New York Real Estate Exam Prep 2023
Questions and Answers
The situation with the most potential for conflict is when a real estate licensee acts as a:
-Dual Agent
-Buyers Broker
-Sellers Agent
-Transaction Broker - Answer--Dual Agent
A seller has listed her home with a broker for $90,000, and the broker tells a prospective
buyer to submit a low offer because the seller is desperate to sell. The buyer offers
$85,000 and the seller accepts it. In this situations:
-The broker has violated his agency relationship with the seller
-The broker was unethical, but the seller did get to sell the property
-The broker acted properly to obtain a quick offer on the property
-Any broker is authorized to encourage such bids for the property - Answer--The broker
has violated his agency relationship with the seller
The words "procurring cause" would have an important meaning to which of the
following:
-A dispute over commission on an exclusive agency listing
-A lawsuit against a licensee involving fraud
-The sale of government land
-When securing a listing - Answer--A dispute over commission on an exclusive agency
listing
"Procurring cause is the act of the broker which is instrumental in effecting the meeting
of minds between the seller and the buyer as to the price and terms. It is one of the
requisites for entitlement to commission"
If a salesperson acts as an independent contractor, then:
-He controls his own working hours
-All of his listings belong to him
-His broker must withhold income tax from his commission checks
-He is responsible to his broker as to how his work is performed - Answer--He controls
his own working hours
In a real estate transaction, fiduciary duties are owed to the:
-Principal
-Customer
-Broker
-Agent - Answer--Principal
, In a real estate transaction, both the seller's agent and the buyer's agent are legally
required to put whose interest first?
-Their Principal's
-Their Brokers
-The Sellers
-The Buyers - Answer--Their Principals
In addition to the duties of diligence, care, and skill, a real estate agent owes the
principal a full disclosure of all facts material to the subject of the agency. Any
intentional concealment of such facts by the agent would probably be regarded as;
-Misrepresentation
-Constructive Fraud
-Commingling
-Conversion - Answer--Misrepresentation
When serving as a buyer's agent, according to the Civil Code sections dealing with
agency, a licensee owes a fidicuary duty:
-To the buyer
-To the seller
-To the broker
-To the buyer and seller - Answer--To the Buyer
When a selling agent is a subagent of the listing broker:
-His fiduciary duty and primary allegiance are to the seller only
-He only owes each party the normal customer services
-His fiduciary duty and primary allegiance are to the buyer only
-His fiduciary duty and primary allegiance are to the seller and buyer equally - Answer--
His fiduciary duty and primary allegiance are to the seller only
What is the best most desired way of ending a special relationship?
-Performance of the objective
-Discharge by either principal
-Resignation by the agent
-Death or disability of the client - Answer--Performance of the objective
An actual agency relationship that arises by the actions of the parties rather than by
expressed written agreement is called:
-ostensible/implied agency
-general agency
-special agency
-universal agency - Answer--ostensible/implied agency
The obligation of protecting any deposits entrusted to an agent is an example of the
fiduciary duty of:
-Accounting
-Competence
Questions and Answers
The situation with the most potential for conflict is when a real estate licensee acts as a:
-Dual Agent
-Buyers Broker
-Sellers Agent
-Transaction Broker - Answer--Dual Agent
A seller has listed her home with a broker for $90,000, and the broker tells a prospective
buyer to submit a low offer because the seller is desperate to sell. The buyer offers
$85,000 and the seller accepts it. In this situations:
-The broker has violated his agency relationship with the seller
-The broker was unethical, but the seller did get to sell the property
-The broker acted properly to obtain a quick offer on the property
-Any broker is authorized to encourage such bids for the property - Answer--The broker
has violated his agency relationship with the seller
The words "procurring cause" would have an important meaning to which of the
following:
-A dispute over commission on an exclusive agency listing
-A lawsuit against a licensee involving fraud
-The sale of government land
-When securing a listing - Answer--A dispute over commission on an exclusive agency
listing
"Procurring cause is the act of the broker which is instrumental in effecting the meeting
of minds between the seller and the buyer as to the price and terms. It is one of the
requisites for entitlement to commission"
If a salesperson acts as an independent contractor, then:
-He controls his own working hours
-All of his listings belong to him
-His broker must withhold income tax from his commission checks
-He is responsible to his broker as to how his work is performed - Answer--He controls
his own working hours
In a real estate transaction, fiduciary duties are owed to the:
-Principal
-Customer
-Broker
-Agent - Answer--Principal
, In a real estate transaction, both the seller's agent and the buyer's agent are legally
required to put whose interest first?
-Their Principal's
-Their Brokers
-The Sellers
-The Buyers - Answer--Their Principals
In addition to the duties of diligence, care, and skill, a real estate agent owes the
principal a full disclosure of all facts material to the subject of the agency. Any
intentional concealment of such facts by the agent would probably be regarded as;
-Misrepresentation
-Constructive Fraud
-Commingling
-Conversion - Answer--Misrepresentation
When serving as a buyer's agent, according to the Civil Code sections dealing with
agency, a licensee owes a fidicuary duty:
-To the buyer
-To the seller
-To the broker
-To the buyer and seller - Answer--To the Buyer
When a selling agent is a subagent of the listing broker:
-His fiduciary duty and primary allegiance are to the seller only
-He only owes each party the normal customer services
-His fiduciary duty and primary allegiance are to the buyer only
-His fiduciary duty and primary allegiance are to the seller and buyer equally - Answer--
His fiduciary duty and primary allegiance are to the seller only
What is the best most desired way of ending a special relationship?
-Performance of the objective
-Discharge by either principal
-Resignation by the agent
-Death or disability of the client - Answer--Performance of the objective
An actual agency relationship that arises by the actions of the parties rather than by
expressed written agreement is called:
-ostensible/implied agency
-general agency
-special agency
-universal agency - Answer--ostensible/implied agency
The obligation of protecting any deposits entrusted to an agent is an example of the
fiduciary duty of:
-Accounting
-Competence
