ASREB (Arizona School of Real Estate and Business) |
Knowledge Check Q&A Series: Fully Answered & Instructor-
Reviewed 2025/2026
Define: commingling funds - correct answer illegal mixing money held in trust on behalf
of a client with personal funds
Define: kickbacks - correct answer paying part of the proceeds to a sale to another
party that helped secure the sale but is unlicensed
Define: net listing agreement - correct answer listing agreement which the seller sets a
net amount acceptable for the property and if the selling price exceeds that amount, the
broker is entitled to keep the excess funds (illegal)
If the DOS imposes a fine on one's license, that fine cannot exceed ________ - correct
answer $1000
What does an article 78 proceeding allow? - correct answer it is a law that allows
aggrieved people to action against a govt body or officer
The case duncan & hill realty, Inc v. DOS prohibits: - correct answer the practice of law
by non attorneys
Real estate activity in NY is regulated by whom? - correct answer DOS
Who/what operates under the DOS and set rules and regulations for
salespeople/brokers - correct answer NYS real estate board
Which NY govt official can set rule regarding clients' accounts, records maintenance,
contracts, and more? - correct answer the sec. Of state
Define: broker - correct answer licensed to represent a party in a real estate
transaction for compensation
,Define: real estate sales person - correct answer licensed agent associated with a
broker and may perform most of the acts on his/her behalf
Define: associate broker - correct answer licensed broker working under another
broker
NY provides exemptions to licensing requirement to: (6) - correct answer attorneys
Building supervisor/maintenance workers
Persons acting under court order
Property owners
Public officers
Tenants ass./non-profits
Define: office manager - correct answer licensed associate real estate broker working
under another broker
Define: reciprocity - correct answer when states allow licensees to sell real estate in
their own (Arkansas, Colorado, Conn, Mass, Georgia, miss., Penn., West Virginia,
Oklahoma)
Out-of state licencees are able to pratcice in New York as long as they sign what? -
correct answer an irrevocable consent
Licensees are required to produce _______ on demand - correct answer a pocket card
If a licensees license lapses they have how long to renew it before having to take the
written exam again? - correct answer 2 years
An application for a new license must be submitted how long after revocation - correct
answer one year
,Fiduciary duties include what? (OLD CAR) - correct answer -obedience
-loyalty
-disclosure
-*confidentiality (this lasts forever)
-*accountability (financial reporting of all funds entrusted to them. E.g. No commingling)
-reasonable skill/care/diligence
Define: general agent - correct answer authorized to represent the principle in a
specific range of MATTERS
Define: special agent - correct answer authorized to represent the principle in one
specific MATTER
An agents responsibility to a third party is to disclose _________________ - correct
answer any material fact of which they have or should have knowledge regarding the
property
(active fraud) knowingly making a false statement about a material fact is known as
what? - correct answer intentional misrepresentation
Define: intentional concealment - correct answer (constructive fraud) knowingly failing
to disclose a material fact
The business of bringing buyers and sellers together and assisting in the sale of real
estate is called what? - correct answer a brokerage
What is the most common way of creating an agency? - correct answer agency based
on a written or oral expressed agreement
, Define: listing agreement - correct answer a written agency contract between a seller
and a real estate broker
What type of agency agreement consists of a realtor representing a buyer? - correct
answer buyer agency agreement
When a buyer and seller agree that pther members of MLS will be working for the seller,
this creates what type of agency? - correct answer a subagency
Which factors can terminate an agency relationship? (6) - correct answer -*revocation
of a brokers license
-expiration of terms
-death or incompetence of either party
-mutual agreement
-bankruptcy
-completion of the purpose
This is the name for what occurs when a broker/salesperson represents both parties
(buyer and seller) in in a transaction; written consent required for this to occur - correct
answer dual agency
What is a tenant/buyer giving up when they agree to a dual agency relationship -
correct answer they give up their right to undivided loyalty
Under what circumstances is dual agency legal and permissible in NY - correct answer
when both parties have been informed in a timely manner
Article 12, section 443 of the NYS real estate property law states that: - correct answer
real estate licensees must advise their clients about the nature of their agency
relationship and the rights and obligations it creates
Knowledge Check Q&A Series: Fully Answered & Instructor-
Reviewed 2025/2026
Define: commingling funds - correct answer illegal mixing money held in trust on behalf
of a client with personal funds
Define: kickbacks - correct answer paying part of the proceeds to a sale to another
party that helped secure the sale but is unlicensed
Define: net listing agreement - correct answer listing agreement which the seller sets a
net amount acceptable for the property and if the selling price exceeds that amount, the
broker is entitled to keep the excess funds (illegal)
If the DOS imposes a fine on one's license, that fine cannot exceed ________ - correct
answer $1000
What does an article 78 proceeding allow? - correct answer it is a law that allows
aggrieved people to action against a govt body or officer
The case duncan & hill realty, Inc v. DOS prohibits: - correct answer the practice of law
by non attorneys
Real estate activity in NY is regulated by whom? - correct answer DOS
Who/what operates under the DOS and set rules and regulations for
salespeople/brokers - correct answer NYS real estate board
Which NY govt official can set rule regarding clients' accounts, records maintenance,
contracts, and more? - correct answer the sec. Of state
Define: broker - correct answer licensed to represent a party in a real estate
transaction for compensation
,Define: real estate sales person - correct answer licensed agent associated with a
broker and may perform most of the acts on his/her behalf
Define: associate broker - correct answer licensed broker working under another
broker
NY provides exemptions to licensing requirement to: (6) - correct answer attorneys
Building supervisor/maintenance workers
Persons acting under court order
Property owners
Public officers
Tenants ass./non-profits
Define: office manager - correct answer licensed associate real estate broker working
under another broker
Define: reciprocity - correct answer when states allow licensees to sell real estate in
their own (Arkansas, Colorado, Conn, Mass, Georgia, miss., Penn., West Virginia,
Oklahoma)
Out-of state licencees are able to pratcice in New York as long as they sign what? -
correct answer an irrevocable consent
Licensees are required to produce _______ on demand - correct answer a pocket card
If a licensees license lapses they have how long to renew it before having to take the
written exam again? - correct answer 2 years
An application for a new license must be submitted how long after revocation - correct
answer one year
,Fiduciary duties include what? (OLD CAR) - correct answer -obedience
-loyalty
-disclosure
-*confidentiality (this lasts forever)
-*accountability (financial reporting of all funds entrusted to them. E.g. No commingling)
-reasonable skill/care/diligence
Define: general agent - correct answer authorized to represent the principle in a
specific range of MATTERS
Define: special agent - correct answer authorized to represent the principle in one
specific MATTER
An agents responsibility to a third party is to disclose _________________ - correct
answer any material fact of which they have or should have knowledge regarding the
property
(active fraud) knowingly making a false statement about a material fact is known as
what? - correct answer intentional misrepresentation
Define: intentional concealment - correct answer (constructive fraud) knowingly failing
to disclose a material fact
The business of bringing buyers and sellers together and assisting in the sale of real
estate is called what? - correct answer a brokerage
What is the most common way of creating an agency? - correct answer agency based
on a written or oral expressed agreement
, Define: listing agreement - correct answer a written agency contract between a seller
and a real estate broker
What type of agency agreement consists of a realtor representing a buyer? - correct
answer buyer agency agreement
When a buyer and seller agree that pther members of MLS will be working for the seller,
this creates what type of agency? - correct answer a subagency
Which factors can terminate an agency relationship? (6) - correct answer -*revocation
of a brokers license
-expiration of terms
-death or incompetence of either party
-mutual agreement
-bankruptcy
-completion of the purpose
This is the name for what occurs when a broker/salesperson represents both parties
(buyer and seller) in in a transaction; written consent required for this to occur - correct
answer dual agency
What is a tenant/buyer giving up when they agree to a dual agency relationship -
correct answer they give up their right to undivided loyalty
Under what circumstances is dual agency legal and permissible in NY - correct answer
when both parties have been informed in a timely manner
Article 12, section 443 of the NYS real estate property law states that: - correct answer
real estate licensees must advise their clients about the nature of their agency
relationship and the rights and obligations it creates
