REAL ESTATE U PRACTICE PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉Article 12-A of the NYS Real Property Law. Answer: Outlines the
roles/duties of the Department of State
◉Commissions. Answer: - Commissions are paid by the client (buyer
or seller depending on the transaction) to the brokers involved in
the transaction.
- A typical commission in New York is 6%.
- Commissions are always negotiable, and are determined by both
the client and broker.
◉Blind Ad. Answer: An ad that remains anonymous as to who is
advertising is known as a Blind Ad. Blind ads are illegal.
◉175.25 of Article 12-A of the NY Real Property Law. Answer: " All
advertisements placed by a broker must indicate that the advertiser
is a broker or give the name of the broker and his telephone number.
All advertisements placed by a broker which state that property is in
the vicinity of a geographical area or territorial subdivision must
indicate as part of such advertisement the name of the geographical
area or territorial subdivision in which such property is actually
located."
,◉Suspensions. Answer: The revocation or suspension of a broker's
license suspends the license of the salespersons and associate
brokers affiliated with the broker.
◉OLDCAR. Answer: Obedience - Agent must act in accordance to
clients demands/instructions
Loyalty - Agent must work in the best interest of his client
Disclosure of Information - Agent must communicate with client /
must present all offers
Confidentiality - All confidential information as described by client
must remain so unless given permission in writing.
Accountability - One of the more serious fiduciary responsibilities.
Reasonable Care and Duty to Account - Agent may be liable for costly
mistakes.
◉Agency Disclosure Form. Answer: - A written explanation, to be
signed by a prospective buyer or seller of real estate, explaining to
the client the role that the broker plays in the transaction.
- The Agency Disclosure Form is signed at the first substantive
contact.
- Outlines the agent's duties to the client
- Explains that an agent owes a fiduciary duty to the client
- Allows for advance consent to dual agency
,◉The Property Condition Disclosure Act. Answer: - Requires the
seller to submit to the buyer, a 'Property Condition Disclosure
Statement, prior to signing the contract of sale. If the statement is
not signed, the buyer shall receive a $500 credit against the
purchase price of the property.
- Most seller attorneys advise their clients NOT to sign the
statement, as it opens them up to a vast amount of liability.
◉Undisclosed Dual Agency. Answer: - A relationship in which the
real estate agent is found to be the agent of both the buyer and seller
in a transaction, but without the knowledge and informed consent of
both parties.
- Undisclosed Dual Agency is illegal in New York State.
- Instead, the agent should notify both parties and have them sign
the Agency Disclosure form, which states that the agent is acting as a
dual agent. This is known as Advance Consent to Dual Agency.
◉General Agent. Answer: Someone authorized to transact every
kind of business for the principal.
Example: Property Manager
◉Special Agent. Answer: An agent with limited authority to act on
behalf of the principal, such as created by a listing.
Example: Real Estate Agent / Real Estate Broker
, ◉Exclusive Right to Sell. Answer: An agreement of employment by a
broker under which the exclusive right to sell for a specified period
is granted to the broker; if a sale during the term of the agreement is
made by the owner or by any other broker, the broker holding such
exclusive right to sell is nevertheless entitled to compensation.
◉Principal or Client. Answer: The buyer and/or seller
◉Agent. Answer: The salesperson or broker
◉Salesperson / Broker Relationships. Answer: - Real Estate
Salespersons/Agents DO NOT collect money or commissions.
- Any commissions earned are paid to the salesperson's broker, who
in turn, pays the salesperson his portion of the commission.
- This also applies to any referral fees paid from another broker /
salesperson / mortgage broker.
◉Buyer Agency / Buyer Brokerage. Answer: Occurs when a
purchaser hires a broker to represent them. The purchaser employs
a broker to locate a property. In this relationship, the buyer is the
principal and the broker is the agent.
QUESTIONS WITH SOLUTIONS GRADED A+
◉Article 12-A of the NYS Real Property Law. Answer: Outlines the
roles/duties of the Department of State
◉Commissions. Answer: - Commissions are paid by the client (buyer
or seller depending on the transaction) to the brokers involved in
the transaction.
- A typical commission in New York is 6%.
- Commissions are always negotiable, and are determined by both
the client and broker.
◉Blind Ad. Answer: An ad that remains anonymous as to who is
advertising is known as a Blind Ad. Blind ads are illegal.
◉175.25 of Article 12-A of the NY Real Property Law. Answer: " All
advertisements placed by a broker must indicate that the advertiser
is a broker or give the name of the broker and his telephone number.
All advertisements placed by a broker which state that property is in
the vicinity of a geographical area or territorial subdivision must
indicate as part of such advertisement the name of the geographical
area or territorial subdivision in which such property is actually
located."
,◉Suspensions. Answer: The revocation or suspension of a broker's
license suspends the license of the salespersons and associate
brokers affiliated with the broker.
◉OLDCAR. Answer: Obedience - Agent must act in accordance to
clients demands/instructions
Loyalty - Agent must work in the best interest of his client
Disclosure of Information - Agent must communicate with client /
must present all offers
Confidentiality - All confidential information as described by client
must remain so unless given permission in writing.
Accountability - One of the more serious fiduciary responsibilities.
Reasonable Care and Duty to Account - Agent may be liable for costly
mistakes.
◉Agency Disclosure Form. Answer: - A written explanation, to be
signed by a prospective buyer or seller of real estate, explaining to
the client the role that the broker plays in the transaction.
- The Agency Disclosure Form is signed at the first substantive
contact.
- Outlines the agent's duties to the client
- Explains that an agent owes a fiduciary duty to the client
- Allows for advance consent to dual agency
,◉The Property Condition Disclosure Act. Answer: - Requires the
seller to submit to the buyer, a 'Property Condition Disclosure
Statement, prior to signing the contract of sale. If the statement is
not signed, the buyer shall receive a $500 credit against the
purchase price of the property.
- Most seller attorneys advise their clients NOT to sign the
statement, as it opens them up to a vast amount of liability.
◉Undisclosed Dual Agency. Answer: - A relationship in which the
real estate agent is found to be the agent of both the buyer and seller
in a transaction, but without the knowledge and informed consent of
both parties.
- Undisclosed Dual Agency is illegal in New York State.
- Instead, the agent should notify both parties and have them sign
the Agency Disclosure form, which states that the agent is acting as a
dual agent. This is known as Advance Consent to Dual Agency.
◉General Agent. Answer: Someone authorized to transact every
kind of business for the principal.
Example: Property Manager
◉Special Agent. Answer: An agent with limited authority to act on
behalf of the principal, such as created by a listing.
Example: Real Estate Agent / Real Estate Broker
, ◉Exclusive Right to Sell. Answer: An agreement of employment by a
broker under which the exclusive right to sell for a specified period
is granted to the broker; if a sale during the term of the agreement is
made by the owner or by any other broker, the broker holding such
exclusive right to sell is nevertheless entitled to compensation.
◉Principal or Client. Answer: The buyer and/or seller
◉Agent. Answer: The salesperson or broker
◉Salesperson / Broker Relationships. Answer: - Real Estate
Salespersons/Agents DO NOT collect money or commissions.
- Any commissions earned are paid to the salesperson's broker, who
in turn, pays the salesperson his portion of the commission.
- This also applies to any referral fees paid from another broker /
salesperson / mortgage broker.
◉Buyer Agency / Buyer Brokerage. Answer: Occurs when a
purchaser hires a broker to represent them. The purchaser employs
a broker to locate a property. In this relationship, the buyer is the
principal and the broker is the agent.
