New York Real Estate Broker Exam — All Questions
3 questions
In New York, a salesperson may perform licensed real estate activity only while:
- a.Holding a separate escrow account in their own name
- b.Registered with the local county clerk
- c.Waiting for a broker license to be issued
- d.Sponsored by a licensed broker who is responsible for their conduct✓
A New York salesperson or associate broker may perform licensed activity only while sponsored by a licensed broker. The sponsoring broker is responsible for the licensed conduct of associated licensees, including advertising, disclosures, and handling of client money.
A New York broker holding a buyer's deposit must:
- a.Keep it in a separate account and not commingle or convert it, maintaining records as required by 19 NYCRR Part 175✓
- b.Deposit it in the broker's personal account for convenience
- c.Deliver it to the salesperson to hold personally
- d.Apply it to the brokerage's operating expenses
A broker who holds a client's money must keep it in a separate account and must not commingle or convert it. The broker must maintain transaction and trust records as required by 19 NYCRR Part 175 and produce them for the Department if requested.
Which best describes the responsibility of a sponsoring New York broker for an affiliated salesperson's misleading advertisement?
- a.The broker bears no responsibility for a salesperson's advertising
- b.The broker may be held responsible because licensed activity is conducted under the broker's authority✓
- c.Advertising rules apply only to brokers, never salespersons
- d.Only the Department, not the broker, reviews advertising
The sponsoring broker is responsible for the licensed conduct of associated licensees, including their advertising. Because licensed activity is conducted under the broker's authority, inadequate supervision of advertising can expose the broker to discipline.