NY REAL ESTATE EXAM {ALREADY GRADED A+ } NEWEST VERSION

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NY REAL ESTATE EXAM {ALREADY

GRADED A+ } NEWEST VERSION

• Which of the following scenarios best illustrates the first substantive contact with a

prospective buyer?

• An individual calling the office to ask about the current interest rates.
• An individual meeting with an agent and discussing the purchase of a specific property.
• A prospective buyer walking into an open house and looking around.
• An agent handing out a business card to a stranger at a coffee shop.

Correct Answer: B. An individual meeting with an agent and discussing the purchase of a specific property.

2. The main purpose of the Agency Disclosure Form is to:

• Set the commission rates for the broker.
• Create a binding contract between the buyer and seller.
• Inform customers of the agency relationship of themselves to a real estate agent and

available choices for representation.

• Disclose all known defects of the property to the buyer.

Correct Answer: C. Inform customers of the agency relationship of themselves to a real estate agent and available choices for representation.

• At an open house, Ozzie discloses to an interested buyer that he has a right to his

own representation but the buyer refuses. The buyer's relationship to Ozzie is a:

• Client
• Principal
• Fiduciary
• Customer

Correct Answer: D. Customer

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• If clients who sign an "exclusive right to sell" listing agreement with a broker find a

buyer for the property on their own, the broker is:

• Entitled to the original agreed upon commission.
• Entitled to half of the commission.
• Not entitled to any commission.
• Only entitled to reimbursement for advertising expenses.

Correct Answer: A. Entitled to the original agreed upon commission.

• Which fiduciary duty would be violated when a client suffers a financial loss as a

result of an agent's lack of expertise in dealing with a particular type of property?

• Loyalty
• Reasonable Care
• Confidentiality
• Obedience

Correct Answer: B. Reasonable Care

• A broker's compensation is determined in an agreement between the broker and

the:

• Governor
• Local Real Estate Board
• Principal
• Department of State

Correct Answer: C. Principal

• A listing broker for the seller has a buyer-client who asks to see the listing. This

request could create which type of agency?

• Single Agency
• Dual Agency
• Buyer Agency
• General Agency

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Correct Answer: B. Dual Agency

• Which type of residential real property transfer would require a property condition

disclosure statement?

• Transfer of newly constructed property that has never been inhabited.
• Transfer due to a court order (e.g., probate).
• Lease with an option to purchase.
• Transfer between spouses resulting from a divorce decree.

Correct Answer: C. Lease with an option to purchase.

• What happens to the licenses of salespersons if their sponsoring broker's license is

revoked?

• They are revoked.
• They are suspended.
• They remain active for 30 days.
• They are automatically transferred to a new broker.

Correct Answer: B. They are suspended.

• According to the New York State Real Property Law, a real estate salesperson's

license is issued for a term of how many years?

• One
• Two
• Three
• Four

Correct Answer: B. Two

• What type of real estate agent is authorized to represent a principal in one specific

transaction?

• General Agent
• Universal Agent
• Special Agent

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• Property Manager

Correct Answer: C. Special

• If an agent represents two opposing parties in the same transaction without both

parties' full knowledge and informed consent, the agent’s action is known as a(n):

• Single Agency
• Undisclosed Dual Agency
• Designated Agency
• General Agency

Correct Answer: B. Undisclosed Dual Agency

13. The broker's principal is ALWAYS the:

• Customer
• Client
• Customer and Client
• Fiduciary

Correct Answer: B. Client

• Sally Seller has chosen Broker Bob to represent her in the sale of her house. Broker

Bob will advance and protect Sally's interest during the sale. What word best describes their relationship?

• Fiduciary
• Adversarial
• Implied
• General

Correct Answer: A. Fiduciary

• Which legal right allows an owner of land bordering a river or stream to use that

water for recreational purposes?

• Littoral Rights
• Riparian Rights