15 free questions from the Cinna RE New York real estate exam bank (151 in the app). Tap an answer to check it. The rationale opens right away.
In New York, a broker representing both buyer and seller may appoint different agents from the firm to each party. This is known as:
Answer: B. Dual agency with designated sales agents
New York permits 'dual agency with designated sales agents,' in which the broker, with informed consent, assigns one agent to represent the buyer and another to represent the seller.
A broker deposits a client's earnest money into the broker's personal operating account and uses part of it to pay office rent. This conduct is known as:
Answer: A. Commingling and conversion, which are prohibited
Mixing client funds with the broker's own funds is commingling, and spending those funds is conversion. Both are serious violations; client deposits must be kept in a separate escrow/trust account.
A New York buyer refuses to sign the agency disclosure form presented by a salesperson. What must the salesperson do?
Answer: C. Sign and date a declaration noting the consumer's refusal and keep it on file
If a consumer declines to sign the agency disclosure form, the licensee must set forth a written declaration of the facts of the refusal, sign and date it, and retain it. The disclosure obligation is satisfied even though the consumer's signature is only an acknowledgment of receipt, not consent.
When must a New York licensee provide the agency disclosure form (the New York State Disclosure Form for Buyer and Seller) to a prospective party?
Answer: B. At the first substantive contact with the seller, buyer, landlord, or tenant
New York requires the agency disclosure form to be presented at the first substantive contact, meaning before discussing the consumer's motivations, financial qualifications, or other confidential matters. This ensures the consumer understands whom the licensee represents before sharing sensitive information.
New York's continuing education requirement specifically mandates a minimum number of hours dedicated to which subject because of its central importance to ethical practice?
Answer: B. Fair housing and discrimination
Because of fair-housing enforcement priorities, New York requires that a minimum portion of every licensee's 22.5 CE hours be devoted to fair housing and anti-discrimination instruction. This ensures licensees stay current on protected-class obligations.
Which of the following advertising or operational acts would most likely subject a New York licensee to discipline by the Department of State?
Answer: B. Placing a blind ad and depositing client deposits into the broker's operating account
Placing a blind ad (concealing licensee status) and depositing client deposits into the broker's operating account (commingling) are both violations. The other choices describe compliant conduct: full disclosure in ads, proper record retention, and registering a trade name.
Which of the following sanctions may the New York Department of State impose on a licensee found to have demonstrated untrustworthiness or incompetency?
Answer: C. Reprimand, fine, suspension, or revocation of the license
After a hearing, the DOS may reprimand a licensee, impose a fine, or suspend or revoke the license. The DOS is an administrative body and does not impose criminal penalties such as jail.
Which of the following is the clearest example of a broker violating New York's recordkeeping duties for trust funds?
Answer: C. Failing to keep any records showing the source and disposition of deposited funds
Brokers must maintain accurate records identifying the source, amount, and disposition of all funds held for others. Keeping no such records is a clear violation, while ledgers, retained statements, and regular reconciliation are exactly what proper recordkeeping requires.
Which word is NOT permitted in a New York real estate team name because it would falsely suggest the team is a separately licensed firm?
Answer: C. Realty (or other terms implying a separate brokerage)
Team names may not use words such as 'Realty,' 'Real Estate,' 'Brokerage,' 'LLC,' 'Corp,' or 'Agency' that imply the team is its own licensed brokerage. Terms like 'team,' 'group,' or 'associates' are acceptable when paired with the brokerage's name.
Which statement about the relationship between a New York salesperson and the sponsoring broker in brokerage operations is correct?
Answer: B. A salesperson must conduct all licensed activity under the supervision of, and in the name of, the sponsoring broker
A salesperson is licensed to act only under a sponsoring broker's supervision and in the broker's name. The broker holds escrow, is responsible for compliance, and is the party entitled to the commission; the salesperson is paid by the broker.
A New York licensee who shows a listed property and, with the consent of the buyer and listing broker, assists the buyer while being compensated by the listing broker most likely acts as a:
Answer: B. Broker's agent cooperating with the listing broker
A broker's agent is engaged by a listing or buyer's broker to act as that broker's subagent in providing services. The agency disclosure form lists broker's agent as one of the relationship options, distinct from being a buyer's agent or dual agent.
A New York broker takes an earnest-money deposit being held in escrow and uses it to pay the brokerage's office rent. This act is properly called:
Answer: B. Conversion
Conversion is using funds entrusted to the broker for the broker's own purposes. It is more serious than commingling (merely mixing funds) and can result in license revocation and criminal liability.
A New York salesperson is convicted of a felony unrelated to real estate after obtaining her license. With respect to her license, this conviction:
Answer: C. May be grounds for suspension or revocation by the Department of State
A felony conviction can be grounds for disciplinary action, including suspension or revocation, because it bears on the licensee's trustworthiness even if unrelated to a real estate transaction.
Under New York's agency model, when must a licensee first provide the statutory agency disclosure form to a prospective buyer or seller?
Answer: A. At the first substantive contact with the consumer
New York requires that the agency disclosure form be presented at the first substantive contact, so the consumer understands whom the licensee represents before sharing confidential information.
Which statement about a New York real estate broker's license, as distinguished from a salesperson's license, is correct?
Answer: B. A broker license generally requires additional qualifying education and a period of experience as a licensed salesperson (or equivalent), and a broker may operate independently
Obtaining a broker license requires additional qualifying education plus a required period of experience as a licensed salesperson (or equivalent qualifying experience). A broker may operate independently and sponsor salespersons.
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