NY REAL ESTATE PRACTICE EXAM
Questions and Answ er s
1. 1. To be licensed as a real estate broker, an individual must be at least
how old?
a. 16
b. 18
c. 20
d. 21
ANS c. 20
2. 2. Which of the following individuals is exempt from licensure?
a. attorneys admitted to practice in the New York courts
b. property managers who manage property for more than one individual
or company
c. individuals who only list property for sale
d. auctioneers who only auction commercial real estate
ANS a. attorneys admitted to practice in the New York courts
,3. 3. To save in paperwork, Broker Bright decides to combine her office
operating account with the deposits obtained from contracts of sale. Broker Bright
is guilty of
a. nothing at all
b. illegal commingling of funds
c. an authorized practice of law
d. accepting money without authorization
ANS b. illegal commingling of funds
4. 4. A net listing is one
a. that requires the broker to have a fixed price for the property
b. that is legal in New York
c. that most brokers would prefer
d. in which the seller specifies a certain amount of money to be received upon
sale of the property and all monies above
ANS d. in which the seller specifies a certain amount of money to be received upon sale of the property
and all monies above
5. 5. A broker's agent is hired by the
a. principal
,b. seller
c. customer
d. broker
ANS d. broker
6. 6. Which of the following is TRUE regarding dual agency relationships in
New York?
a. they are permissible with timely disclosure and informed consent
b. they are illegal under all circumstances
c. they are allowed only in commercial transactions
d. they are allowed only in the sale of condominium or cooperative properties
ANS a. they are permissible with timely disclosure and informed consent
7. 7. A listing agreement in which the property is listed with only one broker
who is entitled to a commission if he sells the property but not if the owner
sells the property is called a(n)
a. exclusive-right-to-sell agreement
b. open listing agreement
c. net listing agreement
d. exclusive agency agreement
ANS d. exclusive agency agreement
, 8. 8. The first law to address antitrust violations was the
a. Clayton Antitrust Act
b. Real Estate Settlement Procedures Act
c. Sherman Antitrust Act
d. New York Real Property Law
ANS c. Sherman Antitrust Act
9. 9. Sell-It-Today Brokerage requires that purchasers of its listed property
apply for a mortgage with EZ Money Mortgage
a. perfectly acceptable
b. an example of an illegal tie-in arrangement
c. an example of an illegal group boycott
d. an example of an illegal market allocation agreement
ANS b. an example of an illegal tie-in arrangement
10. 10. An agency relationship created by an oral or written agreement
between principal and agent is a(n)
a. implied agency
Questions and Answ er s
1. 1. To be licensed as a real estate broker, an individual must be at least
how old?
a. 16
b. 18
c. 20
d. 21
ANS c. 20
2. 2. Which of the following individuals is exempt from licensure?
a. attorneys admitted to practice in the New York courts
b. property managers who manage property for more than one individual
or company
c. individuals who only list property for sale
d. auctioneers who only auction commercial real estate
ANS a. attorneys admitted to practice in the New York courts
,3. 3. To save in paperwork, Broker Bright decides to combine her office
operating account with the deposits obtained from contracts of sale. Broker Bright
is guilty of
a. nothing at all
b. illegal commingling of funds
c. an authorized practice of law
d. accepting money without authorization
ANS b. illegal commingling of funds
4. 4. A net listing is one
a. that requires the broker to have a fixed price for the property
b. that is legal in New York
c. that most brokers would prefer
d. in which the seller specifies a certain amount of money to be received upon
sale of the property and all monies above
ANS d. in which the seller specifies a certain amount of money to be received upon sale of the property
and all monies above
5. 5. A broker's agent is hired by the
a. principal
,b. seller
c. customer
d. broker
ANS d. broker
6. 6. Which of the following is TRUE regarding dual agency relationships in
New York?
a. they are permissible with timely disclosure and informed consent
b. they are illegal under all circumstances
c. they are allowed only in commercial transactions
d. they are allowed only in the sale of condominium or cooperative properties
ANS a. they are permissible with timely disclosure and informed consent
7. 7. A listing agreement in which the property is listed with only one broker
who is entitled to a commission if he sells the property but not if the owner
sells the property is called a(n)
a. exclusive-right-to-sell agreement
b. open listing agreement
c. net listing agreement
d. exclusive agency agreement
ANS d. exclusive agency agreement
, 8. 8. The first law to address antitrust violations was the
a. Clayton Antitrust Act
b. Real Estate Settlement Procedures Act
c. Sherman Antitrust Act
d. New York Real Property Law
ANS c. Sherman Antitrust Act
9. 9. Sell-It-Today Brokerage requires that purchasers of its listed property
apply for a mortgage with EZ Money Mortgage
a. perfectly acceptable
b. an example of an illegal tie-in arrangement
c. an example of an illegal group boycott
d. an example of an illegal market allocation agreement
ANS b. an example of an illegal tie-in arrangement
10. 10. An agency relationship created by an oral or written agreement
between principal and agent is a(n)
a. implied agency
