Chapter 1.

Question 1

Administrative Discipline

Answer 1

The Department of State’s ability to enforce license laws through reprimand and denial as well as the suspension and revocation of licenses.

Question 2

Apartment Information Vendor

Answer 2

Any person who engages in the business of claiming, demanding, charging, receiving, collecting, or contracting for the collection of, a fee from a customer for furnishing information concerning the location and availability of real property, including apartment housing, which may be leased, rented, shared or sublet as a private dwelling, abode, or place of residence.

Question 3

Apartment Sharing Agent

Answer 3

Any person who, for a fee, arranges, conducts, coordinates, handles or causes meetings between a customer and the current owner or occupant of legally occupied real property, including apartment housing, who wishes to share that housing with one or more individuals.

Question 4

Article 12-A

Answer 4

The section of the New York Real Property Law pertaining to real estate salespersons and brokers.

Question 5

Article 78 Proceeding

Answer 5

An appeal brought forth because of a ruling by a government agency.

Question 6

Associate Real Estate Broker

Answer 6

A licensed real estate broker who by choice elects to work under the name and supervision of another real estate broker.

Question 7

Blind Ad

Answer 7

An ad that remains anonymous as to who is advertising. Blind ads are illegal.

Question 8

Change of Association

Answer 8

The process by which a salesperson’s license changes sponsorship.

Question 9

Commingling

Answer 9

To mingle or mix, for example, a client’s funds in the broker’s personal or general account.

Question 10

Continuing Education

Answer 10

Post license education required by salespersons and brokers. New York State demands 22.5 hours of continuing education.

Question 11

Escrow

Answer 11

A written agreement between two or more parties providing that certain instruments or property be placed with a third party to be delivered to a designated person upon the fulfillment or performance of some act or condition.

Question 12

Exemption

Answer 12

Conditions under which a property condition disclosure statement is not required.

Question 13

Home Inspection

Answer 13

An examination of a real estate property’s condition, usually performed in connection with the property’s sale. A qualified home inspector can assess the condition of a property’s roof, foundation, heating and cooling systems, plumbing, electrical work, water and sewage, and some fire and safety issues. In addition, the home inspector will look for evidence of insect, water or fire damage or any other issue that may affect the value of the property.

Question 14

Irrevocable Consent

Answer 14

Incapable of being recalled or revoked; unchangeable; unalterable.

Question 15

Kickback

Answer 15

Payment by a broker of any part of compensation to a real estate transaction to anyone who is not licensed or who is not exempt from the license law

Question 16

Listing Agreement

Answer 16

An employment contract between principal and agent, authorizing the agent to perform services for the principal involving the latter’s property.

Question 17

Misdemeanor

Answer 17

A crime punishable by up to a year in prison and/or a $1,000 fine.

Question 18

Multiple Listing Service (MLS)

Answer 18

A service provided by a group of real estate brokers. They band together to create a Multiple Listing Service that allows each of them to list each other’s houses. Under this arrangement, the listing broker and the selling broker split the commission for each sale.

Question 19

Net Listing

Answer 19

A price below which an owner will not sell the property, and at which price a broker will not receive a commission; the broker receives the excess over and above the net listing as the broker’s commission.

Question 20

Pocket Card

Answer 20

A card issued by the Department of State to each licensee which contains the photo, name and business address of the licensee, and, in the case of a real estate salesperson, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesperson

Question 21

Real Estate Appraiser

Answer 21

A practitioner who has the knowledge and expertise necessary to estimate the value of an asset, or the likelihood of an event occurring, and the cost of such an occurrence. Ideally, an appraiser acts independently of the buying and selling parties in a transaction in order to arrive at the fair value of an asset without bias.

Question 22

Real Estate Broker

Answer 22

A licensed individual or firm that charges a fee to serve as the mediator between the buyer and seller.

Question 23

Real Estate Salesperson

Answer 23

An individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker

Question 24

Revocation

Answer 24

An act of recalling a power of authority conferred, as the revocation of a power of attorney; a license, an agency, etc.

Question 25

Sponsor

Answer 25

A licensed real estate broker that holds the license of a salesperson.

Question 26

Suspension

Answer 26

The right of the Department of State to deactivate a broker’s or salesperson’s license for wrongdoing.

Question 27

Termination of Association Notice

Answer 27

A written document that terminates the relationship between an agent and his/her sponsoring broker.

Question 28

Violation

Answer 28

Act, deed or conditions contrary to law or permissible use of real property.

Question 29

The Department of State’s ability to enforce license laws through reprimand and denial as well as the suspension and revocation of licenses is known as...?

Answer 29

Administrative Discipline

Question 30

Conditions under which a property condition disclosure statement is not required is known as a/an...?

Answer 30

Exemption

Question 31

Under the ………………... arrangement, the listing broker and the selling broker split the commission for each sale?

Answer 31

Multiple Listing Service

Question 32

How often must a real estate salesperson renew his/her license...?

Answer 32

2 years

Question 33

How many hours of Fair Housing training must a real estate salesperson complete every two years...?

Answer 33

3 hours

Question 34

The post-license education required by salespersons and brokers is known as what...?

Answer 34

Continuing Education

Question 35

To mingle or mix funds is known as what...?

Answer 35

Commingling

Question 36

A payment by a broker to anyone who is not licensed or who is not exempt from the license law is known as a...?

Answer 36

Kickback

Question 37

According to Article 12-A of the NYS Real Property Law, which of the following is a general requirement for obtaining a real estate salespersons license...?

Answer 37

Must have at least a work permit

Question 38

Within how many business days does the Department of State require a salesperson to report any changes in name, status, or brokerage firm...?

Answer 38

5

Question 39

Which document is used to disclose that an agent is acting as a dual agent in a transaction...?

Answer 39

NYS Disclosure Form for Buyer and Seller

Question 40

David, a real estate salesperson, was subject to a fine by the Department of State for a material misrepresentation on his license application. David challenged the State's fine through this proceeding...?

Answer 40

Article 78 Proceeding

Question 41

Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. Before offering the referral fee, however, Justin obtained informed consent from the client. Justin's actions are an example of what policy...?

Answer 41

Full disclosure

Question 42

An agent of a broker who is already acting as an agent of a principal is known as a...?

Answer 42

Sub-agent

Question 43

John is a real estate broker and wants to enter into an agency relationship with Steve, a property owner. What document must John and Steve execute in order to enter into an agency relationship...?

Answer 43

Listing Agreement

Question 44

A selling agent or participating agent is referred to as the...?

Answer 44

Cooperating Agent

Question 45

According to this fiduciary duty, an agent cannot fail to reveal material information about a property in an effort to secure the sale...?

Answer 45

Disclosure

Question 46

Mark is a real estate broker who represents a buyer in a transaction. He recommended a mortgage broker to help his client obtain financing for a property. What the client doesn't know is that Mark will receive a referral fee from the mortgage broker if the client obtains a mortgage from the mortgage broker. This is a breach of which fiduciary duty...?

Answer 46

Accountability

Question 47

If there is any doubt as to the distribution of proceeds at the closing table, it must be resolved in favor of the client, as per which fiduciary duty...?

Answer 47

Accountability

Question 48

What is a common breach of the fiduciary duty of accountability...?

Answer 48

Being negligent with the client's money

Question 49

Andrew is a real estate agent specializing in condo sales. However, he tries to facilitate the sale of a commercial office building, only to find that he is not familiar with commercial leases. Under which fiduciary duty can he be sued for negligence, if a party in the transaction loses money...?

Answer 49

Reasonable Care

Question 50

City Brokerage and Town Brokerage entered into an agreement whereby City Brokerage will only do business on the East side of town and Town Brokerage will only do business on the West side of town. What may the two firms be guilty of...?

Answer 50

Market Allocation

Question 51

In addition to the agent signing the independent contractor agreement, what else is required before the agreement can be finalized...?

Answer 51

The agreement must be notarized

Question 52

As an independent contractor, which of the following is an expense that must be paid by the agent...? ATravel expenses

Answer 52

Travel expenses

Question 53

Jason, a buyer's broker, found a property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, who in addition to his client does Jason have an agency relationship with...?

Answer 53

The seller

Question 54

If all principals in a transaction initially agree to dual agency, but one of the principals subsequently withdraws their consent, what happens to the dual agency...?

Answer 54

The dual agency cannot proceed

Question 55

What is the typical commission paid to the buyer's agent in a transaction...?

Answer 55

3 (Percent %)

Question 56

A written agreement between two or more parties providing that certain instruments or property be placed with a third party to be delivered to a designated person upon the fulfillment or performance of some act or condition is known as what...?

Answer 56

Escrow

Question 57

An examination of a property's condition, usually performed in connection with the property's sale is known as a/an...?

Answer 57

Home Inspection