27 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✓ 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.

   Ref QB-UEQWECSource: 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.

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

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

   • 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(3)(b) requires a seller's agent to give the form to a buyer at the time of first substantive contact, so the buyer understands whom the agent represents before revealing confidential information. A buyer's own agent must give it before the buyer signs an agreement to be represented, and a listing agent gives it before the listing agreement is signed. Presenting it after an offer or at closing would defeat informed consent.

   Ref QB-TECK9BSource: 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.

   Ref QB-AX6EPASource: 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.Have different agents in the firm represent each party✓ 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.

   Ref QB-SEZ84ASource: 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.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.

   Ref QB-9XT3H9Source: 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.Must now deliver it, since the credit opt-out ended✓ 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.

   Ref QB-RENWW8Source: 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.Care, loyalty, confidentiality, disclosure, obedience, and accounting✓ Answer
   • C.Loyalty to whichever party pays the highest commission
   • D.Confidentiality only, with no duty of loyalty, disclosure, or accounting to the seller

   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.

   Ref QB-8XFRB8Source: 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 buyer's interests and negotiates for the buyer✓ 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.

   Ref QB-QEAKR7Source: 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.Record the refusal and its details 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.

    Ref QB-4BB73JSource: 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 activities✓ 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.

    Ref QB-MTGCNJSource: 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 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.

    Ref QB-3BYUVGSource: 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.Sponsor salespersons and hold escrow✓ 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.

    Ref QB-KT52GHSource: NY Real Property Law Article 12-A, §440 (definitions of broker vs. salesperson)Report a problem with this question

14. 14. Under New York's Property Condition Disclosure Act, a seller who willfully delivers a Property Condition Disclosure Statement containing 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.

    Ref QB-PT72ZMSource: N.Y. Real Property Law § 465(2), Property Condition Disclosure ActReport a problem with this question

15. 15. Under New York's Real Property Law, which of these people must hold a real estate license to carry out the activity described?

    • A.An executor selling real property of an estate
    • B.A person who negotiates rentals for others for a fee✓ Answer
    • C.An attorney admitted in NY handling a client's sale
    • D.An owner selling her own house without using any agent

    RPL 440 defines a real estate broker to include anyone who, for another and for a fee, negotiates or offers to negotiate leases or rentals, so arranging rentals for others for pay requires a license. Attorneys at law are expressly exempt (RPL 442-f), as are executors, administrators and other court-appointed fiduciaries acting in that role, and owners dealing with their own property are not acting 'for another.'

    Ref QB-NTUPTKSource: NY Real Property Law §440(1) (definition and exemptions) and §442-f (attorneys)Report a problem with this question

16. 16. A New York licensee holds a broker's license but chooses to keep working under the name and supervision of another broker. Which license category describes this person?

    • A.Cooperating real estate broker
    • B.Branch office managing broker
    • C.Associate real estate broker✓ Answer
    • D.Senior real estate salesperson

    Article 12-A defines an associate real estate broker as a licensed broker who elects to work under the name and supervision of another individual broker, so the person is sponsored like a salesperson while holding broker qualifications. A 'cooperating broker' is a separate firm working with the listing broker on a sale, not a license category, and New York has no 'senior salesperson' license.

    Ref QB-YAWUCDSource: NY Real Property Law §440(4) (associate real estate broker) and §441Report a problem with this question

17. 17. To renew a New York real estate salesperson license, the continuing education completed during the license term must include instruction in which topics?

    • A.Fair housing and implicit bias✓ Answer
    • B.Home inspection and radon testing
    • C.Appraisal methods and zoning law
    • D.Mortgage underwriting and credit

    RPL 441(3) requires renewal continuing education to include mandated instruction in fair housing and/or discrimination and in implicit bias awareness (along with agency, cultural competency and other required topics). Home inspection, underwriting and appraisal may be offered as electives, but none is a statutory requirement for renewal.

    Ref QB-GT32YDSource: NY Real Property Law §441(3) (continuing education requirements); 19 NYCRR Part 176Report a problem with this question

18. 18. A New York broker hires an unlicensed assistant for the office. Which task may the assistant lawfully perform?

    • A.Negotiate a counteroffer with a buyer
    • B.Host an open house for walk-in buyers
    • C.Explain listing terms to a buyer by phone
    • D.Schedule showing appointments for agents✓ Answer

    Because negotiating, showing property and discussing listing terms are brokerage activities under RPL 440, an unlicensed assistant may handle only clerical and administrative work, such as scheduling appointments for licensees. Hosting an open house puts the assistant in front of buyers as a showing agent, which DOS treats as unlicensed activity.

    Ref QB-Z8B2JESource: NY Real Property Law §440 and §442-e; NY DOS guidance on unlicensed assistantsReport a problem with this question

19. 19. A New York broker wants to pay part of a commission to a friend, who holds no real estate license, for referring the buyer. Is this lawful?

    • A.Yes, if the seller consents to it in writing first
    • B.No; commissions may be shared only with licensees✓ Answer
    • C.Yes, if the payment is disclosed in the contract
    • D.No; only the seller may pay a referral fee

    RPL 442 makes it unlawful for a broker to pay any part of a fee, commission or other compensation to anyone who is not a licensed broker or salesperson for referring or helping in a transaction. Neither the seller's written consent nor disclosure in the contract cures the violation, because the bar is on the recipient's unlicensed status.

    Ref QB-GR5VXDSource: NY Real Property Law §442 (sharing compensation with unlicensed persons)Report a problem with this question

20. 20. A New York listing agent meets a homeowner to discuss listing a two-family house for sale. When must the agent give the seller the agency disclosure form?

    • A.At the meeting, before the listing is signed✓ Answer
    • B.At the signing of the contract of sale
    • C.At the presentation of the first offer
    • D.At the time the listing goes into the MLS

    RPL 443(3)(a) requires a listing agent to give the disclosure form to a seller or landlord before entering into a listing agreement and to obtain a signed acknowledgment, so the seller knows the nature of the agency before committing to it. Waiting for the MLS entry, the first offer or the contract of sale would mean the seller has already hired the agent without the required disclosure.

    Ref QB-Y8YPCDSource: NY Real Property Law §443(3)(a) (listing agent's disclosure to seller or landlord)Report a problem with this question

21. 21. New York requires licensees to give consumers the Housing and Anti-Discrimination Disclosure Form. What is the main purpose of this form?

    • A.To explain rights under fair housing laws✓ Answer
    • B.To disclose known physical defects of the home
    • C.To state which party the licensee represents
    • D.To warn of lead paint risks in older homes

    The DOS-prescribed Housing and Anti-Discrimination Disclosure Form tells buyers, sellers, landlords and tenants that discrimination in housing is illegal under the NY Human Rights Law and fair housing laws, lists the protected classes, and explains where to file complaints. Stating whom the licensee represents is the job of the separate agency disclosure form under RPL 443.

    Ref QB-FRSHSCSource: NY Real Property Law §442-k; 19 NYCRR §175.28; NY DOS Housing and Anti-Discrimination Disclosure FormReport a problem with this question

22. 22. Which of these is a protected class in housing under the New York State Human Rights Law but NOT under the federal Fair Housing Act?

    • A.Country of national origin
    • B.Any physical disability
    • C.Living with minor children
    • D.Lawful source of income✓ Answer

    Executive Law §296(5) bars housing discrimination based on lawful source of income, which includes housing vouchers and other public assistance, a class the federal FHA does not cover. Disability, familial status (living with minor children) and national origin are protected under both federal and New York law, so they are not NY-only classes.

    Ref QB-X8MC7CSource: NY Executive Law §296(5) (Human Rights Law, housing; lawful source of income); 42 U.S.C. §3604Report a problem with this question

23. 23. The Department of State has designated a cease-and-desist zone, and a homeowner in it has filed a notice. What is a licensee prohibited from doing?

    • A.Soliciting that owner to list or sell✓ Answer
    • B.Advertising listings in local media
    • C.Accepting a listing the owner requests
    • D.Showing homes in the zone to buyers

    Under RPL 442-h, the Secretary of State may designate cease-and-desist zones where homeowners subjected to intense solicitation, including blockbusting, can file notices, and licensees may not solicit listings or sales from owners on that list. The order targets unsolicited contact only, so a licensee may still accept a listing the owner initiates and may advertise and show property.

    Ref QB-ERE7MBSource: NY Real Property Law §442-h (cease-and-desist zones); 19 NYCRR §175.17 (blockbusting)Report a problem with this question

24. 24. After a hearing under the license law, which penalty is NOT one that the Department of State itself may impose on a licensee?

    • A.Imposing a monetary fine
    • B.Issuing a formal reprimand
    • C.Suspending the license
    • D.Ordering a jail sentence✓ Answer

    RPL 441-c lets DOS revoke or suspend a license, impose a fine, or issue a reprimand after notice and a hearing. Jail is a criminal penalty that only a court can impose, for example after a misdemeanor conviction for unlicensed activity under RPL 442-e.

    Ref QB-W8922BSource: NY Real Property Law §441-c (disciplinary powers) and §442-e (criminal penalties)Report a problem with this question

25. 25. Under New York's license law, which of the following is itself a ground for the Department of State to discipline a licensee?

    • A.Charging more than the area's usual commission
    • B.Refusing to cooperate with another brokerage
    • C.Losing a listing to a competing brokerage
    • D.Demonstrated untrustworthiness or incompetency✓ Answer

    RPL 441-c authorizes discipline when a licensee is found guilty of fraud, fraudulent practices, or demonstrated untrustworthiness or incompetency, so a pattern of unreliable or inept conduct can be sanctioned even without a narrower rule violation. Commission rates are negotiable and charging above the local norm is not a ground; treating it as one would itself raise antitrust concerns.

    Ref QB-DR3VEASource: NY Real Property Law §441-c(1) (untrustworthiness or incompetency)Report a problem with this question

26. 26. A New York broker receives a buyer's down payment to hold until closing. How must the broker handle the money?

    • A.Give it to the salesperson to safeguard
    • B.Hold it in the office safe until closing
    • C.Deposit it in a separate escrow account✓ Answer
    • D.Deposit it in the firm's operating account

    19 NYCRR 175.1 prohibits a broker from commingling a principal's or customer's money with the broker's own and requires such money to be deposited and kept in a special bank account (escrow account) separate from the broker's funds until the transaction closes or is terminated. Depositing it in the operating account is commingling, and keeping cash in a safe or with a salesperson fails the separate-account requirement.

    Ref QB-59RC8KSource: 19 NYCRR §175.1 (commingling money of principal; special escrow account)Report a problem with this question

27. 27. In a New York co-op purchase, what does the buyer acquire, and whose approval is typically required before closing?

    • A.Shares and a proprietary lease; co-op board approval✓ Answer
    • B.A recorded unit deed; no one else's approval needed
    • C.A recorded unit deed; approval by the condo board
    • D.Shares and a proprietary lease; Attorney General approval

    A co-op corporation owns the building, so the buyer receives shares of stock (personal property) plus a proprietary lease rather than a deed to real property, and the proprietary lease and bylaws typically require the co-op board to approve any share transfer. A recorded unit deed describes a condominium purchase, and the Attorney General reviews offering plans, not individual resales.

    Ref QB-MRJ7NJSource: NY General Business Law §352-e (offering plans filed with the Attorney General); co-op proprietary lease practice; NY DOS 77-hour salesperson syllabus Subject 15Report 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) →