NY REAL ESTATE EXAM QUESTIONS
AND ANSWERS
A broker's compensation is determined in an agreement between the broker and the -
ANSWER -Principal
Which fiduciary duty would be violated when a client suffers a financial loss as a result
of an agent's lack of expertise in dealing with a particular type of property? - ANSWER -
Reasonable Care
If clients who sign an "exclusive right to sell" listing agreement with a broker find a buyer
for the property on their own, the broker is... - ANSWER -entitled to the original agreed
upon commission
At an open house, Ozzie discloses to an interested buyer that he has a right to his own
representation but the buyer refuses. The buyer's relationship to Ozzie is a... -
ANSWER -Customer
The main purpose of the Agency Disclosure Form is to - ANSWER -Inform customers of
the agency relationship of themselves to a real estate agent and available choices for
representation.
Which of the following scenarios best illustrates the first substantive contact with a
prospective buyer? - ANSWER -an individual meeting with an agent and discussing the
purchase of a specific property.
What type of real estate agent is authorized to represent a principal in one specific
transaction? - ANSWER -Special
According to the New York State Real Property Law, a real estate salesperson's license
is issued for a term of how many years? - ANSWER -Two
What happens to the licenses of salespersons if their sponsoring broker's license is
revoked? - ANSWER -They are suspended
Which type of residential real property transfer would require a property to condition
disclosure statement? - ANSWER -Lease with an option to purchase
A listing broker for the seller has a buyer-client who asks to see the listing. This request
could create which type of agency? - ANSWER -Dual Agency
If an agent represents two opposing parties in the same transaction without both parties'
full knowledge and informed consent, the agents action is known as a(n) - ANSWER -
Undisclosed Dual Agency
AND ANSWERS
A broker's compensation is determined in an agreement between the broker and the -
ANSWER -Principal
Which fiduciary duty would be violated when a client suffers a financial loss as a result
of an agent's lack of expertise in dealing with a particular type of property? - ANSWER -
Reasonable Care
If clients who sign an "exclusive right to sell" listing agreement with a broker find a buyer
for the property on their own, the broker is... - ANSWER -entitled to the original agreed
upon commission
At an open house, Ozzie discloses to an interested buyer that he has a right to his own
representation but the buyer refuses. The buyer's relationship to Ozzie is a... -
ANSWER -Customer
The main purpose of the Agency Disclosure Form is to - ANSWER -Inform customers of
the agency relationship of themselves to a real estate agent and available choices for
representation.
Which of the following scenarios best illustrates the first substantive contact with a
prospective buyer? - ANSWER -an individual meeting with an agent and discussing the
purchase of a specific property.
What type of real estate agent is authorized to represent a principal in one specific
transaction? - ANSWER -Special
According to the New York State Real Property Law, a real estate salesperson's license
is issued for a term of how many years? - ANSWER -Two
What happens to the licenses of salespersons if their sponsoring broker's license is
revoked? - ANSWER -They are suspended
Which type of residential real property transfer would require a property to condition
disclosure statement? - ANSWER -Lease with an option to purchase
A listing broker for the seller has a buyer-client who asks to see the listing. This request
could create which type of agency? - ANSWER -Dual Agency
If an agent represents two opposing parties in the same transaction without both parties'
full knowledge and informed consent, the agents action is known as a(n) - ANSWER -
Undisclosed Dual Agency
