New York Real Estate Broker License
Exam — REB Practice Questions And
Answers Newest (2025 - 2026 Update)
From Real Past Papers Questions – Set
150 Most Common Actual Exam
Frequently Tested Questions And
Answers In Details 100% Verified
Exam Highly Recommendable For
Professional Graded A+
Question 1
A real estate broker in New York is legally required to maintain escrow funds in which type of
account?
A. Personal checking account
B. Separate escrow account
C. Business operating account
D. Investment brokerage account
Answer: B ✔ (Separate escrow account)
Explanation: New York law requires brokers to keep client funds in a segregated escrow
account to prevent commingling and protect client assets.
Question 2
Which type of listing gives the broker the right to commission regardless of who sells the
property?
A. Open listing
B. Net listing
C. Exclusive right-to-sell listing
D. Exclusive agency listing
Answer: C ✔ (Exclusive right-to-sell listing)
Explanation: This agreement ensures the broker earns a commission no matter who
procures the buyer, including the owner.
Question 3
A broker acting as a dual agent must:
,A. Represent only the seller
B. Represent only the buyer
C. Obtain informed written consent from both parties
D. Avoid disclosing any information
Answer: C ✔ (Obtain informed written consent from both parties)
Explanation: Dual agency is permitted only when both parties give written informed
consent acknowledging the broker’s limited representation.
Question 4
What is the statute of limitations for breach of a written real estate contract in New York?
A. 3 years
B. 6 years
C. 10 years
D. 2 years
Answer: B ✔ (6 years)
Explanation: New York law provides a six-year statute of limitations for written contract
disputes.
Question 5
A property owner lists a property with multiple brokers. This is an example of:
A. Exclusive listing
B. Open listing
C. Net listing
D. Dual listing
Answer: B ✔ (Open listing)
Explanation: An open listing allows multiple brokers to attempt to sell the property, with
commission going to the successful broker.
Question 6
Which law prohibits discrimination in housing based on race, religion, and national origin?
A. ADA
B. Civil Rights Act of 1866
C. Fair Housing Act
D. Sherman Act
Answer: C ✔ (Fair Housing Act)
Explanation: The Fair Housing Act prohibits discrimination in housing transactions based
on protected classes.
Question 7
A broker who mixes personal funds with client escrow funds is guilty of:
A. Puffing
B. Commingling
C. Steering
D. Blockbusting
Answer: B ✔ (Commingling)
,Explanation: Commingling is illegal and occurs when client funds are not kept separate
from personal or business funds.
Question 8
Which valuation approach is most appropriate for a single-family home?
A. Cost approach
B. Income approach
C. Sales comparison approach
D. Capitalization approach
Answer: C ✔ (Sales comparison approach)
Explanation: Residential properties are typically valued by comparing recent similar
property sales.
Question 9
What type of lease transfers all rights and obligations to another party?
A. Sublease
B. Assignment
C. Gross lease
D. Net lease
Answer: B ✔ (Assignment)
Explanation: In an assignment, the original tenant transfers the lease entirely to a new
tenant.
Question 10
A broker must retain transaction records for how many years in New York?
A. 2 years
B. 3 years
C. 5 years
D. 6 years
Answer: B ✔ (3 years)
Explanation: Brokers are required to keep records for at least three years for audit and
compliance purposes.
Question 11
A buyer defaults on a contract. The seller keeps the deposit. This is known as:
A. Specific performance
B. Liquidated damages
C. Rescission
D. Novation
Answer: B ✔ (Liquidated damages)
Explanation: Earnest money may serve as liquidated damages when specified in the
contract.
Question 12
Which of the following is a fiduciary duty?
A. Disclosure
, B. Accounting
C. Loyalty
D. All of the above
Answer: D ✔ (All of the above)
Explanation: Brokers owe multiple fiduciary duties including loyalty, disclosure, and
accounting.
Question 13
A broker advertises a property but fails to disclose known defects. This violates:
A. Puffing laws
B. Fiduciary duties
C. Zoning laws
D. Antitrust laws
Answer: B ✔ (Fiduciary duties)
Explanation: Brokers must disclose material facts affecting property value or desirability.
Question 14
Which mortgage clause allows full repayment upon sale of property?
A. Acceleration clause
B. Due-on-sale clause
C. Escalation clause
D. Alienation clause
Answer: B ✔ (Due-on-sale clause)
Explanation: This clause requires loan payoff when the property is transferred.
Question 15
Which type of ownership includes right of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Leasehold
D. Cooperative ownership
Answer: B ✔ (Joint tenancy)
Explanation: Joint tenancy includes survivorship rights where ownership passes
automatically.
Question 16
A broker is paid commission only if the property sells. This is:
A. Salary
B. Contingency compensation
C. Retainer
D. Bonus
Answer: B ✔ (Contingency compensation)
Explanation: Commission is typically contingent upon successful transaction completion.
Question 17
What does MLS stand for?
Exam — REB Practice Questions And
Answers Newest (2025 - 2026 Update)
From Real Past Papers Questions – Set
150 Most Common Actual Exam
Frequently Tested Questions And
Answers In Details 100% Verified
Exam Highly Recommendable For
Professional Graded A+
Question 1
A real estate broker in New York is legally required to maintain escrow funds in which type of
account?
A. Personal checking account
B. Separate escrow account
C. Business operating account
D. Investment brokerage account
Answer: B ✔ (Separate escrow account)
Explanation: New York law requires brokers to keep client funds in a segregated escrow
account to prevent commingling and protect client assets.
Question 2
Which type of listing gives the broker the right to commission regardless of who sells the
property?
A. Open listing
B. Net listing
C. Exclusive right-to-sell listing
D. Exclusive agency listing
Answer: C ✔ (Exclusive right-to-sell listing)
Explanation: This agreement ensures the broker earns a commission no matter who
procures the buyer, including the owner.
Question 3
A broker acting as a dual agent must:
,A. Represent only the seller
B. Represent only the buyer
C. Obtain informed written consent from both parties
D. Avoid disclosing any information
Answer: C ✔ (Obtain informed written consent from both parties)
Explanation: Dual agency is permitted only when both parties give written informed
consent acknowledging the broker’s limited representation.
Question 4
What is the statute of limitations for breach of a written real estate contract in New York?
A. 3 years
B. 6 years
C. 10 years
D. 2 years
Answer: B ✔ (6 years)
Explanation: New York law provides a six-year statute of limitations for written contract
disputes.
Question 5
A property owner lists a property with multiple brokers. This is an example of:
A. Exclusive listing
B. Open listing
C. Net listing
D. Dual listing
Answer: B ✔ (Open listing)
Explanation: An open listing allows multiple brokers to attempt to sell the property, with
commission going to the successful broker.
Question 6
Which law prohibits discrimination in housing based on race, religion, and national origin?
A. ADA
B. Civil Rights Act of 1866
C. Fair Housing Act
D. Sherman Act
Answer: C ✔ (Fair Housing Act)
Explanation: The Fair Housing Act prohibits discrimination in housing transactions based
on protected classes.
Question 7
A broker who mixes personal funds with client escrow funds is guilty of:
A. Puffing
B. Commingling
C. Steering
D. Blockbusting
Answer: B ✔ (Commingling)
,Explanation: Commingling is illegal and occurs when client funds are not kept separate
from personal or business funds.
Question 8
Which valuation approach is most appropriate for a single-family home?
A. Cost approach
B. Income approach
C. Sales comparison approach
D. Capitalization approach
Answer: C ✔ (Sales comparison approach)
Explanation: Residential properties are typically valued by comparing recent similar
property sales.
Question 9
What type of lease transfers all rights and obligations to another party?
A. Sublease
B. Assignment
C. Gross lease
D. Net lease
Answer: B ✔ (Assignment)
Explanation: In an assignment, the original tenant transfers the lease entirely to a new
tenant.
Question 10
A broker must retain transaction records for how many years in New York?
A. 2 years
B. 3 years
C. 5 years
D. 6 years
Answer: B ✔ (3 years)
Explanation: Brokers are required to keep records for at least three years for audit and
compliance purposes.
Question 11
A buyer defaults on a contract. The seller keeps the deposit. This is known as:
A. Specific performance
B. Liquidated damages
C. Rescission
D. Novation
Answer: B ✔ (Liquidated damages)
Explanation: Earnest money may serve as liquidated damages when specified in the
contract.
Question 12
Which of the following is a fiduciary duty?
A. Disclosure
, B. Accounting
C. Loyalty
D. All of the above
Answer: D ✔ (All of the above)
Explanation: Brokers owe multiple fiduciary duties including loyalty, disclosure, and
accounting.
Question 13
A broker advertises a property but fails to disclose known defects. This violates:
A. Puffing laws
B. Fiduciary duties
C. Zoning laws
D. Antitrust laws
Answer: B ✔ (Fiduciary duties)
Explanation: Brokers must disclose material facts affecting property value or desirability.
Question 14
Which mortgage clause allows full repayment upon sale of property?
A. Acceleration clause
B. Due-on-sale clause
C. Escalation clause
D. Alienation clause
Answer: B ✔ (Due-on-sale clause)
Explanation: This clause requires loan payoff when the property is transferred.
Question 15
Which type of ownership includes right of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Leasehold
D. Cooperative ownership
Answer: B ✔ (Joint tenancy)
Explanation: Joint tenancy includes survivorship rights where ownership passes
automatically.
Question 16
A broker is paid commission only if the property sells. This is:
A. Salary
B. Contingency compensation
C. Retainer
D. Bonus
Answer: B ✔ (Contingency compensation)
Explanation: Commission is typically contingent upon successful transaction completion.
Question 17
What does MLS stand for?
