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NY RE Broker practice questions

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Question 1Real Estate License Law

Under New York law, a real estate broker's license is issued by which entity?

  1. The local county clerk
  2. The federal Department of Housing and Urban Development
  3. The Real Estate Board of New York
  4. The New York Department of State Correct answer.

Explanation

The New York Department of State, through the Division of Licensing Services, administers and issues real estate broker and salesperson licenses. County clerks and private trade groups have no licensing authority. HUD is a federal agency with no role in state licensing.

Question 2Real Estate License Law

What is the minimum age to be eligible for a New York real estate broker's license?

  1. 20 years
  2. 21 years
  3. 19 years
  4. 18 years Correct answer.

Explanation

An applicant for a New York real estate license must be at least 18 years old. There is no higher age requirement for brokers. The other ages exceed the statutory minimum.

Question 3Real Estate License Law

A licensed salesperson who wants to become a broker must generally complete how many hours of qualifying broker education?

  1. 152 hours
  2. 45 hours
  3. 75 hours
  4. 120 hours Correct answer.

Explanation

New York requires 120 hours of approved broker qualifying education, which includes the salesperson coursework plus additional broker-level courses. The 75-hour figure relates to salesperson pre-licensing education. The other numbers do not match the broker requirement.

Question 4Real Estate License Law

A broker's license is up for renewal. How often must a New York real estate license be renewed?

  1. Every two years Correct answer.
  2. Every three years
  3. Every four years
  4. Every year

Explanation

New York real estate licenses are renewed biennially, every two years. Renewal requires completing continuing education and paying the required fee. Annual, triennial, and quadrennial cycles do not match the statute.

Question 5Real Estate License Law

Which individual is exempt from holding a New York real estate license when selling property?

  1. A person selling their own home Correct answer.
  2. A person who manages rental apartments for owners
  3. A person who negotiates commercial leases for a fee
  4. A person who regularly lists homes for others

Explanation

An owner selling or leasing their own property is not acting as a broker and needs no license. Regular listing, leasing, or management work for others for compensation requires licensure. The other choices all describe brokerage activity.

Question 6Real Estate License Law

A salesperson receives a commission check directly from a client. Under New York law, what is the proper handling of that payment?

  1. The salesperson may keep it if taxes are withheld
  2. The salesperson must turn it over to the sponsoring broker Correct answer.
  3. The salesperson must deposit it in a personal account
  4. The salesperson may split it with the broker directly

Explanation

A salesperson may not accept compensation for brokerage services directly from a client; all commissions are paid to and through the sponsoring broker. The salesperson is compensated by the broker under their agreement. Direct receipt of commission by a salesperson is prohibited.

Question 7Real Estate License Law

A broker wishes to open a branch office. What must the broker obtain for that location?

  1. A separate corporate charter
  2. A branch office license Correct answer.
  3. A new firm name registration only
  4. A salesperson license for the branch

Explanation

Each additional office location where brokerage business is conducted requires a branch office license issued by the Department of State. A corporate charter and firm name registration do not substitute for it. A salesperson license is personal and unrelated to office licensing.

Question 8Real Estate License Law

A prospective buyer gives a broker a $5,000 deposit on a purchase offer. The deal collapses and the parties dispute who gets the deposit. What must the broker do with the funds?

  1. Return the money to the buyer immediately
  2. Deliver the funds to the seller's attorney
  3. Hold the funds until the dispute is resolved Correct answer.
  4. Keep the funds as an earned commission

Explanation

When there is a dispute over a deposit, the broker must retain the funds in the escrow account until the parties resolve the dispute or a court directs distribution. The broker may not unilaterally return, keep, or redirect disputed funds. Doing so could expose the broker to liability.

Question 9Real Estate License Law

How must a New York real estate broker maintain funds belonging to clients?

  1. In the broker's general operating account
  2. In a personal savings account
  3. In a separate escrow account Correct answer.
  4. In the sponsoring salesperson's account

Explanation

Client funds such as deposits must be held in a separate escrow or trust account, not commingled with the broker's own operating money. Commingling client funds with business funds is prohibited. Only the broker, not salespersons, maintains these accounts.

Question 10Real Estate License Law

A broker wants to advertise another brokerage's listing. What is required under New York advertising rules?

  1. Approval from the local board
  2. A new listing agreement signed by the seller
  3. Nothing, since the listing is public
  4. Permission from the listing broker Correct answer.

Explanation

A broker advertising another firm's listing must have the permission of the listing broker. Advertising another broker's listing without consent misrepresents the source of the listing. A new listing agreement is not needed because the advertiser is not the listing agent.

Question 11Real Estate License Law

In a broker's advertising, what must be included to comply with New York requirements?

  1. The salesperson's home address
  2. The seller's asking price history
  3. The broker's license number
  4. The firm name as licensed Correct answer.

Explanation

Advertisements must identify the brokerage by its licensed firm name. Advertising under an unlicensed or fictitious name without proper registration violates the law. A license number, home address, or price history is not the required identifying element.

Question 12Real Estate License Law

A salesperson changes sponsoring brokers. What must happen for the salesperson to continue working legally?

  1. The salesperson must surrender the license permanently
  2. The salesperson may work for both brokers at once
  3. The salesperson must wait one year before working
  4. The salesperson must notify the Department of State of the new sponsorship Correct answer.

Explanation

A salesperson may only work under one sponsoring broker at a time, and a change of sponsorship must be filed with the Department of State. Working for two brokers simultaneously is not permitted. The license is transferred, not surrendered.

Question 13Real Estate License Law

A broker is found to have demonstrated untrustworthiness in a transaction. What is the licensing consequence?

  1. Possible suspension or revocation of the license Correct answer.
  2. Automatic criminal prosecution
  3. Loss of only the salesperson licenses
  4. A warning with no record

Explanation

Untrustworthiness is a statutory ground for disciplinary action, which can include suspension or revocation of the license and fines. The Department of State handles discipline administratively. Criminal prosecution is separate and not automatic.

Question 14Real Estate License Law

A broker collects a commission but fails to give the salesperson the agreed share. Which statement is correct under New York law?

  1. The salesperson may sue the broker for the agreed share Correct answer.
  2. The client must pay the salesperson directly
  3. The salesperson has no recourse
  4. The Department of State sets the commission split

Explanation

A salesperson may bring a civil action against the sponsoring broker to recover the agreed share of commissions. The Department of State does not set commission splits, and clients are not responsible for paying salespersons directly. The salesperson's remedy is against the broker.

Question 15Real Estate License Law

Which activity requires a New York real estate license?

  1. An attorney drafting a deed
  2. A person negotiating a commercial sale for a fee Correct answer.
  3. A homeowner renting a spare room
  4. A bank appraising a property

Explanation

Negotiating the sale of real property for another person for compensation is brokerage activity requiring a license. Homeowners renting their own space, attorneys drafting documents, and appraisers performing valuations are not acting as brokers.

Question 16Real Estate License Law

A broker maintains a team name that differs from the licensed firm name. What must the broker do?

  1. Change the corporate charter
  2. Obtain a separate broker license for the team
  3. Use the team name without any filing
  4. Register the team name as an assumed name Correct answer.

Explanation

A broker using an assumed or team name different from the licensed firm name must register that name with the Department of State. Using an unregistered assumed name in advertising violates licensing rules. A separate broker license and charter change are not the mechanism.

Question 17Real Estate License Law

What continuing education is required for a broker to renew a license?

  1. Seventy-five hours every four years
  2. No continuing education is required
  3. Twenty-two and a half hours biennially, including fair housing Correct answer.
  4. Forty-five hours annually

Explanation

New York requires 22.5 hours of continuing education every two years for renewal, including required fair housing instruction. The other figures misstate the cycle or the hours. Continuing education is mandatory, not optional.

Question 18Real Estate License Law

A broker receives a commission from a transaction and wants to pay part to an unlicensed assistant for referring a client. Is this permitted?

  1. Yes, if disclosed to the client
  2. No, compensation for referrals to unlicensed persons is prohibited Correct answer.
  3. Yes, if the assistant is an employee
  4. Yes, if the amount is small

Explanation

Paying compensation for brokerage activity, including referrals, to an unlicensed person is prohibited. The size of the payment, employment status, or disclosure does not cure the violation. Referral fees may only be shared with properly licensed parties.

Question 19Real Estate License Law

A salesperson's license is issued to the salesperson but held by the broker. What does this arrangement mean for the salesperson's authority?

  1. The salesperson may operate independently
  2. The salesperson may sponsor other salespersons
  3. The salesperson may open a branch office
  4. The salesperson acts under the broker's supervision Correct answer.

Explanation

A salesperson works under the supervision of the sponsoring broker, who holds the salesperson's license. Salespersons cannot operate independently, sponsor others, or open branch offices. Those functions belong to the broker.

Question 20Real Estate License Law

A broker is convicted of a felony unrelated to real estate. What must the broker do regarding the license?

  1. Nothing, because the crime is unrelated
  2. Resign from the brokerage immediately
  3. Notify the Department of State within a set period Correct answer.
  4. Wait until the next renewal to disclose

Explanation

A licensee convicted of a crime must notify the Department of State within the required timeframe, typically within a short period after conviction. Failure to report is itself a violation. Waiting for renewal or staying silent does not satisfy the duty.

Question 21Real Estate License Law

Which statement about a New York real estate broker's fiduciary duty is correct?

  1. The broker owes no duty to the client once a listing is signed
  2. The broker may conceal defects to close the deal
  3. The broker must disclose known material facts affecting the property Correct answer.
  4. The broker may favor the seller's interests over the client's

Explanation

A broker owes the client duties including disclosure of material facts known to the broker. Concealing defects or favoring another party breaches fiduciary duty. The broker's obligations continue throughout the relationship.

Question 22Real Estate License Law

A broker is asked to represent both the buyer and seller in the same transaction. Under New York law, what is required?

  1. Nothing, dual agency is always prohibited
  2. Written informed consent of both parties Correct answer.
  3. A court order authorizing dual agency
  4. Approval from the Department of State

Explanation

Dual agency is permitted in New York only with the informed written consent of both parties after full disclosure. Without that consent, the broker cannot represent both sides. Department or court approval is not the mechanism.

Question 23Real Estate License Law

A buyer asks a broker whether a property is in a flood zone. The broker does not know. What is the broker's best practice?

  1. Tell the buyer to find out on their own
  2. Guess based on the property's location
  3. Assure the buyer the property is not in a flood zone
  4. Direct the buyer to appropriate sources and avoid making unsupported claims Correct answer.

Explanation

A broker should not make unsupported statements about matters outside their knowledge and should point buyers to reliable sources such as flood maps or qualified professionals. Guessing or giving false assurances creates liability. Telling the buyer to figure it out alone fails the duty of care.

Question 24Real Estate License Law

A broker places a newspaper ad that omits the licensed firm name and lists only a salesperson's name. This advertisement is:

  1. Acceptable because it names a licensee
  2. Not compliant with advertising rules Correct answer.
  3. Acceptable if it runs only once
  4. Acceptable if the salesperson pays for it

Explanation

Advertising must identify the licensed brokerage firm name; showing only a salesperson's name does not comply. The frequency of the ad or who pays for it does not change the requirement. The firm name must appear.

Question 25Real Estate License Law

A broker's escrow account holds a deposit that has been properly released to the seller by written agreement of both parties. What should the broker do next?

  1. Apply the funds to the broker's fee
  2. Continue holding the funds indefinitely
  3. Return the funds to the buyer
  4. Disburse the funds according to the written agreement Correct answer.

Explanation

Once the parties agree in writing on the disposition of escrowed funds, the broker must disburse them as directed. Holding funds indefinitely or redirecting them contrary to the agreement is improper. The broker cannot repurpose deposits as fees.

Question 26Real Estate License Law

In New York, what is the minimum age requirement to be eligible for a real estate salesperson license?

  1. 21 years
  2. 17 years
  3. 19 years
  4. 18 years Correct answer.

Explanation

New York Real Property Law requires applicants for a real estate salesperson license to be at least 18 years old. This is a basic eligibility requirement, along with being a U.S. citizen or lawfully admitted alien and meeting education and examination requirements.

Question 27Real Estate License Law

A licensed real estate salesperson in New York wants to receive compensation for assisting a friend in a real estate transaction. Under what circumstances may the salesperson legally accept a fee?

  1. Through a separate LLC owned by the salesperson
  2. Only through the sponsoring broker, with the broker's consent Correct answer.
  3. Directly from the friend, if the friend agrees in writing
  4. Directly from the friend, as long as the salesperson discloses the license status

Explanation

A New York salesperson may not collect compensation directly from a client or customer; all compensation must flow through the sponsoring broker. The salesperson may receive a share from the broker, but the broker must agree to the arrangement.

Question 28Real Estate License Law

A New York broker is required to keep records of real estate transactions. What is the minimum retention period for these records?

  1. Seven years
  2. Three years Correct answer.
  3. One year
  4. Five years

Explanation

New York regulations require real estate brokers to retain transaction records, including listing and sales contracts, for at least three years. This recordkeeping requirement supports audits and investigations by the Department of State.

Question 29Real Estate License Law

A New York real estate broker is convicted of a misdemeanor involving fraud in a real estate transaction. What is the most likely consequence for the broker's license?

  1. The license may be revoked or suspended after a hearing Correct answer.
  2. The license remains unaffected because it is a misdemeanor
  3. The license is suspended for 30 days without a hearing
  4. The license is automatically revoked upon conviction

Explanation

Under New York Real Property Law, a conviction for fraud in a real estate transaction is a basis for disciplinary action, but the Department of State must afford the licensee a hearing before imposing revocation or suspension. Automatic revocation without a hearing would violate due process.

Question 30Fair Housing

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and which other protected class?

  1. Disability Correct answer.
  2. Marital status
  3. Age
  4. Sexual orientation

Explanation

The federal Fair Housing Act's seven protected classes are race, color, religion, sex, national origin, familial status, and disability. Disability and familial status were added by the 1988 amendments. Age, sexual orientation, and marital status are not federal protected classes, though New York law covers additional classes.

Question 31Fair Housing

Under the Fair Housing Act, which practice by a real estate broker is expressly prohibited?

  1. Requiring a mortgage pre-approval before showing homes
  2. Steering buyers toward or away from neighborhoods based on race Correct answer.
  3. Declining to show homes outside the broker's service area
  4. Offering different properties to buyers based on their stated budget

Explanation

Steering-channeling prospective buyers or renters toward or away from particular neighborhoods because of a protected characteristic-is a core prohibited practice under the Fair Housing Act. Budget screening, pre-approval requirements, and service-area limits are lawful business practices when applied uniformly.

Question 32Fair Housing

A broker tells a Black prospective tenant that no units are available, then rents the same unit to a white applicant the next day. This conduct is best described as:

  1. Blockbusting
  2. A discriminatory refusal to rent Correct answer.
  3. Redlining
  4. Steering

Explanation

Misrepresenting availability to a member of a protected class while renting to others is a discriminatory refusal to rent or make a dwelling available. Blockbusting involves inducing panic sales, steering involves directing customers to certain areas, and redlining involves denying services based on neighborhood composition.

Question 33Fair Housing

A practice in which an agent tries to persuade homeowners to sell quickly by warning that members of a minority group are moving into the neighborhood is known as:

  1. Blockbusting Correct answer.
  2. Redlining
  3. Reverse discrimination
  4. Steering

Explanation

Blockbusting (also called panic selling) is the practice of inducing homeowners to list or sell by predicting that the entry of protected-class members will lower property values or change the neighborhood. It is prohibited under the Fair Housing Act.

Question 34Fair Housing

A lender refuses to make mortgage loans on homes located in certain older urban neighborhoods, regardless of the individual applicant's qualifications. This practice is:

  1. Lawful because it is based on property location
  2. Steering and permitted with written notice
  3. Permissible if the lender discloses the policy
  4. Redlining and prohibited Correct answer.

Explanation

Redlining is the practice of denying or limiting loans, insurance, or other services based on the racial or ethnic composition of a neighborhood rather than on an individual applicant's qualifications. It is prohibited under the Fair Housing Act. Disclosing the policy does not make it lawful.

Question 35Fair Housing

Which federal law first prohibited discrimination in the sale and rental of housing based on race, color, religion, or national origin?

  1. Equal Credit Opportunity Act
  2. Americans with Disabilities Act
  3. Fair Housing Act of 1968 Correct answer.
  4. Civil Rights Act of 1866

Explanation

Title VIII of the Civil Rights Act of 1968, known as the Fair Housing Act, first banned discrimination in the sale and rental of housing on the basis of race, color, religion, and national origin. Sex was added shortly after, and disability and familial status were added in 1988.

Question 36Fair Housing

Under the federal Fair Housing Act, familial status protection generally covers:

  1. Households with one or more children under 18 living with a parent or legal custodian, plus pregnant women Correct answer.
  2. Only married couples with children
  3. Single adults without children
  4. Anyone over the age of 55

Explanation

Familial status protects households with children under 18 living with a parent, legal custodian, or designee, and also protects pregnant women and those securing custody of a child. Housing qualifying as senior housing under the Act is exempt from this protection.

Question 37Fair Housing

An apartment complex qualifies as housing for older persons under the Fair Housing Act's 55-and-over exemption. As a result, the complex may:

  1. Refuse to rent to members of a particular religion
  2. Refuse to rent to persons with disabilities
  3. Refuse to rent to households with children under 18 Correct answer.
  4. Charge different deposits based on race

Explanation

Housing that qualifies as housing for older persons is exempt from the familial status provisions, so it may lawfully exclude households with children under 18. The exemption does not permit discrimination based on race, religion, disability, or any other protected class.

Question 38Fair Housing

Under the Fair Housing Act, a person with a disability may request which of the following from a housing provider?

  1. A reduced rent based on disability income
  2. A waiver of the security deposit
  3. A reasonable accommodation in rules, policies, or practices Correct answer.
  4. Removal of all other tenants from the building

Explanation

The Fair Housing Act requires housing providers to make reasonable accommodations in rules, policies, practices, or services when necessary to give a person with a disability equal opportunity to use and enjoy the dwelling. Examples include a service-animal exception to a no-pet policy or an assigned parking space.

Question 39Fair Housing

A tenant who uses a wheelchair asks the landlord for permission to install grab bars in the bathroom at the tenant's own expense. Under the Fair Housing Act, the landlord generally must:

  1. Require the tenant to move to a ground-floor unit instead
  2. Deny the request because it alters the unit
  3. Permit the modification only if the landlord pays for it
  4. Permit the modification, and the tenant may be required to restore the unit to its original condition Correct answer.

Explanation

The Act permits a person with a disability to make reasonable modifications to a dwelling at the tenant's expense when necessary for full enjoyment. For rentals, the landlord may condition permission on a reasonable agreement to restore the premises to their original condition, with limited exceptions.

Question 40Fair Housing

A real estate agent's advertisement states: 'Quiet building-perfect for adults; no children please.' This advertisement:

  1. Is permitted if the owner approves the wording
  2. Is lawful because it describes the building's character
  3. Is lawful if the building is a condominium
  4. Violates the Fair Housing Act's prohibition on discriminatory advertising Correct answer.

Explanation

The Fair Housing Act prohibits discriminatory notices or statements in advertising that indicate a preference, limitation, or discrimination based on a protected class, including familial status. A blanket 'no children' statement is unlawful unless the property qualifies for a valid senior-housing exemption.

Question 41Fair Housing

Under the Fair Housing Act, the use of the phrase 'no Section 8' in a rental advertisement is:

  1. Permitted if placed only online
  2. Unlawful where it operates to discriminate on a protected basis Correct answer.
  3. Required to disclose voucher acceptance
  4. Acceptable because it concerns payment source

Explanation

Advertising that a property will not accept housing vouchers can operate as unlawful discrimination because voucher holders are disproportionately members of protected classes, and New York law expressly prohibits source-of-income discrimination. Fair housing advertising rules bar statements indicating exclusion of protected groups.

Question 42Fair Housing

A broker is asked by a seller to 'only bring buyers who would fit in with the neighborhood.' The broker should:

  1. Comply because the seller is the client
  2. Refuse the instruction and explain that it violates fair housing law Correct answer.
  3. Ask the seller to put the instruction in writing
  4. Comply but document the seller's request

Explanation

A broker may not follow a client's instruction to screen buyers based on protected characteristics, even at the client's direction. The broker should refuse, explain the legal obligation, and may need to terminate the representation if the client insists. Documentation does not cure the discriminatory conduct.

Question 43Fair Housing

Under the Fair Housing Act, a real estate broker may be held liable for discriminatory conduct by an independent contractor salesperson affiliated with the brokerage because:

  1. Only the property owner can be liable
  2. Liability requires a criminal conviction
  3. The Act imposes liability on the employer or principal for the acts of agents and employees Correct answer.
  4. Independent contractors are never liable under the Act

Explanation

The Fair Housing Act defines liability to include the acts of agents and employees, and courts have held principals liable for discriminatory conduct by those acting on their behalf, including independent contractors in many circumstances. Brokers should therefore train and supervise all affiliated licensees.

Question 44Fair Housing

After a fair housing complaint is filed, the U.S. Department of Housing and Urban Development (HUD) generally must investigate and determine whether reasonable cause exists within what time period?

  1. 30 days
  2. One year
  3. 10 days
  4. 100 days Correct answer.

Explanation

Under the Fair Housing Act, HUD must, where practicable, complete its investigation and issue a determination of reasonable cause or no reasonable cause within 100 days after the complaint is filed. The deadline may be extended in limited circumstances.

Question 45Fair Housing

A person who believes they have been the victim of housing discrimination under the federal Fair Housing Act generally must file an administrative complaint with HUD within:

  1. Six months of the discriminatory act
  2. 30 days of the discriminatory act
  3. Three years of the discriminatory act
  4. One year of the discriminatory act Correct answer.

Explanation

A fair housing complaint must be filed with HUD within one year of the alleged discriminatory practice. A private civil lawsuit under the Act generally must be filed within two years.

Question 46Fair Housing

Which of the following is an example of unlawful steering?

  1. Showing a Hispanic family only homes in neighborhoods with a large Hispanic population Correct answer.
  2. Recommending a buyer speak with a mortgage lender
  3. Providing a list of all homes within the buyer's price range
  4. Showing all available listings to every prospective buyer

Explanation

Steering occurs when an agent guides clients toward or away from neighborhoods based on protected characteristics such as race or national origin, rather than on the client's stated needs and preferences. Uniformly showing all listings or providing complete price-based lists is lawful.

Question 47Fair Housing

A housing provider's policy of refusing to rent to any applicant with a mental health disability is:

  1. Permissible if the policy is applied to all applicants with disabilities
  2. Lawful if the provider believes the tenant may be a risk
  3. Unlawful discrimination based on disability Correct answer.
  4. Allowed if the provider obtains a physician's note

Explanation

The Fair Housing Act prohibits discrimination on the basis of disability, including blanket refusals to rent to persons with mental health conditions. Generalized assumptions about risk are not a lawful basis for exclusion; individualized assessment is required.

Question 48Fair Housing

Under the Fair Housing Act, 'discriminatory terms and conditions' refers to:

  1. Negotiating lease terms with individual tenants
  2. Applying different rents, deposits, or privileges to different tenants based on a protected class Correct answer.
  3. Requiring renters insurance of all tenants
  4. Charging a pet deposit to all pet owners

Explanation

It is unlawful to impose different terms, conditions, or privileges on a rental or sale-such as different rents, deposits, or renewal rights-because of a person's protected class. Neutral policies applied uniformly to all tenants are lawful.

Question 49Fair Housing

A broker refuses to represent a buyer because the buyer is a practicing Muslim. Which protected class under the Fair Housing Act is implicated?

  1. Color
  2. Religion Correct answer.
  3. Familial status
  4. National origin

Explanation

Religion is one of the Fair Housing Act's protected classes, and refusing brokerage services because of a buyer's faith is unlawful religious discrimination. National origin concerns country of origin, familial status concerns households with children, and color concerns skin color.

Question 50Fair Housing

A landlord's no-pet policy would otherwise bar a tenant from keeping a dog. The tenant has a disability and uses a trained service dog. The landlord must generally:

  1. Charge a pet deposit equal to that for other animals
  2. Grant a reasonable accommodation and permit the service animal Correct answer.
  3. Enforce the no-pet policy because it applies to everyone
  4. Require the tenant to provide a fee before allowing the animal

Explanation

A service animal used by a person with a disability is not a pet, and a landlord must generally grant a reasonable accommodation to a no-pet policy. The landlord may not charge pet fees or pet deposits for a service animal, though the tenant remains responsible for any damage caused.