York Real Estate Exam Questions & Answers 2026 (11–20)

Question 1

The fiduciary duty of ACCOUNTABILITY (also called 'accounting') requires an agent to:

TheoryPractice · Accepted Answer

Account for all funds and property entrusted to them by the principal. Accountability means the agent must safeguard and properly account for any money or property (such as earnest money deposits) entrusted to them, and must not commingle those funds with personal or business funds.

Question 2

A buyer's agent learns that the seller is willing to accept $30,000 below the listed price. Under fiduciary duty, the buyer's agent should:

TheoryPractice · Accepted Answer

Disclose this to the buyer, as it serves the buyer's (principal's) best interest. The duty of disclosure requires a buyer's agent to reveal to the buyer any information that benefits the buyer — including the seller's willingness to accept a lower price. Confidentiality protects the agent's OWN client's information, not the other party's.

Question 3

Which of the following is the MOST common way an agency relationship is created in New York real estate?

TheoryPractice · Accepted Answer

By an express written agreement such as a listing contract. Express agency is intentionally created by a written or oral agreement. In New York, listing agreements and buyer representation agreements are the standard written express agency contracts.

Question 4

Agency by ESTOPPEL (also called apparent or ostensible agency) can arise when:

TheoryPractice · Accepted Answer

A principal's conduct leads a third party to reasonably believe an agency relationship exists. Agency by estoppel occurs when the principal's words or actions cause a third party to reasonably believe that someone is their agent, even if no formal agreement exists. The principal may be 'estopped' (prevented) from denying the relationship.

Question 5

Agency by RATIFICATION occurs when:

TheoryPractice · Accepted Answer

A principal approves or confirms an unauthorized act that was done on their behalf. Ratification means the principal, after the fact, accepts the benefit of or affirms an act an agent performed without prior authority. Once ratified, the agent's act is treated as if it had been authorized from the beginning.

Question 6

Under an EXCLUSIVE RIGHT TO SELL listing, the broker earns a commission if the property is sold:

TheoryPractice · Accepted Answer

By anyone, including the seller, during the listing period. An exclusive right to sell listing entitles the listing broker to a commission regardless of who produces the buyer — even if the seller sells the property to a neighbor without any broker involvement.

Question 7

Under an EXCLUSIVE AGENCY listing, the seller retains the right to:

TheoryPractice · Accepted Answer

Sell the property themselves without paying the broker a commission. In an exclusive agency listing, only one broker is authorized, but the seller reserves the right to find their own buyer. If the seller closes that private sale, no commission is owed to the broker.

Question 8

An OPEN LISTING allows a seller to:

TheoryPractice · Accepted Answer

Authorize multiple brokers, paying a commission only to the broker who procures the buyer. An open listing is a non-exclusive agreement where the seller may simultaneously work with many brokers. Only the broker who actually produces the buyer earns a commission, and the seller pays nothing if they sell it themselves.

Question 9

A net listing is considered PROBLEMATIC in New York primarily because it:

TheoryPractice · Accepted Answer

Creates a conflict of interest since the broker profits more by accepting a higher price at the seller's expense. In a net listing the broker keeps everything above a seller-specified 'net' amount. This creates a direct conflict with the broker's fiduciary duty of loyalty because the broker may be tempted to push for a higher price to increase their own cut rather than to serve the seller's best interest. New York discourages net listings.

Question 10

A 'safety clause' (also called an extender or tail clause) in a listing agreement protects the broker by:

TheoryPractice · Accepted Answer

Allowing the broker to earn a commission if the seller sells to a buyer the broker introduced during the listing period, even after the listing expires. The safety (extender) clause protects the broker from sellers who wait for the listing to expire and then deal directly with buyers the broker introduced, thereby avoiding the commission.

York Real Estate Exam Questions & Answers 2026 (11–20)

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