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YOU CANNOT DOWNLOAD THE GUIDES. WE HELP COUNTLESS CUSTOMERS PASS THE REAL ESTATE STATE EXAM / TEST. All these Guides and Answers are to help pass your Sales Associate Course Test / Exam and your State Real Estate Sales Associate Exam for New York. Are you ready to pass the Sales Associate Course Test/Exam? We know how frustrating memorizing all the information to pass the exam can be. We have helped countless people pass the exam with our question and answer pages. SAVING YOU DAYS, WEEKS AND MONTHS OF STUDYING! examples: The obligation to follow the principal's lawful instructions falls under the duty of: Care Obedience Loyalty Disclosure 2. Which of the following would a broker, acting as agent for a seller, NOT be expected to do? Arrive at a reasonable listing and selling price Ensure that they receive the maximum commission Investigate and discover material facts Explain real estate documents 3. A(n) _________ may be generally defined as someone who represents another in dealings with third parties. Consumer Agent Client Principal 4. New York Real Property Law § 443-a pertains to which type of disclosures? Mediation options Fair Housing discrimination disclosure Property disclosures Commission splits 5. Brokers should know, and be able to explain: Tort law Criminal law Real estate law Contract law 6. An agent should always obey the instructions of their client, unless: The instructions are illegal The action doesn't make sense The instructions make the sale difficult The agent doesn't agree with the client 7. A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third parties, is the definition of: Employment Agency Obedience None of the answers shown 8. A doctrine in tort law that makes a broker liable for the wrong of an agent is called: Habeas Corpus Fiduciary responsibility Respondeat superior Fraud 9. Even unintentional failure to provide proper disclosure, could be considered: Harmless error Fraud Disloyalty Disobedience 10. A participant in an action or transaction especially having control is a(n): Principal Agent Customer Broker 11. A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third parties, is the definition of: Employment Agency Obedience None of the answers shown 12. The principles of agency are based on which system developed centuries ago in England? Feudal law Noble law Common law Parliamentary law 13. How are “customers” different from “clients”. Customers never have to pay any fees customers purchase services but do not form an agency agreement customers are owed no ethical duties at all 14. The care that an ordinarily reasonable and prudent person would use under the same or similar circumstances is: Normal care Due care Ordinary care Typical care 15. Even unintentional failure to provide proper disclosure, could be considered: Harmless error Fraud Disloyalty Disobedience 16. Someone or something that acts or exerts power, a moving force in achieving some result is the definition of: Buyer Agent Seller REALTOR 17. An agent who acts in the best interests of the principal or client is said to be: Loyal Qualified Confidential Responsible 18. The obligations of an agent are to: Act on behalf of themselves to achieve an end Act on behalf of another to achieve an end Act on behalf of themselves to prevent an end Act on behalf of another to prevent an end 19. Fiduciary comes from the Latin word "fides" which means: "Faith" "Trust" "Honesty" "Care" 20. What is a fiduciary relationship? Any real estate agreement To act in the best interest of the agent To be under complete control of another To manage money or property for another 21. Which of these is a fiduciary responsibility? Confidentiality Obedience Loyalty All of the above 22. What is the biggest hazard of dealing with trust accounts? Commingling Inflation An economic downturn A failed transaction 23. The degree of competence that one is expected to exercise in a particular circumstance or role is: Doctrine of oversight Loyalty Obedience Standard of care 24. A "principal-agent" relationship may arise from: only written contracts only a spoken agreement Actions taken by the agent that imply an agency relationship All of the above 25. What type of agency relationship has the most financial and legal risk potential for agents? Single agency Dual agency Designated agency General agency 26. In an earlier period in the practice of real estate brokerage, agents would use a listing in which a seller would agree to sell for a certain amount and the broker kept any amount above that. What type of listing is this? Open listing Exclusive agency listing Exclusive right to sell listing Net listing 27. An agency relationship is a _________ and _________ obligation between two parties. Moral; practical Moral; legal Practical; illegal Practical; ethical 28. Giving notice in a manner that a reasonable person should have been aware of is what type of notice? Fraudulent notice Actual notice Deconstructive notice Constructive notice 29. Listing agents often find themselves in lawsuits because a listing agreement requires the broker to exercise his or her: “All Resources” "Best efforts" "Right to rescind" "Contingency plans" 30. Facts that an agent is responsible to know because the broker or client received notice is: Imputed notice Actual notice Statutory Notice Constructive notice 31. In what type of listing is a broker entitled to a commission regardless of who initiates or completes the transaction Open listing For Sale by Owner Exclusive right to sell listing Net listing 32. In what situation(s) can an agency relationship be terminated? Completion Expiration Agreement All of the above 33. A licensee who assists one or more parties through a transaction without being an agent for any party to the transaction is a(n): Dual agent Designated agent Intermediary Single agent 34. To whom is the subagent to be loyal? Buyer Listing agent Buyer's agent Themselves 35. What is NOT needed in order to form an agency agreement? Principal Compensation Agent None of these are needed to form an agency agreement 36. What is the most common example of a general agent? Buyer's agent Brokerage manager A dual agent Property manager 37. Traditionally, if the seller’s agent listed the property and entered it into the MLS. - Any agent who showed the listed property worked as a subagent of the: Seller's agent No one Seller Buyer's agent State of New York 38. Which agency termination situation would typically be preferred by both parties? Abandonment Completion Impossible performance Force of law 39. The critical difference in responsibility under tort liability between the average person and skilled professionals is known as: Standard of care Implied agency Assumed risk Loyalty 40. An agency that represents either just the buyer or just the seller is called: Single agency Dual agency Subagency Sole agency 41. The type of agency in which the agent represents the principal in a variety of matters related to a particular business is called: Single agency Dual agency Designated agency General agency 42. What has traditionally been the most common type of agency? Seller agency Buyer agency Dual agency Designated agency 43. In which type of listing was it common for more than one "for sale" sign to be placed on a property? Open listing Exclusive agency listing Exclusive right to sell listing Net listing 44. In many states a real estate agent may not sue for a commission unless there is a(n) ________ commission agreement. Oral Written Implied Express 45. Broker Mark is representing seller June. Before Mark could secure a buyer for the property, June was killed in an accident. Mark's agency agreement is subsequently ended. What type of agency termination does this situation represent? Agreement Expiration Completion Impossible performance 46. Agent Bill is about to show William's home to a potential buyer. William is concerned about a portion of the foundation that is crumbling and asks Bill to somehow cover it up so that the buyer does not notice. Bill informs William that this is against the law, but William insists that it is done. Bill plants a bush in front of the suspect area which successfully hides it from vision. The buyer purchases the house and later finds the undisclosed defect. Bill is sued for failing to disclose the defect. He claims that William should bear some of the blame. Is William liable? Yes No Both William and Bill have no liability Only Bill has financial and legal liability 47. In many states a real estate agent may not sue for a commission unless there is a(n) ________ commission agreement. Oral Written Implied Express 48. What type of agency relationship may be created unknowingly or unwittingly? Express agency Implied agency Agency by estoppel Agency by ratification 49. What is the most common misconception about agency? In order to create an agency relationship, a client must provide immediate compensation The party that pays the fees determines agency relationships The agent who is showing you a property automatically represents you Agency relationships can only be between agents and sellers 50. Which fiduciary obligation(s) does/do NOT necessarily end with the expiration of an agency agreement? Loyalty Obedience Accounting Confidentiality 51. An agency that is not created by a principal and an agent but one that is imposed by law when a principal acts in such a way as to lead a third party to reasonably believe that another is the principal’s agent and the third party is injured by relying on and acting in accordance with that belief is called what? Express agency Dual agency Agency by estoppel Agency by ratification 52. Facts that an agent is assumed to know because they are known by their principal or a subordinate agent would be considered: Imputed knowledge Actual knowledge Fiduciary Knowledge Constructive knowledge 53. What are the best companies to target when first entering the market for relocation employees? Small to medium size, with 10 or fewer people relocating every two years Large to medium size, with 50 or more people relocating a year Medium size, with 30 to 50 people relocating every two years None of the above 54. What is NOT one of the benefits to the seller when the buyer has their own buyer's agent? No longer need to worry about vicarious liability Commissions will be lowered The buyer would most likely sue the buyer's agent in the event a property defect was not discovered No longer responsible for the actions of a subagent 55. Which of these is a benefit to the broker in a buyer agency agreement? Greater client loyalty Absence of liability for acts of the listing broker Avoidance of conflict of interest All of the above 56. The needs of the over-55 buyer may include: Vacation homes Downsizing from current home Access to recreational and cultural activities All of the above 57. What type of property is the least likely to be listed with a local MLS in New York state? Residential Investment Commercial Town houses 58. In which type of buyer agency agreement is the broker guaranteed a commission regardless of whether or not the buyer agent handled the transaction? Single property Exclusive right to represent Self-representation Open agency agreement 59. Above all, buyer’s agents offer undivided loyalty and strive to protect the ___________________ throughout the transaction. Seller's interests Buyer's interests Interests of their brokerage Interests of the listing agent 60. What publication in 1983 showed a need for reform to agency law? was? FTC report on unclear and unfair agency laws NAR Code of Ethics ARELLO Guidelines NAEBA lawsuit against agents 61. When working with a relocation client, the companies are usually most interested in: To find rental properties rather than purchasing homes How efficiently the agents work and follows the corporate relocation package benefits How may franchises the broker owns The cheapest agent regardless of quality 62. Whose responsibility is it to insure that the earnest money in the purchase contract is collected and deposited? The buyer The seller The buyer's agent The bank representative 63. What is NOT one of the general provisions of a buyer contract? The agent will assist the buyer in finding a property and negotiating the purchase Specific duties of the agent will be identified The buyer will furnish financial information to the agent The agent will pay a commission to the buyer 64. What form of compensation is the same regardless of the purchase price for the property? Flat fee Percentage fee All of the above None of the above 65. A disclosure form or statement is: Not required in most states Not a binding contract Not necessary to help customers make an informed decision Not a form licensees should be need to understand 66. What type of buyer agency agreement allows a seller to work with one agent, but not have to pay a commission if the seller themselves find the buyer. Single property Exclusive right to sell Exclusive agency Dual agency 67. At the moment the listing is obtained, the listing broker should disclose to the seller: Whether the listing broker will share fees with subagents or buyer's agents Whether the property will be listed in the MLS Whether other brokers will become subagents of the listing agent All of the above 68. For homes built prior to 1978, a buyer's agent should insure that their client receives which disclosure? Asbestos Mold Lead-based paint Radon 69. How does a business relationship protect an agent from other agents? It does not allow other agents to "steal" buyers It provides an agreement that allows multiple agents to represent the buyer It increases the agent's liability It does not guarantee an agent's compensation 70. What does the acronym ARELLO stand for? Association of Real Estate Local Law Officials Association of Real Estate Licensed Legal Officials Association of Real Estate Listing Law Officials Association of Real Estate License Law Officials 71. What type of fee is most commonly used to weed out buyers who are not serious in their commitment and may just be shopping around? Hourly rate fee Retainer fee Percentage fee Flat fee 72. Which form of compensation suggests that the agent is more of a consultant? Percentage fee Flat fee Hourly rate Commission 73. Which organization, founded in 1995, protects the interests of buyer’s agents? NAR NAEBA FTC ARELLO 74. A permanent file for a transaction should include: Only the written agency agreement Records regarding transactions made by the client All records regarding that particular transaction There is no permanent file 75. As a buyer’s agent, you are responsible for ensuring that your client understands the conditions of the purchase agreement, including: "time is of the essence" "failure to fulfill" "seller's right of way" "buyer's bidding" 76. What organizations picked up a large market share of the real estate professional business in the 1990s through their policies of REALTOR Multiple Listing Services and the REALTOR Code of Ethics were amended to make seller agency optional and to recognize the possibility of buyer agents.