Agency Relationships Flashcards
7 cards from real NY REAL ESTATE EXAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Agency Relationships flashcards as text
What is subagency in real estate?
Answer: An agent from a cooperating brokerage who represents the seller through the listing broker
Subagency occurs when a cooperating broker's agent represents the seller's interests through the listing broker, rather than acting as the buyer's agent.
Which fiduciary duty requires a real estate agent to act in the client's best interest and not place personal gain above the client's welfare?
Answer: Loyalty
Loyalty requires the agent to prioritize the client's interests over their own and avoid self-dealing or conflicts of interest.
What is an implied agency in real estate?
Answer: An agency relationship that arises from the conduct and actions of the parties, without a formal agreement
Implied agency is created by the behavior and actions of the parties rather than a formal written agreement, which can inadvertently create agency duties.
Under New York Real Property Law, written agency disclosure is required at what stage?
Answer: At the first substantive contact with any consumer
New York Real Property Law §443 requires written agency disclosure at the first substantive contact, ensuring consumers know the agent's role before negotiations begin.
What term describes a real estate licensee who assists both buyer and seller in a transaction without representing either party as a fiduciary?
Answer: Transaction broker
A transaction broker (also called a facilitator) assists both parties but does not owe full fiduciary duties to either, acting as a neutral intermediary.
Which fiduciary duty requires an agent to keep the client's personal information and negotiating position private?
Answer: Confidentiality
Confidentiality requires the agent to protect sensitive client information — such as motivation to sell, financial limits, or personal circumstances — from other parties.
Which of the following actions most commonly creates an agency relationship in New York real estate?
Answer: Signing a listing agreement or buyer representation agreement
A written agreement such as a listing agreement or buyer representation agreement formally establishes the agency relationship and defines the parties' duties.