Before you read
Test yourself first: 5 questions
Question 1 of 5
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 (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.
Question 2 of 5
Which of the following is the clearest example of a broker violating New York's recordkeeping duties for trust funds?
Answer: C. 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.
Question 3 of 5
A licensee places an advertisement for a listing that omits the name of the sponsoring brokerage and implies the salesperson is acting independently. In New York this is:
Answer: D. New York advertising rules require that advertisements identify the broker/brokerage. Blind ads or ads implying a salesperson operates independently of a broker are prohibited and disciplinable.
Question 4 of 5
A New York real estate advertisement must clearly disclose which of the following?
Answer: B. New York advertising rules require ads to make clear they are placed by a real estate broker so the public is not misled into thinking they are dealing directly with a private owner. Advertising as a broker, with the firm identified, is mandatory.
Question 5 of 5
An advertisement that conceals the fact that the advertiser is a real estate licensee, making a listing appear to be a private for-sale-by-owner, is known as a:
Answer: B. A 'blind ad' fails to disclose that a licensee placed it. New York prohibits blind ads; advertising must identify that it is being placed by a licensed broker so consumers know they are dealing with a real estate professional.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Broker identity must be clearly disclosed so consumers know who is responsible for the offering. Brokers must also maintain and retain transaction, agency-disclosure, and escrow records in accordance with DOS regulations.
New York Advertising & Record-Keeping Rules: FAQs
Is New York Advertising & Record-Keeping Rules on the real estate exam?
Yes. State License Law is a scored domain on the New York real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does New York test this differently?
New York applies its own license law on top of the national portion. This page covers the New York rules specifically, which is what the state section of your exam tests.
