[NEW YORK REAL ESTATE SALESPERSON EXAM] – EXAM-STYLE QUESTIONS AND
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | PLUS RATIONALES |
GUARANTEED PASS | 2026/27 LATEST UPDATE | EXAM PREP | STUDY GUIDE |
PRACTICE TEST
Section One: Questions 1-50
1. A seller lists their property with a brokerage firm. The listing agreement
includes a provision allowing the seller to find a buyer independently without
paying a commission. This type of listing is known as which of the following?
A. Exclusive right-to-sell listing
B. Exclusive agency listing
C. Open listing
D. Net listing
Correct Answer: B. Exclusive agency listing
*Rationale: An exclusive agency listing grants one broker the exclusive right to
market the property, but the seller retains the right to sell the property without
paying a commission. An exclusive right-to-sell listing requires the seller to pay the
broker regardless of who finds the buyer. An open listing allows the seller to engage
multiple brokers with no exclusive rights, and a net listing is an illegal or heavily
regulated arrangement where the broker earns the amount exceeding a set net
price to the seller. This question tests the understanding of the primary types of
agency listings.
2. The New York State Department of State, Division of Licensing Services,
requires that all real estate salesperson licenses be renewed every how many
years?
,A. One year
B. Two years
C. Three years
D. Four years
Correct Answer: B. Two years
*Rationale: In New York State, real estate salesperson licenses are valid for a two-
year term. The license must be renewed before its expiration date to maintain
active status. The other options represent incorrect renewal periods for this specific
license type. This is a fundamental regulatory requirement for all licensees in New
York.
3. A property is legally described using the "metes and bounds" method. This
system is primarily based on which of the following?
A. A grid system of principal meridians and base lines
B. Lot and block numbers from a recorded plat map
C. A property's street address and zip code
D. A point of beginning, physical features, and distances/directions
Correct Answer: D. A point of beginning, physical features, and
distances/directions
*Rationale: The metes and bounds method describes property by starting at a point
of beginning, then using monuments, distances, and compass directions to trace the
perimeter back to the start. The rectangular survey system (or Public Land Survey
System) uses a grid of meridians and base lines. A lot and block system is used in
platted subdivisions. A street address is not a legal property description. This
question distinguishes between the primary legal description methods.
,4. A seller has agreed to pay a 5% commission to the listing broker. The listing
broker agrees to cooperate with a buyer's broker and offers a 2.5% co-
brokerage fee. The property sells for $400,000. How much does the buyer's
broker receive?
A. $20,000
B. $10,000
C. $15,000
D. $5,000
Correct Answer: B. $10,000
*Rationale: The commission is $400,000 x 0.05 = $20,000. The co-brokerage fee is
2.5%, which is $400,000 x 0.025 = $10,000. This amount is paid by the listing
broker from their commission. The other options represent miscalculations of the
total commission or the co-brokerage split. This assesses the ability to compute
standard commission splits.
5. A salesperson is showing a property to a buyer. The salesperson notices that
the basement has a history of flooding, but the seller did not disclose this.
What is the salesperson's most appropriate course of action?
A. Show the property and remain silent, as the seller is responsible for disclosure.
B. Inform the buyer of the observed signs of potential water damage and contact
the seller's agent.
C. Tell the buyer that the seller is lying and to make a very low offer.
D. Ignore the issue, as it may not be relevant to the buyer's decision.
Correct Answer: B. Inform the buyer of the observed signs of potential water
damage and contact the seller's agent.
, *Rationale: A licensee has a fiduciary duty of honesty and a legal obligation to
disclose material facts that are known or should be known. If the salesperson
observes signs of flooding, they must disclose this to the buyer and bring it to the
attention of the seller's agent to ensure proper disclosure. This upholds ethical and
legal standards. The other choices would constitute misrepresentation or a breach
of duty.
6. Which of the following is an example of a unilateral contract commonly
found in real estate?
A. A listing agreement
B. A purchase and sale agreement
C. An option contract
D. A lease agreement
Correct Answer: C. An option contract
*Rationale: A unilateral contract involves a promise made by one party in exchange
for an act by the other party. In an option contract, the optionor promises to keep
an offer open in exchange for consideration (money) paid by the optionee. The
optionee is not obligated to perform the act of buying. Listing agreements, purchase
and sale agreements, and leases are generally bilateral contracts, where both
parties make promises.
7. A property is located in a flood zone designated by FEMA. The seller refuses
to disclose this information to potential buyers. According to New York State
law, which of the following is true?
A. The seller is not required to disclose this information, as it is public knowledge.
B. The seller's agent must disclose this material fact if they are aware of it.
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | PLUS RATIONALES |
GUARANTEED PASS | 2026/27 LATEST UPDATE | EXAM PREP | STUDY GUIDE |
PRACTICE TEST
Section One: Questions 1-50
1. A seller lists their property with a brokerage firm. The listing agreement
includes a provision allowing the seller to find a buyer independently without
paying a commission. This type of listing is known as which of the following?
A. Exclusive right-to-sell listing
B. Exclusive agency listing
C. Open listing
D. Net listing
Correct Answer: B. Exclusive agency listing
*Rationale: An exclusive agency listing grants one broker the exclusive right to
market the property, but the seller retains the right to sell the property without
paying a commission. An exclusive right-to-sell listing requires the seller to pay the
broker regardless of who finds the buyer. An open listing allows the seller to engage
multiple brokers with no exclusive rights, and a net listing is an illegal or heavily
regulated arrangement where the broker earns the amount exceeding a set net
price to the seller. This question tests the understanding of the primary types of
agency listings.
2. The New York State Department of State, Division of Licensing Services,
requires that all real estate salesperson licenses be renewed every how many
years?
,A. One year
B. Two years
C. Three years
D. Four years
Correct Answer: B. Two years
*Rationale: In New York State, real estate salesperson licenses are valid for a two-
year term. The license must be renewed before its expiration date to maintain
active status. The other options represent incorrect renewal periods for this specific
license type. This is a fundamental regulatory requirement for all licensees in New
York.
3. A property is legally described using the "metes and bounds" method. This
system is primarily based on which of the following?
A. A grid system of principal meridians and base lines
B. Lot and block numbers from a recorded plat map
C. A property's street address and zip code
D. A point of beginning, physical features, and distances/directions
Correct Answer: D. A point of beginning, physical features, and
distances/directions
*Rationale: The metes and bounds method describes property by starting at a point
of beginning, then using monuments, distances, and compass directions to trace the
perimeter back to the start. The rectangular survey system (or Public Land Survey
System) uses a grid of meridians and base lines. A lot and block system is used in
platted subdivisions. A street address is not a legal property description. This
question distinguishes between the primary legal description methods.
,4. A seller has agreed to pay a 5% commission to the listing broker. The listing
broker agrees to cooperate with a buyer's broker and offers a 2.5% co-
brokerage fee. The property sells for $400,000. How much does the buyer's
broker receive?
A. $20,000
B. $10,000
C. $15,000
D. $5,000
Correct Answer: B. $10,000
*Rationale: The commission is $400,000 x 0.05 = $20,000. The co-brokerage fee is
2.5%, which is $400,000 x 0.025 = $10,000. This amount is paid by the listing
broker from their commission. The other options represent miscalculations of the
total commission or the co-brokerage split. This assesses the ability to compute
standard commission splits.
5. A salesperson is showing a property to a buyer. The salesperson notices that
the basement has a history of flooding, but the seller did not disclose this.
What is the salesperson's most appropriate course of action?
A. Show the property and remain silent, as the seller is responsible for disclosure.
B. Inform the buyer of the observed signs of potential water damage and contact
the seller's agent.
C. Tell the buyer that the seller is lying and to make a very low offer.
D. Ignore the issue, as it may not be relevant to the buyer's decision.
Correct Answer: B. Inform the buyer of the observed signs of potential water
damage and contact the seller's agent.
, *Rationale: A licensee has a fiduciary duty of honesty and a legal obligation to
disclose material facts that are known or should be known. If the salesperson
observes signs of flooding, they must disclose this to the buyer and bring it to the
attention of the seller's agent to ensure proper disclosure. This upholds ethical and
legal standards. The other choices would constitute misrepresentation or a breach
of duty.
6. Which of the following is an example of a unilateral contract commonly
found in real estate?
A. A listing agreement
B. A purchase and sale agreement
C. An option contract
D. A lease agreement
Correct Answer: C. An option contract
*Rationale: A unilateral contract involves a promise made by one party in exchange
for an act by the other party. In an option contract, the optionor promises to keep
an offer open in exchange for consideration (money) paid by the optionee. The
optionee is not obligated to perform the act of buying. Listing agreements, purchase
and sale agreements, and leases are generally bilateral contracts, where both
parties make promises.
7. A property is located in a flood zone designated by FEMA. The seller refuses
to disclose this information to potential buyers. According to New York State
law, which of the following is true?
A. The seller is not required to disclose this information, as it is public knowledge.
B. The seller's agent must disclose this material fact if they are aware of it.
