gross Rent Multiplier = Sale Price ÷ monthly gross rent.
• Income (cap) approach: Value = NOI ÷ Cap Rate.