NY Real Estate Exam NY Real Estate License Law & Regulations 2

Question 1

What is the NY Human Rights Law as it applies to real estate?

Accepted Answer

A state law prohibiting discrimination in housing based on protected classes including sexual orientation and marital status, which are broader than federal protections

Answer

NY Executive Law Article 15 prohibits housing discrimination based on race, color, religion, sex, national origin, disability, familial status, age, marital status, sexual orientation, gender identity, and military status.

Question 2

What disclosures must a NY real estate agent provide to buyers and sellers?

Accepted Answer

Agency disclosure form explaining the agent's role, property condition disclosure or credit, and lead paint disclosure for pre-1978 homes

Answer

NY agents must provide an agency disclosure form at first substantive contact. Sellers must provide a Property Condition Disclosure Statement (or $500 credit in lieu). Pre-1978 homes require lead paint disclosure.

Question 3

What is the Property Condition Disclosure Act in New York?

Accepted Answer

A law requiring sellers to complete a disclosure statement about the property's condition or provide a $500 credit to the buyer at closing

Answer

NY Property Condition Disclosure Act requires sellers to complete a 48-question form disclosing known property conditions. Most sellers opt to provide the $500 credit instead, as their attorneys often advise against detailed disclosure.

Question 4

What is commingling in NY real estate law?

Accepted Answer

Illegally mixing client funds (trust money) with the broker's personal or business operating funds

Answer

NY law strictly prohibits commingling. Brokers must maintain a separate escrow/trust account for client funds (earnest money, security deposits) and never deposit them into personal or general business accounts.

Question 5

Can a NY real estate salesperson receive commission directly from a client?

Accepted Answer

No, commissions must always be paid through the sponsoring broker

Answer

NY law requires that all commissions and compensation for real estate services flow through the licensed broker. Salespersons cannot receive payment directly from clients, other brokers, or any other source except their sponsoring broker.

(NY Real Estate Exam) New York Real Estate Exam Practice Test

(NY Real Estate Exam) New York Real Estate Exam Practice Test

NY Real Estate Exam NY Real Estate License Law & Regulations 2