New York Real Estate Exam Flashcards

Question 1

How does New York treat property acquired during marriage for purposes of property division?

Accepted Answer

New York is NOT a community property state; it follows equitable distribution, dividing marital property fairly (not necessarily 50/50).

Question 2

Is dual agency with designated sales agents allowed in New York?

Accepted Answer

Yes — with informed written consent, the broker may designate a separate sales agent to represent each side while remaining a dual agent.

Question 3

What is required before a New York salesperson can take the state licensing exam?

Accepted Answer

Completion of the 77-hour qualifying education course (passing the school's course exam) before sitting for the DOS state exam.

Question 4

What is 'untrustworthiness or incompetency' under New York's license law?

Accepted Answer

A statutory ground under RPL Article 12-A allowing the DOS to discipline a licensee who demonstrates untrustworthiness or incompetency in acting as a broker or salesperson.

Question 5

What is 'commingling' and why is it prohibited for New York brokers?

Accepted Answer

Commingling is mixing client/escrow funds with the broker's personal or business funds. It is prohibited because client money must be safeguarded in a separate trust account.

Question 6

What New York disclosure document addresses the physical condition of a residential property?

Accepted Answer

The Property Condition Disclosure Statement (PCDS).

Question 7

How does New York permit dual agency to operate while reducing the conflict of interest?

Accepted Answer

Through dual agency with designated sales agents: the broker assigns one agent to the buyer and another to the seller, each advocating for their respective client, with informed written consent.

Question 8

What disclosure must a New York seller of residential property generally deliver to a buyer about the condition of the property?

Accepted Answer

The Property Condition Disclosure Statement (PCDS), covering the seller's knowledge of the property's condition.

Question 9

What is the standard term of a New York real estate salesperson or broker license?

Accepted Answer

Two years.

Question 10

What is required of New York real estate advertising regarding the broker?

Accepted Answer

Advertising must include the licensed broker's name and indicate the broker's business; a salesperson may not advertise property under only their own name without the broker.

Question 11

What disciplinary sanctions can the New York Department of State impose on a licensee?

Accepted Answer

Reprimand, fines, and suspension or revocation of the license after a hearing.

Question 12

Is New York a community property state?

Accepted Answer

No — New York is an equitable distribution state, not a community property state.

Question 13

What mandatory continuing education topics are required for New York license renewal?

Accepted Answer

Required CE includes fair housing/anti-discrimination, ethical business practices, agency (with at least 1 hour for renewing agents), legal matters, recent legal updates, and implicit bias training.

Question 14

What are the core fiduciary duties a New York agent owes to a client?

Accepted Answer

Often remembered as OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care/diligence.

Question 15

What happens to a New York licensee who continues practicing after the license expires?

Accepted Answer

Practicing on an expired license is unlicensed activity, which is prohibited and subject to DOS penalties; the licensee should renew or cease activity until reinstated.

Question 16

What New York state agency issues and regulates real estate licenses?

Accepted Answer

The New York Department of State (DOS), through its Division of Licensing Services.

Question 17

Who must authorize a New York licensee to advertise a property for sale?

Accepted Answer

The property owner/seller must authorize the listing; advertising property without the owner's consent is prohibited.

Question 18

If a New York broker is uncertain who is entitled to disputed escrow funds, what is the proper action?

Accepted Answer

Hold the funds in escrow and not release them until the parties agree in writing or a court directs disbursement; the broker must not unilaterally decide ownership.

Question 19

What statute governs real estate licensing in New York?

Accepted Answer

Real Property Law (RPL) Article 12-A.

Question 20

Under whom must a New York real estate salesperson work?

Accepted Answer

A salesperson must be associated with and work under the supervision of a licensed real estate broker; they cannot operate independently.

Question 21

Which statute governs the licensing and conduct of real estate brokers and salespersons in New York?

Accepted Answer

Article 12-A of the New York Real Property Law (RPL).

Question 22

To whom may a New York salesperson be paid commission?

Accepted Answer

Only by their sponsoring broker; a salesperson may not accept compensation directly from a buyer, seller, or another broker.

Question 23

Who regulates real estate licensees in New York?

Accepted Answer

The New York Department of State (DOS), through its Division of Licensing Services, licenses and oversees salespersons and brokers.

Question 24

Which New York body conducts hearings on alleged license-law violations?

Accepted Answer

The Department of State's Office of Administrative Hearings, where an administrative law judge hears the matter on the DOS's behalf.

Question 25

Which agency regulates real estate licensees in New York?

Accepted Answer

The New York Department of State (DOS), through its Division of Licensing Services.

Question 26

In New York, when must an agent first provide the agency disclosure form to a buyer or seller?

Accepted Answer

At the first substantive contact, before working with the consumer in a residential 1-to-4 unit transaction. The consumer signs to acknowledge receipt.

Question 27

When must a New York licensee provide the agency disclosure form to a buyer or seller?

Accepted Answer

At the first substantive contact with the consumer.

Question 28

How many hours of qualifying education are required to become a NY salesperson?

Accepted Answer

77 hours of approved pre-license (qualifying) education.

Question 29

Under whose supervision must a New York real estate salesperson work?

Accepted Answer

Under the supervision of a licensed New York real estate broker; a salesperson cannot operate independently.

Question 30

How must a New York broker handle client money such as deposits and earnest money?

Accepted Answer

It must be kept in a separate escrow/trust account, never mixed with the broker's own funds (no commingling) and never used for personal purposes (no conversion).

Question 31

What seller disclosure is required for residential 1-4 unit homes in NY?

Accepted Answer

The Property Condition Disclosure Statement (PCDS).

Question 32

Which New York agency issues and regulates real estate licenses?

Accepted Answer

The New York Department of State (DOS), through its Division of Licensing Services.

Question 33

Who may be exempt from New York's continuing education requirement at renewal?

Accepted Answer

A licensed broker with at least 15 consecutive years of New York licensure who is an active, licensed broker is generally exempt from CE.

Question 34

Does New York maintain a real estate recovery fund to reimburse defrauded consumers?

Accepted Answer

No. New York does not operate a real estate recovery or guaranty fund; injured consumers must pursue remedies through the courts.

Question 35

What is a 'broker's agent' in New York agency relationships?

Accepted Answer

An agent engaged by a listing or buyer's agent (with the principal's consent) to help represent the client, owing duties to the principal through the cooperating arrangement.

Question 36

When agency status changes during a New York transaction, what must the agent do?

Accepted Answer

Disclose the change and obtain informed consent, for example before acting as a dual agent the agent must get the written informed consent of all clients involved.

Question 37

How many hours of qualifying education are required for a New York salesperson license?

Accepted Answer

77 hours of approved qualifying real estate education.

Question 38

How long is a NY real estate salesperson license valid?

Accepted Answer

2 years.

Question 39

How does New York classify property acquired during marriage for ownership purposes?

Accepted Answer

New York is NOT a community property state; it follows common-law / equitable distribution principles.

Question 40

Which New York statute governs real estate broker and salesperson licensing?

Accepted Answer

Article 12-A of the New York Real Property Law (RPL).

Question 41

What is a 'buyer's agent' under New York agency law?

Accepted Answer

An agent who represents the buyer and owes the buyer fiduciary duties, working to negotiate the best price and terms for the buyer.

Question 42

How are New York real estate license renewals submitted?

Accepted Answer

Online through the Department of State's eAccessNY licensing system, with proof of completed continuing education and payment of the renewal fee.

Question 43

What is the minimum age to obtain a New York real estate salesperson license?

Accepted Answer

At least 18 years of age.

Question 44

What is the term (validity period) of a New York real estate license?

Accepted Answer

Two years from the date of issuance.

Question 45

What form of agency does New York permit when one firm represents both buyer and seller, with separate agents for each?

Accepted Answer

Dual agency with designated sales agents, allowed only with the informed written consent of both parties.

Question 46

When must a NY agent provide the agency disclosure form?

Accepted Answer

At the first substantive contact with a buyer or seller.

Question 47

What is the minimum qualifying education required to obtain a New York real estate salesperson license?

Accepted Answer

Completion of a 77-hour DOS-approved salesperson qualifying course.

Question 48

What is a 'net listing' and how is it treated in New York?

Accepted Answer

A listing where the broker keeps any amount above a set net price to the seller. Net listings are discouraged/prohibited as unethical because they invite conflicts of interest.

Question 49

How much continuing education must a New York licensee complete each two-year renewal cycle?

Accepted Answer

22.5 hours of approved continuing education.

Question 50

What recourse does a party have if dissatisfied with a New York DOS disciplinary decision?

Accepted Answer

They may seek judicial review of the agency's determination by bringing an Article 78 proceeding in the New York courts.

New York Real Estate Exam Flashcards

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