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New York Real Estate Salesperson Examination practice questions

220 free questions with answers and explanations.

Practice test
  1. 1.A real estate salesperson is negotiating an offer on behalf of a buyer client. The seller's agent informs the salesperson that there are multiple competing offers. The buyer client, eager to secure the property, instructs the salesperson to offer $10,000 over the asking price and waive the home inspection contingency. What is the salesperson's primary fiduciary duty in this situation?Brokerage and Salesperson Responsibilities
  2. 2.A real estate salesperson, licensed for six months, is considering accepting a referral fee from a mortgage broker for recommending their services to clients. Under New York law, what is the most critical factor for the salesperson to consider before accepting such a fee?Brokerage and Salesperson Responsibilities
  3. 3.A real estate salesperson is instructed by their supervising broker to remove all transaction records older than three years from the brokerage's active files and shred them. Is this instruction compliant with New York record-keeping regulations?Brokerage and Salesperson Responsibilities
  4. 4.A real estate broker receives an earnest money deposit check from a buyer. According to New York law, what is the broker's primary responsibility regarding this deposit?Brokerage and Salesperson Responsibilities
  5. 5.A real estate broker operating in New York is approached by a client who expresses a strong preference to only view properties in neighborhoods with a specific ethnic demographic. The broker, wanting to maintain a good client relationship, agrees to exclusively show properties meeting this criteria. Which of the following best describes the broker's action?Brokerage and Salesperson Responsibilities
  6. 6.A real estate salesperson is assisting a buyer client in submitting an offer on a property. The salesperson learns that the seller is highly motivated due to an impending job relocation and is likely to accept a lower offer than listed. If the salesperson shares this information with their buyer client, which fiduciary duty are they primarily upholding?Brokerage and Salesperson Responsibilities
  7. 7.A real estate broker is managing an escrow account. A dispute arises between the buyer and seller over the earnest money deposit. What is the broker's most appropriate initial action according to New York law?Brokerage and Salesperson Responsibilities
  8. 8.A real estate broker is acting as a dual agent in a transaction in New York. Which of the following statements accurately describes the broker's responsibility regarding disclosure and client consent?Brokerage and Salesperson Responsibilities
  9. 9.A supervising broker in New York discovers that one of their salespersons has been consistently failing to present all offers to sellers, instead only presenting offers they believe are 'strong enough.' What is the broker's primary responsibility in this situation?Brokerage and Salesperson Responsibilities
  10. 10.A real estate salesperson is preparing to host an open house. To generate interest, the salesperson plans to place directional signs around the neighborhood. According to New York advertising regulations, which of the following details *must* be included on the open house directional signs?Brokerage and Salesperson Responsibilities
  11. 11.A newly licensed real estate salesperson is setting up their professional email signature. Which of the following details is REQUIRED to be included in their email signature, according to New York Department of State regulations for advertising?Brokerage and Salesperson Responsibilities
  12. 12.A real estate brokerage firm's policy states that all advertising materials, including social media posts by salespersons, must be reviewed and approved by the supervising broker prior to publication. A salesperson posts an advertisement for an open house on their personal social media page without prior approval. What is the most likely consequence for the salesperson and the broker?Brokerage and Salesperson Responsibilities
  13. 13.A real estate salesperson is showing a property to a prospective buyer. During the showing, the buyer asks about the school district ratings and requests the salesperson's opinion on which schools are 'best.' How should the salesperson respond to this inquiry?Brokerage and Salesperson Responsibilities
  14. 14.A real estate salesperson in New York is preparing an advertisement for a property. Which of the following is a mandatory disclosure in the advertisement?Brokerage and Salesperson Responsibilities
  15. 15.A real estate salesperson is employed by ABC Realty and is working with a seller client. The salesperson also holds a separate license as a mortgage loan originator (MLO) and wants to offer their MLO services to the seller for a refinance. What is the primary concern for the salesperson in this situation under New York real estate law and general ethical principles?Brokerage and Salesperson Responsibilities
  16. 16.A real estate broker is preparing for a Department of State audit of their escrow account records. According to New York law, for how long must the broker retain records related to all real estate transactions, including escrow account ledgers and bank statements?Brokerage and Salesperson Responsibilities
  17. 17.A real estate broker is managing a brokerage with multiple salespersons. A new salesperson is hired who primarily speaks Spanish, and many of their potential clients also speak Spanish. Which of the following advertising practices by the brokerage would be considered compliant with New York fair housing laws?Brokerage and Salesperson Responsibilities
  18. 18.A real estate salesperson is employed by Broker A. The salesperson wishes to advertise a property they are listing. According to New York Department of State regulations, which of the following is TRUE regarding this advertisement?Brokerage and Salesperson Responsibilities
  19. 19.A real estate salesperson in New York is preparing an advertisement for a property. The advertisement includes a photo of the property, the listing price, and the salesperson's direct phone number. What essential information, if any, is missing from this advertisement according to New York advertising regulations?Brokerage and Salesperson Responsibilities
  20. 20.A real estate broker establishes an independent contractor relationship with their salespersons. Which of the following conditions is MOST critical for maintaining this classification under New York labor and tax laws?Brokerage and Salesperson Responsibilities
  21. 21.A real estate salesperson is working with a seller client. The seller instructs the salesperson not to show their property to any individuals who appear to be under the age of 30, stating they prefer a 'mature' buyer. The salesperson should:Brokerage and Salesperson Responsibilities
  22. 22.A real estate broker is approached by a client wishing to sell a unique commercial property. The client insists on a net listing agreement, where they will receive a predetermined net amount from the sale, and the broker's commission will be anything above that amount. Under New York law, how should the broker respond to this request?Brokerage and Salesperson Responsibilities
  23. 23.A real estate salesperson is preparing a comparative market analysis (CMA) for a seller client. The salesperson discovers that a comparable property sold for significantly less than its market value due to a distressed sale (foreclosure). How should this information be treated in the CMA?Brokerage and Salesperson Responsibilities
  24. 24.A real estate salesperson is preparing to list a property. The seller informs the salesperson that they previously had a negative experience with a specific minority group and explicitly states they do not want their property shown to members of that group. The salesperson's supervising broker is out of town. What is the salesperson's most appropriate immediate course of action?Brokerage and Salesperson Responsibilities
  25. 25.A real estate salesperson is working as a buyer's agent for a client. The salesperson discovers a significant structural defect in a property during an independent inspection that the seller's agent is unaware of. What is the salesperson's primary ethical and legal obligation regarding this discovery in New York?Brokerage and Salesperson Responsibilities
  26. 26.A real estate broker receives a cash earnest money deposit of $5,000 from a buyer. According to New York law, how must the broker handle this cash deposit?Brokerage and Salesperson Responsibilities
  27. 27.A real estate salesperson is contacted by a former buyer client who expresses dissatisfaction with their newly purchased home, citing several undisclosed defects that they believe the salesperson should have known about. The client threatens to file a complaint with the Department of State. What is the salesperson's immediate and ethically required course of action?Brokerage and Salesperson Responsibilities
  28. 28.A real estate brokerage firm has recently implemented a new policy requiring all salespersons to use a standardized client intake form. This policy is primarily a component of which brokerage responsibility?Brokerage and Salesperson Responsibilities
  29. 29.A real estate broker in New York receives an offer from a buyer that includes a post-dated check as the earnest money deposit. According to New York real estate law, how should the broker handle this situation?Brokerage and Salesperson Responsibilities
  30. 30.A real estate broker receives an earnest money deposit in the form of a personal check from a buyer. The check is for $7,500. According to New York law, what is the latest point by which this check must be deposited into the broker's escrow account?Brokerage and Salesperson Responsibilities
  31. 31.A real estate salesperson is working for Broker A. The salesperson is considering taking an evening job as a bartender. Which of the following statements accurately reflects New York Real Property Law regarding a salesperson holding other employment?Brokerage and Salesperson Responsibilities
  32. 32.A real estate broker operating in New York decides to open a separate, interest-bearing account to hold security deposits for rental properties managed by the brokerage. The interest earned on these accounts is retained by the broker to cover administrative costs. Is this practice permissible under New York real estate law?Brokerage and Salesperson Responsibilities
  33. 33.A real estate broker is concerned about protecting client data and maintaining proper records. According to New York Department of State regulations, how long must a broker retain all records related to real estate transactions, including contracts, disclosures, and correspondence?Brokerage and Salesperson Responsibilities
  34. 34.A newly licensed real estate salesperson is preparing marketing materials for an open house. Which of the following advertising practices is strictly prohibited under New York real estate law?Brokerage and Salesperson Responsibilities
  35. 35.A New York real estate salesperson is working with a buyer who is interested in a property where a death occurred due to natural causes two years ago. The buyer's agent is aware of this fact. What is the salesperson's obligation to disclose this information under New York law?Property Condition and Disclosures
  36. 36.A real estate salesperson in New York is preparing to show a property to a buyer client. The property is located in a community that has a restrictive covenant limiting occupancy to residents 55 years of age or older. What is the salesperson's ethical and legal obligation regarding this information?New York State Specific Laws and Regulations
  37. 37.A real estate broker in New York manages a rental property. A tenant reports a broken dishwasher. The broker delays addressing the repair for two months, despite repeated requests. This inaction could be considered a breach of which ethical duty owed to the landlord?New York State Specific Laws and Regulations
  38. 38.Under New York's Agency Disclosure requirements, when must a real estate licensee provide the 'New York State Disclosure Form for Buyer and Seller' to a prospective buyer?New York State Specific Laws and Regulations
  39. 39.A buyer is purchasing a home for $300,000. The lender requires a 20% down payment. If the buyer also needs to pay 2 points at closing, what is the total amount the buyer will pay for the down payment and points?Real Estate Calculations
  40. 40.A New York real estate broker is representing a buyer interested in a property. During negotiations, the seller's agent inadvertently discloses that the seller is highly motivated to sell quickly due to an impending job transfer and would accept a lower offer than listed. What is the broker's ethical obligation regarding this information?New York State Specific Laws and Regulations
  41. 41.A real estate licensee is listing a property that is part of a cooperative housing corporation. Which of the following statements is true regarding the sale of a co-op unit in New York?New York State Specific Laws and Regulations
  42. 42.A New York real estate salesperson is listing a property. The seller informs the salesperson that the property was the site of a widely publicized murder-suicide five years ago. The salesperson is aware that this is a 'stigmatized property' under New York law. What is the salesperson's primary ethical and legal obligation regarding this information?New York State Specific Laws and Regulations
  43. 43.A tenant in a rent-stabilized apartment in New York City has been living in the unit for 10 years. The landlord proposes a 15% rent increase upon lease renewal. Which of the following is true regarding this proposed increase?New York State Specific Laws and Regulations
  44. 44.A New York real estate broker is acting as a property manager for an owner. The broker collects security deposits from tenants. According to New York law, where must these security deposits be held?New York State Specific Laws and Regulations
  45. 45.A real estate salesperson is assisting a buyer who is interested in a condominium unit. The buyer asks about the monthly common charges and what they cover. Which of the following is typically included in condominium common charges?New York State Specific Laws and Regulations
  46. 46.A landlord in New York City is considering refusing to rent an apartment to a prospective tenant because the tenant uses a wheelchair and the landlord believes the tenant would cause damage to the property. Which New York State law is most directly violated by this action?New York State Specific Laws and Regulations
  47. 47.A real estate salesperson, licensed in New York, is asked by a buyer to draft a purchase agreement for a complex commercial property. The salesperson has some experience with residential contracts but no formal legal training. What is the most appropriate action for the salesperson to take?New York State Specific Laws and Regulations
  48. 48.A property is valued at $500,000. A lender is willing to offer a loan with an 80% loan-to-value (LTV) ratio. If the borrower also pays 2 discount points, how much cash will the borrower need for the down payment and the points?Real Estate Calculations
  49. 49.A seller lists their property for $450,000. Their broker charges a 6% commission. If the seller agrees to pay an additional 1.5% bonus commission for a quick sale, and the property sells for $440,000, what is the total commission paid by the seller?Real Estate Calculations
  50. 50.A tenant in a rent-controlled apartment in New York City is paying $800 per month. The landlord applies to the New York State Homes and Community Renewal (HCR) for an increase due to a major capital improvement (MCI) in the building. The HCR approves an MCI increase of 6% of the current rent. What will be the tenant's new maximum monthly rent?New York State Specific Laws and Regulations