New York State Real Estate Salesperson Licensing Exam

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Prepare for the New York State Real Estate Salesperson Licensing Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you succeed. Ace your exam with confidence!

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Which practice is illegal for a real estate salesperson?

Offering discounts
Withholding material facts
Providing listing services
Coordinating open houses

The correct answer is: Withholding material facts

Withholding material facts is illegal for a real estate salesperson because it constitutes a form of misrepresentation or fraud. Real estate professionals are obligated to disclose all material facts and information that might affect a buyer's decision. Material facts are critical details about the property, such as structural issues, zoning restrictions, or legal encumbrances, that could influence the transaction outcomes. Failure to disclose these facts can lead to severe legal repercussions for the salesperson, as well as potential damages for the buyer. This duty of disclosure is fundamental in maintaining transparency and trust in real estate transactions, ensuring that all parties are fully informed before making decisions. In contrast, offering discounts, providing listing services, and coordinating open houses are all legitimate practices within real estate transactions, as long as they comply with relevant regulations and ethical guidelines. These activities are part of a salesperson's role in promoting properties and assisting clients effectively.