NY Real Estate Exam Agency Relationships

Question 1

When a real estate salesperson represents the seller in a transaction, what type of agency relationship exists?

Accepted Answer

Seller's agency

Answer

Buyer's agency

Answer

Dual agency

Answer

Subagency

Question 2

Under New York law, when must a real estate agent provide the agency disclosure form to a prospective buyer?

Accepted Answer

At the first substantive contact

Answer

At the time of closing

Answer

Only if the buyer requests it

Answer

After an offer is accepted

Question 3

What is dual agency in a real estate transaction?

Accepted Answer

One agent representing both the buyer and the seller in the same transaction

Answer

Two agents from different brokerages splitting a commission

Answer

An agent representing two sellers simultaneously

Answer

A broker supervising two agents on the same deal

Question 4

Which of the following is a primary fiduciary duty owed by a buyer's agent to their client?

Accepted Answer

Loyalty — placing the buyer's interests above all others

Answer

Disclosing the buyer's maximum budget to the seller

Answer

Negotiating the highest possible price for the property

Answer

Providing the seller with the buyer's financing details

Question 5

In New York, what document must agents use to disclose their agency status to consumers?

Accepted Answer

Agency Disclosure Form

Answer

Listing Agreement

Answer

Buyer Representation Agreement

Answer

Property Condition Disclosure Statement

Question 6

What is designated agency as practiced in New York real estate?

Accepted Answer

A broker designating one agent to represent the buyer and another agent from the same brokerage to represent the seller

Answer

An agent designated by the state to handle foreclosure transactions

Answer

A court-appointed agent for estate sales

Answer

An agent authorized to work in multiple states

Question 7

What is the key difference between a general agent and a special agent in real estate?

Accepted Answer

A general agent has broad authority to act for the principal; a special agent has authority limited to a specific task

Answer

A general agent handles commercial property; a special agent handles residential

Answer

A general agent works for free; a special agent earns a commission

Answer

A general agent is licensed; a special agent is not