REAL ESTATE EXAM PRACTICE
1. The agency responsible for issuing real estate licenses in New York is:
a. Department of Education
b. Department of State
c. Attorney General’s Office
d. Division of Housing
Answer: b
Rationale: The New York State Department of State, Division of Licensing Services regulates and
licenses real estate professionals.
2. The minimum age to qualify for a New York real estate broker’s license is:
a. 18
b. 19
c. 20
d. 21
Answer: c
Rationale: Since July 1, 2008, applicants must be at least 20 years old to become a licensed
broker.
3. A salesperson may receive payment for real estate services only from:
a. The client
b. The sponsoring broker
c. The buyer
d. Another salesperson
Answer: b
Rationale: Salespersons can only be compensated through their sponsoring broker, not directly
by clients.
4. A violation of the New York Real Estate License Law is punishable by:
a. $500 fine and 6 months in jail
b. $1,000 fine and/or one year in jail
c. $2,000 fine only
d. License suspension only
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,Answer: b
Rationale: It’s a misdemeanor carrying up to one year in jail and a maximum fine of $1,000.
5. A broker may legally share commission with:
a. A friend who referred a client
b. A licensed broker or salesperson
c. The seller
d. A buyer’s attorney
Answer: b
Rationale: Commissions can only be split with another licensed real estate professional.
6. Which act requires a real estate license?
a. Selling your own property
b. Managing your own rental
c. Auctioning property for others
d. Selling property under court order
Answer: c
Rationale: Auctioning or selling property for another person requires a valid real estate license.
7. An associate broker is best described as:
a. A broker who owns an office
b. A broker working under another broker
c. An unlicensed assistant
d. A temporary salesperson
Answer: b
Rationale: An associate broker is fully licensed but chooses to work under a principal broker.
8. A salesperson’s license must be renewed every:
a. 1 year
b. 2 years
c. 3 years
d. 4 years
Answer: b
Rationale: New York salesperson licenses expire every two years.
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, 9. A blind advertisement is one that:
a. Does not include a price
b. Does not identify the broker’s name
c. Includes only the property address
d. Lacks contact details
Answer: b
Rationale: Blind ads hide broker identity and are prohibited under New York law.
10. When must a salesperson deliver earnest money to their broker?
a. Within 48 hours
b. Within 24 hours
c. Immediately
d. After inspection
Answer: c
Rationale: The law requires prompt delivery — “immediately” upon receipt.
11. A broker earns commission when they:
a. Advertise the property
b. Find a ready, willing, and able buyer
c. Close the transaction
d. Deliver the deed
Answer: b
Rationale: Commission is earned once a qualified buyer agrees to the seller’s terms.
12. Commingling occurs when:
a. Client funds are mixed with personal or business accounts
b. Two agents share a deal
c. A broker uses multiple trust accounts
d. Earnest money is returned
Answer: a
Rationale: Mixing client funds with personal or business money violates trust laws.
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1. The agency responsible for issuing real estate licenses in New York is:
a. Department of Education
b. Department of State
c. Attorney General’s Office
d. Division of Housing
Answer: b
Rationale: The New York State Department of State, Division of Licensing Services regulates and
licenses real estate professionals.
2. The minimum age to qualify for a New York real estate broker’s license is:
a. 18
b. 19
c. 20
d. 21
Answer: c
Rationale: Since July 1, 2008, applicants must be at least 20 years old to become a licensed
broker.
3. A salesperson may receive payment for real estate services only from:
a. The client
b. The sponsoring broker
c. The buyer
d. Another salesperson
Answer: b
Rationale: Salespersons can only be compensated through their sponsoring broker, not directly
by clients.
4. A violation of the New York Real Estate License Law is punishable by:
a. $500 fine and 6 months in jail
b. $1,000 fine and/or one year in jail
c. $2,000 fine only
d. License suspension only
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,Answer: b
Rationale: It’s a misdemeanor carrying up to one year in jail and a maximum fine of $1,000.
5. A broker may legally share commission with:
a. A friend who referred a client
b. A licensed broker or salesperson
c. The seller
d. A buyer’s attorney
Answer: b
Rationale: Commissions can only be split with another licensed real estate professional.
6. Which act requires a real estate license?
a. Selling your own property
b. Managing your own rental
c. Auctioning property for others
d. Selling property under court order
Answer: c
Rationale: Auctioning or selling property for another person requires a valid real estate license.
7. An associate broker is best described as:
a. A broker who owns an office
b. A broker working under another broker
c. An unlicensed assistant
d. A temporary salesperson
Answer: b
Rationale: An associate broker is fully licensed but chooses to work under a principal broker.
8. A salesperson’s license must be renewed every:
a. 1 year
b. 2 years
c. 3 years
d. 4 years
Answer: b
Rationale: New York salesperson licenses expire every two years.
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, 9. A blind advertisement is one that:
a. Does not include a price
b. Does not identify the broker’s name
c. Includes only the property address
d. Lacks contact details
Answer: b
Rationale: Blind ads hide broker identity and are prohibited under New York law.
10. When must a salesperson deliver earnest money to their broker?
a. Within 48 hours
b. Within 24 hours
c. Immediately
d. After inspection
Answer: c
Rationale: The law requires prompt delivery — “immediately” upon receipt.
11. A broker earns commission when they:
a. Advertise the property
b. Find a ready, willing, and able buyer
c. Close the transaction
d. Deliver the deed
Answer: b
Rationale: Commission is earned once a qualified buyer agrees to the seller’s terms.
12. Commingling occurs when:
a. Client funds are mixed with personal or business accounts
b. Two agents share a deal
c. A broker uses multiple trust accounts
d. Earnest money is returned
Answer: a
Rationale: Mixing client funds with personal or business money violates trust laws.
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