NY Real Estate Exam Agency Relationships 2

Question 1

What is subagency in real estate?

Accepted Answer

An agent from a cooperating brokerage who represents the seller through the listing broker

Answer

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.

Question 2

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?

Accepted Answer

Loyalty

Answer

Loyalty requires the agent to prioritize the client's interests over their own and avoid self-dealing or conflicts of interest.

Question 3

What is an implied agency in real estate?

Accepted Answer

An agency relationship that arises from the conduct and actions of the parties, without a formal agreement

Answer

Implied agency is created by the behavior and actions of the parties rather than a formal written agreement, which can inadvertently create agency duties.

Question 4

Under New York Real Property Law, written agency disclosure is required at what stage?

Accepted Answer

At the first substantive contact with any consumer

Answer

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.

Question 5

What term describes a real estate licensee who assists both buyer and seller in a transaction without representing either party as a fiduciary?

Accepted Answer

Transaction broker

Answer

A transaction broker (also called a facilitator) assists both parties but does not owe full fiduciary duties to either, acting as a neutral intermediary.

(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 Agency Relationships 2