Free New York Agency Practice Test — LicenseIQ

Question 1

In New York, a broker may act as a dual agent in a residential sale only if:

Accepted Answer

Dual agency requires the informed written consent of both parties, which may be given in advance on the §443 form. Using two different salespersons does not avoid dual agency, because the agency belongs to the broker.

Question 2

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 3

A Manhattan landlord tells an agent, 'No musicians, and no unmarried couples.' Under the NYC Human Rights Law, these instructions involve which protected classes?

Accepted Answer

The City law protects lawful occupation (musicians) and marital or partnership status (unmarried couples). The agent must refuse both instructions.

Question 4

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 5

How long must a licensee keep a copy of a signed agency disclosure acknowledgment?

Accepted Answer

RPL §443(3)(d) requires the licensee to keep a copy of the signed acknowledgment for at least three years.

Question 6

Signing the acknowledgment on the New York agency disclosure form:

Accepted Answer

The form itself states that it is not a contract. The acknowledgment confirms only that the consumer received the information about agency relationships.

Question 7

An agent shows a family with young children only buildings the agent calls 'kid-friendly,' while showing other buyers the full inventory. This is:

Accepted Answer

Guiding people toward or away from housing based on a protected class, here familial status, is steering. The agent's good intentions are irrelevant.

Question 8

When a broker appoints designated sales agents in a dual agency transaction, the broker:

Accepted Answer

Designated sales agents exist only within a consented dual agency. The broker continues as a dual agent. Each designated agent advocates for an assigned party, but even they cannot provide full undivided loyalty.

Question 9

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 10

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 11

Before a broker may appoint designated sales agents, which must already exist?

Accepted Answer

Designated agency is a subset of dual agency. Without the parties' informed written consent to dual agency, there is no basis for designating agents.

Question 12

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 13

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 14

Under 19 NYCRR §175.24, a residential exclusive listing must include the state's explanation of 'exclusive right to sell' and 'exclusive agency.' Under the exclusive agency explanation, if a cooperating broker procures a buyer, the owner:

Accepted Answer

The required explanation warns that under an exclusive agency, if another broker finds a buyer, the owner will owe a commission to both the selling broker and the present listing broker. The owner avoids a commission only by finding the buyer personally.

Question 15

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 16

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 17

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 18

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 19

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 20

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 21

A buyer refuses to sign the acknowledgment on the agency disclosure form. The licensee should:

Accepted Answer

RPL §443(3)(e) requires the licensee to set forth under oath or affirmation a written declaration of the facts of the refusal and keep a copy for at least three years.

Question 22

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 23

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 24

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 25

Under RPL §443-a, which fact is NOT a material defect that a New York seller or agent must disclose?

Accepted Answer

Section 443-a declares that a homicide, suicide, other death or felony on the property, or an occupant's HIV/AIDS, is not a material defect. Physical problems like flooding, septic failure and leaks remain material.

New York real estate agency practice test

1. In New York, a broker may act as a dual agent in a residential sale only if:

2. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

3. A Manhattan landlord tells an agent, 'No musicians, and no unmarried couples.' Under the NYC Human Rights Law, these instructions involve which protected classes?

4. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

5. How long must a licensee keep a copy of a signed agency disclosure acknowledgment?

6. Signing the acknowledgment on the New York agency disclosure form:

7. An agent shows a family with young children only buildings the agent calls 'kid-friendly,' while showing other buyers the full inventory. This is:

8. When a broker appoints designated sales agents in a dual agency transaction, the broker:

9. Which of the following is a fiduciary duty an agent owes the principal?

10. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

11. Before a broker may appoint designated sales agents, which must already exist?

12. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

13. Which fiduciary duty continues even after the agency relationship has ended?

14. Under 19 NYCRR §175.24, a residential exclusive listing must include the state's explanation of 'exclusive right to sell' and 'exclusive agency.' Under the exclusive agency explanation, if a cooperating broker procures a buyer, the owner:

15. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

16. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

17. The best way to create an agency relationship is a(n):

18. Which statement about dual agency is correct?

19. A material defect that a seller/agent must disclose is one that:

20. An agency relationship can be terminated by all of the following EXCEPT:

21. A buyer refuses to sign the acknowledgment on the agency disclosure form. The licensee should:

22. An agent authorized to perform a single specific act for a principal is a:

23. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

24. A property manager owes fiduciary duties primarily to the:

25. Under RPL §443-a, which fact is NOT a material defect that a New York seller or agent must disclose?

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