The Ultimate Real Estate Knowledge Test

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Real Estate Quizzes & Trivia

Welcome to the ultimate Real Estate kowledge test. Real estate is the term given to any property consisting of land and the buildings within it, including any of its resources such as crops, minerals, or water – it is also the term given to the business of this property.


Questions and Answers
  • 1. 

    Sellers employ a broker to sell their home through the use of which of these documents

    • A.

      Buyer Agency agreement

    • B.

      Listing contract

    • C.

      Purchase contract

    • D.

      Seller agency agreement

    Correct Answer
    B. Listing contract
    Explanation
    A listing contract is a document that sellers use to hire a real estate broker to sell their home. It outlines the terms and conditions of the agreement between the seller and the broker, including the listing price, the duration of the contract, and the broker's commission. This contract grants the broker the exclusive right to market and sell the property on behalf of the seller. Therefore, the correct answer is the listing contract.

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  • 2. 

    Which of the following licenses is $50?

    • A.

      Salesperson

    • B.

      Associate broker

    • C.

      Broker

    • D.

      Branch office

    Correct Answer
    A. Salesperson
    Explanation
    The correct answer is "salesperson." This is because the question asks for the license that costs $50, and out of the given options, only the salesperson license fits this criteria.

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  • 3. 

    Which section of NY Real Property Law gives authority to the department of state to regulate real estate brokers and salespersons?

    • A.

      Article 12-A

    • B.

      Article 78

    • C.

      Article 12

    • D.

      Article 9-a

    Correct Answer
    A. Article 12-A
    Explanation
    Article 12-A of the NY Real Property Law gives authority to the department of state to regulate real estate brokers and salespersons. This article outlines the specific regulations and requirements that brokers and salespersons must adhere to in order to operate legally in the state of New York. It provides guidelines for licensing, education, and ethical conduct, ensuring that real estate professionals maintain the highest standards of professionalism and protect the interests of their clients. By granting authority to the department of state, Article 12-A allows for effective oversight and enforcement of these regulations to maintain a fair and transparent real estate market in New York.

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  • 4. 

    How many members are on the Board of Real Estate?

    • A.

      13

    • B.

      9

    • C.

      12

    • D.

      15

    Correct Answer
    D. 15
    Explanation
    The correct answer is 15. This means that there are 15 members on the Board of Real Estate.

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  • 5. 

    What are the experience requirements for a broker candidate

    • A.

      One full year of experience as a licensed salesperson OR two years of equivalent experience in some other aspect of real estate

    • B.

      2 full years of experience as a licensed salesperson AND three years of equivalent experience in some other aspect of real estate

    • C.

      1 full year of experience as a licensed salesperson AND 2 years of equivalent experience in some other aspect of real estate

    • D.

      2 full years of experience as a licensed salesperson OR three years of equivalent experience in some other aspect of real estate

    Correct Answer
    D. 2 full years of experience as a licensed salesperson OR three years of equivalent experience in some other aspect of real estate
    Explanation
    The correct answer states that a broker candidate must have either 2 full years of experience as a licensed salesperson or three years of equivalent experience in some other aspect of real estate. This means that the candidate can either have direct experience as a licensed salesperson for 2 years, or they can have experience in other areas of real estate that is equivalent to 3 years. This allows for flexibility in the candidate's background and recognizes that experience in other aspects of real estate can also be valuable in becoming a broker.

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  • 6. 

    Which of the following statements is false?

    • A.

      A real estate broker means any person, firm, limited liability company or corporation who performs real estate activities for a fee, commission or other consideration

    • B.

      An associate broker may not maintain a separate real estate brokers license

    • C.

      A broker is responsible for managing and supervising all affiliated licensees

    • D.

      An associate broker has a responsibility to be fair and competent when dealing with the public

    Correct Answer
    B. An associate broker may not maintain a separate real estate brokers license
    Explanation
    An associate broker may maintain a separate real estate broker's license. This means that the statement is false. Associate brokers have the option to obtain their own broker's license, which allows them to operate independently and have their own brokerage.

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  • 7. 

    From whom can a salesperson receive compensation

    • A.

      From any broker he or she works for

    • B.

      From a broker or client

    • C.

      From his or her sponsoring broker only

    • D.

      From the broker or another licensee in the same firm

    Correct Answer
    C. From his or her sponsoring broker only
    Explanation
    A salesperson can receive compensation only from their sponsoring broker. This means that they are not allowed to receive compensation from any other broker they may work for or from a client. Additionally, they cannot receive compensation from another licensee in the same firm. The sponsoring broker is responsible for overseeing and managing the salesperson's activities, including their compensation.

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  • 8. 

    Which of the following is NOT a mission of the Division of Licensing?

    • A.

      To protect the health, safety and welfare of consumers

    • B.

      To provide accurate info and qualified licensees to the business community

    • C.

      To provide a vehicle for hearings for license law violations

    • D.

      To provide efficient processing and examination services to license applicants

    Correct Answer
    C. To provide a vehicle for hearings for license law violations
    Explanation
    The Division of Licensing has several missions, including protecting the health, safety, and welfare of consumers, providing accurate information and qualified licensees to the business community, and providing efficient processing and examination services to license applicants. However, providing a vehicle for hearings for license law violations is not listed as one of its missions.

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  • 9. 

    How old must a candidate for a broker's license be?

    • A.

      18

    • B.

      19

    • C.

      20

    • D.

      21

    Correct Answer
    C. 20
    Explanation
    To obtain a broker's license, a candidate must be at least 20 years old. This age requirement ensures that individuals have had enough time to gain experience and knowledge in the field before being granted a broker's license. It also indicates that the candidate is mature enough to handle the responsibilities and requirements of being a broker.

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  • 10. 

    How many Board members does the governor appoint

    • A.

      5 brokers and no public members

    • B.

      4 brokers and 3 public members

    • C.

      3 brokers and 4 public members

    • D.

      1 broker and 1 public member

    Correct Answer
    C. 3 brokers and 4 public members
    Explanation
    The correct answer is 3 brokers and 4 public members. This means that the governor appoints a total of 7 board members, with 3 of them being brokers and 4 of them being public members.

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  • 11. 

    How often must a licensee renew his or her license

    • A.

      Every year

    • B.

      Every 2 years

    • C.

      Every 3 years

    • D.

      Every four years

    Correct Answer
    B. Every 2 years
    Explanation
    A licensee must renew his or her license every 2 years. This ensures that the licensee's knowledge and skills are up to date and that they are meeting the necessary requirements to continue practicing their profession. By renewing their license every 2 years, the licensee can demonstrate their commitment to maintaining their professional competence and staying current with any changes or advancements in their field.

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  • 12. 

    Which statement is true about pocket cards

    • A.

      The broker is responsible for distributing them to his or her licensees

    • B.

      They must be prominently displayed on broker's wall

    • C.

      They are a kind of miniature license that licensees must carry and show on demand

    • D.

      They must be shown to any potential customer before the licensee can schedule any showings

    Correct Answer
    C. They are a kind of miniature license that licensees must carry and show on demand
    Explanation
    Pocket cards are a type of miniature license that licensees are required to carry with them and show upon request. These cards serve as proof of licensure and are an important form of identification for real estate professionals. By carrying and presenting their pocket cards, licensees can demonstrate their legitimacy and compliance with licensing requirements to potential clients, colleagues, and regulatory authorities.

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  • 13. 

    A broker must keep records of transactions on file for how long

    • A.

      1 year

    • B.

      2 years

    • C.

      3 years

    • D.

      Until the Department of State audits the records

    Correct Answer
    C. 3 years
    Explanation
    A broker is required to keep records of transactions on file for a period of 3 years. This is important for several reasons. Firstly, it ensures that there is a record of all transactions conducted by the broker, which can be useful for reference or in case of any disputes or legal issues that may arise. Additionally, it helps to maintain transparency and accountability in the broker's business operations. Keeping records for this duration also ensures compliance with regulatory requirements and allows for proper auditing and review of the broker's activities if necessary.

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  • 14. 

    Where must the broker place his sign at his place of business

    • A.

      Inside the office door

    • B.

      Above the broker's desk

    • C.

      On the mailbox

    • D.

      Outside the building and visible from sidewalk

    Correct Answer
    D. Outside the building and visible from sidewalk
    Explanation
    The broker must place his sign outside the building and visible from the sidewalk in order to attract potential clients and advertise his business. Placing the sign outside ensures that it can be easily seen by people passing by, increasing the visibility and reach of the broker's services. This location also allows the sign to be visible to a larger audience, potentially attracting more customers and generating more business for the broker.

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  • 15. 

    What is the form called that nonresident brokers must submit that allows them to be sued in NY state

    • A.

      Non-compete form

    • B.

      Subordination form

    • C.

      Irrevocable consent form

    • D.

      Judicial consent form

    Correct Answer
    C. Irrevocable consent form
    Explanation
    The correct answer is "irrevocable consent form." Nonresident brokers who want to be sued in NY state must submit this form. This form grants consent to NY state courts to have jurisdiction over any legal disputes involving the nonresident broker. By submitting this form, the nonresident broker agrees to be subject to the laws and regulations of NY state and allows individuals in NY state to sue them in NY state courts.

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  • 16. 

    How many hours of continuing education are required for license renewal

    • A.

      21.5

    • B.

      22.5

    • C.

      23.5

    • D.

      24.5

    Correct Answer
    B. 22.5
    Explanation
    The correct answer is 22.5. This means that for license renewal, a person is required to complete 22.5 hours of continuing education.

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  • 17. 

    When a licensee terminates his or her association with a firm which statement is true?

    • A.

      The licensee may take his or her listings to the new firm

    • B.

      The licensee must turn over any listings provided by the broker but can take those listings he or she acquired

    • C.

      The licensee must turn over any and all listing information she obtained during the association

    • D.

      The new sponsoring broker can take over any listings acquired by the newly employed licensee

    Correct Answer
    C. The licensee must turn over any and all listing information she obtained during the association
    Explanation
    When a licensee terminates their association with a firm, they are required to turn over any and all listing information that they obtained during their association. This means that they must provide the information to their previous broker and cannot take it with them to a new firm. This is important to ensure that the broker retains control over the listing information and can continue to represent the clients properly.

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  • 18. 

    When did NY begin to require home inspectors to be licensed

    • A.

      2005

    • B.

      2006

    • C.

      2007

    • D.

      Inspectors are not required to be licensed

    Correct Answer
    B. 2006
    Explanation
    In 2006, New York began to require home inspectors to be licensed.

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  • 19. 

    If there is a change of broker and/or address how long does the licensee have to complete and submit the form to Department of State

    • A.

      5 days

    • B.

      7 days

    • C.

      2 weeks

    • D.

      1 month

    Correct Answer
    A. 5 days
    Explanation
    The licensee has 5 days to complete and submit the form to the Department of State if there is a change of broker and/or address. This is likely to ensure that the department is promptly updated with the necessary information and can maintain accurate records of the licensee's current broker and address.

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  • 20. 

    Which of the following courses would not be acceptable to meet the continuing ed requirement

    • A.

      Residential mortgages

    • B.

      Property management

    • C.

      Exchanging techniques

    • D.

      Basic computer skills

    Correct Answer
    D. Basic computer skills
    Explanation
    Basic computer skills would not be acceptable to meet the continuing education requirement because it is not directly related to the field of real estate. The other courses listed, such as residential mortgages, property management, and exchanging techniques, are all relevant and applicable to the real estate industry. Basic computer skills may be important for general professional development, but they do not specifically contribute to the knowledge and skills needed for real estate professionals.

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  • 21. 

    Which of these is not a law violation?

    • A.

      Failing to deliver duplicate documents for a real estate transaction to all the appropriate parties

    • B.

      Offering a property for sale or lease without the owner's permission

    • C.

      Accepting compensation for more than one party in a transaction without the knowledge and written consent of all parties

    • D.

      Placing a sign on a property with the owner's permission

    Correct Answer
    D. Placing a sign on a property with the owner's permission
    Explanation
    Placing a sign on a property with the owner's permission is not a law violation because it is a lawful act that does not infringe upon any legal rights or regulations. It is important to have the owner's permission before placing a sign on their property to avoid any potential legal issues.

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  • 22. 

    The section of a hearing decision that describes what the respondent may have done is called what?

    • A.

      Determination

    • B.

      Complaint

    • C.

      Opinion

    • D.

      Findings

    Correct Answer
    B. Complaint
    Explanation
    The section of a hearing decision that describes what the respondent may have done is called a complaint. This section presents the allegations against the respondent and outlines the specific actions or behaviors that are being disputed. It provides a summary of the claims made by the complainant and serves as the basis for further investigation and evaluation of the case.

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  • 23. 

    What is a hearing appeal to the NY Supreme Court called?

    • A.

      Article 12-A appeal

    • B.

      Article 8 proceeding

    • C.

      State court appeal

    • D.

      Article 78 proceeding

    Correct Answer
    D. Article 78 proceeding
    Explanation
    An Article 78 proceeding is a hearing appeal to the NY Supreme Court.

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  • 24. 

    Which of these activities is prohibited for an unlicensed assistant?

    • A.

      Hold an open house

    • B.

      Place a classified ad

    • C.

      Compute commission checks

    • D.

      Submit listing to the MLS

    Correct Answer
    A. Hold an open house
    Explanation
    An unlicensed assistant is not allowed to hold an open house because it involves interacting with potential buyers and sellers, providing information about the property, and potentially negotiating offers. These activities require a real estate license as they involve providing professional advice and representing clients in real estate transactions.

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  • 25. 

    What is the penalty for conviction of a misdemeanor

    • A.

      1000 fine only

    • B.

      One year in prison only

    • C.

      Either fine, imprisonment, or both

    • D.

      $5,000 fine

    Correct Answer
    C. Either fine, imprisonment, or both
    Explanation
    The penalty for conviction of a misdemeanor can vary and is not limited to a specific punishment. It can include either a fine, imprisonment, or both, depending on the severity of the offense and the discretion of the court. The court may impose a monetary penalty, a period of incarceration, or a combination of both, based on the circumstances of the case and the applicable laws.

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  • 26. 

    Which of these actions would be a licensee law violation?

    • A.

      Filling in the blanks on a preprinted listing form

    • B.

      Failing to provide a definition of an exclusive right to sell and an exclusive agency when taking a cooperative listing

    • C.

      Placing an earnest money deposit in a trust account

    • D.

      Accepting a commission directly from a selling

    Correct Answer
    D. Accepting a commission directly from a selling
    Explanation
    Accepting a commission directly from a selling party would be a licensee law violation because it goes against the principle of fiduciary duty. Licensees have a responsibility to act in the best interest of their clients, and accepting a commission directly from the selling party could create a conflict of interest and compromise the licensee's ability to represent the buyer or seller impartially.

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  • 27. 

    Which of these activities could an unlicensed assistant perform?

    • A.

      Solicit business for the broker

    • B.

      Collect info for an appraisal

    • C.

      Hold an open house

    • D.

      Discuss a specific property with a client

    Correct Answer
    B. Collect info for an appraisal
    Explanation
    An unlicensed assistant could collect information for an appraisal because this task does not require a real estate license. Appraisals involve gathering data and conducting research on properties, which can be done by an assistant without the need for a license. However, soliciting business for the broker, holding an open house, and discussing specific properties with clients all require a real estate license as they involve actively participating in real estate transactions and providing advice or information to clients.

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  • 28. 

    What is a hearing determination?

    • A.

      The section of a hearing document that cites the penalty that the court is imposing on the Respondent

    • B.

      The section of a hearing document that outlines what the court believes happened

    • C.

      The section of the hearing document that describes the allegations against the Respondent

    • D.

      The section of the hearing document that explains what violations the Respondent committed

    Correct Answer
    A. The section of a hearing document that cites the penalty that the court is imposing on the Respondent
  • 29. 

    What statement is false?

    • A.

      A broker will be guilty of a misdemeanor if he or she employs a salesperson who is not properly licensed

    • B.

      When taking a condo listing the broker must provide a written explanation of the difference between exclusive right to sell and exclusive agency listings

    • C.

      Brokers are prohibited from commingling the funds of others with their own funds

    • D.

      A licensee may not perform services that should be performed by a lawyer

    Correct Answer
    B. When taking a condo listing the broker must provide a written explanation of the difference between exclusive right to sell and exclusive agency listings
    Explanation
    Brokers are not required to provide a written explanation of the difference between exclusive right to sell and exclusive agency listings when taking a condo listing.

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  • 30. 

    Which of these actions is a power that belongs to the Department of State?

    • A.

      Impose a fine of up to $5,000

    • B.

      Terminate a license with no hearing

    • C.

      Issue a reprimand upon a licensee's conviction of a violation

    • D.

      Bring criminal charges against a licensee

    Correct Answer
    C. Issue a reprimand upon a licensee's conviction of a violation
    Explanation
    The Department of State has the power to issue a reprimand upon a licensee's conviction of a violation. This action allows the department to formally criticize and warn a licensee who has been convicted of a violation, indicating that their behavior or actions have been found to be in violation of established rules or regulations. It serves as a disciplinary measure and helps to ensure compliance and accountability within the relevant industry or profession.

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  • 31. 

    When is commission considered earned?

    • A.

      When the broker produces a ready willing and able buyer

    • B.

      When an offer from a qualified buyer has been submitted and accepted and both parties have received signed copies of the agreement

    • C.

      When the seller has accepted the offer

    • D.

      When the transaction has totally completed

    Correct Answer
    B. When an offer from a qualified buyer has been submitted and accepted and both parties have received signed copies of the agreement
    Explanation
    Commission is considered earned when an offer from a qualified buyer has been submitted and accepted, and both parties have received signed copies of the agreement. This means that the broker has successfully brought together a buyer and seller, and all necessary paperwork has been completed and signed. At this point, the broker has fulfilled their role in facilitating the transaction and is entitled to receive their commission.

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  • 32. 

    Gladys sells another broker's $300,000 listing for $290,000 at a commission rate of 6%.  She has a 60% commission split with her broker.  If there is also a 50% brokerage split, what commission will Gladys receive

    • A.

      $5220

    • B.

      $8700

    • C.

      $17400

    • D.

      $3480

    Correct Answer
    A. $5220
    Explanation
    Gladys sells another broker's $300,000 listing for $290,000 at a commission rate of 6%. She has a 60% commission split with her broker. If there is also a 50% brokerage split, Gladys will receive a commission of $5220. This can be calculated by first finding Gladys' commission on the sale, which is 6% of $290,000, equal to $17,400. Then, taking into account the 60% commission split with her broker, Gladys will receive 60% of $17,400, which is $10,440. Finally, considering the 50% brokerage split, Gladys will receive 50% of $10,440, which is $5,220.

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  • 33. 

    The Criminal Antitrust Penalty Enhancement and Reform Act increased the maximum criminal penalty for individuals to what amount?

    • A.

      $350,000

    • B.

      1 million

    • C.

      2 million

    • D.

      10 million

    Correct Answer
    B. 1 million
    Explanation
    The Criminal Antitrust Penalty Enhancement and Reform Act increased the maximum criminal penalty for individuals to 1 million dollars.

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  • 34. 

    A property seller empowers an agent to market and sell a property on his behalf.  What is this an example of

    • A.

      General agency

    • B.

      Universal agency

    • C.

      No agency

    • D.

      Special agency

    Correct Answer
    D. Special agency
    Explanation
    This scenario is an example of a special agency. In a special agency, the principal (property seller) grants limited authority to the agent to perform specific tasks on their behalf, such as marketing and selling the property. The agent's authority is restricted to these specific tasks and does not extend to other areas.

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  • 35. 

    If an agency relationship arises because of the actions of the parties involved rather than by a written agreement, what is the agency called?

    • A.

      Dual agency

    • B.

      Ostensible agency

    • C.

      Implied agency

    • D.

      Subagency

    Correct Answer
    B. Ostensible agency
    Explanation
    An ostensible agency is a type of agency relationship that arises when the parties involved create the appearance of an agency relationship through their actions, even though there may not be a written agreement. In this type of agency, the principal (the person being represented) is held responsible for the actions of the agent (the person representing the principal) because they allowed the agent to act on their behalf and gave others the impression of an agency relationship.

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  • 36. 

    The principles of an agency relationship include all of these factors except which one?

    • A.

      Mutual consent

    • B.

      Authorization

    • C.

      Compensation

    • D.

      Fidicuary duties

    Correct Answer
    C. Compensation
    Explanation
    The principles of an agency relationship include mutual consent, authorization, and fiduciary duties. Compensation, however, is not considered a principle of an agency relationship. While compensation may be a common aspect of an agency relationship, it is not a necessary or defining factor. An agency relationship can exist without compensation being involved.

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  • 37. 

    Which of these is not a violation of antitrust laws

    • A.

      Boycott

    • B.

      Price fixing

    • C.

      Redlining

    • D.

      Market allocation

    Correct Answer
    C. Redlining
    Explanation
    Redlining is not a violation of antitrust laws because it refers to the practice of denying loans or insurance to certain individuals or groups based on their race, ethnicity, or location. While it is a discriminatory practice, it does not involve collusion or anti-competitive behavior among businesses, which are the main focus of antitrust laws.

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  • 38. 

    An owner's agent is showing a buyer an apartment building.  The buyer notices water stains on the ceiling and informs the agent.  What is the agent's best course of action?

    • A.

      Immediately contract to paint the ceiling

    • B.

      Immediately contract to repair the roof

    • C.

      Suggest the buyer make a lower-price offer

    • D.

      Inform the seller

    Correct Answer
    D. Inform the seller
    Explanation
    The agent's best course of action is to inform the seller. This is because the buyer has noticed water stains on the ceiling, indicating a potential issue with the roof or plumbing. It is the agent's responsibility to communicate any concerns or issues raised by the buyer to the seller, allowing them to address the problem appropriately. The agent should not immediately contract to paint the ceiling or repair the roof without consulting the seller first. Additionally, suggesting a lower-price offer may not be necessary at this stage, as the issue can be resolved by the seller.

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  • 39. 

    Which of the following is not a fiduciary duty an agent owes to his or her principal?

    • A.

      Loyalty

    • B.

      Confidentiality

    • C.

      Accountability

    • D.

      Blind obedience

    Correct Answer
    D. Blind obedience
    Explanation
    Blind obedience is not a fiduciary duty because it implies unquestioningly following the principal's instructions without considering their legality or ethical implications. Fiduciary duties, on the other hand, require agents to act in the best interests of their principals, which may involve questioning or refusing to carry out instructions that are unlawful or unethical. Therefore, blind obedience does not align with the concept of fiduciary duty.

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  • 40. 

    Agent is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he should have known.  Which of these situations would not be something that agent should know

    • A.

      There is a crack in the basement wall

    • B.

      The air conditioner doesn't work

    • C.

      The owner of the property is HIV positive

    • D.

      The casement windows have broken seals

    Correct Answer
    C. The owner of the property is HIV positive
    Explanation
    The agent is not required to know the personal health information of the owner of the property, such as their HIV status. This information does not directly affect the client's interests in relation to the property transaction.

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  • 41. 

    An agent fails to discover flood marks on the walls in the basement of a property.  The agent sells the property and the buyer later sues the agent for failing to mention the problem.  What statement best describes what can happen in this case?

    • A.

      The agent may be guilty of intentional misrepresentation

    • B.

      The agent has an exposure to a charge of negligent misrepresentation

    • C.

      The agent has little exposure, since the problem was not mentioned on the signed disclosure form

    • D.

      The agent is not vulnerable, since the problem was not discovered

    Correct Answer
    B. The agent has an exposure to a charge of negligent misrepresentation
    Explanation
    The agent may be held liable for negligent misrepresentation because they failed to discover and mention the flood marks in the basement of the property. This failure to disclose a known problem could be seen as a breach of the agent's duty to provide accurate information to the buyer.

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  • 42. 

    What do we call an agent who represents a seller exclusively in a real estate transaction?

    • A.

      Exclusive agent

    • B.

      Single agent

    • C.

      Subagent

    • D.

      Broker agent

    Correct Answer
    B. Single agent
    Explanation
    A single agent is an agent who exclusively represents a seller in a real estate transaction. This means that the agent is solely focused on the seller's best interests and works to negotiate the best deal for them. Unlike a subagent or broker agent who may represent both the buyer and seller, a single agent is dedicated to representing only one party, in this case, the seller.

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  • 43. 

    Which of these is not a way a buyer's agent might receive compensation?

    • A.

      Seller pays the compensation

    • B.

      Buyer pays a flat fee

    • C.

      The agent receives a retainer

    • D.

      Agent gets everything above the net price set by the seller

    Correct Answer
    D. Agent gets everything above the net price set by the seller
    Explanation
    In a real estate transaction, a buyer's agent typically receives compensation from the seller, either directly or through the listing agent. This compensation is usually a percentage of the sale price or a commission. However, the answer "Agent gets everything above the net price set by the seller" suggests that the buyer's agent receives the additional amount above the agreed-upon price set by the seller, which is not a common way for a buyer's agent to be compensated.

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  • 44. 

    Which part of the NY License Law requires agency disclosure

    • A.

      Article 12-A, Section 443

    • B.

      Article 9, Section 333

    • C.

      Article 14, Section 462

    • D.

      Article 8, Section 242

    Correct Answer
    A. Article 12-A, Section 443
  • 45. 

    If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fidiciary duties?

    • A.

      Listing broker

    • B.

      Buyer

    • C.

      Seller

    • D.

      No one

    Correct Answer
    C. Seller
    Explanation
    When a cooperating broker accepts the offer of subagency from a listing broker, they owe fiduciary duties to the seller. This means that the cooperating broker must act in the best interests of the seller, providing them with loyalty, confidentiality, disclosure, obedience, and reasonable care. The cooperating broker is essentially representing the seller in the transaction, even though they may be working with and assisting the buyer.

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  • 46. 

    Which type of agency would be most advantageous to a buyer?

    • A.

      Broker's agency

    • B.

      Buyer brokerage

    • C.

      Designated agency

    • D.

      Consensual dual agency

    Correct Answer
    B. Buyer brokerage
    Explanation
    Buyer brokerage would be most advantageous to a buyer because it involves an agent who exclusively represents the buyer's interests. This type of agency ensures that the buyer's needs and preferences are the top priority, and the agent works solely to find the best property and negotiate the best terms for the buyer. This arrangement provides the buyer with a higher level of representation and protection compared to other types of agencies where the agent may have divided loyalties or represent the seller's interests.

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  • 47. 

    What form of limited agency is a good alternative to dual agency

    • A.

      Non-agency

    • B.

      Undisclosed dual agency

    • C.

      Designated agency

    • D.

      Buyer brokerage

    Correct Answer
    C. Designated agency
    Explanation
    Designated agency is a good alternative to dual agency because it allows for the appointment of separate agents to represent the buyer and seller in a real estate transaction. This ensures that each party has their own dedicated agent who can provide unbiased advice and representation. Designated agency helps to avoid conflicts of interest that may arise in dual agency, where one agent represents both parties simultaneously. By having separate agents, designated agency promotes transparency and ensures that each party's best interests are prioritized.

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  • 48. 

    Which of the following terminations of an agency relationship could result in legal or financial ramifications

    • A.

      Contract performance

    • B.

      Contract expiration

    • C.

      Mutual agreement between broker and client

    • D.

      Renunciation by the client

    Correct Answer
    D. Renunciation by the client
    Explanation
    Renunciation by the client refers to the client voluntarily terminating the agency relationship without the agreement or consent of the broker. This termination could result in legal or financial ramifications because it may breach the terms of the agency agreement or contract. The broker may have invested time, effort, and resources into representing the client, and the sudden termination could lead to financial losses for the broker. Additionally, if the termination is not done in accordance with any contractual obligations or legal requirements, the client may be held liable for any damages or losses incurred by the broker.

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  • 49. 

    Sally is a subagent working for Seller Pat.  What does Sally owe to Buyer Brad?

    • A.

      Honest and fair dealing

    • B.

      Confidentiality

    • C.

      Advice on negotiations

    • D.

      Info about Pat's motivation to sell

    Correct Answer
    A. Honest and fair dealing
    Explanation
    As a subagent working for Seller Pat, Sally owes honest and fair dealing to Buyer Brad. This means that Sally must act in good faith, provide accurate information, and not engage in any deceptive or unfair practices during the transaction. Sally should ensure that all negotiations are conducted with integrity and transparency, prioritizing the best interests of both the buyer and seller.

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  • 50. 

    Mary has a listing agreement with Broker Tom.  Mary tells Tom she wants him to to help sell her property.  Tom gets Larry, Gail and Bill, who all work for other firms to help find a buyer for Mary's property.  Who would be liable for Bill's actions

    • A.

      Broker Tom and Mary

    • B.

      Broker Tom, Larry, and Gail

    • C.

      Broker Tom

    • D.

      Mary

    Correct Answer
    C. Broker Tom
    Explanation
    Broker Tom would be liable for Bill's actions. Since Tom is the broker and has enlisted the help of Larry, Gail, and Bill, he is responsible for their actions while working on the sale of Mary's property.

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