Before you read
Test yourself first: 5 questions
Question 1 of 5
An agency relationship in New York is most commonly created by:
Answer: C. Agency is typically created by an express agreement (for example, a listing agreement or buyer-representation agreement). It can also arise by implication from conduct, but express agreement is the standard method.
Question 2 of 5
A buyer who has NOT signed any representation agreement asks a listing agent for advice and freely shares the maximum price he will pay. In New York, the listing agent should understand that the buyer is a:
Answer: B. Without a buyer-agency relationship, the buyer is a customer. The listing agent owes the buyer honesty and disclosure of material defects, but owes loyalty and confidentiality to the seller and may use the buyer's volunteered information for the seller's benefit.
Question 3 of 5
The deliberate concealment of a material defect or the making of a substantial misrepresentation to induce a sale in New York is most accurately characterized as:
Answer: C. Substantial misrepresentation and fraudulent concealment fall under the broad 'untrustworthiness or incompetency' standard the Department of State uses to discipline licensees, in addition to any civil liability.
Question 4 of 5
A listing agent in New York becomes aware of a significant water-intrusion problem the seller failed to note on the disclosure statement. The agent should:
Answer: D. Even though the agent represents the seller, New York law prohibits agents from making material misrepresentations or actively concealing known material defects. The agent must disclose the known water-intrusion problem to prospective buyers.
Question 5 of 5
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. 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.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
New York permits dual agency only with the informed, written consent of all parties, and it recognizes the use of designated sales agents, where the broker appoints one agent to represent the seller and another to represent the buyer within the same firm. This designated-agent structure lets each client receive dedicated representation while the broker acts as a dual agent overseeing the transaction.
New York's Agency and Representation Model: FAQs
Is New York's Agency and Representation Model 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.
