Salesperson Janet works for ABC Realty and is showing properties to buyers Mark and Susan, who have signed a buyer agency agreement with ABC Realty. During the showing, they encounter the listing agent from XYZ Realty at one of the properties. The listing agent begins discussing the property details with Mark and Susan. What disclosure obligation does the listing agent have?
Correct Answer
A) Must provide agency disclosure form explaining representation of the seller
Even though the buyers are represented, RPL §443 requires the listing agent to provide agency disclosure at first substantive contact with any consumer. The listing agent must disclose their representation of the seller's interests, regardless of whether the buyers have their own representation.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Relationships Disclosures Question
Background Knowledge for Agency Relationships Disclosures
Real World Application in Agency Relationships Disclosures
Common Mistakes to Avoid on Agency Relationships Disclosures Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
More Agency Relationships Disclosures Questions
What is the primary risk that New York dual agency disclosure is designed to address?
What document must be provided to both parties before a New York broker can act as a dual agent?
Under New York's Property Condition Disclosure Act, how is the $500 credit amount determined when a seller elects not to provide the Property Condition Disclosure Statement?
Acting as a dual agent in New York, an agent has presented a below-asking-price offer that the seller rejected. The seller then asks the agent what the buyer's maximum budget is. How should the dual agent respond?
Agent Michelle meets first-time homebuyer Tony at her brokerage's office in Albany. Tony asks about the difference between condos and co-ops in the area. What must Michelle do before explaining these property types?
- → When acting as a dual agent in New York, which type of information can an agent share with both parties?
- → Agent David represents seller Susan in New York City. Susan asks David about the current market conditions for co-op apartments in her neighborhood. This type of information falls under which of David's duties to Susan?
- → A buyer's agent in New York never disclosed that a listed property was the site of a homicide. The buyer later discovers this and threatens legal action against the agent for failing to disclose it. What is the agent's strongest legal defense?
- → Under New York's agency disclosure law, which of the following constitutes 'first substantive contact' that would trigger the disclosure requirement?
- → Under NY Real Property Law §443, at what point must a real estate agent provide the agency disclosure form to a prospective buyer during an initial property visit?
- → Lisa, a seller's agent in New York, discovers that her client failed to disclose a known foundation crack in the basement on the Property Condition Disclosure Statement. The seller had mentioned this issue to Lisa during the listing appointment but chose not to disclose it. What is Lisa's primary obligation under New York law?
- → In New York, before a real estate agent can act as a dual agent representing both buyer and seller, what must occur?
- → Under New York's Property Condition Disclosure Act, a seller who chooses not to complete and deliver a Property Condition Disclosure Statement to the buyer must do which of the following?
- → A New York licensee is acting as a dual agent and receives simultaneous offers on the listed property from two different buyers, both of whom the agent also represents. Which obligation is most specifically implicated by the dual agency relationship in this situation?
- → Michael is a buyer's agent in New York. His client makes an offer on a property listed by another agent in his same brokerage. The listing agent becomes unavailable, and Michael's broker asks him to also represent the seller to complete the transaction. What must happen for Michael to legally represent both parties?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Real Estate Exam Practice Questions by Topic (2026): Free Sets for Contracts, Agency, Financing
Get topic-based real estate exam practice sets and a simple sequence to move from learning to timed mocks.
Real Estate Exam Topics (2026): High-Yield Areas + Common Traps (Contracts, Agency, Financing, Fair Housing)
Learn the highest-frequency real estate exam topics and the traps that cause most wrong answers—plus how to study them.
Real Estate Exam Agency & Fiduciary Duties (2026): Scenarios + Practice Questions
Master agency relationships and fiduciary duties using scenario patterns and practice questions built for exam wording.
Previous Question
According to New York Real Property Law §443, what is the primary purpose of the mandatory agency disclosure form?
Next Question
A licensed broker has a signed listing agreement with a seller and a signed buyer agency agreement with buyers interested in that same property. Before proceeding with the transaction, what is the broker's disclosure obligation under New York law?