STUDY GUIDE FOR THE NY
REAL ESTATE EXAM sample
questions and correct
answers latest 2025-2026
GRADED A+
Independent contractor must pay their own expenses. - ANS-According to IRS
code section 3508[A, B],
real estate agents are statutory non-employees and are therefore independent
contractors.
The code also states that there must be a written contract between the broker
and the sales associate, also reviewed every 12-15 months
· All records must be kept for 3 years
· If sales associate not deemed independent then they will not be able to file
"SCHEDULE C' of the federal return
· The Independent Contractor Relationship
Ø Salespersons are free to engage in outside employment
Ø Either party may terminate the relationship at any time
License Law & Regulations - ANS-The New York Department of State, Division of
licensing Services is the regulatory agency that oversees and administers the
licensure process.
Most of the law pertaining to salespersons and brokers is contained in Article 12-
A of the real property law.
,A real estate broker - ANS-is any person, partnership, association or corporation
who, for another, and for compensation of any kind, negotiates any form of real
estate transaction.
Real estate brokers supervise and are responsible for the activities of associate
brokers and salespersons in their employ.
A salesperson or an associate broker - ANS-cannot operate independently.
Although licensed, they must work under a licensed Real Estate Broker
Duties That Require Licensure - ANS-* Selling or purchasing real estate at an
auction
*Negotiating the sale of a business for which the values of the real estate
transferred is not merely incidental to the transaction (RE value is worth more
than the business
* Salespersons must be 18 years of age.
* Brokers must be 20 years old with 2 years experience
* Points for Broker License work as salesperson & 3500 points or 3 years and
5250 points.
*Licenses are renewed every two{2} years
Exemptions to Licensure - ANS-Building superintendents or maintenance workers
who perform tasks such as rent collecting for one owner, company or entity.
Classes of Licensure for Brokers - ANS-Ø Each officer of a corporation or member
of a co-partnership must be licensed as a broker.
Ø Salespersons licenses are not issued to officers of corporations or members of
co-partnerships.
, Ø Salespersons and associate brokers may not be principals in the brokerage
firm and may not own voting stock in the licensed brokerage corporation.
License and Pocket Card - ANS-Ø Pocket Cards must be carried at all times and
shown on demand.
· Fees, Office Requirements, and Terms of Licensure
Ø Brokers must pay $150.00 and Salespersons $50.00 for each term.
Ø Additional licenses for each branch office cost $150.00.
An apartment-sharing agent - ANS-is an individual who, for a fee, arranges and
coordinates meetings between the current owners of real property, including
apartment housing who wish to share their housing with others.
A mortgage banker - ANS-is an individual or entity licensed by the New York
Banking Department to engage in the business of making residential mortgage
loans. Licensed and lends.
Compensation and Fee Splitting - ANS-Ø Salespersons may not accept
compensation except from their sponsoring brokers
Ø If brokers improperly pay any part of compensation to anyone who is not
licensed or who is not exempt from the license law, they are in violation of the
license law,
this payment is called a kickback.
Lawsuits for Commissions - ANS-An unlicensed person, co-partnership or
corporation cannot bring about a lawsuit to collect compensation for real estate
services rendered because-
only a licensed real estate broker or salesperson is entitled to a judgment by the
courts.
Violations of Real Estate License Law - ANS-Ø Failing to provide adequate
disclosure regarding any or all of the following:
a) if licensees purchase property listed by their firm, they must make their
position clear to the seller,
REAL ESTATE EXAM sample
questions and correct
answers latest 2025-2026
GRADED A+
Independent contractor must pay their own expenses. - ANS-According to IRS
code section 3508[A, B],
real estate agents are statutory non-employees and are therefore independent
contractors.
The code also states that there must be a written contract between the broker
and the sales associate, also reviewed every 12-15 months
· All records must be kept for 3 years
· If sales associate not deemed independent then they will not be able to file
"SCHEDULE C' of the federal return
· The Independent Contractor Relationship
Ø Salespersons are free to engage in outside employment
Ø Either party may terminate the relationship at any time
License Law & Regulations - ANS-The New York Department of State, Division of
licensing Services is the regulatory agency that oversees and administers the
licensure process.
Most of the law pertaining to salespersons and brokers is contained in Article 12-
A of the real property law.
,A real estate broker - ANS-is any person, partnership, association or corporation
who, for another, and for compensation of any kind, negotiates any form of real
estate transaction.
Real estate brokers supervise and are responsible for the activities of associate
brokers and salespersons in their employ.
A salesperson or an associate broker - ANS-cannot operate independently.
Although licensed, they must work under a licensed Real Estate Broker
Duties That Require Licensure - ANS-* Selling or purchasing real estate at an
auction
*Negotiating the sale of a business for which the values of the real estate
transferred is not merely incidental to the transaction (RE value is worth more
than the business
* Salespersons must be 18 years of age.
* Brokers must be 20 years old with 2 years experience
* Points for Broker License work as salesperson & 3500 points or 3 years and
5250 points.
*Licenses are renewed every two{2} years
Exemptions to Licensure - ANS-Building superintendents or maintenance workers
who perform tasks such as rent collecting for one owner, company or entity.
Classes of Licensure for Brokers - ANS-Ø Each officer of a corporation or member
of a co-partnership must be licensed as a broker.
Ø Salespersons licenses are not issued to officers of corporations or members of
co-partnerships.
, Ø Salespersons and associate brokers may not be principals in the brokerage
firm and may not own voting stock in the licensed brokerage corporation.
License and Pocket Card - ANS-Ø Pocket Cards must be carried at all times and
shown on demand.
· Fees, Office Requirements, and Terms of Licensure
Ø Brokers must pay $150.00 and Salespersons $50.00 for each term.
Ø Additional licenses for each branch office cost $150.00.
An apartment-sharing agent - ANS-is an individual who, for a fee, arranges and
coordinates meetings between the current owners of real property, including
apartment housing who wish to share their housing with others.
A mortgage banker - ANS-is an individual or entity licensed by the New York
Banking Department to engage in the business of making residential mortgage
loans. Licensed and lends.
Compensation and Fee Splitting - ANS-Ø Salespersons may not accept
compensation except from their sponsoring brokers
Ø If brokers improperly pay any part of compensation to anyone who is not
licensed or who is not exempt from the license law, they are in violation of the
license law,
this payment is called a kickback.
Lawsuits for Commissions - ANS-An unlicensed person, co-partnership or
corporation cannot bring about a lawsuit to collect compensation for real estate
services rendered because-
only a licensed real estate broker or salesperson is entitled to a judgment by the
courts.
Violations of Real Estate License Law - ANS-Ø Failing to provide adequate
disclosure regarding any or all of the following:
a) if licensees purchase property listed by their firm, they must make their
position clear to the seller,
