NY Real Estate Exam Content 2

Question 1

Under New York law, a buyer's agent who also represents the seller in the same transaction must obtain what?

Accepted Answer

Written informed consent from both parties

Answer

New York requires written informed consent from both the buyer and seller before a licensee may act as a dual agent.

Question 2

Which of the following disclosures is a New York licensee required to give a prospective buyer at the first substantive contact?

Accepted Answer

Agency disclosure form

Answer

NY Real Property Law §443 requires the agency disclosure form to be presented at the first substantive contact with a prospective buyer or seller.

Question 3

A listing agreement in New York that automatically renews itself unless cancelled is called a/an:

Accepted Answer

Evergreen clause listing

Answer

An evergreen clause causes a listing agreement to automatically renew for additional periods unless either party provides timely notice of cancellation.

Question 4

A seller in New York accepts an offer but the buyer fails to close because financing fell through. The seller keeps the earnest money. This deposit is legally known as:

Accepted Answer

Liquidated damages

Answer

Earnest money retained by the seller upon buyer default is treated as liquidated damages, a pre-agreed remedy set forth in the contract.

Question 5

Under the New York Property Condition Disclosure Act, what is the financial penalty a seller may pay instead of completing the disclosure statement?

Accepted Answer

$500

Answer

A seller who fails to deliver the required Property Condition Disclosure Statement must give the buyer a $500 credit at closing.

(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 Content 2