New York Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the New York real estate exam, and it's also one of the most misunderstood. The New York Department of State (DOS) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under New York law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for NY-specific rules are among the most common failures on the state portion.
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New York Agency — Practice Questions & Answers
114 questions on Agency from the New York real estate question bank. First 10 are free — sign up to unlock all 114.
Q1. In New York, the agency disclosure form must be provided to a buyer or seller:
Explanation
New York requires licensees to provide the Agency Disclosure Form at the first substantive contact with a prospective buyer or seller and obtain their acknowledgment.
Q2. Dual agency in New York requires:
Explanation
Dual agency in New York requires written informed consent from both parties. Without this consent, a licensee representing both buyer and seller is acting improperly.
Q3. A New York licensee is working with a buyer but has no written agreement. The licensee's relationship with the buyer is best described as:
Explanation
Without a written buyer agency agreement, a licensee working with a buyer may be considered a prospective buyer relationship with limited duties, not a full fiduciary relationship. The agency relationship should be clearly established in writing.
Q4. Which fiduciary duty requires a seller's agent to keep the seller's motivation for selling confidential?
Explanation
The duty of confidentiality requires the agent to keep the principal's confidential information, such as the seller's motivation or urgency to sell, private and not disclose it to third parties.
Q5. In a designated agency arrangement in New York, the broker:
Explanation
In designated agency, the broker assigns separate salespeople from the same firm to represent the buyer and seller. Each designated agent owes full fiduciary duties to their respective client.
Q6. A seller's agent discovers a material defect in the property the seller has not disclosed. The agent should:
Explanation
Even a seller's agent must disclose known material defects to prospective buyers. The duty to disclose material facts overrides the duty of confidentiality to the seller.
Q7. An agent's fiduciary duty of 'obedience' means the agent must:
Explanation
The duty of obedience requires the agent to follow the lawful instructions of the principal. An agent must not follow instructions that are illegal or unethical.
Q8. Which type of agency is created without a formal written agreement but arises from the conduct of the parties?
Explanation
Implied agency arises from the actions and conduct of the parties rather than from a formal written agreement. For example, if a licensee begins performing services for a client without a written agreement, an implied agency may be created.
Q9. A subagent in a real estate transaction owes fiduciary duties to:
Explanation
A subagent is an agent of the listing broker and therefore owes fiduciary duties to the seller (the principal). A cooperating broker acting as a subagent represents the seller, not the buyer.
Q10. In New York, 'transaction brokerage' (non-agency facilitation) is:
Explanation
New York does not recognize transaction brokerage (also called non-agency or facilitation) as a formal agency category under its license law. Licensees in NY must choose a recognized agency relationship.
Q11. The duty of 'reasonable care and diligence' requires an agent to:
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