1) Which of these activities is prohibited for an unlicensed assistant?

 a) Hold an open house.
 b) Place a classified ad.
 c) Compute commission checks.
 d) Submit listing to the MLS.

Answer : A

2) Brokers are prohibited from ______________ the funds of others with their own funds.

 a) investing
 b) commingling
 c) inter mediating
 d) escrowing

Answer : B

3) Who may a salesperson receive a fee or commission payment from for a real estate service that has been performed?

 a) The owner of the property.
 b) Any broker involved in the transaction.
 c) The salesperson's employing broker.
 d) The buyer of the property.

Answer : C

4) If a licensee has received any commission in conjunction with a transaction in which the license law was violated, that licensee could be held liable for up to ______times the amount of the commission, in addition to having their license suspended or revoked.

 a) 7
 b) 6
 c) 5
 d) 4

Answer : D

5) Which of these actions is a power that belongs to the Department of State?

 a) Impose a fine of up to $5,000.
 b) Terminate a license with no hearing.
 c) Issue a reprimand upon a licensee_s conviction of a violation.
 d) Bring criminal charges against a licensee.

Answer : C

6) The Department of State may take any of these actions against a licensee in violation of the license law except?

 a) Suspension
 b) Revocation
 c) Fine
 d) Imprisonment

Answer : D

7) In the case studies, the Department of State is always which party?

 a) Complainant
 b) Licensee
 c) Respondent
 d) Attorney general

Answer : A

8) The section of a hearing decision that describes what the respondent may have done is called what?

 a) The determination
 b) The complaint
 c) The opinion
 d) The findings

Answer : B

9) In cases brought against licensees in New York by the Department of State which of the following are the correct names of the parties?

 a) Plaintiff/Defendant
 b) Attorney/Client
 c) Complainant/Respondent
 d) Licensor/Licensee

Answer : C

1) Which of these actions would be a license law violation?

 a) Filling in the blanks on a preprinted listing form.
 b) Failing to provide a definition of an exclusive right to sell and an exclusive agency when taking a cooperative listing.
 c) Placing an earnest money deposit in a trust account.
 d) Accepting a commission directly from a seller.

Answer : D

2) Which statement is false?

 a) A broker will be guilty of a misdemeanor if he or she employs a salesperson who is not properly licensed.
 b) When taking a condominium listing, the broker must provide a written explanation of the difference between exclusive right to sell and exclusive agency listings.
 c) Brokers are prohibited from commingling the funds of others with their own funds.
 d) A licensee may not perform services that should be performed by a lawyer.

Answer : B

3) Under which of the following circumstances would a broker lose or have their license suspended for a law violation committed by an associated licensee?

 a) If the broker had actual knowledge of the violation.
 b) Under any circumstance, the Department applies strict liability to all managing brokers.
 c) Only If the broker had participated in the law violation with the associate
 d) A broker is never responsible for the acts of associates due to the doctrine of caveat emptor.

Answer : A

4) An Article 78 proceeding refers to which of the following?

 a) An applicants or licensees right to appeal a Department hearing decision to the Secretary of State.
 b) An applicants or licensees right to appeal a Department hearing decision to an administrative law judge.
 c) An applicants or licensees right to appeal a Department hearing decision to the New York Supreme Court.
 d) The Board's imposition of a fine of up to $1,000 payable to the Department of State.

Answer : C

5) Once the licensee has received a revocation or suspension notice, the licensee_s license and pocket card must be returned to the Department within______days after receiving the notice.

 a) 2
 b) 3
 c) 4
 d) 5

Answer : D

6) The Department of State may fine and/or reprimand a licensee for violation of NY license law, when these actions are carried out it is referred to as?

 a) hearings
 b) administrative discipline
 c) findings of fact
 d) determinations

Answer : B

7) In the case studies, the person and/or firm against whom the complaint was filed is always which party?

 a) Complainant
 b) Licensee
 c) Respondent
 d) Attorney general

Answer : C

What is a hearing determination?

 a) The section of a hearing document that cites the penalty that the court is imposing on the Respondent.
 b) The section of a hearing document that outlines what the court believes happened.
 c) The section of the hearing document that describes the allegations against the Respondent.
 d) The section of the hearing document that explains what violations the Respondent committed. 

Answer : A

In the hearing decision the section explaining what violations the respondent committed and has references to the specific law that the respondent violated is called?

 a) The Verdict
 b) The Opinion and Conclusions of Law
 c) The Findings
 d) The Determination

Answer : B

Which of these activities could an unlicensed assistant perform?

 a) Solicit business for the broker.
 b) Collect information for an appraisal.
 c) Hold an open house.
 d) Discuss a specific property with a client.

Answer : B

Which of these is not a law violation?

 a) Failing to deliver duplicate documents for a real estate transaction to all the appropriate parties.
 b) Offering a property for sale or lease without the owner_s permission.
 c) Accepting compensation from more than one party in a transaction without the knowledge and written consent of all parties.
 d) Placing a sign on a property with the owner_s permission.

Answer : D

New York License Law considers which of the following activities to be appropriate and allowed for licensed personnel only?

 a) Show homes, apartments or other real property.
 b) Submit approved listings and changes to the Multiple Listing Service (MLS).
 c) Write ads for a broker_s approval.
 d) Gather information for a comparative market analysis.

Answer : A

What is a hearing appeal to the NY Supreme Court called?

 a) Article 12-A appeal
 b) Article 8 proceeding
 c) State court appeal
 d) Article 78 proceeding

What is the penalty for conviction of a misdemeanor?

 a) $1,000 fine only
 b) One year in prison only
 c) Either fine, imprisonment or both
 d) $5,000 fine

Answer : C

) If the Department denies a license application, the applicant will be notified in writing and may then ask for a hearing within ____ days of receiving the denial notice.

 a) 30
 b) 40
 c) 45
 d) 60

Answer : A

7) What section in the case studies describes what the Department of State thinks the respondent may have done?

 a) opinion
 b) complaint
 c) answer
 d) determination

Answer : B

8) In the hearing decision the licensee being charged with a violation is always which party?

 a) The complainant
 b) The commingler
 c) The respondent
 d) The attorney general

Answer : C

9) The hearing decision section that cites the penalty that the court is imposing on the respondent is called?

 a) The Verdict
 b) The Opinion and Conclusions of Law
 c) The Findings
 d) The Determination

Answer : D

1) Which of the following is not a fiduciary duty an agent owes to his or her principal?

 a) Loyalty
 b) Confidentiality
 c) Accountability
 d) Blind obedience

Answer : D

2) Mary Smith asks Broker Jim to help her find her first home. Broker Jim takes Mary to see the home of Ben Brown listed by Broker Sara. In this scenario who is the customer?

 a) Mary
 b) Sara
 c) Ben
 d) All the parties are clients.

Answer : C

3) An agent_s fiduciary duty of ___________________ to a client continues even after the transaction closes.

 a) Loyalty
 b) Confidentiality
 c) Accountability
 d) Blind obedience

Answer : B

4) An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. Which statement best describes what can happen in this case?

 a) The agent may be guilty of intentional misrepresentation.
 b) The agent has an exposure to a charge of negligent misrepresentation.
 c) The agent has little exposure, since the problem was not mentioned on the signed disclosure form.
 d) The agent is not vulnerable, since the problem was not discovered.

Answer : B

5) An exaggerated comment by a licensee about a property_s benefits such as this statement, _This home has the most efficient floor plan of any of the homes in this neighborhood_, is called?

 a) Puffing
 b) Passive fraud
 c) Negligent misrepresentation
 d) Active disclosure

7) The principles of an agency relationship include all of these factors except which one?

 a) Mutual consent
 b) Authorization
 c) Compensation
 d) Fiduciary duties

8) The legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct or silence is called?

 a) Laches
 b) Estoppel
 c) Caveat Emptor
 d) Fraud

9) A salesman sells a house listed by another company for $92,000. The salesman's company is to receive 50% of a 7% commission, what is the salesman's share of the commission if he received 45% of the amount his company receives?

 a) $3,220
 b) $1,420
 c) $1,449
 d) $2,898

10) Which of these is not a violation of antitrust laws?

 a) Boycott
 b) Price fixing
 c) Redlining
 d) Market allocation

11) The act by brokers from different brokerages having a conversation about the commission rates they charge clients may be considered?

 a) Boycotting
 b) Price fixing
 c) Redlining
 d) Market allocating

12) The _________________________ can enforce compliance with the Sherman Act and some sections of the Clayton Act.

 a) Federal Trade Commission (FTC)
 b) Internal Realtor Syndicate (IRS)
 c) Internal Commission Committee (ICC)
 d) Antitrust Business Commission (ABC)

1) Agent Paul is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know"?

 a) There is a crack in the basement wall.
 b) The air conditioner does not work.
 c) The owner of the property is HIV positive.
 d) The casement windows have broken seals.

2) An owner's agent is showing a buyer an apartment building. The buyer notices water stains on the ceiling and informs the agent. What is the agent's best course of action?

 a) Immediately contract to paint the ceiling.
 b) Immediately contract to repair the roof.
 c) Suggest the buyer make a lower-price offer.
 d) Inform the seller.

3) A licensee is required to disclose any personal interest he or she has in a property when dealing with a client because of which fiduciary duty?

 a) Loyalty
 b) Confidentiality
 c) Accountability
 d) Care

Answer : A

4) The authority granted to the broker under a special agency is outlined in the ____________________, which typically authorizes the broker to perform basic actions like advertising and showing the property.

 a) deed
 b) listing agreement
 c) option to sell agreement
 d) disclosure agreement

5) The principal has all of the following obligations to an agent in an agency relationship except?

 a) Availability
 b) Information
 c) Negotiating
 d) Compensation

6) There is a difference between the level of service an agent provides to a client and the level of service he or she provides to a customer, in essence the agent works_____the principal and______ the customer.

 a) for, with
 b) under, over
 c) with, for
 d) for, under

7) When is a commission considered earned?

 a) When the broker produces a ready, willing and able buyer.
 b) When an offer from a qualified buyer has been submitted and accepted and both parties have received signed copies of the agreement.
 c) When the seller has accepted the offer.
 d) When the transaction has totally completed.

8) If the transaction does not complete, the seller may still be responsible for paying a commission to the broker if the failure to complete was due to the____________ default.

 a) seller's
 b) buyer's
 c) lender's
 d) broker's

9) A salesman sells a house listed by another company for $192,000. The salesman's company is to receive 50% of a 7% commission, what is the salesman's share of the commission if he received 45% of the amount his company receives?

 a) $3,220
 b) $6,720
 c) $3,024
 d) $2,898

10) The Criminal Antitrust Penalty Enhancement and Reform Act increased the maximum criminal penalty for individuals to what amount?

 a) $350,000
 b) $1 million
 c) $2 million
 d) $10 million

11) Antitrust laws are designed to do which of the following?

 a) Maintain business competition and prevent the unreasonable restraint of trade.
 b) Prevent discrimination in the housing market.
 c) Prevent fraud in the mortgage market.
 d) Provide a legal framework for MLS.

12) The statement _Let_s not do business with XYZ Real Estate Company; they discount their commissions_, would probably violate antitrust laws as an example of which of the following?

 a) Boycotting
 b) Price fixing
 c) Redlining
 d) Market allocating

1) A property seller empowers an agent to market and sell a property on his behalf. What is this an example of?

 a) General agency
 b) Universal agency
 c) No agency
 d) Special agency

2) In real estate the fiduciary relationship between agent and principal is called?

 a) Estoppel
 b) Agency
 c) Bilateral
 d) A Tie-in arrangement

Answer : B

3) If the agent represents the seller, he or she may not disclose certain information without the seller_s express permission, however the agent must always disclose_______________about the property.

 a) implied facts
 b) hidden facts
 c) material facts
 d) fiduciary facts

4) Which of the following duties best describes what an agent owes customers?

 a) Fairness, care, and honesty
 b) Obedience, confidentiality, and accounting
 c) Diligence, care, and loyalty
 d) Honesty, diligence, and skill

5) If a buyer asks a question about termites and the seller produces a falsified termite report the type of fraud committed would be described as?

 a) Negligent
 b) Active
 c) Passive
 d) Puffing

6) When a client enters into a listing agreement with a brokerage firm, the broker is the agent of the client. The licensees that are affiliated with the brokerage firm are the agents of the broker and the _____________ of the broker_s clients.

 a) independent agents
 b) principals
 c) agents
 d) subagents

8) Gladys sells another broker's $300,000 listing for $290,000 at a commission rate of 6%. She has a 60% commission split with her broker. If there is also a 50% brokerage split, what commission will Gladys receive?

 a) $5,220
 b) $8,700
 c) $17,400
 d) $3,480

9) All of the following are types of agency relationships except?

 a) Express agency
 b) Implied agency
 c) Transactional agency
 d) Ostensible agency

10) The statement _Everyone charges the same so you might as well list with me_ made by a broker would be an illegal statement and a violation what law?

 a) Sherman Antitrust Act
 b) Federal Trade Act
 c) Clayton Act
 d) Criminal Antitrust Penalty Enhancement and Reform Act

11) Several real estate boards and associations were prosecuted in the 1970s under federal antitrust statutes and abandoned price-fixing activities by settling under which of the following?

 a) Mediation agreement
 b) Imprisonment
 c) Consent decree
 d) Large fines

12) The statement _Why don_t you take the south side of town and our company will take the north side_, would probably violate antitrust laws as an example of which of the following?

 a) Boycotting
 b) Price fixing
 c) Redlining
 d) Market allocating

1) The contract between an owner of residential real property and an agent, by which the agent has been authorized to sell or lease the residential real property is called which of the following?

 a) Offer to purchase
 b) Listing agreement
 c) Lease option agreement
 d) Dual agency agreement

2) A subagent owes customer level services to the buyer which include?

 a) The same fiduciary duties owed to the client.
 b) COALD
 c) Honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property.
 d) Only material facts.

3) Which of the following would be deemed an advantage of a subagency arrangement?

 a) Subagency is an easy way for the cooperating broker to share in the commission.
 b) Subagency relieves the seller and the listing broker from liable for the actions of the subagents.
 c) Subagency requires a written agreement from the buyer.
 d) Subagency allows the subagent to act like a buyer_s agent without the risk of undisclosed dual agency.

4) Which of the following types of agency is not allowed in New York?

 a) Broker's agency
 b) Buyer's agency
 c) Subagency

5) Under what circumstances does New York allow dual agency and what is it called?

 a) Upon executing the mandatory Designated Agency Agreement, this is called designated dual agency.
 b) Only with disclosure and informed consent, this is known as consensual dual agency.
 c) Only if the agent informed the seller and they executed the blanket unilateral offer of subagency addendum at the time the listing was taken, this is known as dual blanket agency.
 d) It does not allow dual agency ,only designated single agency.

6) Designated dual agency is an important alternative to dual agency because it can eliminate the potential conflict involved in a __________________ arrangement.

 a) non-agency
 b) undisclosed dual agency
 c) consensual dual agency
 d) single agency

7) Which of these is not a way a buyer's agent might receive compensation?

 a) Seller pays the compensation.
 b) Buyer pays a flat fee.
 c) The agent receives a retainer.
 d) Agent gets everything above the net price set by the seller.

8) All of the following are common types of agency relationships that exist except?

 a) Single agency
 b) Facilitator agency
 c) Consensual dual agency
 d) Seller/Landlord agency

9) If an agent enters into an agency agreement with a buyer, the agent becomes the buyer_s agent, also known as ___________ brokerage.

 a) designated
 b) consensual dual
 c) broker's agency
 d) buyer

10) Which of the following terminations of an agency relationship could result in legal or financial ramifications?

 a) Contract performance
 b) Contract expiration
 c) Mutual agreement between broker and client
 d) Renunciation by the client

11) If a buyer decides that he or she wants client-level services, the buyer will sign a document known as a(an) _________________________ agreement.

 a) exclusive right to represent
 b) designated agent
 c) undisclosed dual agency
 d) subagency

12) An agency relationship may be involuntarily terminated by which of the following?

 a) By performance.
 b) Condemnation of the property
 c) By termination of the relationship by mutual agreement.
 d) By the expiration of the agency agreement.

12) An agency relationship may be involuntarily terminated by which of the following?

 a) By performance.
 b) Condemnation of the property
 c) By termination of the relationship by mutual agreement.
 d) By the expiration of the agency agreement.

1) If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?

 a) Listing broker
 b) Buyer
 c) Seller
 d) No one

2) Under the new regulations when a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a blanket unilateral offer of ______________ to all the other members of that MLS.

 a) subagency
 b) designated agency
 c) dual agency
 d) non-agency

3) What is a licensed real estate salesperson, working under the supervision of a real estate broker, who has been assigned to represent a client when a different client is also represented by such real estate broker in the same transaction called?

 a) Subagent
 b) Designated agent
 c) Dual agent
 d) Single agent

4) When a real estate firm or a real estate licensee represents both the seller and the buyer or the landlord and the tenant in the same transaction a ________________exists.

 a) subagency
 b) designated agency
 c) dual agency
 d) non-agency

5) Which part of the New York License law requires agency disclosures?

 a) Article 12-A, Section 443
 b) Article 9, Section 333
 c) Article 14, Section 462
 d) Article 8, Section 242

6) Dual agency must be disclosed at the time it arises; so the seller __________________ agree to dual agency at the time he or she signs the listing.

 a) has to
 b) cannot
 c) must
 d) does not have to

7) What do we call an agent who represents a seller exclusively in a real estate transaction?

 a) Exclusive agent
 b) Single agent
 c) Subagent
 d) Broker agent

8) Before a buyer broker shows a property, he or she must disclose his or her________________relationship to the seller.

 a) seller agency
 b) subagency
 c) buyer agency
 d) dual agency

9) A broker can enter into a single agency agreement with any of the following except?

 a) Seller
 b) Landlord
 c) Buyer
 d) Seller and buyer

10) When the agency relationship has been terminated, the licensee is no longer considered the principal_s agent and does not owe any further duties to the principal, except for the following?

 a) Loyalty
 b) Obedience
 c) Confidentiality
 d) Care

10) When the agency relationship has been terminated, the licensee is no longer considered the principal_s agent and does not owe any further duties to the principal, except for the following?

 a) Loyalty
 b) Obedience
 c) Confidentiality
 d) Care

11) All of the following may involuntarily terminate an agency relationship except?

 a) Bankruptcy
 b) Expiration of the agreement term
 c) Agent abandonment

12) This form is required by New York law and is designed to help the consumer make informed choices about the relationship he or she may want to have with any real estate licensees?

 a) The New York State Disclosure Form For Buyer and Seller.
 b) The New York State Licensing Form for Agents.
 c) The New York State Real Property Law, Form 175.7.
 d) The New York State Designated Agent Agreement.

1) Sally is a subagent working for Seller Pat. What does Sally owe to Buyer Brad?

 a) Honesty and fair dealing
 b) Confidentiality
 c) Advice on negotiations
 d) Information about Pat's motivation to sell

2) What is an agent called who represents only one person in the transaction, either the buyer or the seller?

 a) Subagent
 b) Designated agent
 c) Dual agent
 d) Single agent

3) A seller can agree to accept or reject the option of_______________ when he or she signs the listing contract.

 a) subagency
 b) facilitator
 c) disclosure
 d) non-agency

4) In all residential transactions licensees must give potential sellers or buyers a written disclosure form when they make their _____________________ contact.

 a) first
 b) first substantive
 c) contract presentation
 d) first face-to-face

5) Designated agency means the clients do not have the full level of fiduciary duties available to them that they would have if they were fully involved in seller agency or buyer agency. What the client gives up in this situation is the fiduciary duty of undivided?

 a) Loyalty
 b) Confidentiality
 c) Accountability
 d) Blind obedience

6) As of January 1, 2011 the new residential disclosure form allows for advanced approval by each customer and client for_________ agency.

 a) sub
 b) facilitator
 c) disclosure
 d) dual

7) Which type of agency would be most advantageous to a buyer?

 a) Broker's agency
 b) Buyer brokerage
 c) Designated agency
 d) Consensual dual agency

8) With regard to compensation in cooperative sales, the____________ broker will be the person who handles the commission splits for the transaction.

 a) Affiliate
 b) Selling
 c) Listing
 d) Designated dual

9) A buyer_s agent is generally paid by the traditional commission arrangement between the listing broker and the cooperating broker whereby the___________pays the commission, which is then split between the listing agent and the buyer agent.

 a) parties
 b) seller
 c) buyer
 d) broker

10) Mary has a listing agreement with Broker Tom. Mary tells Tom she wants him to use broker agents to help sell her property. Tom gets Larry, Gail and Bill, who all work for other firms, to help find a buyer for Mary's property. Who would be vicariously liable for Bill's actions?

 a) Broker Tom and Mary
 b) Broker Tom, Larry and Gail
 c) Broker Tom
 d) Mary

11) When the agency relationship has been terminated, the licensee is no longer considered the principal_s agent and does not owe any further duties to the principal, except for the following?

 a) Loyalty
 b) Accounting
 c) Obedience
 d) Care

12) An agency relationship may be involuntarily terminated by which of the following?

 a) By destruction of the property through fire, vandalism or natural disaster.
 b) By performance.
 c) By termination of the relationship by mutual agreement.
 d) By the expiration of the agency agreement.