EXAM PRACTICE TEST QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES
| INSTANT DOWNLOAD PDF 2025/2026
1. Which of the following is required to obtain a New York real estate
salesperson license?
A. Be at least 18 years old
B. Complete 75 hours of approved pre-licensing education
C. Have a college degree
D. Be sponsored by a licensed broker
Answer: A, B, D
Rationale: Applicants must be 18+, complete 75 hours of pre-licensing education, and work
under a licensed broker. A college degree is not required.
2. In New York, a real estate salesperson can legally:
A. Sell property independently without a broker
B. Receive commission only through their sponsoring broker
C. Prepare and negotiate contracts
D. Advertise properties under their own name
Answer: B, C
Rationale: Salespersons must operate under a licensed broker and can negotiate contracts, but
they cannot operate independently or advertise without broker approval.
3. Which of the following must be included in a property listing agreement?
A. The property description
B. The listing price
C. The broker’s commission
D. The buyer’s financing terms
,Answer: A, B, C
Rationale: Listings must include property details, price, and commission. Buyer financing terms
are not part of the listing agreement.
4. What type of agency relationship exists when a broker represents the seller
exclusively?
A. Dual agency
B. Seller agency
C. Buyer agency
D. Transaction brokerage
Answer: B
Rationale: Seller agency means the broker represents only the seller in the transaction.
5. A “dual agency” occurs when:
A. The broker represents both buyer and seller with informed consent
B. Two brokers represent the same party
C. A broker sells their own property
D. The broker acts only as a transaction facilitator
Answer: A
Rationale: Dual agency involves one broker representing both parties, requiring full disclosure
and consent.
6. The New York State Disclosure Form (Property Condition Disclosure) is
required for:
A. Residential 1–4 family homes
B. Commercial properties
C. Condominiums
D. Cooperative apartments
Answer: A
Rationale: The disclosure form is mandatory for 1–4 family residential properties but not
commercial or co-op units.
7. Which of the following actions could constitute real estate fraud?
, A. Failing to disclose a known material defect
B. Misrepresenting the property size
C. Refusing to negotiate
D. Falsifying income of a tenant
Answer: A, B, D
Rationale: Fraud includes misrepresentation or concealment of material facts. Refusing to
negotiate is not fraud.
8. In New York, a broker must retain real estate transaction records for:
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: C
Rationale: Brokers are required to keep records for 3 years after the transaction.
9. Which of the following best describes “market value”?
A. The price a seller wants
B. The price a buyer is willing to pay
C. The most probable price under normal conditions
D. The assessed tax value
Answer: C
Rationale: Market value is the most likely sale price under typical market conditions.
10. An exclusive right-to-sell listing means:
A. The seller can find a buyer themselves without paying commission
B. The broker earns commission no matter who sells the property
C. The listing can be canceled at any time without penalty
D. Only the broker can list the property with multiple agencies
Answer: B
Rationale: The broker earns commission regardless of who finds the buyer.
11. The main purpose of RESPA (Real Estate Settlement Procedures Act) is to: