STUDY GUIDE FOR THE NY REAL ESTATE
EXAM QUESTIONS AND ANSWERS
Independent ,gcontractor ,gmust ,gpay ,gtheir ,gown ,gexpenses. ,g- ,gCorrect ,g ,gAnswer ,g- ,gAcc
ording ,gto ,gIRS ,gcode ,gsection ,g3508[A, ,gB], ,g
real ,gestate ,gagents ,gare ,gstatutory ,gnon-
employees ,gand ,gare ,gtherefore ,gindependent ,gcontractors. ,g
The ,gcode ,galso ,gstates ,gthat ,gthere ,gmust ,gbe ,ga ,gwritten ,gcontract ,gbetween ,gthe ,gbroke
r ,gand ,gthe ,gsales ,gassociate, ,galso ,greviewed ,gevery ,g12-15 ,gmonths
· ,gAll ,grecords ,gmust ,gbe ,gkept ,gfor ,g3 ,gyears
· ,gIf ,gsales ,gassociate ,gnot ,gdeemed ,gindependent ,gthen ,gthey ,gwill ,gnot ,gbe ,gable ,gto ,gfile
,g"SCHEDULE ,gC' ,gof ,gthe ,gfederal ,greturn
· ,gThe ,gIndependent ,gContractor ,gRelationship
Ø ,gSalespersons ,gare ,gfree ,gto ,gengage ,gin ,goutside ,gemployment
Ø ,gEither ,gparty ,gmay ,gterminate ,gthe ,grelationship ,gat ,gany ,gtime
License ,gLaw ,g& ,gRegulations ,g- ,gCorrect ,g ,gAnswer ,g- ,gThe ,gNew ,gYork ,gDepartment ,gof
,gState, ,gDivision ,gof ,glicensing ,gServices ,gis ,gthe ,gregulatory ,gagency ,gthat ,goversees ,gan
d ,gadministers ,gthe ,glicensure ,gprocess.
,gMost ,gof ,gthe ,glaw ,gpertaining ,gto ,gsalespersons ,gand ,gbrokers ,gis ,gcontained ,gin ,gArticl
e ,g12-A ,gof ,gthe ,greal ,gproperty ,glaw.
A ,greal ,gestate ,gbroker ,g- ,gCorrect ,g ,gAnswer ,g- ,gis ,gany ,gperson, ,gpartnership, ,gassociati
on ,gor ,gcorporation ,gwho, ,gfor ,ganother, ,gand ,gfor ,gcompensation ,gof ,gany ,gkind, ,gnegotiat
es ,gany ,gform ,gof ,greal ,gestate ,gtransaction. ,g
Real ,gestate ,gbrokers ,gsupervise ,gand ,gare ,gresponsible ,gfor ,gthe ,gactivities ,gof ,gassociat
e ,gbrokers ,gand ,gsalespersons ,gin ,gtheir ,gemploy.
A ,gsalesperson ,gor ,gan ,gassociate ,gbroker ,g- ,gCorrect ,g ,gAnswer ,g- ,gcannot ,goperate ,gind
ependently. ,gAlthough ,glicensed, ,gthey ,gmust ,gwork ,gunder ,ga ,glicensed ,gReal ,gEstate ,gB
roker
Duties ,gThat ,gRequire ,gLicensure ,g- ,gCorrect ,g ,gAnswer ,g- ,g* ,gSelling ,gor ,gpurchasing ,gre
al ,gestate ,gat ,gan ,gauction
,*Negotiating ,gthe ,gsale ,gof ,ga ,gbusiness ,gfor ,gwhich ,gthe ,gvalues ,gof ,gthe ,greal ,gestate ,gtra
nsferred ,gis ,gnot ,gmerely ,gincidental ,gto ,gthe ,gtransaction ,g(RE ,gvalue ,gis ,gworth ,gmore ,gth
an ,gthe ,gbusiness
* ,gSalespersons ,gmust ,gbe ,g18 ,gyears ,gof ,gage.
* ,gBrokers ,gmust ,gbe ,g20 ,gyears ,gold ,gwith ,g2 ,gyears ,gexperience
* ,gPoints ,gfor ,gBroker ,gLicense ,gwork ,gas ,gsalesperson ,g& ,g3500 ,gpoints ,gor ,g3 ,gyears ,gan
d ,g5250 ,gpoints.
*Licenses ,gare ,grenewed ,gevery ,gtwo{2} ,gyears
Exemptions ,gto ,gLicensure ,g- ,gCorrect ,g ,gAnswer ,g- ,gBuilding ,gsuperintendents ,gor ,gmaint
enance ,gworkers ,gwho ,gperform ,gtasks ,gsuch ,gas ,grent ,gcollecting ,gfor ,gone ,gowner, ,gcom
pany ,gor ,gentity.
Classes ,gof ,gLicensure ,gfor ,gBrokers ,g- ,gCorrect ,g ,gAnswer ,g- ,gØ ,gEach ,gofficer ,gof ,ga ,gcor
poration ,gor ,gmember ,gof ,ga ,gco-partnership ,gmust ,gbe ,glicensed ,gas ,ga ,gbroker.
Ø ,gSalespersons ,glicenses ,gare ,gnot ,gissued ,gto ,gofficers ,gof ,gcorporations ,gor ,gmembers
,gof ,gco-partnerships.
Ø ,gSalespersons ,gand ,gassociate ,gbrokers ,gmay ,gnot ,gbe ,gprincipals ,gin ,gthe ,gbrokerage ,
gfirm ,gand ,gmay ,gnot ,gown ,gvoting ,gstock ,gin ,gthe ,glicensed ,gbrokerage ,gcorporation.
License ,gand ,gPocket ,gCard ,g- ,gCorrect ,g ,gAnswer ,g- ,gØ ,gPocket ,gCards ,gmust ,gbe ,gcarri
ed ,gat ,gall ,gtimes ,gand ,gshown ,gon ,gdemand.
· ,gFees, ,gOffice ,gRequirements, ,gand ,gTerms ,gof ,gLicensure
Ø ,gBrokers ,gmust ,gpay ,g$150.00 ,gand ,gSalespersons ,g$50.00 ,gfor ,geach ,gterm.
Ø ,gAdditional ,glicenses ,gfor ,geach ,gbranch ,goffice ,gcost ,g$150.00.
An ,gapartment-
sharing ,gagent ,g- ,gCorrect ,g ,gAnswer ,g- ,gis ,gan ,gindividual ,gwho, ,gfor ,ga ,gfee, ,garranges ,ga
nd ,gcoordinates ,gmeetings ,gbetween ,gthe ,gcurrent ,gowners ,gof ,greal ,gproperty, ,gincluding
,gapartment ,ghousing ,gwho ,gwish ,gto ,gshare ,gtheir ,ghousing ,gwith ,gothers.
A ,gmortgage ,gbanker ,g- ,gCorrect ,g ,gAnswer ,g- ,gis ,gan ,gindividual ,gor ,gentity ,glicensed ,gby ,g
the ,gNew ,gYork ,gBanking ,gDepartment ,gto ,gengage ,gin ,gthe ,gbusiness ,gof ,gmaking ,gresid
ential ,gmortgage ,gloans. ,gLicensed ,gand ,glends.
Compensation ,gand ,gFee ,gSplitting ,g- ,gCorrect ,g ,gAnswer ,g- ,gØ ,gSalespersons ,gmay ,gnot ,
gaccept ,gcompensation ,gexcept ,gfrom ,gtheir ,gsponsoring ,gbrokers
, Ø ,gIf ,gbrokers ,gimproperly ,gpay ,gany ,gpart ,gof ,gcompensation ,gto ,ganyone ,gwho ,gis ,gnot ,gli
censed ,gor ,gwho ,gis ,gnot ,gexempt ,gfrom ,gthe ,glicense ,glaw, ,gthey ,gare ,gin ,gviolation ,gof ,gth
e ,glicense ,glaw,
this ,gpayment ,gis ,gcalled ,ga ,gkickback.
,g
Lawsuits ,gfor ,gCommissions ,g- ,gCorrect ,g ,gAnswer ,g- ,gAn ,gunlicensed ,gperson, ,gco-
partnership ,gor ,gcorporation ,gcannot ,gbring ,gabout ,ga ,glawsuit ,gto ,gcollect ,gcompensation ,
gfor ,greal ,gestate ,gservices ,grendered ,gbecause-
,gonly ,ga ,glicensed ,greal ,gestate ,gbroker ,gor ,gsalesperson ,gis ,gentitled ,gto ,ga ,gjudgment ,gb
y ,gthe ,gcourts.
Violations ,gof ,gReal ,gEstate ,gLicense ,gLaw ,g- ,gCorrect ,g ,gAnswer ,g- ,gØ ,gFailing ,gto ,gprovi
de ,gadequate ,gdisclosure ,gregarding ,gany ,gor ,gall ,gof ,gthe ,gfollowing: ,g
a) ,gif ,glicensees ,gpurchase ,gproperty ,glisted ,gby ,gtheir ,gfirm, ,gthey ,gmust ,gmake ,gtheir ,gpo
sition ,gclear ,gto ,gthe ,gseller, ,g
b) ,gthe ,glicensee ,gmust ,gmake ,gclear ,gtheir ,gposition ,gregarding ,gthe ,gparty ,gfor ,gwhom ,gt
hey ,gare ,gacting ,gin ,ga ,gresidential ,greal ,gestate ,gtransaction-seller, ,gbuyer ,gor ,gboth.
Ø ,gReceiving ,gcompensation ,gfrom ,gmore ,gthan ,gone ,gparty ,gin ,ga ,greal ,gestate ,gtransacti
on ,gwithout ,gthe ,gknowledge ,gand ,gconsent ,gof ,gall ,gparties.
Ø ,gBeing ,ga ,gparty ,gto ,gan ,gexclusive ,glisting ,gcontract ,gthat ,gcontains ,gan ,gautomatic ,gco
ntinuation ,gof ,gthe ,glisting ,gbeyond ,gthe ,gspecified ,gtermination ,gdate. ,g
Listing ,gcontracts ,gare ,grenewed ,gby ,gthe ,gsigning ,gof ,ga ,gwritten ,grenewal ,gagreement.
Ø ,gDrawing ,gup ,glegal ,gdocuments ,gsuch ,gas ,gdeeds ,gor ,gmortgages, ,ggiving ,gan ,gopinio
n ,gas ,gto ,gthe ,glegal ,gvalidity ,gof ,gany ,gdocument, ,gperforming ,ga ,gtitle ,gexamination. ,g
A ,glicensee ,gmay ,gnot ,gperform ,gany ,gservice ,gthat ,gis ,gperformed ,gby ,gan ,gattorney.
Ø ,gBrokers ,gare ,gprohibited ,gfrom ,gcommingling ,gor ,gmixing ,gthe ,gfunds ,gof ,gothers ,gwith ,
gtheir ,gbusiness ,gor ,gpersonal ,gfunds ,gand ,gare ,grequired ,gto ,gmaintain ,gadequate ,grecord
s ,gregarding ,gthe ,gdeposit ,gand ,gdisbursement ,gof ,gfunds ,gfrom ,gtheir ,gaccounts.
Ø ,gEntering ,ginto ,ga ,gnet ,glisting ,gcontract. ,g
A ,gnet ,glisting ,gcontract ,goccurs ,gwhen ,ga ,gseller ,gauthorizes ,ga ,gbroker ,gto ,gprocure ,ga ,gs
pecified ,gamount ,gfor ,gthe ,gproperty ,gand ,g
-
then ,gallows ,gthe ,gbroker ,gto ,gkeep ,gas ,ga ,gcommission ,gany ,gmoney ,gabove ,gthe ,gspecifi
ed ,gamount ,gfrom ,gthe ,gsale.
· ,gDiscrimination ,gbecause ,gof ,grace, ,gcreed, ,gcolor, ,gnational ,gorigin, ,gage, ,gsex, ,gdisabili
ty, ,gfamilial ,gor ,gmarital ,gstatus ,gin ,gthe ,gsale ,grental ,gor ,gadvertisement ,gof ,ghousing ,gor ,g
commercial ,gspace ,gcovered ,gby ,glaw
EXAM QUESTIONS AND ANSWERS
Independent ,gcontractor ,gmust ,gpay ,gtheir ,gown ,gexpenses. ,g- ,gCorrect ,g ,gAnswer ,g- ,gAcc
ording ,gto ,gIRS ,gcode ,gsection ,g3508[A, ,gB], ,g
real ,gestate ,gagents ,gare ,gstatutory ,gnon-
employees ,gand ,gare ,gtherefore ,gindependent ,gcontractors. ,g
The ,gcode ,galso ,gstates ,gthat ,gthere ,gmust ,gbe ,ga ,gwritten ,gcontract ,gbetween ,gthe ,gbroke
r ,gand ,gthe ,gsales ,gassociate, ,galso ,greviewed ,gevery ,g12-15 ,gmonths
· ,gAll ,grecords ,gmust ,gbe ,gkept ,gfor ,g3 ,gyears
· ,gIf ,gsales ,gassociate ,gnot ,gdeemed ,gindependent ,gthen ,gthey ,gwill ,gnot ,gbe ,gable ,gto ,gfile
,g"SCHEDULE ,gC' ,gof ,gthe ,gfederal ,greturn
· ,gThe ,gIndependent ,gContractor ,gRelationship
Ø ,gSalespersons ,gare ,gfree ,gto ,gengage ,gin ,goutside ,gemployment
Ø ,gEither ,gparty ,gmay ,gterminate ,gthe ,grelationship ,gat ,gany ,gtime
License ,gLaw ,g& ,gRegulations ,g- ,gCorrect ,g ,gAnswer ,g- ,gThe ,gNew ,gYork ,gDepartment ,gof
,gState, ,gDivision ,gof ,glicensing ,gServices ,gis ,gthe ,gregulatory ,gagency ,gthat ,goversees ,gan
d ,gadministers ,gthe ,glicensure ,gprocess.
,gMost ,gof ,gthe ,glaw ,gpertaining ,gto ,gsalespersons ,gand ,gbrokers ,gis ,gcontained ,gin ,gArticl
e ,g12-A ,gof ,gthe ,greal ,gproperty ,glaw.
A ,greal ,gestate ,gbroker ,g- ,gCorrect ,g ,gAnswer ,g- ,gis ,gany ,gperson, ,gpartnership, ,gassociati
on ,gor ,gcorporation ,gwho, ,gfor ,ganother, ,gand ,gfor ,gcompensation ,gof ,gany ,gkind, ,gnegotiat
es ,gany ,gform ,gof ,greal ,gestate ,gtransaction. ,g
Real ,gestate ,gbrokers ,gsupervise ,gand ,gare ,gresponsible ,gfor ,gthe ,gactivities ,gof ,gassociat
e ,gbrokers ,gand ,gsalespersons ,gin ,gtheir ,gemploy.
A ,gsalesperson ,gor ,gan ,gassociate ,gbroker ,g- ,gCorrect ,g ,gAnswer ,g- ,gcannot ,goperate ,gind
ependently. ,gAlthough ,glicensed, ,gthey ,gmust ,gwork ,gunder ,ga ,glicensed ,gReal ,gEstate ,gB
roker
Duties ,gThat ,gRequire ,gLicensure ,g- ,gCorrect ,g ,gAnswer ,g- ,g* ,gSelling ,gor ,gpurchasing ,gre
al ,gestate ,gat ,gan ,gauction
,*Negotiating ,gthe ,gsale ,gof ,ga ,gbusiness ,gfor ,gwhich ,gthe ,gvalues ,gof ,gthe ,greal ,gestate ,gtra
nsferred ,gis ,gnot ,gmerely ,gincidental ,gto ,gthe ,gtransaction ,g(RE ,gvalue ,gis ,gworth ,gmore ,gth
an ,gthe ,gbusiness
* ,gSalespersons ,gmust ,gbe ,g18 ,gyears ,gof ,gage.
* ,gBrokers ,gmust ,gbe ,g20 ,gyears ,gold ,gwith ,g2 ,gyears ,gexperience
* ,gPoints ,gfor ,gBroker ,gLicense ,gwork ,gas ,gsalesperson ,g& ,g3500 ,gpoints ,gor ,g3 ,gyears ,gan
d ,g5250 ,gpoints.
*Licenses ,gare ,grenewed ,gevery ,gtwo{2} ,gyears
Exemptions ,gto ,gLicensure ,g- ,gCorrect ,g ,gAnswer ,g- ,gBuilding ,gsuperintendents ,gor ,gmaint
enance ,gworkers ,gwho ,gperform ,gtasks ,gsuch ,gas ,grent ,gcollecting ,gfor ,gone ,gowner, ,gcom
pany ,gor ,gentity.
Classes ,gof ,gLicensure ,gfor ,gBrokers ,g- ,gCorrect ,g ,gAnswer ,g- ,gØ ,gEach ,gofficer ,gof ,ga ,gcor
poration ,gor ,gmember ,gof ,ga ,gco-partnership ,gmust ,gbe ,glicensed ,gas ,ga ,gbroker.
Ø ,gSalespersons ,glicenses ,gare ,gnot ,gissued ,gto ,gofficers ,gof ,gcorporations ,gor ,gmembers
,gof ,gco-partnerships.
Ø ,gSalespersons ,gand ,gassociate ,gbrokers ,gmay ,gnot ,gbe ,gprincipals ,gin ,gthe ,gbrokerage ,
gfirm ,gand ,gmay ,gnot ,gown ,gvoting ,gstock ,gin ,gthe ,glicensed ,gbrokerage ,gcorporation.
License ,gand ,gPocket ,gCard ,g- ,gCorrect ,g ,gAnswer ,g- ,gØ ,gPocket ,gCards ,gmust ,gbe ,gcarri
ed ,gat ,gall ,gtimes ,gand ,gshown ,gon ,gdemand.
· ,gFees, ,gOffice ,gRequirements, ,gand ,gTerms ,gof ,gLicensure
Ø ,gBrokers ,gmust ,gpay ,g$150.00 ,gand ,gSalespersons ,g$50.00 ,gfor ,geach ,gterm.
Ø ,gAdditional ,glicenses ,gfor ,geach ,gbranch ,goffice ,gcost ,g$150.00.
An ,gapartment-
sharing ,gagent ,g- ,gCorrect ,g ,gAnswer ,g- ,gis ,gan ,gindividual ,gwho, ,gfor ,ga ,gfee, ,garranges ,ga
nd ,gcoordinates ,gmeetings ,gbetween ,gthe ,gcurrent ,gowners ,gof ,greal ,gproperty, ,gincluding
,gapartment ,ghousing ,gwho ,gwish ,gto ,gshare ,gtheir ,ghousing ,gwith ,gothers.
A ,gmortgage ,gbanker ,g- ,gCorrect ,g ,gAnswer ,g- ,gis ,gan ,gindividual ,gor ,gentity ,glicensed ,gby ,g
the ,gNew ,gYork ,gBanking ,gDepartment ,gto ,gengage ,gin ,gthe ,gbusiness ,gof ,gmaking ,gresid
ential ,gmortgage ,gloans. ,gLicensed ,gand ,glends.
Compensation ,gand ,gFee ,gSplitting ,g- ,gCorrect ,g ,gAnswer ,g- ,gØ ,gSalespersons ,gmay ,gnot ,
gaccept ,gcompensation ,gexcept ,gfrom ,gtheir ,gsponsoring ,gbrokers
, Ø ,gIf ,gbrokers ,gimproperly ,gpay ,gany ,gpart ,gof ,gcompensation ,gto ,ganyone ,gwho ,gis ,gnot ,gli
censed ,gor ,gwho ,gis ,gnot ,gexempt ,gfrom ,gthe ,glicense ,glaw, ,gthey ,gare ,gin ,gviolation ,gof ,gth
e ,glicense ,glaw,
this ,gpayment ,gis ,gcalled ,ga ,gkickback.
,g
Lawsuits ,gfor ,gCommissions ,g- ,gCorrect ,g ,gAnswer ,g- ,gAn ,gunlicensed ,gperson, ,gco-
partnership ,gor ,gcorporation ,gcannot ,gbring ,gabout ,ga ,glawsuit ,gto ,gcollect ,gcompensation ,
gfor ,greal ,gestate ,gservices ,grendered ,gbecause-
,gonly ,ga ,glicensed ,greal ,gestate ,gbroker ,gor ,gsalesperson ,gis ,gentitled ,gto ,ga ,gjudgment ,gb
y ,gthe ,gcourts.
Violations ,gof ,gReal ,gEstate ,gLicense ,gLaw ,g- ,gCorrect ,g ,gAnswer ,g- ,gØ ,gFailing ,gto ,gprovi
de ,gadequate ,gdisclosure ,gregarding ,gany ,gor ,gall ,gof ,gthe ,gfollowing: ,g
a) ,gif ,glicensees ,gpurchase ,gproperty ,glisted ,gby ,gtheir ,gfirm, ,gthey ,gmust ,gmake ,gtheir ,gpo
sition ,gclear ,gto ,gthe ,gseller, ,g
b) ,gthe ,glicensee ,gmust ,gmake ,gclear ,gtheir ,gposition ,gregarding ,gthe ,gparty ,gfor ,gwhom ,gt
hey ,gare ,gacting ,gin ,ga ,gresidential ,greal ,gestate ,gtransaction-seller, ,gbuyer ,gor ,gboth.
Ø ,gReceiving ,gcompensation ,gfrom ,gmore ,gthan ,gone ,gparty ,gin ,ga ,greal ,gestate ,gtransacti
on ,gwithout ,gthe ,gknowledge ,gand ,gconsent ,gof ,gall ,gparties.
Ø ,gBeing ,ga ,gparty ,gto ,gan ,gexclusive ,glisting ,gcontract ,gthat ,gcontains ,gan ,gautomatic ,gco
ntinuation ,gof ,gthe ,glisting ,gbeyond ,gthe ,gspecified ,gtermination ,gdate. ,g
Listing ,gcontracts ,gare ,grenewed ,gby ,gthe ,gsigning ,gof ,ga ,gwritten ,grenewal ,gagreement.
Ø ,gDrawing ,gup ,glegal ,gdocuments ,gsuch ,gas ,gdeeds ,gor ,gmortgages, ,ggiving ,gan ,gopinio
n ,gas ,gto ,gthe ,glegal ,gvalidity ,gof ,gany ,gdocument, ,gperforming ,ga ,gtitle ,gexamination. ,g
A ,glicensee ,gmay ,gnot ,gperform ,gany ,gservice ,gthat ,gis ,gperformed ,gby ,gan ,gattorney.
Ø ,gBrokers ,gare ,gprohibited ,gfrom ,gcommingling ,gor ,gmixing ,gthe ,gfunds ,gof ,gothers ,gwith ,
gtheir ,gbusiness ,gor ,gpersonal ,gfunds ,gand ,gare ,grequired ,gto ,gmaintain ,gadequate ,grecord
s ,gregarding ,gthe ,gdeposit ,gand ,gdisbursement ,gof ,gfunds ,gfrom ,gtheir ,gaccounts.
Ø ,gEntering ,ginto ,ga ,gnet ,glisting ,gcontract. ,g
A ,gnet ,glisting ,gcontract ,goccurs ,gwhen ,ga ,gseller ,gauthorizes ,ga ,gbroker ,gto ,gprocure ,ga ,gs
pecified ,gamount ,gfor ,gthe ,gproperty ,gand ,g
-
then ,gallows ,gthe ,gbroker ,gto ,gkeep ,gas ,ga ,gcommission ,gany ,gmoney ,gabove ,gthe ,gspecifi
ed ,gamount ,gfrom ,gthe ,gsale.
· ,gDiscrimination ,gbecause ,gof ,grace, ,gcreed, ,gcolor, ,gnational ,gorigin, ,gage, ,gsex, ,gdisabili
ty, ,gfamilial ,gor ,gmarital ,gstatus ,gin ,gthe ,gsale ,grental ,gor ,gadvertisement ,gof ,ghousing ,gor ,g
commercial ,gspace ,gcovered ,gby ,glaw
