Real Estate U Final Exam: Questions with CompleteSolution
l l l l l l l l
s (2023) l
Articlel12-AloflthelNYSlReallPropertylLa
- CorrectlAnsl-l-lPrimarylpersonlisltol"protectlthelpublic"-minimizinglfraud
- Requireslalsalespersonltolbelatlleastl18lyearsloflage
- Requireslalbrokerltolbelatlleastl20lyearsloflage
MaintaininglalLicensel-lCorrectlAnsl-
lPlaceloflworkl(brokerage)lPocketlcard
GivelnoticeltolNYlDepartmentloflStateloflchangelinlname,lstatus,llocationl(withinl5ldays)
ExemptionsltolLicensurel-lCorrectlAnsl–
- reallestatelattorney
- governmentlofficiallpertaininglpertainingltolcourtlorlreallestatelproceedinglduties
- courtlorderslofficiall(trustylinlbankruptcy,lreallestatelguardian,lexecutorlorladministrator)
"SummaryloflyoulSubmission"l-lCorrectlAnsl–
lObtainedlafterlyoulregisterlforlthelNewlYorklStatelSalespersonlexamlusingleAccessNY.lYoulmustlbr
inglyoul"SummaryloflyourlSubmission"lwithlyoulwhenltakinglthelStatelexam
Misdemeanorl-lCorrectlAnsl-lAlcrimelpunishablelbylupltolalyearlinlprisonland/orlal$1,000lfine
ListinglAgreementl-lCorrectlAnsl-
lcontractlbetweenlPrinciplelandlagent,lauthorizinglthelagentltolperformlserviceslforlthelprincipleli
nvolvinglthellatter'slproperty
PocketlCardl-lCorrectlAnsl-
lissuedlbyltheldepartmentloflstateltoleachllicensee:containslthelphoto,lnamelandlbusinessladdresslofl
licensee,land,linlthelcaseloflalreallestatelsalesperson,lthelnamelandlbusinessladdressloflthelbrokerlwit
hlwhomlhelorlsheliterm-
15slassociatedlandlshalllcertifylthatlthelpersonlwhoselnamelappearslthereonlislallicensedlreallestatel
brokerlorlsalesperson
- Mustlbelcarriedlbylthelagentlatlallltimeslwhenlservinglaslalsalesperson
Escrow
(notlideallbclitlcanlresultlinllegallconsequenceslinlwhichlcaselhasltolbelinlwriting)
https://www.youtube.com/watch?v=-QqtFEkvsBol-lCorrectlAnsl-
lWrittenlagreementlbetweenl2/+lpartieslprovidinglthatlcertainlinstruments/lpropertylislplacedlwith
lthirdlpartylandldeliveredltolpersonluponlthelfulfillmentlorlperformanceloflsomelact/condition.
Simple:lAlSeparatelBanklaccountlthatlprotectslthelintegritylofltheltransactionl(agreement)lthatlanlag
entlcreated
,Ex:lAnlagentlwholcreatedlallegallylbindinglcontractlwithlbothlbuyerl&lsellerlandlhaslalescrowlcom
panylmakelsureleverylstipulationlinlthislReallPropertylAccountabilityldocumentlthatlwaslagreedlu
ponlbylbothlpartieslhaslbeenlmetlbeforelaldeallcanlbelclosed.
Accordingltolthisldocument,lthelbuyer/sellerldon'tlhavelvicariouslliabilitylforlthelactionsloflalbrok
erslagentl?lThislformlinformslthelclientlaboutlduallagencylandldetailslthelriskslandlbenefitslinvolv
edlinltheltransactionl-lCorrectlAnsl-lNYSlDisclosurelForm
NYSlDisclosurelFormlforlBuyerlandlSellerlRegardinglReallEstatelAgencylRelationshiplForml-
lCorrectlAnsl-
lAlwrittenlexplanation,ltolbelsignedlbylalprospectivelbuyerlorlsellerloflreallestate,lexplainingltolthelclie
ntlthelrolelthatlthelbrokerlplayslinltheltransaction
- Firstldocumentltolbelsubmittedltolalllprospectivelclients
- byllawlthislformlneedsltolbelsignedlatlreallmeetingl(solbeforelanylvisits/showingsloflpropertylorlbr
okerage,lorldiscussionlofllistinglprice,lpurchaselpricelaltenantlislableltolafford,lmortgageltenantlnee
dsltoltakelout)
*InlthelcaselwherelclientlrefusesltolsignlthelDisclosurelForm,lthelagentlshouldlexplainlthatlthelformli
slsimplylaldocumentlmeanltolprotectlthelclientl&lexplainslthelclientslrights
* ifltherelislstilllrefusallthenlagentlneedsltoldocumentltime,ldatelandlclientlnamelwhilelcontinuingl
withlthelmeeting/showingloflproperty.lAfterwardslagentlneedsltolfillloutlanlaffidavitlcontaininglhel
samelinformationlandlexactlreasonlforlwhylthelclientlrefusesltolsignltheldisclosurelform.
FirstlMeetingl:lDisclosurelForml-lCorrectlAnsl-
lListinglagentlmeetinglBuyer:lAgentlneedsltolletlbuyerlknowlthatltheirlfiduciarylduty/lundividedlloyalt
ylisltolseller
Buyerlagentlmeetinglseller:lAgentlneedsltolletlsellerlknowlthatltheirlfiduciarylduty/lundividedlloyaltyli
sltolbuyer
AfterlInitiallDisclosurelAgentlchangesltheirlroleslDUElTOl:l-lCorrectlAnsl-
l1.lInitiallDisclosurelwithlBuyer:lagentlrealizesllaterlonlthatlthelbuyerlislinterestedlinlalpropertylt
hatlthelagentslbrokeragelisllistinglthenlitlwilllresultlinlthelBuyerlAgentlbecominglalDuallAgent
2. Buyerlbecomeslalcustomerlandlthelagentl&lbrokeragelonlylrepresentlthelseller
Comminglingl-lCorrectlAnsl-
lTolminglelorlmix,lforlexample,lalclient'slfundslinlthelbroker'slpersonallorlgenerallaccount.
NetlListing
(canlbelillegallsincelitlcanlleadltolFRAUD)l-lCorrectlAnsl-
lAlpricelbelowlwhichlanlownerlwilllnotlselllthelproperty,landlatlwhichlpricelalbrokerlwilllnotlreceivelalc
ommission;lthelbrokerlreceiveslthelexcessloverlandlabovelthelnetllistinglaslthelbroker'slcommission
,Underlalnetllisting,lthelbrokerlcanlofferlthelpropertylforlsalelatlthelhighestlpricelobtainableltolincre
aselthelcommission.lThisltypelofllistinglislillegallinlNYlandlcanlresultlinllicenselloss
Articlel78lProceedingl-lCorrectlAnsl-
lAnlappeallbroughtlforthlbecauseloflalrulinglbylalgovernmentlagency.
allowslanylpersonltolreviewlaldecisionloflaladministrativelagencylbylgoingltolcourtlandlclaimingltha
tlthelagencylactedlinlalarbitrary,lunfairlorlactedlcontraryltolthellaw
Kickbackl-lCorrectlAnsl-
lPaymentlbylalbrokerloflanylpartloflcompensationltolalreallestateltransactionltolanyonelwholislnotllic
ensedlorlwholislnotlexemptlfromlthellicensellawl(canlresultlinllicenselloss)
AdministrativelDisciplinel-lCorrectlAnsl-
lThelDepartmentloflState'slabilityltolenforcellicensellawslthroughlreprimandlandldeniallaslwellla
slthelsuspensionlandlrevocationlofllicenses.
MultiplelListinglServicel(MLS)l-lCorrectlAnsl-
lagreementlbylalgrouploflreallestatelbrokersltolbandltogetherlandlcreatelalMLSlthatlallowsleachloflth
emltollistleachlother'slhouses.lUnderlthislarrangement,lthellistinglbrokerlandlthelsellinglbrokerlsplitlt
helcommissionlforleachlsale.
- MLSlcreateslalDuallAgencylwherelthelbuyerslagentlbecomeslalsublagentloflbothlthelbuyerlandls
ellerl(onlylifltherelislconsentlwriting)
DuallAgencyl-lCorrectlAnsl-lRepresentinglbothlpartiesltolaltransaction
- Bothlthelseller(landlord)landlbuyer(tenant)lmustlgiveltheirlconsentlinlwiringlforlthelcreationloflD
uallAgency
Ex:lAslsoonlaslthelbrokeragelstartslshowinglthelapartmentlitlneedsltolgetlthelinformedlconsentlfromlla
ndlordlthatlthelsaleslpersonnellarelgonnalbothlrentlthelapartmentlonlbehalfloflthellandlordlandlbringl
tenantsltolleaselit
Risk:
- Undividedlloyalty
- FailingltoldiscloselthelDuallAgencylrelationshiplviolateslthelNYlStatelReallPropertyllaw
Benefits:
- Agentslgetslhigherlcommission
- PermitsllistingloflpropertieslvialMLSlprovidinglgreaterlexposureltolpotentiallbuyers
ReallEstatelAppraiserl-lCorrectlAnsl-
lAlpractitionerlwholhaslthelknowledgelandlexpertiselnecessaryltolestimatelthelvalueloflreallp
roperty.
- actslindependentlyloflthelbuyinglandlsellinglpartieslinlaltransactionlinlorderltolarrivelatlthelfairlv
alueloflanlassetlwithoutlbias.
Agentl-lCorrectlAnsl-
lOnelwholundertakesltoltransactlsomelbusinesslorltolmanagelsomelaffairlforlanotherlbylauthoritylof
lthellatter
, Broker'slAgentl-lCorrectlAnsl-
lAlbroker'slagentlislanlagentlthatlcooperateslorlislengagedlbylallistinglagentlorlalbuyer'slagentl(butldoe
slnotlworklforlthelsamelfirmlaslthellistinglagentlorlbuyer'slagent)ltolassistlthellistinglagentlorlbuyer'sla
gentlinllocatinglalpropertyltolselllorlbuy,lrespectively,lforlthellistinglagent'slsellerlorlthelbuyerlagent'sl
buyer.
Sub-agentl-lCorrectlAnsl-lAnlagentloflalpersonlalreadylactinglaslanlagentloflalprincipal
Fiduciaryldutiesl(OLDlCAR)l-lCorrectlAnsl-
lAlpersonlwholonlbehalfloflorlforlthelbenefitloflanotherltransactslbusiness,lhandleslmoneylorlproper
tylnotlthelperson'slown;lsuchlrelationshiplimplieslgreatlconfidencelandltrust
-OBIDIENCE
-LOYALTY
-
DISCLOSURE:l(agentldoesn'tlhaveltoldiscloselschoollzonelunlesslclientlrequireslit,ltrafficlflow,leasel
ofltransportation,lreasonlsellerlislselling)
-CONFIDENTIALITY
-
ACCOUNTABILITY:lagentlmustlnotlmodify/changelfinancialltermslofldeallandlmustlactlinlbestlinter
estlofltheirlclient
-
REASONABLElCARE:lagentlmustlactlcompetentlylandlnotlinlalnegligentlmannerlbclagentlcanlbelhel
dlliablelforltheirlmistakes.
ReasonablelCarel-lCorrectlAnsl-l-
lAgentlwilllwantltolgetlalcopyloflthelPropertylInspectionlReportlaslpartlofltheldueldiligencelpro
cess
- Agentlneedsltolhavelanlunderstandinglofltheirlclientslfinanciallsituationlandltheirlabilityltoltakel
outlalmortgage.
NOTE:lBelawareloflanyllawsuitslorllackloflfundslforlalspecificlbuilding
Ex:
- belwareloflbuyerlqualifications
- Buildingslassessments
- pendinglorlimpendingllitigations
- don'tlplacelmultiplelcontractslonlmultiplelpropertieslatloneltimel(lsellerlagentlcan'tlputloutl5ldiffer
entlcontractslonl1lspecificlproperty)linsteadl(ladviselalllclientslthatltherelarelotherlpendinglofferslt
olseelwhichlclientlwilllraiseltheirloffer)
UndividedlLoyaltyl-lCorrectlAnsl-
l"Onelofltheldutieslanlagentlowesltolthelclient,lundividedlloyaltylmeanslthelagentlputslthelclien
t'slinterestslaheadloflalllothers,lincludinglthelagent'slown.
l l l l l l l l
s (2023) l
Articlel12-AloflthelNYSlReallPropertylLa
- CorrectlAnsl-l-lPrimarylpersonlisltol"protectlthelpublic"-minimizinglfraud
- Requireslalsalespersonltolbelatlleastl18lyearsloflage
- Requireslalbrokerltolbelatlleastl20lyearsloflage
MaintaininglalLicensel-lCorrectlAnsl-
lPlaceloflworkl(brokerage)lPocketlcard
GivelnoticeltolNYlDepartmentloflStateloflchangelinlname,lstatus,llocationl(withinl5ldays)
ExemptionsltolLicensurel-lCorrectlAnsl–
- reallestatelattorney
- governmentlofficiallpertaininglpertainingltolcourtlorlreallestatelproceedinglduties
- courtlorderslofficiall(trustylinlbankruptcy,lreallestatelguardian,lexecutorlorladministrator)
"SummaryloflyoulSubmission"l-lCorrectlAnsl–
lObtainedlafterlyoulregisterlforlthelNewlYorklStatelSalespersonlexamlusingleAccessNY.lYoulmustlbr
inglyoul"SummaryloflyourlSubmission"lwithlyoulwhenltakinglthelStatelexam
Misdemeanorl-lCorrectlAnsl-lAlcrimelpunishablelbylupltolalyearlinlprisonland/orlal$1,000lfine
ListinglAgreementl-lCorrectlAnsl-
lcontractlbetweenlPrinciplelandlagent,lauthorizinglthelagentltolperformlserviceslforlthelprincipleli
nvolvinglthellatter'slproperty
PocketlCardl-lCorrectlAnsl-
lissuedlbyltheldepartmentloflstateltoleachllicensee:containslthelphoto,lnamelandlbusinessladdresslofl
licensee,land,linlthelcaseloflalreallestatelsalesperson,lthelnamelandlbusinessladdressloflthelbrokerlwit
hlwhomlhelorlsheliterm-
15slassociatedlandlshalllcertifylthatlthelpersonlwhoselnamelappearslthereonlislallicensedlreallestatel
brokerlorlsalesperson
- Mustlbelcarriedlbylthelagentlatlallltimeslwhenlservinglaslalsalesperson
Escrow
(notlideallbclitlcanlresultlinllegallconsequenceslinlwhichlcaselhasltolbelinlwriting)
https://www.youtube.com/watch?v=-QqtFEkvsBol-lCorrectlAnsl-
lWrittenlagreementlbetweenl2/+lpartieslprovidinglthatlcertainlinstruments/lpropertylislplacedlwith
lthirdlpartylandldeliveredltolpersonluponlthelfulfillmentlorlperformanceloflsomelact/condition.
Simple:lAlSeparatelBanklaccountlthatlprotectslthelintegritylofltheltransactionl(agreement)lthatlanlag
entlcreated
,Ex:lAnlagentlwholcreatedlallegallylbindinglcontractlwithlbothlbuyerl&lsellerlandlhaslalescrowlcom
panylmakelsureleverylstipulationlinlthislReallPropertylAccountabilityldocumentlthatlwaslagreedlu
ponlbylbothlpartieslhaslbeenlmetlbeforelaldeallcanlbelclosed.
Accordingltolthisldocument,lthelbuyer/sellerldon'tlhavelvicariouslliabilitylforlthelactionsloflalbrok
erslagentl?lThislformlinformslthelclientlaboutlduallagencylandldetailslthelriskslandlbenefitslinvolv
edlinltheltransactionl-lCorrectlAnsl-lNYSlDisclosurelForm
NYSlDisclosurelFormlforlBuyerlandlSellerlRegardinglReallEstatelAgencylRelationshiplForml-
lCorrectlAnsl-
lAlwrittenlexplanation,ltolbelsignedlbylalprospectivelbuyerlorlsellerloflreallestate,lexplainingltolthelclie
ntlthelrolelthatlthelbrokerlplayslinltheltransaction
- Firstldocumentltolbelsubmittedltolalllprospectivelclients
- byllawlthislformlneedsltolbelsignedlatlreallmeetingl(solbeforelanylvisits/showingsloflpropertylorlbr
okerage,lorldiscussionlofllistinglprice,lpurchaselpricelaltenantlislableltolafford,lmortgageltenantlnee
dsltoltakelout)
*InlthelcaselwherelclientlrefusesltolsignlthelDisclosurelForm,lthelagentlshouldlexplainlthatlthelformli
slsimplylaldocumentlmeanltolprotectlthelclientl&lexplainslthelclientslrights
* ifltherelislstilllrefusallthenlagentlneedsltoldocumentltime,ldatelandlclientlnamelwhilelcontinuingl
withlthelmeeting/showingloflproperty.lAfterwardslagentlneedsltolfillloutlanlaffidavitlcontaininglhel
samelinformationlandlexactlreasonlforlwhylthelclientlrefusesltolsignltheldisclosurelform.
FirstlMeetingl:lDisclosurelForml-lCorrectlAnsl-
lListinglagentlmeetinglBuyer:lAgentlneedsltolletlbuyerlknowlthatltheirlfiduciarylduty/lundividedlloyalt
ylisltolseller
Buyerlagentlmeetinglseller:lAgentlneedsltolletlsellerlknowlthatltheirlfiduciarylduty/lundividedlloyaltyli
sltolbuyer
AfterlInitiallDisclosurelAgentlchangesltheirlroleslDUElTOl:l-lCorrectlAnsl-
l1.lInitiallDisclosurelwithlBuyer:lagentlrealizesllaterlonlthatlthelbuyerlislinterestedlinlalpropertylt
hatlthelagentslbrokeragelisllistinglthenlitlwilllresultlinlthelBuyerlAgentlbecominglalDuallAgent
2. Buyerlbecomeslalcustomerlandlthelagentl&lbrokeragelonlylrepresentlthelseller
Comminglingl-lCorrectlAnsl-
lTolminglelorlmix,lforlexample,lalclient'slfundslinlthelbroker'slpersonallorlgenerallaccount.
NetlListing
(canlbelillegallsincelitlcanlleadltolFRAUD)l-lCorrectlAnsl-
lAlpricelbelowlwhichlanlownerlwilllnotlselllthelproperty,landlatlwhichlpricelalbrokerlwilllnotlreceivelalc
ommission;lthelbrokerlreceiveslthelexcessloverlandlabovelthelnetllistinglaslthelbroker'slcommission
,Underlalnetllisting,lthelbrokerlcanlofferlthelpropertylforlsalelatlthelhighestlpricelobtainableltolincre
aselthelcommission.lThisltypelofllistinglislillegallinlNYlandlcanlresultlinllicenselloss
Articlel78lProceedingl-lCorrectlAnsl-
lAnlappeallbroughtlforthlbecauseloflalrulinglbylalgovernmentlagency.
allowslanylpersonltolreviewlaldecisionloflaladministrativelagencylbylgoingltolcourtlandlclaimingltha
tlthelagencylactedlinlalarbitrary,lunfairlorlactedlcontraryltolthellaw
Kickbackl-lCorrectlAnsl-
lPaymentlbylalbrokerloflanylpartloflcompensationltolalreallestateltransactionltolanyonelwholislnotllic
ensedlorlwholislnotlexemptlfromlthellicensellawl(canlresultlinllicenselloss)
AdministrativelDisciplinel-lCorrectlAnsl-
lThelDepartmentloflState'slabilityltolenforcellicensellawslthroughlreprimandlandldeniallaslwellla
slthelsuspensionlandlrevocationlofllicenses.
MultiplelListinglServicel(MLS)l-lCorrectlAnsl-
lagreementlbylalgrouploflreallestatelbrokersltolbandltogetherlandlcreatelalMLSlthatlallowsleachloflth
emltollistleachlother'slhouses.lUnderlthislarrangement,lthellistinglbrokerlandlthelsellinglbrokerlsplitlt
helcommissionlforleachlsale.
- MLSlcreateslalDuallAgencylwherelthelbuyerslagentlbecomeslalsublagentloflbothlthelbuyerlandls
ellerl(onlylifltherelislconsentlwriting)
DuallAgencyl-lCorrectlAnsl-lRepresentinglbothlpartiesltolaltransaction
- Bothlthelseller(landlord)landlbuyer(tenant)lmustlgiveltheirlconsentlinlwiringlforlthelcreationloflD
uallAgency
Ex:lAslsoonlaslthelbrokeragelstartslshowinglthelapartmentlitlneedsltolgetlthelinformedlconsentlfromlla
ndlordlthatlthelsaleslpersonnellarelgonnalbothlrentlthelapartmentlonlbehalfloflthellandlordlandlbringl
tenantsltolleaselit
Risk:
- Undividedlloyalty
- FailingltoldiscloselthelDuallAgencylrelationshiplviolateslthelNYlStatelReallPropertyllaw
Benefits:
- Agentslgetslhigherlcommission
- PermitsllistingloflpropertieslvialMLSlprovidinglgreaterlexposureltolpotentiallbuyers
ReallEstatelAppraiserl-lCorrectlAnsl-
lAlpractitionerlwholhaslthelknowledgelandlexpertiselnecessaryltolestimatelthelvalueloflreallp
roperty.
- actslindependentlyloflthelbuyinglandlsellinglpartieslinlaltransactionlinlorderltolarrivelatlthelfairlv
alueloflanlassetlwithoutlbias.
Agentl-lCorrectlAnsl-
lOnelwholundertakesltoltransactlsomelbusinesslorltolmanagelsomelaffairlforlanotherlbylauthoritylof
lthellatter
, Broker'slAgentl-lCorrectlAnsl-
lAlbroker'slagentlislanlagentlthatlcooperateslorlislengagedlbylallistinglagentlorlalbuyer'slagentl(butldoe
slnotlworklforlthelsamelfirmlaslthellistinglagentlorlbuyer'slagent)ltolassistlthellistinglagentlorlbuyer'sla
gentlinllocatinglalpropertyltolselllorlbuy,lrespectively,lforlthellistinglagent'slsellerlorlthelbuyerlagent'sl
buyer.
Sub-agentl-lCorrectlAnsl-lAnlagentloflalpersonlalreadylactinglaslanlagentloflalprincipal
Fiduciaryldutiesl(OLDlCAR)l-lCorrectlAnsl-
lAlpersonlwholonlbehalfloflorlforlthelbenefitloflanotherltransactslbusiness,lhandleslmoneylorlproper
tylnotlthelperson'slown;lsuchlrelationshiplimplieslgreatlconfidencelandltrust
-OBIDIENCE
-LOYALTY
-
DISCLOSURE:l(agentldoesn'tlhaveltoldiscloselschoollzonelunlesslclientlrequireslit,ltrafficlflow,leasel
ofltransportation,lreasonlsellerlislselling)
-CONFIDENTIALITY
-
ACCOUNTABILITY:lagentlmustlnotlmodify/changelfinancialltermslofldeallandlmustlactlinlbestlinter
estlofltheirlclient
-
REASONABLElCARE:lagentlmustlactlcompetentlylandlnotlinlalnegligentlmannerlbclagentlcanlbelhel
dlliablelforltheirlmistakes.
ReasonablelCarel-lCorrectlAnsl-l-
lAgentlwilllwantltolgetlalcopyloflthelPropertylInspectionlReportlaslpartlofltheldueldiligencelpro
cess
- Agentlneedsltolhavelanlunderstandinglofltheirlclientslfinanciallsituationlandltheirlabilityltoltakel
outlalmortgage.
NOTE:lBelawareloflanyllawsuitslorllackloflfundslforlalspecificlbuilding
Ex:
- belwareloflbuyerlqualifications
- Buildingslassessments
- pendinglorlimpendingllitigations
- don'tlplacelmultiplelcontractslonlmultiplelpropertieslatloneltimel(lsellerlagentlcan'tlputloutl5ldiffer
entlcontractslonl1lspecificlproperty)linsteadl(ladviselalllclientslthatltherelarelotherlpendinglofferslt
olseelwhichlclientlwilllraiseltheirloffer)
UndividedlLoyaltyl-lCorrectlAnsl-
l"Onelofltheldutieslanlagentlowesltolthelclient,lundividedlloyaltylmeanslthelagentlputslthelclien
t'slinterestslaheadloflalllothers,lincludinglthelagent'slown.
