16 New York State Law (DOS) Practice Questions & Answers

1. 1. Which state agency licenses and regulates real estate salespersons and brokers in New York?

   • A.The New York Department of Financial Services
   • B.The New York State Association of REALTORS
   • C.The New York Attorney General's Real Estate Bureau
   • D.The New York Department of State (DOS), Division of Licensing Services✓ Answer

   Under Article 12-A of the New York Real Property Law, the Department of State through its Division of Licensing Services administers real estate licensing, sets qualifications, and enforces the license law. Trade associations like NYSAR are private membership groups and have no licensing authority.

   Source: NY Real Property Law Article 12-A; DOS Division of Licensing ServicesReport a problem with this question

2. 2. In New York, a real estate salesperson may lawfully conduct brokerage activity only when:

   • A.They register directly with the county clerk
   • B.Associated with and sponsored by a licensed real estate broker✓ Answer
   • C.They have passed the salesperson exam, regardless of sponsorship
   • D.They form their own single-member brokerage LLC

   A New York salesperson license is derivative: the salesperson must work under the name and supervision of a sponsoring licensed broker who holds the license, because Article 12-A prohibits a salesperson from operating independently or being paid directly by a client.

   Source: NY Real Property Law Article 12-A, §440-a; §442-aReport a problem with this question

3. 3. Under New York law, when must an agent first present the Agency Disclosure Form to a prospective buyer or seller?

   • A.At the first substantive contact✓ Answer
   • B.Within 30 days of the listing expiring
   • C.After an offer has been accepted
   • D.Only at the closing table

   Real Property Law §443 requires the disclosure be provided at the time of first substantive contact so consumers understand whom the agent represents before they reveal confidential information; presenting it at closing would defeat the purpose of informed consent.

   Source: NY Real Property Law §443Report a problem with this question

4. 4. A New York agent who represents both the buyer and the seller in the same transaction, with the informed written consent of both, is acting as a:

   • A.Transaction broker with no agency duties
   • B.Designated seller's agent only
   • C.Dual agent✓ Answer
   • D.Subagent

   Under §443, representing both principals simultaneously is dual agency, which is permitted only with the informed written consent of both parties because the agent cannot fully advocate for either side and owes limited, balanced duties to both.

   Source: NY Real Property Law §443 (dual agency disclosure)Report a problem with this question

5. 5. In New York, 'designated agency' (designated sales agent) allows a broker to:

   • A.Collect commission without any disclosure form
   • B.Waive the seller's right to a written listing agreement
   • C.Represent neither party and merely facilitate the deal
   • D.Appoint one agent to represent the seller and a different agent to represent the buyer within the same firm✓ Answer

   Designated agency, permitted under §443 with the principals' informed written consent, lets the broker name individual salespersons within the firm to separately represent buyer and seller, so each client gets an advocate even though the firm itself is a dual agent.

   Source: NY Real Property Law §443 (designated agent / dual agent with designated sales agents)Report a problem with this question

6. 6. New York's Property Condition Disclosure Act primarily requires disclosure for which type of property?

   • A.Large industrial warehouses
   • B.New condominium construction only
   • C.Residential real property (one-to-four family dwellings)✓ Answer
   • D.Vacant commercial land only

   The Property Condition Disclosure Act (Real Property Law Article 14) applies to the sale of residential real property, defined as one-to-four family dwellings, so sellers of such homes must give buyers a statement about the property's known condition.

   Source: NY Real Property Law Article 14 (Property Condition Disclosure Act), §462Report a problem with this question

7. 7. Following a 2023 amendment, a New York seller who does NOT deliver a completed Property Condition Disclosure Statement:

   • A.Is exempt because disclosure is entirely voluntary
   • B.Must instead file the statement with the Department of State
   • C.Can no longer avoid disclosure by giving a credit; the disclosure statement is now required✓ Answer
   • D.May simply give the buyer a $500 credit at closing to opt out

   A 2023 amendment to Article 14 eliminated the former option of delivering a fixed credit in lieu of the disclosure statement, so sellers of one-to-four family homes must now actually complete and deliver the statement rather than opting out with a credit.

   Source: NY Real Property Law Article 14, as amended (2023) — repeal of §465(1) credit optionReport a problem with this question

8. 8. Which of the following best describes the fiduciary duties a New York seller's agent owes to the seller as principal?

   • A.Obedience even to unlawful instructions from the seller
   • B.Reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and accounting✓ Answer
   • C.Loyalty to whichever party pays the highest commission
   • D.Confidentiality only, with no duty of loyalty

   An agent owes the principal common-law fiduciary duties often summarized by the acronym OLD CAR: obedience (to lawful instructions), loyalty, disclosure, confidentiality, accounting, and reasonable care; obedience never extends to illegal acts and loyalty is owed to the principal, not the highest bidder.

   Source: NY common-law agency duties; NY Real Property Law §443 agency relationshipsReport a problem with this question

9. 9. In the New York Agency Disclosure Form, what does a 'buyer's agent' primarily do?

   • A.Works only for the seller and owes loyalty to the seller
   • B.Represents the interests of the buyer and negotiates on the buyer's behalf✓ Answer
   • C.Acts as a neutral party owing no loyalty to anyone
   • D.Represents the listing broker's interest exclusively

   The §443 disclosure form defines a buyer's agent as one who, by entering into an agency agreement with the buyer, acts solely on the buyer's behalf and owes the buyer the fiduciary duties of loyalty, confidentiality, and full disclosure.

   Source: NY Real Property Law §443 (agency disclosure form definitions)Report a problem with this question

10. 10. If a prospective buyer or seller refuses to sign the New York Agency Disclosure Form, the agent must:

    • A.Report the consumer to the Department of State
    • B.Sign the form on the consumer's behalf
    • C.Note the refusal by setting forth the date, time, and reason on the form✓ Answer
    • D.Refuse to proceed with any showing or discussion

    Under §443, a signature is an acknowledgment of receipt, not a contract; if the consumer declines to sign, the agent still satisfies the law by documenting the refusal with the date, time, and reason on the form, and may continue working.

    Source: NY Real Property Law §443(3) (acknowledgment and refusal to sign)Report a problem with this question

11. 11. Under Article 12-A, a sponsoring broker's responsibility for a sponsored salesperson includes:

    • A.Guaranteeing the salesperson a minimum income
    • B.No supervisory duty once the license is issued
    • C.Supervising the salesperson's real estate activities and maintaining transaction records✓ Answer
    • D.Filing the salesperson's personal income taxes

    Because the salesperson acts in the broker's name, Article 12-A makes the sponsoring broker responsible for supervising the salesperson's brokerage conduct and keeping proper records, so the broker can be disciplined for failing to supervise.

    Source: NY Real Property Law Article 12-A, §442-c (broker supervision/liability)Report a problem with this question

12. 12. When a New York salesperson changes from one sponsoring broker to another, the salesperson's authority to conduct brokerage activity for the new broker begins when:

    • A.As soon as the salesperson signs a new listing
    • B.The change of association is processed so the new broker becomes the sponsor of record✓ Answer
    • C.Immediately upon a verbal agreement with the new broker
    • D.After 90 days of working at the new firm

    Because a salesperson's license is only valid while associated with a broker of record, the salesperson may act for the new broker only once the change of association/sponsorship is filed and the new broker is recorded as sponsor with the Department of State.

    Source: NY Real Property Law Article 12-A; DOS change-of-association requirementReport a problem with this question

13. 13. A key difference between a New York real estate broker and a salesperson under Article 12-A is that only a broker may:

    • A.Operate independently, hold escrow deposits, and sponsor salespersons✓ Answer
    • B.Attend a real estate closing
    • C.Complete continuing education
    • D.Show property to prospective buyers

    Article 12-A grants brokers the authority to run their own brokerage, hold client escrow funds, and sponsor (supervise) salespersons, whereas a salesperson can only perform these regulated activities under a broker; both may show property, attend closings, and take continuing education.

    Source: NY Real Property Law Article 12-A, §440 (definitions of broker vs. salesperson)Report a problem with this question

14. 14. In New York, when must a real estate salesperson provide the mandatory agency disclosure form to a party in a residential real property transaction?

    • A.At the time of first substantive contact✓ Answer
    • B.Only if the party requests it
    • C.At the signing of the sales contract
    • D.At the real estate closing

    Real Property Law § 443 requires the agency disclosure form to be delivered at the time of first substantive contact so that a consumer understands whom the agent represents before sharing confidential information; delivering it later, at contract or closing, would defeat that protective purpose.

    Source: N.Y. Real Property Law § 443Report a problem with this question

15. 15. Under New York's Property Condition Disclosure Act, a seller who delivers a Property Condition Disclosure Statement that contains a false statement is liable to the buyer for what?

    • A.Nothing, because the statement is not legally binding
    • B.A fixed $500 statutory penalty regardless of harm
    • C.Automatic treble (triple) damages
    • D.Actual damages the buyer suffers from the false statement✓ Answer

    Real Property Law § 465(2) makes a seller who willfully provides a false disclosure statement liable for the actual damages the buyer suffers as a result, in addition to other remedies; the liability is tied to proven harm, not a flat penalty or automatic multiplier.

    Source: N.Y. Real Property Law § 465(2), Property Condition Disclosure ActReport a problem with this question

16. 16. Which government body issues and regulates real estate broker and salesperson licenses in New York under Article 12-A of the Real Property Law?

    • A.The New York State Attorney General
    • B.The New York Department of State✓ Answer
    • C.The New York State Association of REALTORS
    • D.The county clerk's office

    Article 12-A of the Real Property Law vests licensing and regulation of real estate brokers and salespersons in the New York Department of State (through its Division of Licensing Services); the REALTORS association is a private trade group, and the clerk and Attorney General have no licensing role here.

    Source: N.Y. Real Property Law Article 12-A (§§ 440-a, 442-e)Report a problem with this question

Practice questions cover the uniform national portion of the real estate exam. Your state adds a state-law portion — study your state's official materials before testing. Licensing info (ARELLO) →