NY Real Estate Practice Exam Questions
and Answers
1. To be licensed as a real estate broker, an individual must be at least how old?
a. 16
b. 18
c. 20
d. 21 - Answer-c. 20
2. Which of the following individuals is exempt from licensure?
a. attorneys admitted to practice in the New York courts
b. property managers who manage property for more than one individual or company
c. individuals who only list property for sale
d. auctioneers who only auction commercial real estate - Answer-a. attorneys admitted
to practice in the New York courts
3. To save in paperwork, Broker Bright decides to combine her office operating account
with the deposits obtained from contracts of sale. Broker Bright is guilty of:
a. nothing at all
b. illegal commingling of funds
c. an authorized practice of law
d. accepting money without authorization - Answer-b. illegal commingling of funds
4. A net listing is one:
a. that requires the broker to have a fixed price for the property
b. that is legal in New York
c. that most brokers would prefer
d. in which the seller specifies a certain amount of money to be received upon sale of
the property and all monies above - Answer-d. in which the seller specifies a certain
amount of money to be received upon sale of the property and all monies above
5. A broker's agent is hired by the:
a. principal
b. seller
c. customer
d. broker - Answer-d. broker
6. Which of the following is TRUE regarding dual agency relationships in New York?
, a. they are permissible with timely disclosure and informed consent
b. they are illegal under all circumstances
c. they are allowed only in commercial transactions
d. they are allowed only in the sale of condominium or cooperative properties - Answer-
a. they are permissible with timely disclosure and informed consent
7. A listing agreement in which the property is listed with only one broker who is entitled
to a commission if he sells the property but not if the owner sells the property is called
a(n):
a. exclusive-right-to-sell agreement
b. open listing agreement
c. net listing agreement
d. exclusive agency agreement - Answer-d. exclusive agency agreement
8. The first law to address antitrust violations was the:
a. Clayton Antitrust Act
b. Real Estate Settlement Procedures Act
c. Sherman Antitrust Act
d. New York Real Property Law - Answer-c. Sherman Antitrust Act
9. Sell-It-Today Brokerage requires that purchasers of its listed property apply for a
mortgage with EZ Money Mortgage
a. perfectly acceptable
b. an example of an illegal tie-in arrangement
c. an example of an illegal group boycott
d. an example of an illegal market allocation agreement - Answer-b. an example of an
illegal tie-in arrangement
10. An agency relationship created by an oral or written agreement between principal
and agent is a(n)
a. implied agency
b. express agency
c. dual agency
d. power of attorney - Answer-b. express agency
11. Martin signs an exclusive-right-to-sell listing agreement for six months with Broker
Gerald. Within one month, Martin sells his house himself and refuses to pay a
commission to Gerald. Martin's behavior is a possible:
a. reformation
b. breach of contract
c. injunction
and Answers
1. To be licensed as a real estate broker, an individual must be at least how old?
a. 16
b. 18
c. 20
d. 21 - Answer-c. 20
2. Which of the following individuals is exempt from licensure?
a. attorneys admitted to practice in the New York courts
b. property managers who manage property for more than one individual or company
c. individuals who only list property for sale
d. auctioneers who only auction commercial real estate - Answer-a. attorneys admitted
to practice in the New York courts
3. To save in paperwork, Broker Bright decides to combine her office operating account
with the deposits obtained from contracts of sale. Broker Bright is guilty of:
a. nothing at all
b. illegal commingling of funds
c. an authorized practice of law
d. accepting money without authorization - Answer-b. illegal commingling of funds
4. A net listing is one:
a. that requires the broker to have a fixed price for the property
b. that is legal in New York
c. that most brokers would prefer
d. in which the seller specifies a certain amount of money to be received upon sale of
the property and all monies above - Answer-d. in which the seller specifies a certain
amount of money to be received upon sale of the property and all monies above
5. A broker's agent is hired by the:
a. principal
b. seller
c. customer
d. broker - Answer-d. broker
6. Which of the following is TRUE regarding dual agency relationships in New York?
, a. they are permissible with timely disclosure and informed consent
b. they are illegal under all circumstances
c. they are allowed only in commercial transactions
d. they are allowed only in the sale of condominium or cooperative properties - Answer-
a. they are permissible with timely disclosure and informed consent
7. A listing agreement in which the property is listed with only one broker who is entitled
to a commission if he sells the property but not if the owner sells the property is called
a(n):
a. exclusive-right-to-sell agreement
b. open listing agreement
c. net listing agreement
d. exclusive agency agreement - Answer-d. exclusive agency agreement
8. The first law to address antitrust violations was the:
a. Clayton Antitrust Act
b. Real Estate Settlement Procedures Act
c. Sherman Antitrust Act
d. New York Real Property Law - Answer-c. Sherman Antitrust Act
9. Sell-It-Today Brokerage requires that purchasers of its listed property apply for a
mortgage with EZ Money Mortgage
a. perfectly acceptable
b. an example of an illegal tie-in arrangement
c. an example of an illegal group boycott
d. an example of an illegal market allocation agreement - Answer-b. an example of an
illegal tie-in arrangement
10. An agency relationship created by an oral or written agreement between principal
and agent is a(n)
a. implied agency
b. express agency
c. dual agency
d. power of attorney - Answer-b. express agency
11. Martin signs an exclusive-right-to-sell listing agreement for six months with Broker
Gerald. Within one month, Martin sells his house himself and refuses to pay a
commission to Gerald. Martin's behavior is a possible:
a. reformation
b. breach of contract
c. injunction
