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NY Real Estate practice questions

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Question 1Real Estate Principles and Practices

A homeowner is preparing to sell. Which of these items is part of the real property and normally stays with the house?

  1. A set of area rugs in the living room
  2. A built-in dishwasher Correct answer.
  3. A portable window air-conditioning unit
  4. A refrigerator plugged into a wall outlet

Explanation

A fixture is personal property that has been attached to the land or building so permanently that it becomes part of the realty. A built-in dishwasher is set into cabinetry and plumbed in, so it ordinarily passes with the sale unless the contract excludes it.

Question 2Real Estate Principles and Practices

A seller signs a listing agreement under which the broker is owed a commission no matter who finds the buyer, even if the seller finds the buyer personally. Which type of listing is this?

  1. Exclusive right to sell listing Correct answer.
  2. Exclusive agency listing
  3. Net listing
  4. Open listing

Explanation

An exclusive right to sell entitles the broker to a commission regardless of who procures the buyer, including the owner. An exclusive agency listing leaves the owner free to sell without paying, and an open listing pays only the broker who produces the buyer.

Question 3Real Estate Principles and Practices

Which fiduciary duty requires an agent to place the principal's interests above the agent's own interests?

  1. Loyalty Correct answer.
  2. Reasonable care
  3. Accounting
  4. Confidentiality

Explanation

Loyalty is the fiduciary duty that obligates the agent to put the principal first and to avoid self-dealing or undisclosed profit. Accounting, care and confidentiality are separate duties governing recordkeeping, diligence and information.

Question 4Real Estate Principles and Practices

A grantor conveys property with a deed that contains no title covenants and transfers whatever interest the grantor may hold. Which deed is this?

  1. Bargain and sale deed
  2. Full covenant and warranty deed
  3. Quitclaim deed Correct answer.
  4. Executor's deed

Explanation

A quitclaim deed releases the grantor's interest, if any, without promising that title is good or that the grantor owns anything. Warranty deeds instead contain covenants such as seisin, quiet enjoyment and warranty forever.

Question 5Real Estate Principles and Practices

A buyer gives a broker a $10,000 deposit with an offer that the seller later accepts. How should the broker hold the money?

  1. Deliver it to the seller at signing
  2. Deposit it in the firm's operating account
  3. Credit it against the broker's commission
  4. Place it in a dedicated escrow account Correct answer.

Explanation

Earnest money belongs to the parties to the transaction and must be held in a trust or escrow account separate from the broker's own funds until closing or another disposition the contract provides. Mixing client money with firm money is prohibited commingling.

Question 6Real Estate Principles and Practices

Which of these is a protected class under the federal Fair Housing Act?

  1. Marital status
  2. Source of income
  3. Familial status Correct answer.
  4. Age

Explanation

The federal Fair Housing Act bars discrimination based on race, color, religion, sex, national origin, familial status and disability. Age, marital status and source of income are protected under New York law but are not federal protected classes.

Question 7Real Estate Principles and Practices

Two investors take title as joint tenants with right of survivorship. When one of them dies, what happens to that owner's share?

  1. It is divided among the co-owners by contribution
  2. It passes to the surviving joint tenant Correct answer.
  3. It escheats to the state absent a will
  4. It passes to the deceased owner's heirs by intestacy

Explanation

The defining feature of a joint tenancy is the right of survivorship: on the death of one joint tenant, the share passes automatically to the surviving joint tenants outside probate. A will or the intestacy rules do not control that share.

Question 8Real Estate Principles and Practices

A person holds a New York real estate salesperson license. To represent clients in a transaction, that licensee must do what?

  1. Open an office under the salesperson's own name
  2. Register a company with the Department of State
  3. Post a fiduciary bond with the state
  4. Work under a supervising licensed broker Correct answer.

Explanation

A New York salesperson license must be associated with a licensed broker who supervises the licensee's activities. A salesperson cannot practice independently or collect commissions directly from clients.

Question 9Real Estate Principles and Practices

Under the statute of frauds, what is required for a contract for the sale of real property to be enforceable?

  1. Notarization by a licensed notary public
  2. Recording in the county clerk's office within thirty days
  3. Written approval from both brokers involved
  4. A writing signed by the party charged Correct answer.

Explanation

The statute of frauds requires a writing signed by the party against whom enforcement is sought, containing the essential terms of parties, property and price. Notarization and recording affect proof and priority, not whether the contract binds the parties.

Question 10Real Estate Principles and Practices

A purchase contract contains a mortgage contingency with a stated deadline. The buyer applies diligently but cannot obtain financing by that date. What is the usual result?

  1. The seller keeps the deposit as liquidated damages
  2. The contract converts into an all-cash sale
  3. The contingency extends until financing is approved
  4. The buyer may cancel and recover the deposit Correct answer.

Explanation

A mortgage contingency makes the buyer's performance conditional on obtaining financing by the stated date; if the buyer makes a good-faith effort and fails, the buyer may cancel and the deposit is returned. The seller cannot compel a closing the buyer never agreed to finance.

Question 11Real Estate Principles and Practices

At a showing, a seller says, 'This is the nicest block in the whole neighborhood.' How should that statement be classified?

  1. Puffing, which is not actionable Correct answer.
  2. Fraudulent concealment of a material fact
  3. An innocent misrepresentation of material fact
  4. A latent defect requiring disclosure

Explanation

Statements of opinion, often called puffing, are not representations of fact and generally cannot support a misrepresentation claim. Only misstatements or concealments of material fact create liability.

Question 12Real Estate Principles and Practices

A neighbor has crossed another owner's land along a visible path openly and continuously for the statutory period without permission. The use may ripen into which interest?

  1. A prescriptive covenant
  2. A license revocable at will
  3. An easement by necessity
  4. An easement by prescription Correct answer.

Explanation

Open, notorious, continuous and hostile use of another's land for the statutory period can create an easement by prescription, much like adverse possession creates title. Permission defeats the hostility element and prevents the easement from arising.

Question 13Real Estate Principles and Practices

A property carries an unpaid real property tax bill and two recorded mortgages. In a foreclosure of the first mortgage, how does the tax lien rank?

  1. It is junior to the first mortgage but senior to the second
  2. It takes priority over the mortgages regardless of recording dates Correct answer.
  3. It is wiped out by the foreclosure of the first mortgage
  4. It shares equally with the first mortgage on a pro rata basis

Explanation

Real property tax liens generally outrank private liens such as mortgages, even mortgages recorded earlier. A tax foreclosure can therefore eliminate a mortgage lien on the same parcel.

Question 14Real Estate Principles and Practices

An owner sells to a buyer who never records the deed, then sells the same property to a second buyer who has no notice of the first sale and records at once. New York's recording statute generally protects whom?

  1. The second buyer, because that buyer recorded first without notice Correct answer.
  2. Neither buyer, because the first deed was never notarized
  3. The first buyer, because the first conveyance in time always prevails
  4. The original owner, because the second deed is void

Explanation

New York uses a race-notice recording statute: a later purchaser who takes without notice of a prior unrecorded interest and records first prevails. The first buyer's failure to record let the second conveyance take priority.

Question 15Real Estate Principles and Practices

What does a purchaser of a cooperative apartment in New York actually acquire?

  1. A proprietary lease and shares of stock in the cooperative corporation Correct answer.
  2. A life estate in the unit with the remainder to the corporation
  3. A deed to the unit plus an undivided interest in the common areas
  4. A long-term ground lease from the cooperative's sponsor

Explanation

A cooperative is owned by a corporation; the purchaser buys the shares allocated to a unit and receives a proprietary lease granting the right to occupy it. Condominium ownership, in contrast, is evidenced by a deed to the unit.

Question 16Real Estate Principles and Practices

A landlord rents out a house built in 1965. What does federal law require the landlord to give the tenant?

  1. A lead paint disclosure and EPA pamphlet Correct answer.
  2. A radon test result before signing the lease
  3. An energy efficiency rating for the home
  4. A copy of the building's certificate of occupancy

Explanation

Federal law requires sellers and landlords of housing built before 1978 to disclose known lead-based paint hazards and provide the EPA pamphlet, along with a period to test. The rule targets pre-1978 housing because residential lead paint was banned in 1978.

Question 17Real Estate Principles and Practices

A buyer submits a completed mortgage application to a lender. Under federal integrated disclosure rules, when must the lender deliver the Loan Estimate?

  1. Within seven business days
  2. Within ten business days
  3. Within three business days Correct answer.
  4. Within thirty business days

Explanation

The TILA-RESPA integrated disclosure rules require the Loan Estimate within three business days after the lender receives the application. The Closing Disclosure must then reach the borrower at least three business days before consummation.

Question 18Real Estate Principles and Practices

A broker works with a buyer for months, shows the property and negotiates the price, but the buyer closes through a different firm. The original broker's commission claim rests most directly on which theory?

  1. Estoppel by deed
  2. Subrogation
  3. Procuring cause Correct answer.
  4. Novation

Explanation

The broker whose efforts are the procuring cause of the sale, meaning those efforts set the transaction in motion and produced a ready, willing and able buyer, is typically entitled to the commission. Procuring cause is a question of fact based on the broker's substantial involvement.

Question 19Real Estate Principles and Practices

One broker is engaged by both the seller and the buyer in the same transaction. What does New York law require of that broker?

  1. The broker must obtain informed written consent from both parties Correct answer.
  2. The broker must split the commission evenly between the clients
  3. The broker must refer one party to another firm and split the fee
  4. The broker must withdraw from the transaction entirely

Explanation

Dual agency is permitted in New York only with the informed consent of all parties, confirmed in writing after disclosure of the conflicts involved. Without that consent the broker may not act for both sides.

Question 20Real Estate Principles and Practices

In New York, a buyer and seller each sign a written offer to purchase a home, but no formal contract of sale has been signed. What is the legal status at that point?

  1. No binding contract exists; either party may withdraw Correct answer.
  2. A binding contract exists because price and terms were accepted
  3. The seller is bound but the buyer may walk away freely
  4. The buyer is bound but the seller may keep marketing the home

Explanation

Under New York practice an offer to purchase or binder is generally not an enforceable contract for real property; a formal written contract of sale, often subject to attorney review, is required. Until that contract is signed, either party may withdraw.

Question 21Real Estate Principles and Practices

In a Section 1031 like-kind exchange, an investor trades a rental property worth $500,000 for replacement property worth $450,000 and receives $50,000 in cash. How is that cash treated for tax purposes?

  1. It is boot and is taxable to the extent of realized gain Correct answer.
  2. It is a tax-free return of capital in all cases
  3. It is taxable only if the investor is a dealer in real estate
  4. It is fully tax-deferred because the exchange qualifies

Explanation

Full deferral requires that all equity be reinvested in the replacement property. Cash or other non-like-kind property received is boot, which is recognized as gain to the extent of gain realized on the exchange.

Question 22Real Estate Principles and Practices

A first mortgagee signs an agreement permitting a new lender's mortgage to take priority over its existing lien. This arrangement is known as what?

  1. A mortgage novation
  2. A subordination agreement Correct answer.
  3. An assignment of mortgage
  4. A satisfaction of mortgage

Explanation

A subordination agreement alters lien priority by contract, making the senior lender junior to a specified lien. Without it, priority would follow recording order under the recording statute.

Question 23Real Estate Principles and Practices

A homeowner wants to operate a business from the house in a district zoned for residential use only. Which form of zoning relief asks the board to permit that specific use on a showing of hardship?

  1. A use variance Correct answer.
  2. An amendment to the comprehensive plan
  3. A special permit for a home occupation
  4. A nonconforming use designation

Explanation

A use variance authorizes a use the ordinance does not permit in that district, upon a showing of unnecessary hardship. A nonconforming use protects a use that lawfully existed before the zoning change, and a special permit covers uses the ordinance already lists as permitted with conditions.

Question 24Real Estate Principles and Practices

A defaulting borrower transfers title to the lender by a deed in lieu of foreclosure. What is the primary legal effect?

  1. The borrower keeps a statutory right of redemption for one year
  2. The lender takes title, but junior liens may survive Correct answer.
  3. The lender must still complete a foreclosure sale to take title
  4. All junior liens are automatically wiped out

Explanation

A deed in lieu conveys the property to the lender and avoids a foreclosure action, but unlike foreclosure it does not cut off junior liens or other interests, which can cloud the lender's title. Lenders therefore often require lien releases or subordination before accepting one.

Question 25Real Estate Principles and Practices

A first mortgage is being foreclosed and a second mortgage on the same property was recorded after the first. What is the effect of that foreclosure on the second mortgage?

  1. It survives because it remains a lien on the property
  2. All liens are extinguished and the lenders become unsecured creditors
  3. It survives unless it was recorded before the complaint was filed
  4. It is extinguished, but a senior lien would survive Correct answer.

Explanation

Foreclosure cuts off interests junior to the foreclosing mortgage, so a later-recorded second mortgage is eliminated and its holder must look to any surplus proceeds. Liens senior to the foreclosing mortgage are unaffected and remain on the property after the sale.

Question 26Real Estate Principles and Practices

A seller lists a home under an exclusive right-to-sell listing. During the listing term the seller finds a ready, willing, and able buyer on his own and closes the sale. What is the listing broker entitled to?

  1. Only reimbursement of advertising expenses
  2. A commission split evenly with the seller
  3. Nothing, because the broker did not procure the buyer
  4. The full commission stated in the listing Correct answer.

Explanation

Under an exclusive right-to-sell listing, the broker earns the agreed commission no matter who produces the buyer, including the owner. The owner gives up the right to sell the property commission-free during the listing period. Only an exclusive agency or open listing would let the owner avoid paying when the owner personally finds the buyer.

Question 27Real Estate Principles and Practices

A restaurant tenant bolts a heavy walk-in freezer to the floor of the leased space for use in the business. When the lease ends, how is the freezer properly classified?

  1. A permanent improvement that vests in the landlord
  2. A fixture that passes with the realty automatically
  3. A trade fixture that the tenant may remove Correct answer.
  4. An easement appurtenant to the leasehold

Explanation

Items attached for a commercial or business purpose rather than to improve the realty are trade fixtures. A tenant may remove trade fixtures at the end of the lease as long as the removal does not cause material damage to the premises. Ordinary residential fixtures, by contrast, become part of the real property.

Question 28Real Estate Principles and Practices

Which form of deed transfers whatever interest the grantor may hold without making any covenants or warranties to the grantee?

  1. Bargain and sale deed with covenants
  2. General warranty deed
  3. Full covenant and warranty deed
  4. Quitclaim deed Correct answer.

Explanation

A quitclaim deed contains no promise that the grantor owns anything or that title is marketable; it merely releases the grantor's interest, if any. Warranty deeds, by contrast, contain promises of title and quiet enjoyment. Because it offers no protection, a quitclaim deed is rarely used in ordinary residential sales.

Question 29Real Estate Principles and Practices

A deed describes the property as 'Lot 14, Block 3, as shown on the filed map of Maple Ridge in the county clerk's office.' Which method of legal description is being used?

  1. Government rectangular survey
  2. Lot and block Correct answer.
  3. Metes and bounds
  4. Monument method

Explanation

The lot and block system identifies parcels by reference to a subdivision plat recorded in the public records. It is the most common description used for platted residential subdivisions. Metes and bounds and the government survey system describe land by measurements and reference points instead.

Question 30Real Estate Principles and Practices

A broker engaged by a seller learns that the buyer would gladly pay far more than the asking price. The broker conceals this from the seller and urges the buyer to offer low. Which fiduciary duty has the broker breached?

  1. Confidentiality
  2. Reasonable care
  3. Accounting
  4. Loyalty Correct answer.

Explanation

Loyalty obligates the agent to put the principal's interests first and to disclose all material facts that affect the principal's decisions. Withholding information that would raise the seller's price is a direct betrayal of that duty. It can also expose the broker to license discipline and loss of commission.

Question 31Real Estate Principles and Practices

A recorded right-of-way crosses a neighboring parcel and benefits the owner of a nearby lot. That owner sells and conveys the benefited lot. What happens to the right-of-way?

  1. It passes with the benefited parcel automatically Correct answer.
  2. It becomes an easement in gross held by the seller personally
  3. It converts into a revocable license held by the burdened owner
  4. It is extinguished unless it is mentioned in the deed

Explanation

An easement appurtenant attaches to the benefited (dominant) parcel and runs with the land. When the dominant parcel is conveyed, the easement passes to the new owner even if the deed is silent. Easements in gross, by contrast, are personal to their holder and do not automatically transfer with the land.

Question 32Real Estate Principles and Practices

A commercial tenant transfers the entire remaining lease term to another business, and the lease says nothing about transfers. How does the new party stand in relation to the landlord?

  1. A licensee whose rights end at the landlord's discretion
  2. Directly liable to the landlord for rent Correct answer.
  3. A subtenant with no direct obligation to the landlord
  4. Liable only if the original tenant defaults and disappears

Explanation

A transfer of the whole remaining term is an assignment, which creates privity of estate between the assignee and the landlord. That privity makes the assignee directly responsible for rent and lease covenants while the assignee holds the term. The original tenant also usually remains liable through privity of contract.

Question 33Real Estate Principles and Practices

A buyer purchases a home for cash with no mortgage and buys an owner's title insurance policy. How long does that policy protect the insured?

  1. Only until the deed is recorded
  2. Until the first mortgage is repaid in full
  3. For the lesser of ten years or the owner's occupancy
  4. Indefinitely, while the insured retains title Correct answer.

Explanation

An owner's title policy remains effective for as long as the insured owner, or the insured's heirs, keeps an interest in the property. A lender's policy, by contrast, shrinks as the loan balance is paid down and ends when the loan is satisfied. The owner's premium is paid once at closing and covers future claims.

Question 34Real Estate Principles and Practices

A mortgage contains a due-on-sale clause, and the borrower deeds the property to a relative without the lender's consent. What is the lender's usual remedy under that clause?

  1. Foreclose only if payments are late
  2. Declare the entire balance immediately due Correct answer.
  3. Void the transfer and retake title
  4. Increase the interest rate retroactively

Explanation

A due-on-sale clause lets the lender accelerate the debt when title transfers without consent, making the whole balance payable at once. If the borrower cannot pay, the lender may then foreclose. The clause protects the lender from having its loan assumed by an unqualified borrower.

Question 35Real Estate Principles and Practices

A buyer submits a written offer. The seller responds in writing with a different purchase price and sends it back to the buyer. What is the effect on the buyer's original offer?

  1. It remains open for acceptance for a reasonable time
  2. It becomes an option contract held by the seller
  3. It is rejected and terminated by the counteroffer Correct answer.
  4. It merges into the counteroffer and survives it

Explanation

A counteroffer operates as a rejection of the original offer and simultaneously creates a new offer. Once rejected, the original offer cannot later be accepted unless the offeror revives it. This is why a buyer who receives a counter must accept the new terms or make another counteroffer.

Question 36Real Estate Principles and Practices

A New York broker receives a buyer's deposit check on a deal that has not yet closed. What is the proper handling of those funds?

  1. Apply them to the broker's commission before closing
  2. Deliver them to the seller at once, since they are the seller's money
  3. Hold them in a separate escrow account Correct answer.
  4. Deposit them in the firm's general operating account

Explanation

Deposit money belonging to others must be kept in a separate escrow or trust account and may not be mixed with the broker's own funds. Mixing them is called commingling and violates New York license law. The broker must also account for the funds and disburse them only as the contract directs.

Question 37Real Estate Principles and Practices

A city takes a strip of private land to widen a public road, and the owner objects. What must the city do to complete the taking?

  1. Record a lien against the remaining parcel
  2. Show that the owner's use was a nonconforming use
  3. Pay just compensation for the property taken Correct answer.
  4. Obtain a variance from the zoning board

Explanation

Eminent domain lets government take private property for a public purpose, but the constitutions require payment of just compensation. The taking need not be agreed to by the owner, and the owner may challenge the amount of compensation. Zoning approvals are irrelevant to the exercise of the power of eminent domain.

Question 38Real Estate Principles and Practices

A factory operated lawfully for years before the surrounding district was rezoned for residential use. The factory keeps running. How is its status best described?

  1. It is a legal nonconforming use that may continue Correct answer.
  2. It becomes a conditional use requiring annual renewal
  3. It must close immediately because the ordinance prohibits industrial use
  4. It may expand at any time because the use predates the ordinance

Explanation

Zoning generally may not force an existing lawful use to shut down, so the use is recognized as a legal nonconforming use. Such a use may continue but cannot normally be enlarged, rebuilt after substantial destruction, or resumed after being abandoned. This protection is often called amortization-free grandfathering, subject to local rules.

Question 39Real Estate Principles and Practices

A landlord rents a residential apartment in New York under a standard lease. What is the maximum security deposit the landlord may collect from the tenant?

  1. Two months' rent
  2. Three months' rent when the tenant keeps a pet
  3. One month's rent Correct answer.
  4. Any amount the parties agree to in writing

Explanation

New York law limits a residential security deposit to one month's rent, regardless of what the lease says. The deposit must be held in a trust account and, in buildings with six or more units, earns interest for the tenant. A provision demanding more is unenforceable.

Question 40Real Estate Principles and Practices

An apartment complex sets a written policy that at least one member of every household must be 55 or older, and it meets the federal occupancy and verification standards. How does the federal Fair Housing Act treat this policy?

  1. It is unlawful because it discriminates on the basis of age
  2. It qualifies for the housing for older persons exemption Correct answer.
  3. It is lawful only if no children ever reside there
  4. It is lawful only if the complex receives no federal funds

Explanation

The Fair Housing Act's familial status protection does not apply to housing operated for older persons that satisfies the statutory requirements. Among other things, at least 80 percent of occupied units must house someone 55 or older, the housing must publish and follow policies showing that intent, and it must verify compliance. Housing that fails these tests may not exclude families with children.

Question 41New York Real Estate Law and Regulations

Under New York's agency disclosure law, when must a real estate licensee give a prospective buyer a written agency disclosure form in a residential transaction?

  1. Only after the buyer submits a written offer
  2. Only at the signing of the contract of sale
  3. Within three business days after the listing is taken
  4. At the first substantive contact, before any agreement is signed Correct answer.

Explanation

Real Property Law section 443 requires the written disclosure to be presented at the first substantive contact with a prospective buyer or tenant and to be signed by the parties before they enter any agreement. The purpose is to make the consumer aware of whom the licensee represents before confidential information is shared.

Question 42New York Real Estate Law and Regulations

A New York real estate salesperson may lawfully receive compensation for brokerage services from which source?

  1. Only the sponsoring broker Correct answer.
  2. The Division of Licensing Services
  3. Any party to the transaction who agrees to pay it
  4. A cooperating broker named in the multiple listing service

Explanation

A salesperson's license is held under a sponsoring broker, and every commission earned by the salesperson belongs to that broker, who then pays the salesperson. Paying a salesperson directly by a client or another broker is prohibited.

Question 43New York Real Estate Law and Regulations

After a residential tenant vacates and returns the keys, within what period must a New York landlord return the security deposit or provide an itemized statement of deductions?

  1. 60 days after the lease expires
  2. 14 days after the tenant vacates Correct answer.
  3. 10 days after the landlord's inspection
  4. 30 days after the tenant vacates

Explanation

General Obligations Law section 7-108 requires the landlord to refund the deposit or furnish an itemized statement of deductions within 14 days after the tenant vacates the premises. Failure to comply can result in forfeiture of the right to retain any part of the deposit.

Question 44New York Real Estate Law and Regulations

New York's Property Condition Disclosure Act applies to the sale of which type of property?

  1. Cooperative apartments sold by a shareholder
  2. All commercial and residential property
  3. Vacant land of more than five acres
  4. One-to-four family residential dwellings, subject to limited exemptions Correct answer.

Explanation

The statute covers residential sales of one-to-four family dwellings and requires the seller to deliver a completed disclosure statement to the buyer. Certain transfers, such as court-ordered sales and transfers between co-tenants, are expressly exempt.

Question 45New York Real Estate Law and Regulations

The federal lead-based paint disclosure requirements apply to the sale or rental of target housing constructed before which year?

  1. 1950
  2. 1978 Correct answer.
  3. 1985
  4. 1960

Explanation

The Residential Lead-Based Paint Hazard Reduction Act requires disclosure and an opportunity to test in housing built before 1978, when lead paint was banned for residential use. Sellers and landlords must provide the EPA pamphlet and any known reports.

Question 46New York Real Estate Law and Regulations

New York's recording statute protects a later purchaser who records first only if that purchaser also did what at the time of purchase?

  1. Obtained a survey before recording the deed
  2. Occupied the property within thirty days
  3. Paid all transfer taxes at closing
  4. Took title without notice of the prior unrecorded interest Correct answer.

Explanation

New York follows the race-notice rule: the subsequent purchaser prevails over an earlier unrecorded interest only if the purchaser records first and took without notice, whether actual, inquiry, or record notice. A purchaser who records first but knew of the prior interest does not prevail.

Question 47New York Real Estate Law and Regulations

Under an exclusive right to sell listing, the listing broker is entitled to a commission when which event occurs?

  1. The broker is the procuring cause of the sale only
  2. The listing expires without a sale
  3. The property is sold by anyone during the listing term Correct answer.
  4. The owner personally procures the buyer

Explanation

An exclusive right to sell entitles the broker to a commission if the property sells during the listing period, regardless of who produced the buyer, including the owner. This is what distinguishes it from an exclusive agency listing.

Question 48New York Real Estate Law and Regulations

A contract for the sale of real property in New York is enforceable only if it is what?

  1. Recorded in the county clerk's office
  2. Acknowledged before a notary
  3. In writing and signed by the party to be charged Correct answer.
  4. Approved by the Attorney General

Explanation

The statute of frauds in General Obligations Law section 5-703 requires real property contracts to be in writing and subscribed by the party to be charged. Notarization and recording affect enforceability against third parties, not formation between the parties.

Question 49New York Real Estate Law and Regulations

Broker Alvarez represents the seller and now wishes to represent the buyer in the same transaction. To act as a dual agent, Alvarez must first obtain what?

  1. The informed written consent of both parties after full disclosure Correct answer.
  2. Approval from the local board of realtors
  3. Verbal permission from the seller at the listing presentation
  4. A separate listing agreement signed by the buyer

Explanation

Dual agency is permitted in New York only with the informed consent of both parties, documented in writing, after the broker explains the limits on the broker's duties to each. Without that consent, the broker must decline one side of the transaction.

Question 50New York Real Estate Law and Regulations

New York real estate licensees must complete how many hours of approved continuing education during each two-year license term?

  1. 22.5 hours Correct answer.
  2. 30 hours
  3. 45 hours
  4. 15 hours

Explanation

The Department of State requires 22.5 hours of continuing education every two years, including mandated hours in specific subjects such as agency, fair housing, and ethical business practices. Completion must be documented before renewal.