Real Estate U Final Exam: Questions with Complete Solutio
n n n n n n n n
ns (2023) n
Articlen12-AnofnthenNYSnRealnPropertynLa
- CorrectnAnsn-n-nPrimarynpersonnisnton"protectnthenpublic"-minimizing nfraud
- Requiresnansalespersonntonbenatnleastn18nyearsnofnage
- Requiresnanbroker ntonbenatnleastn20nyearsnofnage
Maintaining nanLicensen-nCorrectnAnsn-
n Placen ofn workn (brokerage) n Pocketn card
GivennoticentonNYnDepartmentnofnStatenofnchangeninnname,nstatus,nlocationn(withinn5ndays)
ExemptionsntonLicensuren-nCorrectnAnsn–
- realnestatenattorney
- governmentnofficial npertaining npertaining ntoncourtnornrealnestatenproceeding nduties
- courtnordersnofficial n(trustyninnbankruptcy,nrealnestatenguardian,nexecutor nornadministrator)
"SummarynofnyounSubmission"n-nCorrectnAnsn–
n Obtainedn after n youn register nfor nthen Newn Yorkn Staten Salespersonn exam n using neAccessNY.n Youn mus
tnbring nyoun"SummarynofnyournSubmission"nwithnyounwhenntaking nthenStatenexam
Misdemeanor n-nCorrectnAnsn-nAncrimenpunishablenbynupntonanyear ninnprisonnand/or nan$1,000nfine
Listing nAgreementn-nCorrectnAnsn-
n contractn betweenn Principlen andn agent,n authorizing n then agentn ton perform n servicesn for nthen princip
leninvolving nthenlatter'snproperty
PocketnCardn-nCorrectnAnsn-
n issuedn byn then departmentn ofn staten ton eachn licensee:containsn then photo,n namen andn businessn addr
essnofnlicensee,nand,ninnthencasenofnanrealnestatensalesperson,nthennamenandnbusinessnaddressnofnt
henbroker nwithnwhomnhenornsheniterm-
15snassociatednandnshallncertifynthatnthenpersonnwhosennamenappearsnthereonnisnanlicensednrealn
estatenbroker nornsalesperson
- Mustnbencarriednbynthenagentnatnallntimesnwhennserving nasnansalesperson
Escrow
(notnidealnbcnitncannresultninnlegalnconsequencesninnwhichncasenhasntonbeninnwriting)
https://www.youtube.com/watch?v=-QqtFEkvsBon-nCorrectnAnsn-
n Writtenn agreementn betweenn 2/+n partiesn providing n thatn certainn instruments/n propertyn isn placedn
withnthirdnpartynandndeliveredntonpersonnuponnthenfulfillmentnornperformancenofnsomenact/condi
tion.
Simple:nAnSeparatenBanknaccountnthatnprotectsnthenintegritynofnthentransactionn(agreement)nthatn
annagentncreated
,Ex:nAnnagentnwhoncreatednanlegallynbinding ncontractnwithnbothnbuyer n&nseller nandnhasnanescrowncomp
anynmakensureneverynstipulationninnthisnRealnPropertynAccountabilityndocumentnthatnwasnagreednupo
nnbynbothnpartiesnhasnbeennmetnbeforenandealncannbenclosed.
According ntonthisndocument,nthenbuyer/seller ndon'tnhavenvicariousnliabilitynfor nthenactionsnofnanbr
okersnagentn?nThisnformninformsnthenclientnaboutndualnagencynandndetailsnthenrisksnandnbenefitsn
involvedninnthentransactionn-nCorrectnAnsn-nNYSnDisclosurenForm
NYSnDisclosurenFormnfornBuyer nandnSeller nRegarding nRealnEstatenAgencynRelationshipnFormn-
n Correctn Ansn -
n An writtenn explanation,n ton ben signedn byn a n prospectiven buyer n or n seller nofn real nestate,n explaining n ton
thenclientnthenrolenthatnthenbroker nplaysninnthentransaction
- Firstndocumentntonbensubmittedntonallnprospectivenclients
- bynlawnthisnformnneedsntonbensignednatnrealnmeeting n(sonbeforenanynvisits/showingsnofnpropertyn
ornbrokerage,norndiscussionnofnlisting nprice,npurchasenpricenantenantnisnablentonafford,nmortgagent
enantnneedsntontakenout)
*InnthencasenwherenclientnrefusesntonsignnthenDisclosurenForm,nthenagentnshouldnexplainnthatnthenf
ormnisnsimplynandocumentnmeanntonprotectnthenclientn&nexplainsnthenclientsnrights
*nifntherenisnstillnrefusalnthennagentnneedsntondocumentntime,ndatenandnclientnnamenwhilen
continuing nwithnthenmeeting/showing nofnproperty.nAfterwardsnagentnneedsntonfillnoutnan
affidavitncontaining nhensameninformationnandnexactnreasonnfornwhynthenclientnrefusesntonsignnthendiscl
osurenform.
FirstnMeeting n:nDisclosurenFormn-nCorrectnAnsn-
n Listing n agentn meeting n Buyer:n Agentn needsn ton letn buyer n known thatn their n fiduciaryn duty/n undivided
n loyaltyn isn ton seller
Buyer nagentnmeeting nseller:nAgentnneedsntonletnseller nknownthatntheirnfiduciarynduty/nundividednloyalt
ynisntonbuyer
After nInitialnDisclosurenAgentnchangesntheirnrolesnDUEnTOn:n-nCorrectnAnsn-
n 1.n Initialn Disclosuren withn Buyer:n agentn realizesn later n onn thatn then buyer n isn interestedn inn an prop
ertynthatnthenagentsnbrokeragenisnlistingnthennitnwillnresultninnthenBuyernAgentnbecoming nanDu
alnAgent
2.nBuyer nbecomesnancustomer nandnthenagentn&nbrokeragenonlynrepresentnthenseller
Commingling n-nCorrectnAnsn-
n Ton minglen or n mix,n for n example,n a n client'sn fundsn inn then broker'sn personal n or n general n account.
NetnListing
(cannbenillegal nsincenitncannleadntonFRAUD)n-nCorrectnAnsn-
n An pricen belown whichn ann owner n will n notn sell n then property,n andn atn whichn pricena nbroker n will nnotn rec
eivenancommission;nthenbroker nreceivesnthenexcessnovernandnaboventhennetnlisting nasnthenbroker'sn
commission
,Undernannetnlisting,nthenbroker ncannoffer nthenpropertynfornsalenatnthenhighestnpricenobtainablenton
increasenthencommission.nThisntypenofnlisting nisnillegalninnNYnandncannresultninnlicensenloss
Articlen78nProceeding n-nCorrectnAnsn-
n Ann appeal n broughtn forthn becausen ofn a n ruling n byn a n governmentn agency.
allowsnanynpersonntonreviewnandecisionnofnanadministrativenagencynbyngoing ntoncourtnandnclaimin
gnthatnthenagencynactedninnanarbitrary,nunfair nornactedncontraryntonthenlaw
Kickbackn-nCorrectnAnsn-
n Paymentn byn a n broker n ofn anyn partn ofn compensationn ton a n real n estaten transactionn ton anyonen whon isn
notnlicensednornwhonisnnotnexemptnfromnthenlicensenlawn(cannresultninnlicensenloss)
AdministrativenDisciplinen-nCorrectnAnsn-
n Then Departmentn ofn State'sn abilityn ton enforcen licensen lawsn throughn reprimandn andn denial n asn
wellnasnthensuspensionnandnrevocationnofnlicenses.
MultiplenListing nServicen(MLS)n-nCorrectnAnsn-
n agreementn byn a n groupn ofn realn estaten brokersn ton bandn together n andn createn anMLSnthatn allowsn eac
hnofnthemntonlistneachnother'snhouses.nUnder nthisnarrangement,nthenlisting nbroker nandnthenselling n
broker nsplitnthencommissionnforneachnsale.
- MLSncreatesnanDualnAgencynwherenthenbuyersnagentnbecomesnansubnagentnofnbothnthenbuyern
andnseller n(onlynifntherenisnconsentnwriting)
DualnAgencyn-nCorrectnAnsn-nRepresenting nbothnpartiesntonantransaction
- Bothnthenseller(landlord)nandnbuyer(tenant)nmustngiventheir nconsentninnwiring nfornthencreationn
ofnDualnAgency
Ex:nAsnsoonnasnthenbrokeragenstartsnshowing nthenapartmentnitnneedsntongetntheninformednconsentn
fromnlandlordnthatnthensalesnpersonnelnarengonnanbothnrentnthenapartmentnonnbehalfnofnthenlandl
ordnandnbring ntenantsntonleasenit
Risk:
- Undividednloyalty
- Failing ntondisclosenthenDualnAgencynrelationshipnviolatesnthenNYnStatenRealnPropertynlaw
Benefits:
- Agentsngetsnhigher ncommission
- Permitsnlisting nofnpropertiesnvianMLSnproviding ngreater nexposurentonpotentialnbuyers
RealnEstatenAppraiser n-nCorrectnAnsn-
n An practitioner n whon hasn then knowledgen andn expertisen necessaryn ton estimaten then valuen ofn real npro
perty.
- actsnindependentlynofnthenbuying nandnselling npartiesninnantransactionninnorder ntonarrivenatnthen
fairnvaluenofnannassetnwithoutnbias.
Agentn-nCorrectnAnsn-
n Onen whon undertakesn ton transactn somen businessn or n ton managen somen affair n for n another n byn author
itynofnthenlatter
, Broker'snAgentn-nCorrectnAnsn-
n An broker'sn agentn isn ann agentn thatn cooperatesn or n isnengagedn byn a nlisting nagentn or n a n buyer'sn agentn (
butndoesnnotnworknfor nthensamenfirmnasnthenlisting nagentnornbuyer'snagent)ntonassistnthenlisting nag
entnornbuyer'snagentninnlocating nanpropertyntonsellnornbuy,nrespectively,nfornthenlisting nagent'snselle
rnornthenbuyer nagent'snbuyer.
Sub-agentn-nCorrectnAnsn-nAnnagentnofnanpersonnalreadynacting nasnannagentnofnanprincipal
Fiduciaryndutiesn(OLDnCAR)n-nCorrectnAnsn-
n An personn whon onn behalfn ofn or n for n then benefitn ofn another n transactsn business,n handlesn moneyn or n p
ropertynnotnthenperson'snown;nsuchnrelationshipnimpliesngreatnconfidencenandntrust
-OBIDIENCE
-LOYALTY
-
DISCLOSURE:n(agentndoesn'tnhaventondisclosenschoolnzonenunlessnclientnrequiresnit,ntrafficnflow,nea
senofntransportation,nreasonnseller nisnselling)
-CONFIDENTIALITY
-
ACCOUNTABILITY:nagentnmustnnotnmodify/changenfinancial ntermsnofndealnandnmustnactninnbestnintere
stnofntheirnclient
-
REASONABLEnCARE:nagentnmustnactncompetentlynandnnotninnannegligentnmanner nbcnagentncannbe
n heldn liablen for n their n mistakes.
ReasonablenCaren-nCorrectnAnsn-n-
n Agentn will n wantn ton getn a n copyn ofn then Propertyn Inspectionn Reportn asn partn ofn then duen diligencen pr
ocess
- Agentnneedsntonhavenannunderstanding nofntheir nclientsnfinancial nsituationnandntheirnabilitynton
takenoutnanmortgage.
NOTE:nBenawarenofnanynlawsuitsnornlacknofnfundsnfornanspecificnbuilding
Ex:
- benwarenofnbuyer nqualifications
- Buildingsnassessments
- pending nornimpending nlitigations
- don'tnplacenmultiplencontractsnonnmultiplenpropertiesnatnonentimen(nsellernagentncan'tnputnoutn5n
differentncontractsnonn1nspecificnproperty)ninsteadn(nadvisenallnclientsnthatntherenarenother npendi
ngnoffersntonseenwhichnclientnwillnraisentheir noffer)
UndividednLoyaltyn-nCorrectnAnsn-
n "Onen ofn then dutiesn ann agentn owesn ton then client,n undividedn loyaltyn meansn then agentn putsn the
n client'sn interestsn aheadn ofn all n others,n including n then agent'sn own.
n n n n n n n n
ns (2023) n
Articlen12-AnofnthenNYSnRealnPropertynLa
- CorrectnAnsn-n-nPrimarynpersonnisnton"protectnthenpublic"-minimizing nfraud
- Requiresnansalespersonntonbenatnleastn18nyearsnofnage
- Requiresnanbroker ntonbenatnleastn20nyearsnofnage
Maintaining nanLicensen-nCorrectnAnsn-
n Placen ofn workn (brokerage) n Pocketn card
GivennoticentonNYnDepartmentnofnStatenofnchangeninnname,nstatus,nlocationn(withinn5ndays)
ExemptionsntonLicensuren-nCorrectnAnsn–
- realnestatenattorney
- governmentnofficial npertaining npertaining ntoncourtnornrealnestatenproceeding nduties
- courtnordersnofficial n(trustyninnbankruptcy,nrealnestatenguardian,nexecutor nornadministrator)
"SummarynofnyounSubmission"n-nCorrectnAnsn–
n Obtainedn after n youn register nfor nthen Newn Yorkn Staten Salespersonn exam n using neAccessNY.n Youn mus
tnbring nyoun"SummarynofnyournSubmission"nwithnyounwhenntaking nthenStatenexam
Misdemeanor n-nCorrectnAnsn-nAncrimenpunishablenbynupntonanyear ninnprisonnand/or nan$1,000nfine
Listing nAgreementn-nCorrectnAnsn-
n contractn betweenn Principlen andn agent,n authorizing n then agentn ton perform n servicesn for nthen princip
leninvolving nthenlatter'snproperty
PocketnCardn-nCorrectnAnsn-
n issuedn byn then departmentn ofn staten ton eachn licensee:containsn then photo,n namen andn businessn addr
essnofnlicensee,nand,ninnthencasenofnanrealnestatensalesperson,nthennamenandnbusinessnaddressnofnt
henbroker nwithnwhomnhenornsheniterm-
15snassociatednandnshallncertifynthatnthenpersonnwhosennamenappearsnthereonnisnanlicensednrealn
estatenbroker nornsalesperson
- Mustnbencarriednbynthenagentnatnallntimesnwhennserving nasnansalesperson
Escrow
(notnidealnbcnitncannresultninnlegalnconsequencesninnwhichncasenhasntonbeninnwriting)
https://www.youtube.com/watch?v=-QqtFEkvsBon-nCorrectnAnsn-
n Writtenn agreementn betweenn 2/+n partiesn providing n thatn certainn instruments/n propertyn isn placedn
withnthirdnpartynandndeliveredntonpersonnuponnthenfulfillmentnornperformancenofnsomenact/condi
tion.
Simple:nAnSeparatenBanknaccountnthatnprotectsnthenintegritynofnthentransactionn(agreement)nthatn
annagentncreated
,Ex:nAnnagentnwhoncreatednanlegallynbinding ncontractnwithnbothnbuyer n&nseller nandnhasnanescrowncomp
anynmakensureneverynstipulationninnthisnRealnPropertynAccountabilityndocumentnthatnwasnagreednupo
nnbynbothnpartiesnhasnbeennmetnbeforenandealncannbenclosed.
According ntonthisndocument,nthenbuyer/seller ndon'tnhavenvicariousnliabilitynfor nthenactionsnofnanbr
okersnagentn?nThisnformninformsnthenclientnaboutndualnagencynandndetailsnthenrisksnandnbenefitsn
involvedninnthentransactionn-nCorrectnAnsn-nNYSnDisclosurenForm
NYSnDisclosurenFormnfornBuyer nandnSeller nRegarding nRealnEstatenAgencynRelationshipnFormn-
n Correctn Ansn -
n An writtenn explanation,n ton ben signedn byn a n prospectiven buyer n or n seller nofn real nestate,n explaining n ton
thenclientnthenrolenthatnthenbroker nplaysninnthentransaction
- Firstndocumentntonbensubmittedntonallnprospectivenclients
- bynlawnthisnformnneedsntonbensignednatnrealnmeeting n(sonbeforenanynvisits/showingsnofnpropertyn
ornbrokerage,norndiscussionnofnlisting nprice,npurchasenpricenantenantnisnablentonafford,nmortgagent
enantnneedsntontakenout)
*InnthencasenwherenclientnrefusesntonsignnthenDisclosurenForm,nthenagentnshouldnexplainnthatnthenf
ormnisnsimplynandocumentnmeanntonprotectnthenclientn&nexplainsnthenclientsnrights
*nifntherenisnstillnrefusalnthennagentnneedsntondocumentntime,ndatenandnclientnnamenwhilen
continuing nwithnthenmeeting/showing nofnproperty.nAfterwardsnagentnneedsntonfillnoutnan
affidavitncontaining nhensameninformationnandnexactnreasonnfornwhynthenclientnrefusesntonsignnthendiscl
osurenform.
FirstnMeeting n:nDisclosurenFormn-nCorrectnAnsn-
n Listing n agentn meeting n Buyer:n Agentn needsn ton letn buyer n known thatn their n fiduciaryn duty/n undivided
n loyaltyn isn ton seller
Buyer nagentnmeeting nseller:nAgentnneedsntonletnseller nknownthatntheirnfiduciarynduty/nundividednloyalt
ynisntonbuyer
After nInitialnDisclosurenAgentnchangesntheirnrolesnDUEnTOn:n-nCorrectnAnsn-
n 1.n Initialn Disclosuren withn Buyer:n agentn realizesn later n onn thatn then buyer n isn interestedn inn an prop
ertynthatnthenagentsnbrokeragenisnlistingnthennitnwillnresultninnthenBuyernAgentnbecoming nanDu
alnAgent
2.nBuyer nbecomesnancustomer nandnthenagentn&nbrokeragenonlynrepresentnthenseller
Commingling n-nCorrectnAnsn-
n Ton minglen or n mix,n for n example,n a n client'sn fundsn inn then broker'sn personal n or n general n account.
NetnListing
(cannbenillegal nsincenitncannleadntonFRAUD)n-nCorrectnAnsn-
n An pricen belown whichn ann owner n will n notn sell n then property,n andn atn whichn pricena nbroker n will nnotn rec
eivenancommission;nthenbroker nreceivesnthenexcessnovernandnaboventhennetnlisting nasnthenbroker'sn
commission
,Undernannetnlisting,nthenbroker ncannoffer nthenpropertynfornsalenatnthenhighestnpricenobtainablenton
increasenthencommission.nThisntypenofnlisting nisnillegalninnNYnandncannresultninnlicensenloss
Articlen78nProceeding n-nCorrectnAnsn-
n Ann appeal n broughtn forthn becausen ofn a n ruling n byn a n governmentn agency.
allowsnanynpersonntonreviewnandecisionnofnanadministrativenagencynbyngoing ntoncourtnandnclaimin
gnthatnthenagencynactedninnanarbitrary,nunfair nornactedncontraryntonthenlaw
Kickbackn-nCorrectnAnsn-
n Paymentn byn a n broker n ofn anyn partn ofn compensationn ton a n real n estaten transactionn ton anyonen whon isn
notnlicensednornwhonisnnotnexemptnfromnthenlicensenlawn(cannresultninnlicensenloss)
AdministrativenDisciplinen-nCorrectnAnsn-
n Then Departmentn ofn State'sn abilityn ton enforcen licensen lawsn throughn reprimandn andn denial n asn
wellnasnthensuspensionnandnrevocationnofnlicenses.
MultiplenListing nServicen(MLS)n-nCorrectnAnsn-
n agreementn byn a n groupn ofn realn estaten brokersn ton bandn together n andn createn anMLSnthatn allowsn eac
hnofnthemntonlistneachnother'snhouses.nUnder nthisnarrangement,nthenlisting nbroker nandnthenselling n
broker nsplitnthencommissionnforneachnsale.
- MLSncreatesnanDualnAgencynwherenthenbuyersnagentnbecomesnansubnagentnofnbothnthenbuyern
andnseller n(onlynifntherenisnconsentnwriting)
DualnAgencyn-nCorrectnAnsn-nRepresenting nbothnpartiesntonantransaction
- Bothnthenseller(landlord)nandnbuyer(tenant)nmustngiventheir nconsentninnwiring nfornthencreationn
ofnDualnAgency
Ex:nAsnsoonnasnthenbrokeragenstartsnshowing nthenapartmentnitnneedsntongetntheninformednconsentn
fromnlandlordnthatnthensalesnpersonnelnarengonnanbothnrentnthenapartmentnonnbehalfnofnthenlandl
ordnandnbring ntenantsntonleasenit
Risk:
- Undividednloyalty
- Failing ntondisclosenthenDualnAgencynrelationshipnviolatesnthenNYnStatenRealnPropertynlaw
Benefits:
- Agentsngetsnhigher ncommission
- Permitsnlisting nofnpropertiesnvianMLSnproviding ngreater nexposurentonpotentialnbuyers
RealnEstatenAppraiser n-nCorrectnAnsn-
n An practitioner n whon hasn then knowledgen andn expertisen necessaryn ton estimaten then valuen ofn real npro
perty.
- actsnindependentlynofnthenbuying nandnselling npartiesninnantransactionninnorder ntonarrivenatnthen
fairnvaluenofnannassetnwithoutnbias.
Agentn-nCorrectnAnsn-
n Onen whon undertakesn ton transactn somen businessn or n ton managen somen affair n for n another n byn author
itynofnthenlatter
, Broker'snAgentn-nCorrectnAnsn-
n An broker'sn agentn isn ann agentn thatn cooperatesn or n isnengagedn byn a nlisting nagentn or n a n buyer'sn agentn (
butndoesnnotnworknfor nthensamenfirmnasnthenlisting nagentnornbuyer'snagent)ntonassistnthenlisting nag
entnornbuyer'snagentninnlocating nanpropertyntonsellnornbuy,nrespectively,nfornthenlisting nagent'snselle
rnornthenbuyer nagent'snbuyer.
Sub-agentn-nCorrectnAnsn-nAnnagentnofnanpersonnalreadynacting nasnannagentnofnanprincipal
Fiduciaryndutiesn(OLDnCAR)n-nCorrectnAnsn-
n An personn whon onn behalfn ofn or n for n then benefitn ofn another n transactsn business,n handlesn moneyn or n p
ropertynnotnthenperson'snown;nsuchnrelationshipnimpliesngreatnconfidencenandntrust
-OBIDIENCE
-LOYALTY
-
DISCLOSURE:n(agentndoesn'tnhaventondisclosenschoolnzonenunlessnclientnrequiresnit,ntrafficnflow,nea
senofntransportation,nreasonnseller nisnselling)
-CONFIDENTIALITY
-
ACCOUNTABILITY:nagentnmustnnotnmodify/changenfinancial ntermsnofndealnandnmustnactninnbestnintere
stnofntheirnclient
-
REASONABLEnCARE:nagentnmustnactncompetentlynandnnotninnannegligentnmanner nbcnagentncannbe
n heldn liablen for n their n mistakes.
ReasonablenCaren-nCorrectnAnsn-n-
n Agentn will n wantn ton getn a n copyn ofn then Propertyn Inspectionn Reportn asn partn ofn then duen diligencen pr
ocess
- Agentnneedsntonhavenannunderstanding nofntheir nclientsnfinancial nsituationnandntheirnabilitynton
takenoutnanmortgage.
NOTE:nBenawarenofnanynlawsuitsnornlacknofnfundsnfornanspecificnbuilding
Ex:
- benwarenofnbuyer nqualifications
- Buildingsnassessments
- pending nornimpending nlitigations
- don'tnplacenmultiplencontractsnonnmultiplenpropertiesnatnonentimen(nsellernagentncan'tnputnoutn5n
differentncontractsnonn1nspecificnproperty)ninsteadn(nadvisenallnclientsnthatntherenarenother npendi
ngnoffersntonseenwhichnclientnwillnraisentheir noffer)
UndividednLoyaltyn-nCorrectnAnsn-
n "Onen ofn then dutiesn ann agentn owesn ton then client,n undividedn loyaltyn meansn then agentn putsn the
n client'sn interestsn aheadn ofn all n others,n including n then agent'sn own.
