Colibri Real Estate Exam Questions and Complete Solution

Colibri Real Estate Exam Questions and Complete Solutions During which stage of a real estate transaction must the licensee remember to impart information to the seller regarding the potential buyer's qualifications and the quality of the offer being presented? - Answer: During the negotiation stage Why should real estate licensees have good knowledge of the loan programs that are currently available from local banks and other lenders? - Answer: Financing is a critical part of the transaction. Licensees need to stay current on lenders' guidelines so they can qualify both the buyers and the property. What is the mission of the Division of Licensing Services? - Answer: To protect the health, safety and welfare of consumers. To provide efficient processing and examination services to license applicants. To provide accurate information and qualified licensees to the business community. The Division of Licensing issues licenses and enforces the real estate law. What are the duties of the Secretary of State? - Answer: All licensing, examination, education, and compliance provisions of Article 12-A. The rules of the Board. The rules of the Secretary of State How is an associate broker different from a broker? - Answer: An associate broker must meet the same qualifications as a licensed broker; however, an associate broker chooses to work under the name and supervision of a licensed real estate broker. How do licensees collect their commissions? - Answer: A broker can collect commissions from the clients. However, the licensees working for the broker can only receive commission payments from their sponsoring broker. How old must a person be who wishes to become licensed in New York? - Answer: Salespersons must be 18 years old; brokers must be 20 years old. How many hours of instruction are required to become licensed in New York? - Answer: Salespersons are required to complete 77 hours of instruction; brokers must complete 152 hours. How are exam scores reported, and what percentage is needed to pass the exam? - Answer: ASAP after the exam as either pass or fail; 70% Besides individual and associate broker, name 2 classes of broker licenses available. - Answer: Trade name broker, corporate broker, partnership broker What are the experience requirements to become a broker? - Answer: Two full years of experience as a licensed salesperson and 3,500 points. Three years of equivalent experience in some other aspect of real estate and 5,250 points, subject to approval by the Department of State. Which penalty is not imposed by the DOS on a real estate broker for engaging in fraud? License revocation Fine Imprisonment Reprimand - Answer: Imprisonment An___________ real estate broker is a licensed real estate broker who chooses to work under the name and supervision of a licensed real estate broker. - Answer: Associate Associate brokers may receive commission payments from Seller Buyer Cooperating broker Sponsoring broker - Answer: Sponsoring broker Passed exam results are only valid for a period of ____ years. - Answer: 2 For what are members of the Board compensated? Their time Their expertise Contractual terms Expense reimbursements - Answer: Expense reimbursements How much is the fee charged by the DOS for an associate broker license? $50 $185 $15 No fee is charged - Answer: $185 How many points are given for hotel sales experience? 400 300 250 125 - Answer: 400 From whom can a salesperson receive compensation? From any broker he or she works for From a broker or client From his or her sponsoring broker only From the broker or another licensee in the same firm - Answer: From his or her sponsoring broker only How many points are given for 3 years of certain types of real estate activities? 1,000 3,500 5,250 7,625 - Answer: 5,250 Which of the following is a requirement for becoming a licensed real estate broker in NY? Be at least 21 years old No misdemeanor convictions Demonstrate fair knowledge of the English language Be a US citizen - Answer: Demonstrate fair knowledge of the English language A real estate transaction has four stages. Which of the following is NOT one of those stages? Listing the property Marketing the property Negotiating the purchase contract Settling the transaction - Answer: Marketing the property How many members of the NYS Board of Real Estate must be real estate brokers? 5 7 All None - Answer: 5 How many members are on the Board of Real Estate? 13 9 12 15 - Answer: 15 In New York the real estate examinee must correctly answer at least ______percent of the questions to pass the exam. - Answer: 70 A real estate salesperson works on behalf of a licensed real estate broker to perform any of the following duties associated with real estate transactions except? List property Sell property Lease property Collect commissions - Answer: Collect commissions The mission of the New York Department of State, Division of Licensing Services (DOS) includes all of the following except? To administer the compliance provisions of Article 12-A To protect the health, safety and welfare of consumers. To provide accurate information and qualified licensees to the business community. To provide efficient processing and examination services to license applicants. - Answer: To administer the compliance provisions of Article 12-A A listing contract gives the broker the authority to Negotiate the purchase price of the property. Qualify buyers. Determine which repairs will be made to the property. Market the property. - Answer: Market the property. Which of the following statements is TRUE regarding policies for taking the licensure examination? Examinees may use a PDA. Cell phones must be muted but may be left on for emergency purposes. Examinees may drink during the exam but may not bring food into the test center. Examinees may not bring large bags or briefcases into the test center. - Answer: Examinees may not bring large bags or briefcases into the test center. How many total years may a member of the NYS Board of Real Estate serve? 2 years 5 years 10 years Unlimited - Answer: 10 years Which of the following does NOT appoint members to the Board? Governor Secretary of State Senate Minority Leader Speaker of the Assembly - Answer: Secretary of State What are the experience requirements for a broker candidate? One full year of experience as a licensed salesperson OR two years of equivalent experience in some other aspect of real estate Two full years of experience as a licensed salesperson AND three years of equivalent experience in some other aspect of real estate One full year of experience as a licensed salesperson AND two years of equivalent experience in some other aspect of real estate Two full years of experience as a licensed salesperson OR three years of equivalent experience in some other aspect of real estate - Answer: Two full years of experience as a licensed salesperson OR three years of equivalent experience in some other aspect of real estate The final step of the real estate transaction is Accepting the offer. Paying the purchase price. Closing. Clearing the title. - Answer: Clearing the title. Which of the following is NOT part of the transaction closing? The buyer receives the title. The title agent clears the title. The seller receives the proceeds from the sale. The broker is paid his or her commission. - Answer: The title agent clears the title. Which additional requirement must a candidate meet to become a licensed associate broker? Submit proof of 1 full year of experience as a licensed salesperson Submit the name of a sponsoring broker Complete 45 hours of approved study Be a US citizen - Answer: Submit the name of a sponsoring broker In order to become a licensed broker in New York, a candidate must be at least____years of age. 18 21 20 16 - Answer: 20 Which of the following is NOT a real estate license issued in New York? Broker license Salesperson license Associate Broker license Sponsoring Broker license - Answer: Sponsoring Broker license How old must a candidate for a broker's license be? 18 19 20 21 - Answer: 20 Who is authorized to prescribe the content of real estate courses? NYS Board of Real Estate members The NYS Governor The Department of State The Secretary of State - Answer: NYS Board of Real Estate members Those who are exempt from needing a license include all of the following except? An owner selling his or her own property. A landlord renting his or her own property. A person selling property for a friend or associate if the fee charged is under $1000. An attorney performing his or her duties as an attorney. - Answer: A person selling property for a friend or associate if the fee charged is under $1000. A__________________ broker conducts business as a sole proprietorship, doing business under a name other than his or her personal name. Limited Liability Company Foreign Trade Name Listing - Answer: Trade Name The final step of the real estate transaction is Accepting the offer. Paying the purchase price. Closing. Clearing the title. - Answer: Clearing the title. Which NY law allows the DOS to revoke, suspend, fine, or reprimand a real estate broker? NY Real Property Law, Article 13 NY Real Property Law, Section 442-a NY Real Property Law, Section 441-c NY Real Property Law, Article 15-A - Answer: NY Real Property Law, Section 441-c The Broker Exam is a written exam in a multiple-choice format and contains______questions. 200 50 75 100 - Answer: 100 Who has the duty to administer all licensing provisions of Article 12-A? NYS Board of Real Estate members The NYS Governor The Department of State The Secretary of State - Answer: The Secretary of State How many members does the Governor appoint to the Board of Real Estate? 5 brokers and no public members 4 brokers and 3 public members 3 brokers and 4 public members 1 broker and 1 public member - Answer: 3 brokers and 4 public members Which of the following real estate licenses has a fee of $65? Salesperson Associate Broker Broker Branch Office - Answer: Salesperson Which section of New York Real Property Law gives authority to the Department of State to regulate real estate brokers and salespersons? Article 12-A Article 78 Article 12 Article 9-a - Answer: Article 12-A New York has established a point system to help determine the experience a Broker candidate needs. A total of_________ points and the equivalent to two years of full-time experience for broker candidates. 2000 2500 3000 3500 - Answer: 3500 Which of the following licensees can only receive commission payments from his or her sponsoring broker? Broker Salesperson Affiliate Broker Apprentice - Answer: Salesperson How will an examinee know what percent of the exam questions he or she answered correctly? The percentage score will be mailed to the examinee within 15 days of the exam. The percentage score will available online only for those examinees who fail the exam. The percentage score is not given to the examinee. The percentage score will be mailed to the examinee for a $25 fee. - Answer: The percentage score is not given to the examinee. The final step of the real estate transaction when the buyer gets the deed to the property, the seller gets the proceeds from the sale, and the broker gets his or her commission is called? Settling the transaction. Negotiating the purchase contract. Financing the purchase. Listing the property. - Answer: Settling the transaction. How many hours of education is a broker candidate required to complete in addition to those required for a salesperson's license? 75 hours 55 hours 100 hours 120 hours - Answer: 75 hours Which of the following is NOT one of the real estate broker license types? Salesperson Trade name broker Partnership broker Corporate broker - Answer: Salesperson Real estate licensees should have a good knowledge of the loan programs that are currently available from local banks and other lenders so they can perform this stage of the real estate transaction? Settling the transaction. Negotiating the purchase contract. Helping the purchaser with the financing process. Listing the property. - Answer: Helping the purchaser with the financing process. In order to become a licensed salesperson in New York, a candidate must _________successfully. complete the 60-hour pre-license course complete the 77-hour pre-license course complete the 120-hour pre-license course complete the 150-hour course - Answer: complete the 77-hour pre-license course Which of the following must hold a real estate license? An owner selling his neighbor's property for a fee An owner selling his own property A NY attorney A bankruptcy trustee - Answer: An owner selling his neighbor's property for a fee Which of the following real estate licenses has a fee of $185? Salesperson Broker and Associate Broker Foreign Branch Office - Answer: Broker and Associate Broker How many continuing education credit hours does a licensee receive for completing a course in Sales Psychology? None 3 hours 2 hours 5 hours - Answer: None A broker maintaining more than one place of business must apply for and secure an additional____________ for each of the branch offices. branch certificate performance bond license sponsoring branch license - Answer: license To avoid consumer confusion a business card must include all of the following information except? The brokers social security number. Name and address of the brokerage or the branch office. Type of license held. The firm's business telephone number. - Answer: The brokers social security number. The Licensing Division may issue a license to a corporation to conduct business as a real estate brokerage only if the applicant Is a manager in the corporation. Pays additional fees required for a corporate license. Is an employee of the corporation. is an officer of the corporation prior to licensing. - Answer: is an officer of the corporation prior to licensing. How often must a licensee renew his or her license? Every year Every two years Every three years Every four years - Answer: Every two years Which of the following is required of a real property appraiser? Pay a $300 licensure fee Hold a 1-year license Have 5 years of appraisal experience Hold one of the five levels of licenses or certifications - Answer: Pay a $300 licensure fee Of the 22.5 hours of continuing education, the topic of fair housing and/or discrimination in the sale or rental of real property must be at least how many hours? 3 5 7 10 - Answer: 3 Which of the following is NOT a requirement regarding real estate business signs? The sign must be readable from the sidewalk. The sign must indicate the business is that of a licensed real estate broker. The sign must include the business telephone number. The sign must be posted conspicuously on the outside of the building. - Answer: The sign must include the business telephone number. If a broker changes his or her business address and does not notify the DOS, what can happen? The broker's license can be permanently revoked. The DOS can take control of the broker's business. The affiliated brokers can lose their licenses. The broker's license can be suspended. - Answer: The broker's license can be suspended. Which statement is true about pocket cards? The broker is responsible for distributing them to his or her licensees. They must be prominently displayed on the broker's wall. They are a kind of miniature license that licensees must carry and show on demand. They must be shown to any potential customer before the licensee can schedule any showings. - Answer: They are a kind of miniature license that licensees must carry and show on demand. The NY Department of State requires a broker to maintain what kind of bank account for client funds? A named operating business account. A separate, federally-insured trust or escrow account. No special type of account is required. A special depository account co-managed by the Department of State. - Answer: A separate, federally-insured trust or escrow account. Which of the following is required of an apartment information vendor? Pay a $400 licensure fee Maintain a $5,000 non-interest-bearing escrow account Maintain an escrow account with deposits of $5,000 for each branch office Hold a 2-year license - Answer: Pay a $400 licensure fee Who sets the rules for the content of continuing education courses? Department of State Dean of the school administering the courses Secretary of State Department of Licensing - Answer: Secretary of State A _______________ is a fee or rebate that is paid to an agent or another participant in a transaction as an incentive to refer customers to a particular vendor. Bribe Kickback Dividend Transfer note - Answer: Kickback Which would be a service charged by the NYS Commission? Change from individual to a corporate license Access to one's real estate account online Joining the local association of REALTORS® Resolving a commission dispute - Answer: Change from individual to a corporate license Which of the following is required of an apartment-sharing vendor? Pay a $250 licensure fee Hold a 2-year license Maintain a trust account of $2,500 Maintain a trust account with deposits of $1,500 for each branch office - Answer: Maintain a trust account of $2,500 If a licensee completes 25 hours of continuing education in one renewal period, how many hours will be applied to the following renewal period? 2.5 hours 3 hours 22.5 hours None - Answer: None In a partnership brokerage, what else do the partners need besides a broker license? A notice of intent to do business filed with the chamber of commerce A partnership certificate An umbrella insurance policy A real estate attorney on retainer - Answer: A partnership certificate Every licensed broker must keep and maintain a file of agency disclosures, listings, offers, closing statements and other transaction-related documents for a period of _________ years. 3 4 5 6 - Answer: 4 If the licensee changes brokers, what must he or she do? Provide a written termination notice to the original broker. Notify the DOS within 5 days of the change. Obtain DOS acknowledgement of the change prior to completing the change. Call or email the DOS to report the change. - Answer: Notify the DOS within 5 days of the change. When a licensee terminates his or her association with a firm, which statement is true? The licensee may take his or her listings to the new firm. The licensee must turn over any listings provided by the broker, but can take those listings he or she acquired. The licensee must turn over any and all listing information he or she obtained during the association. The new sponsoring broker can take over any listings acquired by the newly-employed licensee. - Answer: The licensee must turn over any and all listing information he or she obtained during the association. Other professions that deal with real estate but require other types of licenses other than a real estate broker or salesperson license include all of the following except? Apartment-Sharing Agent Appraiser Attorney Mortgage Banker - Answer: Attorney The fee for changing a broker's name or status is ______, except if the change is made on the renewal application. $185 $100 $200 $10 - Answer: $185 If a broker changes his or her business address, The broker must pay a $10 change of address filing fee to the DOS for each licensee affiliated with the broker. The broker must apply for new licenses for each affiliated broker under the new address. The broker must not cross out the old address on his or her broker license. The broker is not required to notify the DOS. - Answer: The broker must pay a $10 change of address filing fee to the DOS for each licensee affiliated with the broker. A net listing is a contract in which the broker receives as commission all monies over and above a minimum sales price agreed upon by the broker and the seller. This type of listing is___________in New York. illegal frowned-upon mandatory implied - Answer: illegal A licensed _______________ must display his or her license conspicuously in the principal place of business at all times. salesperson broker affiliate broker associate broker - Answer: broker A broker must keep records of transactions on file for how long? One year Two years Three years Until the Department of State audits the records - Answer: Three years Why must the broker sign a salesperson's license renewal application? To confirm the salesperson holds a valid license To waive the salesperson's continuing education requirements To confirm the salesperson is sponsored by that broker The broker does not need to sign the application. - Answer: To confirm the salesperson is sponsored by that broker Failure to notify the Department of State of a change of business address is grounds for which of the following? Censure Suspension $50 fine Revocation - Answer: Suspension How many hours of continuing education are required for salesperson license renewal? 21.5 22.5 23.5 24.5 - Answer: 22.5 How many hours of continuing education credit will a licensee receive for teaching an approved real estate course? 2 hours for each teaching hour 3 hours for each teaching hour 5 hours regardless of the number of teaching hours None - Answer: 2 hours for each teaching hour What score is required to pass the written examination if an individual failed to renew his or her license on time because the individual enlisted in the U.S. armed forces? 70 75 60 The exam is not required. - Answer: The exam is not required. Where must the broker place his sign at his place of business? Inside the office door Above the broker's desk On the mailbox Outside the building and visible from the sidewalk - Answer: Outside the building and visible from the sidewalk Under what conditions may a broker allow an associate broker to operate a branch office? If the associate broker is licensed as an affiliate broker Only under the broker's direct supervision (and an active Broker Associate for a minimum of two years of four years licensure) Only if the associate broker is hired specifically for branch office management After the associate broker has been licensed for 4 years. - Answer: Only under the broker's direct supervision (and an active Broker Associate for a minimum of two years of four years licensure) What must a licensee do to renew a license after the 2-year renewal date? Retake and pass the licensure examination Notify the DOS in writing the reason why the renewal is late Pay an additional fee for late renewal Licenses cannot be renewed after the renewal date. - Answer: Retake and pass the licensure examination If there is a change of broker and/or address, how long does the licensee have to complete and submit the appropriate form to the Department of State? 5 days 7 days 2 weeks 1 month - Answer: 5 days When a salesperson or an associate broker wants to leave the service of his or her sponsoring broker, that broker must file a ___________________________ with the Department of State. termination of association notice notice of licensee termination termination of sponsorship affidavit notice of non-sponsorship form - Answer: termination of association notice Who can maintain a branch office? The branch office manager hired by the business owner Any affiliated broker assigned by the owner broker Only the owner broker to whom the branch office license is issued Any salesperson assigned by the owner broker - Answer: Only the owner broker to whom the branch office license is issued Which of the following statements is TRUE? An associate broker who wants additional licenses must submit a statement to the Department from each sponsoring broker acknowledging each licensure. A broker may hold only one broker license. A licensed broker may also hold a salesperson license with another firm. A licensed broker may be an associate broker with only one firm. - Answer: An associate broker who wants additional licenses must submit a statement to the Department from each sponsoring broker acknowledging each licensure. Mortgage banker licenses are issued by which entity? NYS Department of Financial Services National Association of Mortgage Bankers Federal Deposit Insurance Corporation NYS Real Estate Credit Union - Answer: NYS Department of Financial Services How many hours of continuing education is the salesperson licensee required to complete in cultural competency? 1 hour 2 hours 3 hours None - Answer: 2 hours An officer of a legal entity may only be licensed as A salesperson. A sponsoring broker. A broker. An associate. - Answer: A broker. Broker Dean has a file cabinet full of agency disclosures, listings, offers, closing statements and other transaction-related documents. How long does he need to keep these documents? 6 months 1 year 3 years 7 years - Answer: 3 years No renewal license will be issued to any licensee unless the licensee has completed 22 ½ hours of continuing education. The licensee has worked full time as a real estate licensee during the 2 years prior to renewal. The licensee has retaken and passed the licensure examination. The licensee has completed 5 hours of fair housing education. - Answer: the licensee has completed 22 ½ hours of continuing education. Which of the following is NOT required of a home inspector? Licensure Passing the appropriate examination Supervised apprenticeship A $2,500 interest-bearing escrow account - Answer: A $2,500 interest-bearing escrow account Jayson is a NY licensed salesperson. A local moving company asks Jayson to recommend his moving company to clients looking to relocate. In exchange, the mover will pay Jayson $200 for every client who moves with his company. This type of arrangement is which of the following? A great source of additional income to Jayson by simply networking. May be a source of income and is legal in NY if the payments are under $500. This type of kickback arrangement is prohibited by the Real Estate Settlement Procedures Act. This type of rebate or fee arrangement is prohibited by the NY Board of Real Estate. - Answer: This type of kickback arrangement is prohibited by the Real Estate Settlement Procedures Act. A salesperson can accept a commission from ___________________. Their sponsoring broker. The buyer The seller The title company - Answer: Their sponsoring broker. Which of the following statements is FALSE? If the licensee's license is suspended, he must return the pocket card to his sponsoring broker. If the licensee's license is revoked, he must return the license and pocket card to the DOS. A suspended license may not be displayed. A licensee with a revoked license is not eligible for re-licensing for 1 year. - Answer: If the licensee's license is suspended, he must return the pocket card to his sponsoring broker. If the DOS denies a license application, the applicant may request a hearing within 5 days. 15 days. 30 days. 1 year. - Answer: 30 days. What is a hearing determination? The section of a hearing document that cites the penalty that the court is imposing on the Respondent. The section of a hearing document that outlines what the court believes happened. The section of the hearing document that describes the allegations against the Respondent. The section of the hearing document that explains what violations the Respondent committed. - Answer: The section of a hearing document that cites the penalty that the court is imposing on the Respondent. The Department of State may take any of these actions against a licensee in violation of the license law except? Suspension Revocation Fine Imprisonment - Answer: Imprisonment Which section of a hearing decision outlines what the court believes happened? Complaint Findings of fact Opinion and Conclusions of Law Determination - Answer: Findings of fact If the Department denies a license application, the applicant will be notified in writing and may then ask for a hearing within ____ days of receiving the denial notice. 30 40 45 60 - Answer: 30 An Article 78 proceeding refers to which of the following? An applicants or licensees right to appeal a Department hearing decision to the Secretary of State. An applicants or licensees right to appeal a Department hearing decision to an administrative law judge. An applicants or licensees right to appeal a Department hearing decision to the New York Supreme Court. The Board's imposition of a fine of up to $1,000 payable to the Department of State. - Answer: An applicants or licensees right to appeal a Department hearing decision to the New York Supreme Court. Which of the following is an administrative discipline? Reprimand License suspension License revocation All of the above - Answer: Reprimand In the case studies, the Department of State is always which party? Complainant Licensee Respondent Attorney general - Answer: Complainant Under which of the following circumstances would a broker lose or have their license suspended for a law violation committed by an associated licensee? If the broker had actual knowledge of the violation. Under any circumstance, the Department applies strict liability to all managing brokers. Only If the broker had participated in the law violation with the associate A broker is never responsible for the acts of associates due to the doctrine of caveat emptor. - Answer: If the broker had actual knowledge of the violation. Which of the following is NOT a violation of NY real estate license law? Delivering duplicate documents for a real estate transaction to all parties to the transaction Commingling business funds with client funds Entering into a net listing contract Omitting definitions of exclusive right to sell and exclusive agency listings from information provided to clients - Answer: Delivering duplicate documents for a real estate transaction to all parties to the transaction What section in the case studies describes what the Department of State thinks the respondent may have done? opinion complaint answer determination - Answer: complaint How may an unlicensed assistant legally be compensated? As an independent contractor On a completed-transaction basis On an hourly basis By a prorated portion of an earned commission - Answer: On an hourly basis In the hearing decision the licensee being charged with a violation is always which party? The complainant The commingler The respondent The attorney general - Answer: The respondent Which of the following statements is FALSE? An agency relationship disclosure must be presented to the client prior to signing a listing agreement. An agency relationship disclosure must be presented at first substantive contact with the client. Having another licensee present an agency relationship disclosure after the required timeline does not excuse the law violation. Witnesses' written statements of testimony should be notarized. - Answer: An agency relationship disclosure must be presented to the client prior to signing a listing agreement. In cases brought against licensees in New York by the Department of State which of the following are the correct names of the parties? Plaintiff/Defendant Attorney/Client Complainant/Respondent Licensor/Licensee - Answer: Complainant/Respondent Once the licensee has received a revocation or suspension notice, the licensee's license and pocket card must be returned to the Department within_____days after receiving the notice. 2 3 4 5 - Answer: 5 Why is entering into a net listing contract a violation of license law for salespersons? Net listings require a different type of licensure. Only sponsoring brokers may enter into net listings. Net listings are illegal in New York. There is no such thing as a net listing. - Answer: Net listings are illegal in New York. Which of these actions would be a license law violation? Filling in the blanks on a preprinted listing form. Failing to provide a definition of an exclusive right to sell and an exclusive agency when taking a cooperative listing. Placing an earnest money deposit in a trust account. A Salesperson accepting a commission directly from a seller. - Answer: A Salesperson accepting a commission directly from a seller. Which of the following statements is TRUE? Proof of a voluntary, intentional breach of a known, legal duty is required to verify a violation of the license law. A real estate broker's reliance on information by a multiple listing service is acceptable as a reasonable defense for the broker's failure to obey a licensing law. A real estate broker is presumed to know the law governing the regulated real estate activities in which he or she is engaged. A real estate broker's unawareness of a provision of licensing law excuses the broker's violation of any provision of that law. - Answer: A real estate broker is presumed to know the law governing the regulated real estate activities in which he or she is engaged. If a licensee fails to pay child support, what is the DOS authorized to do? Suspend the licensee's license Fine the licensee Suspend the licensee's child visitation rights Nothing, child support falls under a different enforcement agency - Answer: Suspend the licensee's license Brokers are prohibited from ______________ the funds of others with their own funds. investing commingling inter mediating escrowing - Answer: commingling Which statement is false? A broker will be guilty of a misdemeanor if he or she employs a salesperson who is not properly licensed. When taking a condominium listing, the broker does not have to provide a written explanation of the difference between exclusive right to sell and exclusive agency listings. Brokers are prohibited from commingling the funds of others with their own funds. A licensee may not perform services that should be performed by a lawyer. - Answer: When taking a condominium listing, the broker does not have to provide a written explanation of the difference between exclusive right to sell and exclusive agency listings. In the case studies, the person and/or firm against whom the complaint was filed is always which party? Complainant Licensee Respondent Attorney general - Answer: Respondent Which of the following tasks is illegal for an unlicensed assistant to perform? Schedule property showings Discuss specific properties with customers Collect information for an appraisal Monitor licenses - Answer: Discuss specific properties with customers A licensee can be held liable for _________ amount of any compensation received for a transaction in which the license law was violated. The same Four times the Five times the Ten times the - Answer: Four times the A hearing decision is NOT made up of which of the following sections? Complaint Findings of Fact Mediation Determination - Answer: Mediation New York License Law considers which of the following activities to be appropriate and allowed for licensed personnel only? Show homes, apartments or other real property. Submit approved listings and changes to the Multiple Listing Service (MLS). Write ads for a broker's approval. Gather information for a comparative market analysis. - Answer: Show homes, apartments or other real property. What is a hearing appeal to the NY Supreme Court called? Article 12-A appeal Article 8 proceeding State court appeal Article 78 proceeding - Answer: Article 78 proceeding Using the same escrow account for the broker's business funds that he also uses for client funds is called Account sharing. Commingling. Dual accounts. Convenient business practices. - Answer: Commingling Broker Bob must obey Seller Sue's directives in all EXCEPT which of the following? Give 48 hours notice prior to showing the home. Do not show the home on Sundays. Keep the dog closed in the laundry room during showings. Do not show the home to families with more than 2 children. - Answer: Do not show the home to families with more than 2 children. If the transaction does not complete, the seller may still be responsible for paying a commission to the broker if the failure to complete was due to the____________ default. seller's buyer's lender's broker's - Answer: seller's If Broker Bob lists Seller Sue's home for sale and then shows the home to Buyer Bill, who is the principal? Broker Bob Seller Sue Buyer Bill None of the above - Answer: Seller Sue Gladys sells another broker's $300,000 listing for $290,000 at a commission rate of 6%. She has a 60% commission split with her broker. If there is also a 50% brokerage split, what commission will Gladys receive? $5,220 $8,700 $17,400 $3,480 - Answer: $5,220 There is a difference between the level of service an agent provides to a client and the level of service he or she provides to a customer, in essence the agent works_____the principal and______ the customer. for, with under, over with, for for, under - Answer: for, with An agent works ____ the principal and ____ the customer For, for With, for For, with With, with - Answer: For, with In real estate the fiduciary relationship between agent and principal is called? Estoppel Agency Bilateral A Tie-in arrangement - Answer: Agency If an agent fails to verify a fact before passing it to the buyer, the agent has committed Intentional misrepresentation. Negligent misrepresentation. Passive fraud. Active fraud. - Answer: Negligent misrepresentation. The Criminal Antitrust Penalty Enhancement and Reform Act increased the maximum criminal penalty for individuals to what amount? $350,000 $1 million $2 million $10 million - Answer: $1 million Which of the following tasks is a limited agent authorized to perform? Sign contracts for the seller Initial changes to an offer Permit early occupancy Cooperate with other brokers - Answer: Cooperate with other brokers The authority granted to the broker under a special agency is outlined in the ____________________, which typically authorizes the broker to perform basic actions like advertising and showing the property. deed listing agreement option to sell agreement disclosure agreement - Answer: listing agreement Agent Paul is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know"? There is a crack in the basement wall. The air conditioner does not work. The owner of the property is HIV positive. The casement windows have broken seals. - Answer: The owner of the property is HIV positive. If Broker Bob lists Seller Sue's home for sale and then shows the home to Buyer John, to whom does Broker Bob owe fiduciary duties? Broker Bob Seller Sue Buyer John All of the above - Answer: Seller Sue A salesperson sells a house listed by another company for $192,000. The salesperson's company is to receive 50% of a 7% commission, what is the salesperson's share of the commission if he received 45% of the amount his company receives? $3,220 $6,720 $3,024 $2,898 - Answer: $3,024 If Seller Sue is willing to accept $20,000 less than the asking price for her home and Broker Bob tells that to the buyer, what duty has Bob failed to uphold to Sue? Care Skill Accountability Loyalty - Answer: Loyalty The _________________________ can enforce compliance with the Sherman Act and some sections of the Clayton Act. Federal Trade Commission (FTC) Internal REALTOR® Syndicate (IRS) Internal Commission Committee (ICC) Antitrust Business Commission (ABC) - Answer: Federal Trade Commission (FTC) The person who is authorized to represent and act on the behalf of another person is a(n) Salesperson. Broker Agent. Affiliated broker. - Answer: Agent The statement "Everyone charges the same so you might as well list with me" made by a broker would be an illegal statement and a violation what law? Sherman Antitrust Act Federal Trade Act Clayton Act Criminal Antitrust Penalty Enhancement and Reform Act - Answer: Sherman Antitrust Act Which of the following information about a buyer should a seller's agent NOT disclose to the seller? The buyers are related to the agent. The buyers will not be financially able to complete the transaction. The buyers want the property so they will be close to their synagogue. The buyers intent to resell the property for a profit. - Answer: The buyers want the property so they will be close to their synagogue.