New York State Real Estate Salesperson Practice Examination
NYS Real Estate Salesperson Practice Examination 2025 HTML
NYS Real Estate Salesperson Practice Examination 2025 HTML
Q1. A homeowner installed custom built-in bookcases and cabinets in her living room. Upon selling the house, she wants to remove them. Which statement is most correct regarding these bookcases?
Correct Answer: B
Explanation: In real estate, a fixture is an item that started as personal property but has been attached to land or a building in a manner that makes it part of the real property. Built-in bookcases and cabinets attached to the walls are typically considered fixtures (they are affixed and adapted to the home). As fixtures, they transfer with the property when sold unless otherwise agreed. Courts apply tests such as intention, method of attachment, adaptability, agreement, and relationship of the parties to determine if an item is a fixture. Here, the custom built-ins are intended to be permanent improvements, so they must remain with the house unless the buyer and seller negotiate otherwise.
Citation: California Real Estate Reference Book – Chapter 4 (Property)
Explanation: In real estate, a fixture is an item that started as personal property but has been attached to land or a building in a manner that makes it part of the real property. Built-in bookcases and cabinets attached to the walls are typically considered fixtures (they are affixed and adapted to the home). As fixtures, they transfer with the property when sold unless otherwise agreed. Courts apply tests such as intention, method of attachment, adaptability, agreement, and relationship of the parties to determine if an item is a fixture. Here, the custom built-ins are intended to be permanent improvements, so they must remain with the house unless the buyer and seller negotiate otherwise.
Citation: California Real Estate Reference Book – Chapter 4 (Property)
Q2. When two individuals hold title as joint tenants in New York, what happens to a joint tenant’s share upon one tenant’s death?
Correct Answer: C
Explanation: Joint tenancy includes the right of survivorship, so the deceased tenant’s interest vests immediately in the surviving tenant.
Citation: NY Real Property Actions & Proceedings Law § 339-c
Explanation: Joint tenancy includes the right of survivorship, so the deceased tenant’s interest vests immediately in the surviving tenant.
Citation: NY Real Property Actions & Proceedings Law § 339-c
Q3. Under New York’s attorney review period for residential contracts, how long does a buyer or seller have to cancel after delivery by their attorney?
Correct Answer: C
Explanation: Attorney review allows either party to cancel within three business days after delivery by counsel.
Citation: NY General Business Law § 5-702
Explanation: Attorney review allows either party to cancel within three business days after delivery by counsel.
Citation: NY General Business Law § 5-702
Q4. Which document conveys a cooperative apartment interest to a purchaser in New York?
Correct Answer: A
Explanation: In a cooperative, ownership is conveyed via shares and a proprietary lease rather than a deed.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 88
Explanation: In a cooperative, ownership is conveyed via shares and a proprietary lease rather than a deed.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 88
Q5. Which party must sign the agency disclosure form before the first substantive discussion of a property’s availability?
Correct Answer: C
Explanation: Both prospective buyers and sellers (or their agents) must sign before substantive negotiations.
Citation: NY License Law § 175.25
Explanation: Both prospective buyers and sellers (or their agents) must sign before substantive negotiations.
Citation: NY License Law § 175.25
Q6. Which estate in land grants maximum rights and is potentially infinite in duration?
Correct Answer: C
Explanation: Fee simple absolute includes all rights without conditions and lasts indefinitely.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 42
Explanation: Fee simple absolute includes all rights without conditions and lasts indefinitely.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 42
Q7. A special warranty deed in New York warrants title defects arising only during which period?
Correct Answer: B
Explanation: A special warranty deed warrants only against defects arising during the grantor’s ownership period.
Citation: NY Real Property Law § 245
Explanation: A special warranty deed warrants only against defects arising during the grantor’s ownership period.
Citation: NY Real Property Law § 245
Q8. Under NY License Law, within how many business days must a broker deposit escrow funds after receipt?
Correct Answer: C
Explanation: Brokers must place escrow deposits into a trust account within three business days of receipt.
Citation: NY License Law § 175.25
Explanation: Brokers must place escrow deposits into a trust account within three business days of receipt.
Citation: NY License Law § 175.25
Q9. If a buyer defaults on a residential contract in New York and the seller retains the deposit as the sole remedy, this is known as:
Correct Answer: B
Explanation: A liquidated damages clause permits the seller to keep the deposit as predetermined damages.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 112
Explanation: A liquidated damages clause permits the seller to keep the deposit as predetermined damages.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 112
Q10. Which of the following is a protected category under New York State law but not under the federal Fair Housing Act?
Correct Answer: C
Explanation: New York adds “lawful source of income” as a protected class beyond federal provisions.
Citation: NY Executive Law § 296
Explanation: New York adds “lawful source of income” as a protected class beyond federal provisions.
Citation: NY Executive Law § 296
Q11. For residential properties built before 1978, which lead-based paint disclosure requirement applies in New York?
Correct Answer: B
Explanation: Sellers must provide the EPA lead brochure and disclose any known lead hazards.
Citation: NY Environmental Conservation Law § 27-0919
Explanation: Sellers must provide the EPA lead brochure and disclose any known lead hazards.
Citation: NY Environmental Conservation Law § 27-0919
Q12. Which type of lien is specific to the property’s improvements rather than the owner’s general assets?
Correct Answer: C
Explanation: A mechanic’s lien is specific to the property where labor or materials were provided.
Citation: NY Lien Law § 10
Explanation: A mechanic’s lien is specific to the property where labor or materials were provided.
Citation: NY Lien Law § 10
Q13. If a broker shows property without a signed agency agreement or disclosure, the broker is considered which type of agent?
Correct Answer: C
Explanation: Without a signed agreement, the broker acts as a non-agent facilitator with no fiduciary duties.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 32
Explanation: Without a signed agreement, the broker acts as a non-agent facilitator with no fiduciary duties.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 32
Q14. New York’s state transfer tax rate is $2 per $500 of consideration. On a $300,000 sale, how much tax is due?
Correct Answer: B
Explanation: $300,000 ÷ $500 = 600; 600 × $2 = $1,200.
Citation: NY Real Property Tax Law § 1402
Explanation: $300,000 ÷ $500 = 600; 600 × $2 = $1,200.
Citation: NY Real Property Tax Law § 1402
Q15. Which defeasible fee estate automatically ends when a specified condition is violated?
Correct Answer: B
Explanation: A fee simple determinable ends automatically upon breach of the stated condition.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 46
Explanation: A fee simple determinable ends automatically upon breach of the stated condition.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 46
Q16. A mortgage clause that allows the lender to demand full repayment upon borrower default is called the:
Correct Answer: A
Explanation: The acceleration clause permits the lender to call the entire loan due if the borrower defaults.
Citation: PSI Real Estate Salesperson Examination Content Outline, Section 5
Explanation: The acceleration clause permits the lender to call the entire loan due if the borrower defaults.
Citation: PSI Real Estate Salesperson Examination Content Outline, Section 5
Q17. Which type of depreciation is considered incurable because it arises from external factors?
Correct Answer: C
Explanation: Economic obsolescence results from external forces (e.g., zoning changes) and is incurable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Explanation: Economic obsolescence results from external forces (e.g., zoning changes) and is incurable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Q18. How many hours of continuing education are required biennially for renewal of a New York real estate salesperson license?
Correct Answer: B
Explanation: Licensees must complete 22 hours of approved continuing education every two years.
Citation: NY DOS Licensing Renewal Guidelines
Explanation: Licensees must complete 22 hours of approved continuing education every two years.
Citation: NY DOS Licensing Renewal Guidelines
Q19. Which documents typically govern condominium ownership in New York?
Correct Answer: B
Explanation: New York condos are created by a master deed and declaration filed with the county.
Citation: NY Condominium Act § 339-kkkk
Explanation: New York condos are created by a master deed and declaration filed with the county.
Citation: NY Condominium Act § 339-kkkk
Q20. Which agency enforces the Real Estate Licensing Law in New York?
Correct Answer: C
Explanation: The Department of State’s Division of Licensing Services oversees real estate licensure and enforcement.
Citation: NY Executive Law § 70
Explanation: The Department of State’s Division of Licensing Services oversees real estate licensure and enforcement.
Citation: NY Executive Law § 70
Q21. In a triple net (NNN) lease, which expenses is the tenant typically responsible for?
Correct Answer: C
Explanation: In NNN leases, tenants pay base rent plus property taxes, insurance, and maintenance.
Citation: PSI Real Estate Salesperson Examination Content Outline, Section 7
Explanation: In NNN leases, tenants pay base rent plus property taxes, insurance, and maintenance.
Citation: PSI Real Estate Salesperson Examination Content Outline, Section 7
Q22. A property generates a net operating income of $28,000 annually and is valued at $350,000. What is its capitalization rate?
Correct Answer: B
Explanation: Cap rate = NOI ÷ Value = $28,000 ÷ $350,000 = 0.08 or 8%.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Explanation: Cap rate = NOI ÷ Value = $28,000 ÷ $350,000 = 0.08 or 8%.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Q23. Which disclosure is mandatory for one- to four-family residential resale properties in New York?
Correct Answer: A
Explanation: Sellers must complete and deliver the form and advisory before contract signing.
Citation: NY General Business Law § 36-0107
Explanation: Sellers must complete and deliver the form and advisory before contract signing.
Citation: NY General Business Law § 36-0107
Q24. Which practice violates federal and state antitrust laws in real estate brokerage?
Correct Answer: B
Explanation: Price fixing commission rates among brokers is illegal under antitrust laws.
Citation: Sherman Act; NY General Business Law § 340
Explanation: Price fixing commission rates among brokers is illegal under antitrust laws.
Citation: Sherman Act; NY General Business Law § 340
Q25. True or False: A New York real estate broker may commingle client funds with personal funds as long as records are kept.
Correct Answer: B
Explanation: Commingling client funds with personal funds is strictly prohibited under New York law.
Citation: NY License Law § 175.25
Explanation: Commingling client funds with personal funds is strictly prohibited under New York law.
Citation: NY License Law § 175.25
Q26. What type of agency is created when one broker represents both buyer and seller with their informed consent?
Correct Answer: B
Explanation: Dual agency occurs when one broker (or brokerage) represents both parties in the same transaction with their informed consent.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 30
Explanation: Dual agency occurs when one broker (or brokerage) represents both parties in the same transaction with their informed consent.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 30
Q27. Which listing gives a broker the exclusive right to earn a commission regardless of who sells the property?
Correct Answer: C
Explanation: An exclusive right to sell listing ensures the broker earns a commission no matter who procures the buyer.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 72
Explanation: An exclusive right to sell listing ensures the broker earns a commission no matter who procures the buyer.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 72
Q28. Which test focuses on how an item is adapted to the real property when determining if it is a fixture?
Correct Answer: C
Explanation: The adaptation test examines whether the item is specially adapted to the property, indicating it should be treated as a fixture.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 22
Explanation: The adaptation test examines whether the item is specially adapted to the property, indicating it should be treated as a fixture.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 22
Q29. To establish an easement by prescription in New York, continuous and notorious use must occur for at least how many years?
Correct Answer: B
Explanation: New York law requires at least ten years of open, continuous, and notorious use to create a prescriptive easement.
Citation: NY Civil Practice Law & Rules § 214
Explanation: New York law requires at least ten years of open, continuous, and notorious use to create a prescriptive easement.
Citation: NY Civil Practice Law & Rules § 214
Q30. Under New York’s Statute of Frauds, which real estate agreement must be in writing to be enforceable?
Correct Answer: C
Explanation: Contracts for the sale of real estate must be in writing under the Statute of Frauds to be enforceable.
Citation: NY General Obligations Law § 5-701
Explanation: Contracts for the sale of real estate must be in writing under the Statute of Frauds to be enforceable.
Citation: NY General Obligations Law § 5-701
Q31. Which form must sellers of one- to four-family homes provide to buyers outlining known material defects?
Correct Answer: A
Explanation: Sellers must complete and deliver the NY Property Condition Disclosure Statement disclosing known defects.
Citation: NY General Business Law § 36-0107
Explanation: Sellers must complete and deliver the NY Property Condition Disclosure Statement disclosing known defects.
Citation: NY General Business Law § 36-0107
Q32. In the cost approach to valuation, which formula is used?
Correct Answer: C
Explanation: The cost approach adds land value to the replacement cost of improvements minus accrued depreciation.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Explanation: The cost approach adds land value to the replacement cost of improvements minus accrued depreciation.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Q33. Which appraisal method relies on sales of similar properties to estimate value?
Correct Answer: C
Explanation: The market data approach compares recent sales of similar properties to determine value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Explanation: The market data approach compares recent sales of similar properties to determine value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Q34. What term describes any defect or claim that may cloud the title to real property?
Correct Answer: B
Explanation: A cloud on title is any claim, lien, or encumbrance that may impair title.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 46
Explanation: A cloud on title is any claim, lien, or encumbrance that may impair title.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 46
Q35. If a homeowner erects a fence partially on a neighbor’s land without permission, this best describes a:
Correct Answer: B
Explanation: An encroachment occurs when a structure intrudes on another’s property without permission.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Explanation: An encroachment occurs when a structure intrudes on another’s property without permission.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Q36. Which depreciation method computes depreciation as effective age divided by economic life?
Correct Answer: B
Explanation: The age-life method uses the ratio of effective age to economic life to estimate depreciation.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Explanation: The age-life method uses the ratio of effective age to economic life to estimate depreciation.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Q37. Which federal law requires lenders to provide borrowers a good-faith estimate of closing costs under RESPA?
Correct Answer: B
Explanation: RESPA mandates disclosure of settlement costs to borrowers in a timely, standardized format.
Citation: 12 U.S.C. § 2603
Explanation: RESPA mandates disclosure of settlement costs to borrowers in a timely, standardized format.
Citation: 12 U.S.C. § 2603
Q38. Under New York law, escrow deposits held by brokers are classified as:
Correct Answer: A
Explanation: Escrow deposits are held as trust funds and must be kept separate from the broker’s personal accounts.
Citation: NY License Law § 175.25
Explanation: Escrow deposits are held as trust funds and must be kept separate from the broker’s personal accounts.
Citation: NY License Law § 175.25
Q39. Which federal law prohibits discrimination in lending based on race, color, religion, sex, or national origin?
Correct Answer: B
Explanation: The ECOA forbids credit discrimination on specified bases, including race and religion.
Citation: 15 U.S.C. § 1691
Explanation: The ECOA forbids credit discrimination on specified bases, including race and religion.
Citation: 15 U.S.C. § 1691
Q40. Which deed offers the greatest protection by guaranteeing title against all defects, even predating the grantor’s ownership?
Correct Answer: C
Explanation: A general warranty deed guarantees against all title defects, including those prior to the grantor’s tenure.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 78
Explanation: A general warranty deed guarantees against all title defects, including those prior to the grantor’s tenure.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 78
Q41. What value basis is commonly used for property insurance coverage?
Correct Answer: B
Explanation: Insurance policies typically use replacement cost to determine coverage amounts.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Explanation: Insurance policies typically use replacement cost to determine coverage amounts.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Q42. An option contract in real estate is classified as which type of contract?
Correct Answer: B
Explanation: An option contract is unilateral: the seller must sell if the buyer exercises the option, but the buyer is not obligated to buy.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 35
Explanation: An option contract is unilateral: the seller must sell if the buyer exercises the option, but the buyer is not obligated to buy.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 35
Q43. Which ratio measures operating expenses as a percentage of effective gross income?
Correct Answer: A
Explanation: The expense ratio is total operating expenses divided by effective gross income.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Explanation: The expense ratio is total operating expenses divided by effective gross income.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Q44. What does LTV stand for in mortgage financing?
Correct Answer: A
Explanation: LTV means loan-to-value, comparing the loan amount to the property’s appraised value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 66
Explanation: LTV means loan-to-value, comparing the loan amount to the property’s appraised value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 66
Q45. What are discount points in a mortgage context?
Correct Answer: A
Explanation: Discount points are prepaid interest paid at closing to reduce the loan’s interest rate.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: Discount points are prepaid interest paid at closing to reduce the loan’s interest rate.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q46. Which clause in a deed limits future use of the property according to specific conditions?
Correct Answer: C
Explanation: A deed restriction imposes specific use limitations that run with the land.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 80
Explanation: A deed restriction imposes specific use limitations that run with the land.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 80
Q47. A zoning ordinance violation is typically remedied by:
Correct Answer: C
Explanation: Courts commonly issue injunctions to halt and correct zoning violations.
Citation: NY Town Law § 267
Explanation: Courts commonly issue injunctions to halt and correct zoning violations.
Citation: NY Town Law § 267
Q48. Which federal law requires financial institutions to protect consumers’ private financial information?
Correct Answer: B
Explanation: The GLBA mandates privacy notices and safeguards for consumers’ nonpublic personal information.
Citation: Gramm-Leach-Bliley Act (15 U.S.C. § 6801)
Explanation: The GLBA mandates privacy notices and safeguards for consumers’ nonpublic personal information.
Citation: Gramm-Leach-Bliley Act (15 U.S.C. § 6801)
Q49. When advertising a property, a licensed salesperson in New York must include:
Correct Answer: A
Explanation: All real estate ads by salespersons must display the sponsoring broker’s legal business name.
Citation: NY License Law § 175.15
Explanation: All real estate ads by salespersons must display the sponsoring broker’s legal business name.
Citation: NY License Law § 175.15
Q50. What market condition exists when supply of properties exceeds buyer demand?
Correct Answer: C
Explanation: A buyer’s market occurs when there are more properties available than buyers, giving buyers negotiating power.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 50
Explanation: A buyer’s market occurs when there are more properties available than buyers, giving buyers negotiating power.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 50
Q51. Under New York License Law, within how many days must a salesperson notify the Department of State of a change of business address?
Correct Answer: B
Explanation: Salespersons must report any change of business address to the Department of State within five days of the change.
Citation: NY License Law § 175.16
Explanation: Salespersons must report any change of business address to the Department of State within five days of the change.
Citation: NY License Law § 175.16
Q52. A valid deed under New York Real Property Law must include which of the following?
Correct Answer: B
Explanation: The granting clause specifies the grantor’s intention to transfer ownership and is essential for a valid deed.
Citation: NY Real Property Law § 240
Explanation: The granting clause specifies the grantor’s intention to transfer ownership and is essential for a valid deed.
Citation: NY Real Property Law § 240
Q53. In the band of investment technique, the overall capitalization rate is derived by combining:
Correct Answer: A
Explanation: The band of investment multiplies the mortgage constant by the loan-to-value ratio and adds the equity yield rate multiplied by the equity portion.
Citation: PSI Real Estate Salesperson Examination Content Outline, Section 9
Explanation: The band of investment multiplies the mortgage constant by the loan-to-value ratio and adds the equity yield rate multiplied by the equity portion.
Citation: PSI Real Estate Salesperson Examination Content Outline, Section 9
Q54. Under New York’s Condominium Act, how many days does a buyer have to rescind the contract after receiving the public offering statement?
Correct Answer: C
Explanation: Buyers have a ten-day right of rescission after delivery of the condominium public offering statement.
Citation: NY Condominium Act § 339-ll
Explanation: Buyers have a ten-day right of rescission after delivery of the condominium public offering statement.
Citation: NY Condominium Act § 339-ll
Q55. The New York Real Property Tax Law’s basic homestead exemption can reduce assessed value by up to what percentage?
Correct Answer: B
Explanation: The standard homestead exemption allows homeowners to deduct up to 50% of their property’s assessed value for school tax purposes.
Citation: NY Real Property Tax Law § 425
Explanation: The standard homestead exemption allows homeowners to deduct up to 50% of their property’s assessed value for school tax purposes.
Citation: NY Real Property Tax Law § 425
Q56. A New York real estate license expires on which date?
Correct Answer: B
Explanation: Licenses renew biennially on the last day of the licensee’s birth month.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 130
Explanation: Licenses renew biennially on the last day of the licensee’s birth month.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 130
Q57. How long must a New York broker retain transaction records?
Correct Answer: B
Explanation: Brokers must keep transaction records and related documents for three years.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 33
Explanation: Brokers must keep transaction records and related documents for three years.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 33
Q58. Under New York License Law, a salesperson may share commission only with:
Correct Answer: B
Explanation: Commission must flow through the sponsoring broker; a salesperson cannot split commissions directly with others.
Citation: NY License Law § 175.30
Explanation: Commission must flow through the sponsoring broker; a salesperson cannot split commissions directly with others.
Citation: NY License Law § 175.30
Q59. A lease requiring periodic rent adjustments based on the Consumer Price Index is called:
Correct Answer: C
Explanation: Index leases tie rent increases to published indices like the CPI.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 102
Explanation: Index leases tie rent increases to published indices like the CPI.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 102
Q60. In a Section 1031 like-kind exchange, how many days does the exchanger have to identify replacement property?
Correct Answer: B
Explanation: The IRS mandates a 45-day identification period in a 1031 exchange.
Citation: Internal Revenue Code § 1031(a)(3)
Explanation: The IRS mandates a 45-day identification period in a 1031 exchange.
Citation: Internal Revenue Code § 1031(a)(3)
Q61. Under New York’s RPAPL, how many days’ notice for nonpayment of rent is required before commencing eviction?
Correct Answer: C
Explanation: A 14-day notice is required before an eviction proceeding for nonpayment.
Citation: NY Real Property Actions & Proceedings Law § 711
Explanation: A 14-day notice is required before an eviction proceeding for nonpayment.
Citation: NY Real Property Actions & Proceedings Law § 711
Q62. When a landlord’s failure to provide essential services forces a tenant to vacate, this is known as:
Correct Answer: B
Explanation: Constructive eviction occurs when conditions are so intolerable the tenant must leave.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Explanation: Constructive eviction occurs when conditions are so intolerable the tenant must leave.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Q63. Which event does NOT automatically terminate a listing agreement by operation of law?
Correct Answer: C
Explanation: Bankruptcy does not by itself terminate a valid listing agreement.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Explanation: Bankruptcy does not by itself terminate a valid listing agreement.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Q64. The primary purpose of the Truth in Lending Act is to:
Correct Answer: C
Explanation: TILA mandates clear disclosure of all finance charges and the annual percentage rate to consumers.
Citation: 15 U.S.C. § 1601
Explanation: TILA mandates clear disclosure of all finance charges and the annual percentage rate to consumers.
Citation: 15 U.S.C. § 1601
Q65. How many hours of approved qualifying education are required before taking the New York salesperson exam?
Correct Answer: C
Explanation: Prospective salespersons must complete 75 hours of state-approved coursework before exam eligibility.
Citation: 19 NYCRR Part 180
Explanation: Prospective salespersons must complete 75 hours of state-approved coursework before exam eligibility.
Citation: 19 NYCRR Part 180
Q66. Under New York Real Property Law, the maximum residential security deposit is:
Correct Answer: A
Explanation: Landlords may require no more than one month’s rent as a security deposit for residential leases.
Citation: NY Real Property Law § 226-b
Explanation: Landlords may require no more than one month’s rent as a security deposit for residential leases.
Citation: NY Real Property Law § 226-b
Q67. Which type of listing agreement is considered unethical due to potential for inflated commissions?
Correct Answer: C
Explanation: Net listings can lead to excessive commission claims and are discouraged under NY regulations.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 72
Explanation: Net listings can lead to excessive commission claims and are discouraged under NY regulations.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 72
Q68. Directing buyers or renters to certain neighborhoods based on race or national origin is called:
Correct Answer: B
Explanation: Steering channels protected-class individuals toward or away from certain areas, violating Fair Housing laws.
Citation: Fair Housing Act, 42 U.S.C. § 3604
Explanation: Steering channels protected-class individuals toward or away from certain areas, violating Fair Housing laws.
Citation: Fair Housing Act, 42 U.S.C. § 3604
Q69. Which criterion of highest and best use analysis examines whether zoning and legal restrictions allow the proposed use?
Correct Answer: B
Explanation: Legally permissible determines whether governmental and private restrictions allow the use.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 56
Explanation: Legally permissible determines whether governmental and private restrictions allow the use.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 56
Q70. Under a gross lease, the tenant typically pays:
Correct Answer: A
Explanation: Gross leases bundle all expenses—taxes, insurance, maintenance—into the rent payment.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Explanation: Gross leases bundle all expenses—taxes, insurance, maintenance—into the rent payment.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Q71. Which tort allows a property owner to sue when another’s use unreasonably interferes with their enjoyment of land?
Correct Answer: B
Explanation: Nuisance addresses non-trespassory invasions that interfere with use or enjoyment of land.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Explanation: Nuisance addresses non-trespassory invasions that interfere with use or enjoyment of land.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Q72. Under CERCLA, parties responsible for contamination are held:
Correct Answer: B
Explanation: CERCLA imposes strict, joint and several liability for cleanup of hazardous sites.
Citation: 42 U.S.C. § 9607
Explanation: CERCLA imposes strict, joint and several liability for cleanup of hazardous sites.
Citation: 42 U.S.C. § 9607
Q73. Misrepresentation of material facts about a property to induce a contract is:
Correct Answer: B
Explanation: Intentional misrepresentation of key facts constitutes fraud, voiding the contract.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 34
Explanation: Intentional misrepresentation of key facts constitutes fraud, voiding the contract.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 34
Q74. Which covenant in a deed guarantees the grantor has the right to convey title?
Correct Answer: A
Explanation: The covenant of seisin asserts the grantor owns and has the right to convey the property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 78
Explanation: The covenant of seisin asserts the grantor owns and has the right to convey the property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 78
Q75. In New York, the STAR exemption acronym stands for:
Correct Answer: B
Explanation: STAR stands for School Tax Relief, a program reducing school property taxes for eligible homeowners.
Citation: NY Tax Law § 425
Explanation: STAR stands for School Tax Relief, a program reducing school property taxes for eligible homeowners.
Citation: NY Tax Law § 425
Q76. Which type of power of attorney remains effective if the principal becomes incapacitated?
Correct Answer: B
Explanation: A durable power of attorney remains in effect even if the principal later becomes incapacitated.
Citation: NY Estates, Powers & Trusts Law § 5-1511
Explanation: A durable power of attorney remains in effect even if the principal later becomes incapacitated.
Citation: NY Estates, Powers & Trusts Law § 5-1511
Q77. Title insurance protects buyers against losses from:
Correct Answer: C
Explanation: Title insurance reimburses owners for defects in the chain of title that were not found at closing.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 85
Explanation: Title insurance reimburses owners for defects in the chain of title that were not found at closing.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 85
Q78. What is the process called when a municipality takes private property for public use?
Correct Answer: B
Explanation: Condemnation is the legal procedure by which government exercises eminent domain to take private property for public use.
Citation: NY Eminent Domain Procedure Law § 201
Explanation: Condemnation is the legal procedure by which government exercises eminent domain to take private property for public use.
Citation: NY Eminent Domain Procedure Law § 201
Q79. Which zoning variance allows deviation from dimensional requirements due to undue hardship?
Correct Answer: A
Explanation: An area variance permits relief from physical or dimensional zoning requirements when strict compliance causes practical difficulty.
Citation: NY Town Law § 267-a
Explanation: An area variance permits relief from physical or dimensional zoning requirements when strict compliance causes practical difficulty.
Citation: NY Town Law § 267-a
Q80. Under USPAP, which principle requires an appraiser to act impartially and with integrity?
Correct Answer: B
Explanation: Objectivity under USPAP mandates that appraisers be impartial, unbiased, and free of conflicts of interest.
Citation: Uniform Standards of Professional Appraisal Practice, Standard 1
Explanation: Objectivity under USPAP mandates that appraisers be impartial, unbiased, and free of conflicts of interest.
Citation: Uniform Standards of Professional Appraisal Practice, Standard 1
Q81. Under the Truth in Lending Act, a borrower may rescind a mortgage transaction within how many business days?
Correct Answer: B
Explanation: TILA provides a three-business-day right of rescission for certain refinancings and home equity loans.
Citation: Truth in Lending Act (15 U.S.C. § 1635)
Explanation: TILA provides a three-business-day right of rescission for certain refinancings and home equity loans.
Citation: Truth in Lending Act (15 U.S.C. § 1635)
Q82. Which conveyance document transfers title without any warranties?
Correct Answer: D
Explanation: A quitclaim deed conveys whatever interest the grantor holds, with no guarantees of title quality.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 78
Explanation: A quitclaim deed conveys whatever interest the grantor holds, with no guarantees of title quality.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 78
Q83. In an installment contract, when does legal title transfer to the buyer?
Correct Answer: B
Explanation: Under an installment contract (land contract), title remains with the seller until the buyer has paid in full.
Citation: NY Real Property Law § 235-b
Explanation: Under an installment contract (land contract), title remains with the seller until the buyer has paid in full.
Citation: NY Real Property Law § 235-b
Q84. Which insurance covers loss of rental income when a property is untenantable due to an insured peril?
Correct Answer: C
Explanation: Loss of use (or rent loss) coverage reimburses owners for rental income lost when insured perils make the property uninhabitable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 110
Explanation: Loss of use (or rent loss) coverage reimburses owners for rental income lost when insured perils make the property uninhabitable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 110
Q85. A blanket mortgage encumbers:
Correct Answer: B
Explanation: A blanket mortgage covers more than one parcel under a single lien instrument.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 120
Explanation: A blanket mortgage covers more than one parcel under a single lien instrument.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 120
Q86. In a single net lease, the tenant typically pays:
Correct Answer: B
Explanation: A single net lease requires the tenant to pay base rent plus property taxes; the landlord covers other expenses.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Explanation: A single net lease requires the tenant to pay base rent plus property taxes; the landlord covers other expenses.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Q87. Under NY License Law, how often must a broker reconcile trust accounts?
Correct Answer: A
Explanation: Brokers are required to reconcile their escrow trust accounts monthly to ensure accuracy.
Citation: NY License Law § 175.25
Explanation: Brokers are required to reconcile their escrow trust accounts monthly to ensure accuracy.
Citation: NY License Law § 175.25
Q88. Which clause in a mortgage prohibits the borrower from transferring title without lender consent?
Correct Answer: B
Explanation: An alienation (due-on-sale) clause allows the lender to call the loan due if title is transferred without consent.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Explanation: An alienation (due-on-sale) clause allows the lender to call the loan due if title is transferred without consent.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Q89. A “pad site” refers to:
Correct Answer: B
Explanation: A pad site is a freestanding parcel within a larger retail or commercial development.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 112
Explanation: A pad site is a freestanding parcel within a larger retail or commercial development.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 112
Q90. Which federal agency enforces RESPA?
Correct Answer: A
Explanation: The Consumer Financial Protection Bureau administers and enforces the Real Estate Settlement Procedures Act.
Citation: Real Estate Settlement Procedures Act (12 U.S.C. § 2617)
Explanation: The Consumer Financial Protection Bureau administers and enforces the Real Estate Settlement Procedures Act.
Citation: Real Estate Settlement Procedures Act (12 U.S.C. § 2617)
Q91. For tax purposes, a primary residence must be occupied for how many of the five years prior to sale to qualify for up to $250,000 gain exclusion?
Correct Answer: B
Explanation: Homeowners must occupy the property for at least two of the five years before sale to exclude up to $250,000 of gain.
Citation: Internal Revenue Code § 121
Explanation: Homeowners must occupy the property for at least two of the five years before sale to exclude up to $250,000 of gain.
Citation: Internal Revenue Code § 121
Q92. A trust deed transfers title to:
Correct Answer: A
Explanation: In a trust deed, legal title is held by the trustee for the lender (beneficiary) until the debt is satisfied.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 88
Explanation: In a trust deed, legal title is held by the trustee for the lender (beneficiary) until the debt is satisfied.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 88
Q93. Which remedy compels a breaching seller to transfer property as agreed?
Correct Answer: B
Explanation: Specific performance is an equitable remedy requiring the breaching party to perform contractual obligations regarding real property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Explanation: Specific performance is an equitable remedy requiring the breaching party to perform contractual obligations regarding real property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Q94. The term “emblements” refers to:
Correct Answer: B
Explanation: Emblements are annual crops planted and harvested by a tenant, considered personal property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 22
Explanation: Emblements are annual crops planted and harvested by a tenant, considered personal property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 22
Q95. A cloud on title is removed by:
Correct Answer: A
Explanation: A quiet title action is a lawsuit to establish ownership and remove clouds on the title.
Citation: NY Real Property Actions & Proceedings Law § 1501
Explanation: A quiet title action is a lawsuit to establish ownership and remove clouds on the title.
Citation: NY Real Property Actions & Proceedings Law § 1501
Q96. Sellers must provide buyers with information on radon hazards under which law?
Correct Answer: B
Explanation: Article 13 of the NY Public Health Law requires disclosure of known radon hazards in residential property.
Citation: NY Public Health Law § 1370
Explanation: Article 13 of the NY Public Health Law requires disclosure of known radon hazards in residential property.
Citation: NY Public Health Law § 1370
Q97. Which type of easement arises by express grant in a deed?
Correct Answer: C
Explanation: An easement appurtenant is created by express grant in a deed to benefit adjacent parcels.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Explanation: An easement appurtenant is created by express grant in a deed to benefit adjacent parcels.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Q98. The doctrine of laches refers to:
Correct Answer: A
Explanation: Laches is an equitable defense where unreasonable delay in asserting a right bars relief.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 45
Explanation: Laches is an equitable defense where unreasonable delay in asserting a right bars relief.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 45
Q99. A residential real estate salesperson may not advertise:
Correct Answer: A
Explanation: Salespeople must include their sponsoring broker’s approval; advertising FSBO without broker consent violates licensing law.
Citation: NY License Law § 175.15
Explanation: Salespeople must include their sponsoring broker’s approval; advertising FSBO without broker consent violates licensing law.
Citation: NY License Law § 175.15
Q100. In New York, an offer is considered revoked when:
Correct Answer: D
Explanation: An offer is revoked by a valid counteroffer, death of the offeror, or lapse of the time specified (or reasonable time).
Citation: NY General Obligations Law § 5-1503
Explanation: An offer is revoked by a valid counteroffer, death of the offeror, or lapse of the time specified (or reasonable time).
Citation: NY General Obligations Law § 5-1503
Q101. Under the doctrine of partial performance, which action can make an oral real estate contract enforceable?
Correct Answer: C
Explanation: Construction of improvements by the purchaser in reliance on the agreement can remove the contract from the Statute of Frauds and make it enforceable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 130
Explanation: Construction of improvements by the purchaser in reliance on the agreement can remove the contract from the Statute of Frauds and make it enforceable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 130
Q102. Which of the following distinguishes novation from assignment of a contract?
Correct Answer: C
Explanation: Novation substitutes a new contract and parties, extinguishing the original, whereas assignment merely transfers rights without creating a new contract.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 116
Explanation: Novation substitutes a new contract and parties, extinguishing the original, whereas assignment merely transfers rights without creating a new contract.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 116
Q103. Which situation creates a voidable contract in real estate?
Correct Answer: B
Explanation: A contract signed under duress is voidable at the option of the pressured party but not automatically void.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 34
Explanation: A contract signed under duress is voidable at the option of the pressured party but not automatically void.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 34
Q104. Assignment of a lease generally requires what to be enforceable?
Correct Answer: A
Explanation: Most leases include clauses requiring the landlord’s consent for assignment to ensure continued control over tenancy.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Explanation: Most leases include clauses requiring the landlord’s consent for assignment to ensure continued control over tenancy.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Q105. A reverse mortgage is also known as:
Correct Answer: A
Explanation: Reverse mortgages insured by HUD are called Home Equity Conversion Mortgages (HECMs).
Citation: HUD Guidelines for Home Equity Conversion Mortgages, 24 CFR § 206
Explanation: Reverse mortgages insured by HUD are called Home Equity Conversion Mortgages (HECMs).
Citation: HUD Guidelines for Home Equity Conversion Mortgages, 24 CFR § 206
Q106. Equity financing differs from debt financing in that equity:
Correct Answer: C
Explanation: Equity financing raises capital by selling ownership interests, rather than borrowing against assets.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 66
Explanation: Equity financing raises capital by selling ownership interests, rather than borrowing against assets.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 66
Q107. An ad valorem tax is based on:
Correct Answer: A
Explanation: Ad valorem taxes are levied in proportion to the assessed value of real property.
Citation: NY Real Property Tax Law § 301
Explanation: Ad valorem taxes are levied in proportion to the assessed value of real property.
Citation: NY Real Property Tax Law § 301
Q108. In New York, which lien has priority over all others?
Correct Answer: C
Explanation: Statutory property tax liens are superior to all other liens and must be paid first.
Citation: NY Real Property Tax Law § 924
Explanation: Statutory property tax liens are superior to all other liens and must be paid first.
Citation: NY Real Property Tax Law § 924
Q109. A subdivision plat typically shows:
Correct Answer: B
Explanation: Plats detail lot lines, dimensions, easements, streets, and public dedications in a subdivision.
Citation: NY Real Property Actions & Proceedings Law § 801
Explanation: Plats detail lot lines, dimensions, easements, streets, and public dedications in a subdivision.
Citation: NY Real Property Actions & Proceedings Law § 801
Q110. The lot-and-block system uses:
Correct Answer: C
Explanation: Lots are identified by block and lot numbers on a recorded subdivision plat.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Explanation: Lots are identified by block and lot numbers on a recorded subdivision plat.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Q111. A property manager’s fiduciary duty of accountability requires:
Correct Answer: A
Explanation: Accountability demands that the manager keep and report all financial transactions and expenses accurately.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 102
Explanation: Accountability demands that the manager keep and report all financial transactions and expenses accurately.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 102
Q112. Earnest money deposits are generally classified as:
Correct Answer: C
Explanation: Earnest money serves as contract consideration, demonstrating the buyer’s good faith.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 116
Explanation: Earnest money serves as contract consideration, demonstrating the buyer’s good faith.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 116
Q113. Which document itemizes all buyer’s and seller’s debits and credits at closing?
Correct Answer: A
Explanation: The Closing Disclosure (TRID) replaced the HUD-1 and details all closing costs for buyer and seller.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Explanation: The Closing Disclosure (TRID) replaced the HUD-1 and details all closing costs for buyer and seller.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Q114. An option contract differs from a right of first refusal in that an option:
Correct Answer: B
Explanation: An option creates a unilateral promise by the seller to keep an offer open, which the buyer may exercise or not.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 35
Explanation: An option creates a unilateral promise by the seller to keep an offer open, which the buyer may exercise or not.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 35
Q115. A springing power of attorney becomes effective:
Correct Answer: B
Explanation: A springing POA “springs” into effect when a specified event, typically the principal’s incapacitation, occurs.
Citation: NY Estates, Powers & Trusts Law § 5-1511
Explanation: A springing POA “springs” into effect when a specified event, typically the principal’s incapacitation, occurs.
Citation: NY Estates, Powers & Trusts Law § 5-1511
Q116. A joint venture in real estate development is:
Correct Answer: B
Explanation: Joint ventures are formed by parties pooling resources for a single development and dissolve upon completion.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 108
Explanation: Joint ventures are formed by parties pooling resources for a single development and dissolve upon completion.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 108
Q117. A real estate investment trust (REIT) must distribute at least what percentage of taxable income to shareholders?
Correct Answer: C
Explanation: To qualify as a REIT, at least 90% of taxable income must be distributed annually to shareholders.
Citation: Internal Revenue Code § 856(a)(1)
Explanation: To qualify as a REIT, at least 90% of taxable income must be distributed annually to shareholders.
Citation: Internal Revenue Code § 856(a)(1)
Q118. Which federal agency insures escrow accounts for real estate settlements?
Correct Answer: A
Explanation: The FDIC insures deposits, including escrow accounts, held at FDIC-member banks.
Citation: FDIC Deposit Insurance Guidelines
Explanation: The FDIC insures deposits, including escrow accounts, held at FDIC-member banks.
Citation: FDIC Deposit Insurance Guidelines
Q119. Under the “first to record” doctrine, a deed:
Correct Answer: C
Explanation: The “first to record” rule gives priority to interests in property based on the chronological order of recording.
Citation: NY Real Property Actions & Proceedings Law § 291
Explanation: The “first to record” rule gives priority to interests in property based on the chronological order of recording.
Citation: NY Real Property Actions & Proceedings Law § 291
Q120. The doctrine of accession allows a landowner to:
Correct Answer: B
Explanation: Accession grants title to the landowner for fixtures or additions permanently attached to the land.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Explanation: Accession grants title to the landowner for fixtures or additions permanently attached to the land.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Q121. Avulsion differs from erosion in that avulsion:
Correct Answer: B
Explanation: Avulsion is a sudden washing away or addition of land by flood or other violent action of water.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 28
Explanation: Avulsion is a sudden washing away or addition of land by flood or other violent action of water.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 28
Q122. A special use permit differs from a variance because it:
Correct Answer: B
Explanation: Special use permits allow uses the ordinance permits under specific conditions without altering dimensional rules.
Citation: NY Town Law § 274-b
Explanation: Special use permits allow uses the ordinance permits under specific conditions without altering dimensional rules.
Citation: NY Town Law § 274-b
Q123. Metes-and-bounds legal descriptions begin at a:
Correct Answer: B
Explanation: Metes-and-bounds descriptions start at a designated monument or point of beginning and trace boundary lines.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Explanation: Metes-and-bounds descriptions start at a designated monument or point of beginning and trace boundary lines.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Q124. Of the 22 continuing education hours required biennially in New York, how many must be in fair housing and ethics?
Correct Answer: A
Explanation: Licensees must complete at least 3 hours combined of fair housing and ethics education every renewal period.
Citation: NY DOS Licensing Renewal Guidelines
Explanation: Licensees must complete at least 3 hours combined of fair housing and ethics education every renewal period.
Citation: NY DOS Licensing Renewal Guidelines
Q125. The TILA-RESPA Integrated Disclosure rule is commonly referred to as:
Correct Answer: B
Explanation: The Integrated Disclosure rule combining TILA and RESPA requirements is known as TRID.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Explanation: The Integrated Disclosure rule combining TILA and RESPA requirements is known as TRID.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Q126. After a judicial foreclosure sale in New York, how long does the mortgagor have to redeem the property?
Correct Answer: B
Explanation: New York law provides a one-year statutory redemption period after a foreclosure sale for the mortgagor to reclaim title.
Citation: NY Real Property Actions & Proceedings Law § 1371
Explanation: New York law provides a one-year statutory redemption period after a foreclosure sale for the mortgagor to reclaim title.
Citation: NY Real Property Actions & Proceedings Law § 1371
Q127. Which lease conveys only the land and requires the lessee to build and maintain improvements?
Correct Answer: C
Explanation: A ground lease grants only the land; the tenant constructs and maintains any buildings or improvements.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 100
Explanation: A ground lease grants only the land; the tenant constructs and maintains any buildings or improvements.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 100
Q128. Private mortgage insurance (PMI) is generally required when the loan-to-value ratio exceeds what percentage?
Correct Answer: C
Explanation: Lenders typically require PMI when borrowers finance more than 80% of the property’s value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Explanation: Lenders typically require PMI when borrowers finance more than 80% of the property’s value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Q129. Which government-backed loan program generally permits 100% financing with no down payment?
Correct Answer: B
Explanation: VA loans for eligible veterans and service members allow full financing without a down payment.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: VA loans for eligible veterans and service members allow full financing without a down payment.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q130. What type of lease provides scheduled rent increases at predetermined intervals?
Correct Answer: A
Explanation: In a graduated lease, the lease agreement specifies rent increases at fixed future dates.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Explanation: In a graduated lease, the lease agreement specifies rent increases at fixed future dates.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Q131. Recording a deed in the public records provides which type of notice to subsequent purchasers?
Correct Answer: B
Explanation: Constructive notice is deemed given to all once a document is properly recorded.
Citation: NY Real Property Actions & Proceedings Law § 291
Explanation: Constructive notice is deemed given to all once a document is properly recorded.
Citation: NY Real Property Actions & Proceedings Law § 291
Q132. To acquire title by adverse possession in New York, open and notorious possession must continue for how many years?
Correct Answer: C
Explanation: Title by adverse possession vests after ten years of hostile, open, and continuous occupancy.
Citation: NY Real Property Actions & Proceedings Law § 511
Explanation: Title by adverse possession vests after ten years of hostile, open, and continuous occupancy.
Citation: NY Real Property Actions & Proceedings Law § 511
Q133. The landlord’s ownership interest in leased property is known as the:
Correct Answer: C
Explanation: The leased fee estate is the landlord’s residual ownership interest subject to the lease.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 42
Explanation: The leased fee estate is the landlord’s residual ownership interest subject to the lease.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 42
Q134. The government’s authority to enact zoning and building codes is derived from its:
Correct Answer: B
Explanation: Police power allows regulation of land use to protect public health, safety, and welfare.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 18
Explanation: Police power allows regulation of land use to protect public health, safety, and welfare.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 18
Q135. Under U.S. tax law, residential rental property is depreciated over how many years using MACRS?
Correct Answer: B
Explanation: Under MACRS, residential rental property is depreciated over 27.5 years.
Citation: IRS Publication 946
Explanation: Under MACRS, residential rental property is depreciated over 27.5 years.
Citation: IRS Publication 946
Q136. Which notice, filed in the county clerk’s office, warns that a lawsuit affecting title has been initiated?
Correct Answer: B
Explanation: A lis pendens gives constructive notice that pending litigation may affect title.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 46
Explanation: A lis pendens gives constructive notice that pending litigation may affect title.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 46
Q137. Steering prospective buyers toward or away from neighborhoods based on race or national origin is known as:
Correct Answer: B
Explanation: Steering is directing buyers based on protected characteristics, prohibited by the Fair Housing Act.
Citation: 42 U.S.C. § 3604(d)
Explanation: Steering is directing buyers based on protected characteristics, prohibited by the Fair Housing Act.
Citation: 42 U.S.C. § 3604(d)
Q138. A title abstract provides:
Correct Answer: B
Explanation: A title abstract summarizes the chain of title by listing recorded instruments affecting the property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 85
Explanation: A title abstract summarizes the chain of title by listing recorded instruments affecting the property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 85
Q139. The equalization rate in New York real property taxation represents:
Correct Answer: A
Explanation: The equalization rate adjusts assessed values to reflect full market value across municipalities.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 50
Explanation: The equalization rate adjusts assessed values to reflect full market value across municipalities.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 50
Q140. In a lien theory state like New York, the mortgage creates:
Correct Answer: B
Explanation: Under lien theory, the borrower retains title while the mortgage creates a lien in favor of the lender.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Explanation: Under lien theory, the borrower retains title while the mortgage creates a lien in favor of the lender.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Q141. In a tenancy in common, co-owners:
Correct Answer: C
Explanation: Tenants in common can own unequal shares and each may sell or transfer their interest independently.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Explanation: Tenants in common can own unequal shares and each may sell or transfer their interest independently.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Q142. Which co-ownership form is available only to married couples in New York?
Correct Answer: C
Explanation: Tenancy by entirety, which includes right of survivorship, is reserved for legally married spouses.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Explanation: Tenancy by entirety, which includes right of survivorship, is reserved for legally married spouses.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Q143. Unlike a cooperative, a condominium purchaser receives:
Correct Answer: B
Explanation: In a condo, buyers acquire a deed to their unit plus an undivided share of the common elements.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 88
Explanation: In a condo, buyers acquire a deed to their unit plus an undivided share of the common elements.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 88
Q144. Prequalification differs from preapproval in that preapproval:
Correct Answer: A
Explanation: Preapproval involves verification of credit and income, giving a conditional commitment on loan amount.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Explanation: Preapproval involves verification of credit and income, giving a conditional commitment on loan amount.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Q145. Which alternative to foreclosure involves the borrower deeding the property directly to the lender?
Correct Answer: B
Explanation: A deed in lieu of foreclosure is a voluntary transfer of title by the borrower to satisfy the debt and avoid judicial sale.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Explanation: A deed in lieu of foreclosure is a voluntary transfer of title by the borrower to satisfy the debt and avoid judicial sale.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Q146. Under the equitable conversion doctrine, upon contract signing the buyer:
Correct Answer: B
Explanation: Equitable conversion gives the buyer equitable title upon signing, while the seller retains legal title until closing.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Explanation: Equitable conversion gives the buyer equitable title upon signing, while the seller retains legal title until closing.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Q147. The seller’s security interest in the property for unpaid purchase money is called a:
Correct Answer: B
Explanation: A vendor’s lien secures the seller’s interest for any unpaid portion of the purchase price.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Explanation: A vendor’s lien secures the seller’s interest for any unpaid portion of the purchase price.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Q148. A nonconforming use is:
Correct Answer: C
Explanation: A nonconforming use lawfully existed before new zoning rules and is permitted to continue despite current restrictions.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 26
Explanation: A nonconforming use lawfully existed before new zoning rules and is permitted to continue despite current restrictions.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 26
Q149. When a buyer takes title “subject to” an existing mortgage, the buyer:
Correct Answer: B
Explanation: “Subject to” means the buyer acquires title but has no personal obligation on the existing loan; the seller remains liable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Explanation: “Subject to” means the buyer acquires title but has no personal obligation on the existing loan; the seller remains liable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Q150. Under New York’s Civil Practice Law & Rules, the statute of limitations for filing a written contract action is:
Correct Answer: C
Explanation: NY CPLR § 213 sets a six-year limitation period for actions based on written contracts.
Citation: NY Civil Practice Law & Rules § 213
Explanation: NY CPLR § 213 sets a six-year limitation period for actions based on written contracts.
Citation: NY Civil Practice Law & Rules § 213
Q151. Under Regulation Z (TILA), the annual percentage rate (APR) differs from the finance charge in that APR:
Correct Answer: C
Explanation: The APR converts all finance charges and interest into a standardized annual rate, allowing borrowers to compare loan costs.
Citation: Truth in Lending Act (15 U.S.C. § 1606)
Explanation: The APR converts all finance charges and interest into a standardized annual rate, allowing borrowers to compare loan costs.
Citation: Truth in Lending Act (15 U.S.C. § 1606)
Q152. Which practice is prohibited by Section 8 of the Real Estate Settlement Procedures Act (RESPA)?
Correct Answer: C
Explanation: RESPA Section 8 prohibits kickbacks and unearned fees—splitting charges for services not rendered constitutes a kickback.
Citation: Real Estate Settlement Procedures Act § 8 (12 U.S.C. § 2607)
Explanation: RESPA Section 8 prohibits kickbacks and unearned fees—splitting charges for services not rendered constitutes a kickback.
Citation: Real Estate Settlement Procedures Act § 8 (12 U.S.C. § 2607)
Q153. Under the Americans with Disabilities Act (ADA), which property type is required to comply?
Correct Answer: C
Explanation: The ADA applies to public accommodations (e.g., hotels, restaurants, theaters), not private homes or raw land.
Citation: Americans with Disabilities Act (42 U.S.C. § 12181)
Explanation: The ADA applies to public accommodations (e.g., hotels, restaurants, theaters), not private homes or raw land.
Citation: Americans with Disabilities Act (42 U.S.C. § 12181)
Q154. When one broker designates separate salespersons for buyer and seller in the same transaction, this is called:
Correct Answer: B
Explanation: Designated agency allows a single brokerage to represent both sides by appointing separate agents to each party.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 31
Explanation: Designated agency allows a single brokerage to represent both sides by appointing separate agents to each party.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 31
Q155. What is the minimum age requirement to qualify for a New York real estate salesperson license?
Correct Answer: B
Explanation: Applicants must be at least 18 years old to obtain a real estate salesperson license in New York.
Citation: NY License Law § 175.6
Explanation: Applicants must be at least 18 years old to obtain a real estate salesperson license in New York.
Citation: NY License Law § 175.6
Q156. How many hours of approved qualifying education are required before taking the New York real estate salesperson exam?
Correct Answer: B
Explanation: Prospective salespersons must complete 75 hours of state-approved coursework prior to exam eligibility.
Citation: 19 NYCRR Part 180
Explanation: Prospective salespersons must complete 75 hours of state-approved coursework prior to exam eligibility.
Citation: 19 NYCRR Part 180
Q157. Of the 22 continuing education hours required biennially in New York, how many hours must be devoted to law updates?
Correct Answer: A
Explanation: Licensees must complete at least one hour of law updates as part of their 22-hour biennial continuing education requirement.
Citation: NY DOS Licensing Renewal Guidelines
Explanation: Licensees must complete at least one hour of law updates as part of their 22-hour biennial continuing education requirement.
Citation: NY DOS Licensing Renewal Guidelines
Q158. In the cost approach, reproduction cost differs from replacement cost in that reproduction cost means:
Correct Answer: A
Explanation: Reproduction cost estimates the expense to construct an exact duplicate using the same materials and design.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Explanation: Reproduction cost estimates the expense to construct an exact duplicate using the same materials and design.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Q159. What is the name of the standard appraisal form used for most single-family residential properties?
Correct Answer: B
Explanation: The Uniform Residential Appraisal Report (URAR, Form 1004) is used for single-family home appraisals.
Citation: Fannie Mae Appraiser Reporting Forms
Explanation: The Uniform Residential Appraisal Report (URAR, Form 1004) is used for single-family home appraisals.
Citation: Fannie Mae Appraiser Reporting Forms
Q160. The gross rent multiplier (GRM) is calculated by dividing:
Correct Answer: C
Explanation: GRM = Sales Price ÷ Gross Annual Rental Income.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Explanation: GRM = Sales Price ÷ Gross Annual Rental Income.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Q161. In a Section 1031 like-kind exchange, what is the role of the qualified intermediary?
Correct Answer: C
Explanation: The qualified intermediary holds the funds from the sale until they are used to acquire the replacement property, preserving tax deferral.
Citation: Internal Revenue Code § 1031(a)(3)
Explanation: The qualified intermediary holds the funds from the sale until they are used to acquire the replacement property, preserving tax deferral.
Citation: Internal Revenue Code § 1031(a)(3)
Q162. Under the Equal Credit Opportunity Act (ECOA), discrimination in lending based on which of the following is prohibited?
Correct Answer: C
Explanation: ECOA prohibits discrimination based on marital status, race, color, religion, national origin, sex, age, or public assistance.
Citation: Equal Credit Opportunity Act (15 U.S.C. § 1691)
Explanation: ECOA prohibits discrimination based on marital status, race, color, religion, national origin, sex, age, or public assistance.
Citation: Equal Credit Opportunity Act (15 U.S.C. § 1691)
Q163. Which of the following is NOT an essential element of a valid real estate contract?
Correct Answer: D
Explanation: Performance is the outcome of a contract, not an essential element; essential elements are mutual assent, consideration, legal capacity, and lawful purpose.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 34
Explanation: Performance is the outcome of a contract, not an essential element; essential elements are mutual assent, consideration, legal capacity, and lawful purpose.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 34
Q164. Including a “time is of the essence” clause in a contract makes:
Correct Answer: A
Explanation: A “time is of the essence” clause makes all dates and deadlines in a contract strictly enforceable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Explanation: A “time is of the essence” clause makes all dates and deadlines in a contract strictly enforceable.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Q165. Which of the following is generally NOT considered an operating expense in income property analysis?
Correct Answer: D
Explanation: Depreciation is a non-cash expense for tax and accounting purposes, not an operating expense.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Explanation: Depreciation is a non-cash expense for tax and accounting purposes, not an operating expense.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Q166. All real estate advertisements in New York must display which of the following?
Correct Answer: B
Explanation: Federal and state law require the Equal Housing Opportunity logo or statement on all real estate ads.
Citation: Fair Housing Act (42 U.S.C. § 3604, NY Executive Law § 296)
Explanation: Federal and state law require the Equal Housing Opportunity logo or statement on all real estate ads.
Citation: Fair Housing Act (42 U.S.C. § 3604, NY Executive Law § 296)
Q167. A special agent is an individual who:
Correct Answer: C
Explanation: A special agent (e.g., a real estate broker for a single transaction) has authority limited to a specific task.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Explanation: A special agent (e.g., a real estate broker for a single transaction) has authority limited to a specific task.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Q168. A general agent in real estate most commonly refers to:
Correct Answer: A
Explanation: A general agent (e.g., a property manager) has broad authority to conduct all aspects of the principal’s business.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 102
Explanation: A general agent (e.g., a property manager) has broad authority to conduct all aspects of the principal’s business.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 102
Q169. A universal agent is one who:
Correct Answer: B
Explanation: A universal agent holds broad powers to act for the principal in all matters, typically via a power of attorney.
Citation: NY Estates, Powers & Trusts Law § 5-1501
Explanation: A universal agent holds broad powers to act for the principal in all matters, typically via a power of attorney.
Citation: NY Estates, Powers & Trusts Law § 5-1501
Q170. Inquiry notice arises when a person:
Correct Answer: C
Explanation: Inquiry notice occurs when facts observable would prompt a reasonable person to investigate further (e.g., visible occupation).
Citation: NY Real Property Actions & Proceedings Law § 291
Explanation: Inquiry notice occurs when facts observable would prompt a reasonable person to investigate further (e.g., visible occupation).
Citation: NY Real Property Actions & Proceedings Law § 291
Q171. Implied agency is created by:
Correct Answer: C
Explanation: An implied agency arises from actions or conduct that reasonably lead a third party to believe an agency relationship exists.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 30
Explanation: An implied agency arises from actions or conduct that reasonably lead a third party to believe an agency relationship exists.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 30
Q172. The implied warranty of habitability in New York applies to:
Correct Answer: C
Explanation: The implied warranty of habitability applies to residential leases, not sales contracts.
Citation: NY Real Property Law § 235-b
Explanation: The implied warranty of habitability applies to residential leases, not sales contracts.
Citation: NY Real Property Law § 235-b
Q173. For proration of property taxes at closing, the “exact days” method means:
Correct Answer: B
Explanation: The exact-days method prorates taxes based on the actual calendar days in the tax period.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Explanation: The exact-days method prorates taxes based on the actual calendar days in the tax period.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 62
Q174. Title insurance typically does NOT cover losses from:
Correct Answer: B
Explanation: Standard title policies exclude boundary or survey issues unless a survey endorsement is obtained.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 85
Explanation: Standard title policies exclude boundary or survey issues unless a survey endorsement is obtained.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 85
Q175. A partition action in New York is used to:
Correct Answer: B
Explanation: A partition action allows co-tenants to compel physical division or sale of jointly held property.
Citation: NY Real Property Actions & Proceedings Law § 901
Explanation: A partition action allows co-tenants to compel physical division or sale of jointly held property.
Citation: NY Real Property Actions & Proceedings Law § 901
Q176. Which of the following best distinguishes riparian rights from littoral rights?
Correct Answer: B
Explanation: Riparian rights concern properties abutting rivers or streams (flowing water), whereas littoral rights apply to lakes, ponds, or oceans (non-flowing water bodies).
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 28
Explanation: Riparian rights concern properties abutting rivers or streams (flowing water), whereas littoral rights apply to lakes, ponds, or oceans (non-flowing water bodies).
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 28
Q177. What is the purpose of an estoppel certificate in a cooperative sale?
Correct Answer: B
Explanation: An estoppel certificate verifies that the seller-shareholder is current on maintenance fees and discloses any unpaid amounts the buyer will assume.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Explanation: An estoppel certificate verifies that the seller-shareholder is current on maintenance fees and discloses any unpaid amounts the buyer will assume.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Q178. An amortization schedule primarily shows:
Correct Answer: B
Explanation: Amortization schedules detail each periodic payment, showing how much reduces principal versus pays interest, and the remaining balance.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 66
Explanation: Amortization schedules detail each periodic payment, showing how much reduces principal versus pays interest, and the remaining balance.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 66
Q179. In an adjustable-rate mortgage (ARM), which cap limits how much the interest rate can change at each adjustment?
Correct Answer: C
Explanation: The periodic cap restricts the maximum interest rate increase or decrease at each adjustment interval.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Explanation: The periodic cap restricts the maximum interest rate increase or decrease at each adjustment interval.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Q180. A “straw buyer” in real estate transactions is:
Correct Answer: B
Explanation: A straw buyer lends their credit profile to allow an unqualified party to obtain a mortgage, often committing fraud.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: A straw buyer lends their credit profile to allow an unqualified party to obtain a mortgage, often committing fraud.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q181. A protective covenant in a deed:
Correct Answer: B
Explanation: Protective covenants require owners to adhere to specified standards (e.g., architectural guidelines) and run with the land.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 80
Explanation: Protective covenants require owners to adhere to specified standards (e.g., architectural guidelines) and run with the land.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 80
Q182. A letter of intent in a purchase transaction is used to:
Correct Answer: B
Explanation: A letter of intent sets out key deal terms (price, timeline, contingencies) before final contracts are prepared.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 116
Explanation: A letter of intent sets out key deal terms (price, timeline, contingencies) before final contracts are prepared.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 116
Q183. The right of first refusal differs from the right of first offer in that first refusal:
Correct Answer: B
Explanation: A right of first refusal allows its holder to step into the shoes of a third-party offer once it is received, whereas first offer requires the owner to negotiate with the holder first.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 35
Explanation: A right of first refusal allows its holder to step into the shoes of a third-party offer once it is received, whereas first offer requires the owner to negotiate with the holder first.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 35
Q184. A reciprocal easement agreement (REA) typically:
Correct Answer: B
Explanation: REAs grant shared access (e.g., driveways) and allocate upkeep responsibilities among neighboring owners.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Explanation: REAs grant shared access (e.g., driveways) and allocate upkeep responsibilities among neighboring owners.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Q185. A certificate of occupancy is issued to verify:
Correct Answer: B
Explanation: Certificates of occupancy confirm that a building meets applicable codes and is safe for its intended use.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 80
Explanation: Certificates of occupancy confirm that a building meets applicable codes and is safe for its intended use.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 80
Q186. A notice to quit given by a landlord:
Correct Answer: B
Explanation: A notice to quit informs the tenant they must vacate within a statutory period (e.g., for nonpayment or lease violation).
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Explanation: A notice to quit informs the tenant they must vacate within a statutory period (e.g., for nonpayment or lease violation).
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Q187. The debt service coverage ratio (DSCR) is calculated by dividing:
Correct Answer: A
Explanation: DSCR measures a property’s ability to cover its debt: DSCR = NOI ÷ Annual debt service.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Explanation: DSCR measures a property’s ability to cover its debt: DSCR = NOI ÷ Annual debt service.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Q188. A loan origination fee is:
Correct Answer: C
Explanation: Origination fees compensate the lender for loan processing, underwriting, and administrative costs.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: Origination fees compensate the lender for loan processing, underwriting, and administrative costs.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q189. A yield maintenance provision in a commercial loan:
Correct Answer: B
Explanation: Yield maintenance calculates a prepayment penalty equal to the lender’s economic loss (discounted difference in interest) if the loan is paid off early.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Explanation: Yield maintenance calculates a prepayment penalty equal to the lender’s economic loss (discounted difference in interest) if the loan is paid off early.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Q190. Depreciation recapture in real estate refers to:
Correct Answer: B
Explanation: Depreciation recapture taxes the difference between sale price and adjusted basis attributable to prior depreciation at ordinary income rates up to 25%.
Citation: IRS Publication 544
Explanation: Depreciation recapture taxes the difference between sale price and adjusted basis attributable to prior depreciation at ordinary income rates up to 25%.
Citation: IRS Publication 544
Q191. Which of these is typically considered a tax shelter in real estate?
Correct Answer: B
Explanation: Passive losses from real estate investments (e.g., limited partnerships) can offset other passive income, creating a tax shelter.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 66
Explanation: Passive losses from real estate investments (e.g., limited partnerships) can offset other passive income, creating a tax shelter.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 66
Q192. Under IRC Section 1033, involuntary conversion allows deferral of gain when property is:
Correct Answer: B
Explanation: Section 1033 permits deferral of recognized gain when property is compulsorily converted (condemned or destroyed) and replacement property is acquired within prescribed time.
Citation: Internal Revenue Code § 1033
Explanation: Section 1033 permits deferral of recognized gain when property is compulsorily converted (condemned or destroyed) and replacement property is acquired within prescribed time.
Citation: Internal Revenue Code § 1033
Q193. Under NEPA, an Environmental Impact Statement (EIS) is required for:
Correct Answer: B
Explanation: NEPA mandates an EIS for any federal agency action with potential significant environmental impacts.
Citation: National Environmental Policy Act of 1969
Explanation: NEPA mandates an EIS for any federal agency action with potential significant environmental impacts.
Citation: National Environmental Policy Act of 1969
Q194. Under CERCLA, a “Potentially Responsible Party” (PRP) includes:
Correct Answer: B
Explanation: CERCLA §107 defines PRPs to include any party responsible for hazardous substance disposal, including current and former owners and operators, arrangers, and transporters.
Citation: CERCLA § 107 (42 U.S.C. § 9607)
Explanation: CERCLA §107 defines PRPs to include any party responsible for hazardous substance disposal, including current and former owners and operators, arrangers, and transporters.
Citation: CERCLA § 107 (42 U.S.C. § 9607)
Q195. Which defense under CERCLA absolves a purchaser from cleanup liability?
Correct Answer: B
Explanation: The “innocent landowner” defense requires the purchaser to conduct all appropriate inquiries and demonstrate no knowledge of contamination at acquisition.
Citation: CERCLA § 101(35) (42 U.S.C. § 9601)
Explanation: The “innocent landowner” defense requires the purchaser to conduct all appropriate inquiries and demonstrate no knowledge of contamination at acquisition.
Citation: CERCLA § 101(35) (42 U.S.C. § 9601)
Q196. In appraisal, the reconciliation step involves:
Correct Answer: A
Explanation: Reconciliation weighs and integrates the different approaches to arrive at a final value opinion based on their relative reliability.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Explanation: Reconciliation weighs and integrates the different approaches to arrive at a final value opinion based on their relative reliability.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Q197. “Just compensation” for eminent domain is defined as:
Correct Answer: B
Explanation: Just compensation requires payment of fair market value of the property plus any additional losses, such as severance damages or relocation expenses.
Citation: U.S. Constitution, Fifth Amendment
Explanation: Just compensation requires payment of fair market value of the property plus any additional losses, such as severance damages or relocation expenses.
Citation: U.S. Constitution, Fifth Amendment
Q198. A partial release clause in a blanket mortgage:
Correct Answer: B
Explanation: Partial release clauses enable individual lots in a blanket mortgage to be freed from the lien as the borrower sells or refinances each parcel.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 120
Explanation: Partial release clauses enable individual lots in a blanket mortgage to be freed from the lien as the borrower sells or refinances each parcel.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 120
Q199. A fixed-rate mortgage (FRM) is characterized by:
Correct Answer: B
Explanation: FRMs lock in the interest rate for the entire term, resulting in uniform payments of principal and interest.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Explanation: FRMs lock in the interest rate for the entire term, resulting in uniform payments of principal and interest.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Q200. Under New York’s usury laws, the maximum enforceable interest rate on most consumer loans is:
Correct Answer: A
Explanation: General Obligations Law § 5-501 caps interest on most consumer loans at 16% per year unless otherwise expressly authorized.
Citation: NY General Obligations Law § 5-501
Explanation: General Obligations Law § 5-501 caps interest on most consumer loans at 16% per year unless otherwise expressly authorized.
Citation: NY General Obligations Law § 5-501
Q201. Which fee simple estate automatically terminates upon the occurrence of a specified event?
Correct Answer: C
Explanation: A fee simple determinable automatically ends and reverts to the grantor when a stated condition occurs, using words like “so long as” or “until.”
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Explanation: A fee simple determinable automatically ends and reverts to the grantor when a stated condition occurs, using words like “so long as” or “until.”
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Q202. Which fee simple estate requires the grantor to take action to reclaim title after a condition occurs?
Correct Answer: C
Explanation: A fee simple subject to condition subsequent continues until the grantor exercises a right of entry after the condition occurs, often signaled by “provided that” language.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Explanation: A fee simple subject to condition subsequent continues until the grantor exercises a right of entry after the condition occurs, often signaled by “provided that” language.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Q203. A life estate pur autre vie is measured by the life of:
Correct Answer: C
Explanation: A life estate pur autre vie is a life estate measured by the life of someone other than the grantee, terminating upon that third party’s death.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Explanation: A life estate pur autre vie is a life estate measured by the life of someone other than the grantee, terminating upon that third party’s death.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Q204. What is a remainder interest?
Correct Answer: B
Explanation: A remainder interest is a future interest created in a third party that takes effect when a preceding estate, like a life estate, ends.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Explanation: A remainder interest is a future interest created in a third party that takes effect when a preceding estate, like a life estate, ends.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Q205. Which future interest reverts to the grantor after the preceding estate ends?
Correct Answer: B
Explanation: A reversion is a future interest retained by the grantor that returns when a life estate or other nonfee estate terminates.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Explanation: A reversion is a future interest retained by the grantor that returns when a life estate or other nonfee estate terminates.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Q206. Under New York law, the surviving spouse’s elective share of an intestate estate is:
Correct Answer: B
Explanation: The elective share allows a surviving spouse to claim one-third of the net estate when a will does not provide adequately.
Citation: NY Estates, Powers & Trusts Law § 5-1.1
Explanation: The elective share allows a surviving spouse to claim one-third of the net estate when a will does not provide adequately.
Citation: NY Estates, Powers & Trusts Law § 5-1.1
Q207. If a person dies intestate without heirs or a valid will, the property reverts to:
Correct Answer: B
Explanation: Escheat is the reversion of property to the state when a decedent dies without a will and no legal heirs exist.
Citation: NY Estates, Powers & Trusts Law § 3-1.1
Explanation: Escheat is the reversion of property to the state when a decedent dies without a will and no legal heirs exist.
Citation: NY Estates, Powers & Trusts Law § 3-1.1
Q208. Which of the following is NOT one of the four unities required to create a joint tenancy?
Correct Answer: C
Explanation: The four unities are time, title, interest, and possession; location is not one of them.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Explanation: The four unities are time, title, interest, and possession; location is not one of them.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Q209. What does the right of survivorship in a joint tenancy entail?
Correct Answer: B
Explanation: In joint tenancy, when one tenant dies, the surviving tenant(s) automatically absorb the deceased’s share by right of survivorship.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Explanation: In joint tenancy, when one tenant dies, the surviving tenant(s) automatically absorb the deceased’s share by right of survivorship.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Q210. Which land survey system uses townships and ranges to describe property?
Correct Answer: C
Explanation: The rectangular government survey divides land into townships and ranges based on principal meridians and baselines.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Explanation: The rectangular government survey divides land into townships and ranges based on principal meridians and baselines.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Q211. What type of survey meets American Land Title Association standards for title insurance?
Correct Answer: C
Explanation: An ALTA/NSPS survey meets the detailed standards set by the American Land Title Association and National Society of Professional Surveyors.
Citation: American Land Title Association Standards
Explanation: An ALTA/NSPS survey meets the detailed standards set by the American Land Title Association and National Society of Professional Surveyors.
Citation: American Land Title Association Standards
Q212. Which mortgage clause allows the lender to declare the entire loan balance due upon default?
Correct Answer: A
Explanation: An acceleration clause permits the lender to demand full repayment of the loan if the borrower defaults on any terms.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Explanation: An acceleration clause permits the lender to demand full repayment of the loan if the borrower defaults on any terms.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Q213. Which mortgage clause releases the lender’s lien when the loan is satisfied?
Correct Answer: A
Explanation: A defeasance clause provides that the mortgage lien is nullified when the borrower fully pays off the debt.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Explanation: A defeasance clause provides that the mortgage lien is nullified when the borrower fully pays off the debt.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Q214. Which mortgage clause allows the borrower to repay the loan early without penalty?
Correct Answer: A
Explanation: A prepayment clause permits the borrower to pay off all or part of the mortgage before maturity without incurring a penalty.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Explanation: A prepayment clause permits the borrower to pay off all or part of the mortgage before maturity without incurring a penalty.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 74
Q215. Which lien secures payment for labor and materials used in improving real property?
Correct Answer: C
Explanation: A mechanic’s lien is a statutory lien placed on property to secure payment for contractors, subcontractors, or suppliers of materials and labor.
Citation: NY Lien Law § 2
Explanation: A mechanic’s lien is a statutory lien placed on property to secure payment for contractors, subcontractors, or suppliers of materials and labor.
Citation: NY Lien Law § 2
Q216. Which mortgage covers both real property and personal property as collateral?
Correct Answer: B
Explanation: A package mortgage secures both real estate and personal property under one loan instrument.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: A package mortgage secures both real estate and personal property under one loan instrument.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q217. Which mortgage allows the borrower to increase the loan principal up to a maximum amount under the same security?
Correct Answer: C
Explanation: An open-end mortgage permits the borrower to borrow additional funds up to a set limit under the same mortgage lien.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: An open-end mortgage permits the borrower to borrow additional funds up to a set limit under the same mortgage lien.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q218. What is a purchase-money mortgage?
Correct Answer: B
Explanation: A purchase-money mortgage is a loan used to buy property, often provided by the seller or lender to the buyer for the purchase price.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: A purchase-money mortgage is a loan used to buy property, often provided by the seller or lender to the buyer for the purchase price.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q219. Which mortgage wraps an existing mortgage balance with a new loan amount?
Correct Answer: C
Explanation: A wraparound mortgage includes the existing debt and adds new funds, with one payment covering both balances.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: A wraparound mortgage includes the existing debt and adds new funds, with one payment covering both balances.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q220. What is a shared-appreciation mortgage?
Correct Answer: B
Explanation: In a shared-appreciation mortgage, the lender shares in a portion of the property’s increase in value upon sale or refinancing.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Explanation: In a shared-appreciation mortgage, the lender shares in a portion of the property’s increase in value upon sale or refinancing.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 70
Q221. Which mortgage features initial low payments that increase over time?
Correct Answer: B
Explanation: A graduated payment mortgage starts with lower payments that gradually increase according to a preset schedule.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Explanation: A graduated payment mortgage starts with lower payments that gradually increase according to a preset schedule.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Q222. Which mortgage requires payments that cover interest only for a set period?
Correct Answer: B
Explanation: An interest-only mortgage requires payments that cover only the interest for a specified term, with principal due later.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Explanation: An interest-only mortgage requires payments that cover only the interest for a specified term, with principal due later.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Q223. What is the minimum down payment required for an FHA-insured loan (for borrowers with credit scores ≥580)?
Correct Answer: B
Explanation: FHA-insured loans require a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher.
Citation: HUD FHA Single Family Housing Policy Handbook
Explanation: FHA-insured loans require a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher.
Citation: HUD FHA Single Family Housing Policy Handbook
Q224. In mortgage financing, what does PITI stand for?
Correct Answer: A
Explanation: PITI represents the four components of a mortgage payment: Principal, Interest, Taxes, and Insurance.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Explanation: PITI represents the four components of a mortgage payment: Principal, Interest, Taxes, and Insurance.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Q225. Under the TILA-RESPA Integrated Disclosure rule, within how many business days must the lender provide the Loan Estimate after receiving a complete application?
Correct Answer: B
Explanation: The Loan Estimate must be delivered or placed in the mail no later than three business days after the lender receives a complete loan application.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Explanation: The Loan Estimate must be delivered or placed in the mail no later than three business days after the lender receives a complete loan application.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Q226. Which homeowner’s insurance policy form provides open-peril coverage on the dwelling and named-peril coverage on personal property?
Correct Answer: B
Explanation: The HO-3 Special Form insures the dwelling on an open-peril basis (all risks except exclusions) and personal property on a named-peril basis.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 110
Explanation: The HO-3 Special Form insures the dwelling on an open-peril basis (all risks except exclusions) and personal property on a named-peril basis.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 110
Q227. Under RESPA, a lender may require a cushion in an escrow account of no more than how many months’ worth of disbursements?
Correct Answer: A
Explanation: RESPA limits the escrow account cushion to two months of anticipated disbursements.
Citation: Real Estate Settlement Procedures Act § 10 (12 U.S.C. § 2609)
Explanation: RESPA limits the escrow account cushion to two months of anticipated disbursements.
Citation: Real Estate Settlement Procedures Act § 10 (12 U.S.C. § 2609)
Q228. The Community Reinvestment Act encourages banks to:
Correct Answer: A
Explanation: The CRA aims to ensure banks serve the convenience and needs of their entire community, including low- and moderate-income neighborhoods.
Citation: Community Reinvestment Act (12 U.S.C. § 2901)
Explanation: The CRA aims to ensure banks serve the convenience and needs of their entire community, including low- and moderate-income neighborhoods.
Citation: Community Reinvestment Act (12 U.S.C. § 2901)
Q229. Under New York License Law, when must a broker deposit earnest money into the escrow account?
Correct Answer: B
Explanation: Brokers must deposit client funds into the escrow account by the next business day following receipt.
Citation: NY License Law § 175.25
Explanation: Brokers must deposit client funds into the escrow account by the next business day following receipt.
Citation: NY License Law § 175.25
Q230. Under the Homeowners Protection Act, private mortgage insurance must be automatically terminated when the LTV reaches:
Correct Answer: A
Explanation: The HPA mandates automatic termination of PMI when the loan-to-value ratio reaches 78% of the original property value.
Citation: Homeowners Protection Act (12 U.S.C. § 4902)
Explanation: The HPA mandates automatic termination of PMI when the loan-to-value ratio reaches 78% of the original property value.
Citation: Homeowners Protection Act (12 U.S.C. § 4902)
Q231. Federal law requires a lead-based paint disclosure for the sale of homes built before:
Correct Answer: A
Explanation: The Residential Lead-Based Paint Hazard Reduction Act mandates disclosures for properties built before 1978.
Citation: Residential Lead-Based Paint Hazard Reduction Act
Explanation: The Residential Lead-Based Paint Hazard Reduction Act mandates disclosures for properties built before 1978.
Citation: Residential Lead-Based Paint Hazard Reduction Act
Q232. Properties located in which FEMA-designated flood zone must carry flood insurance on a federally backed mortgage?
Correct Answer: B
Explanation: Zone AE is a Special Flood Hazard Area where flood insurance is required for federally backed loans.
Citation: FEMA National Flood Insurance Program Guidelines
Explanation: Zone AE is a Special Flood Hazard Area where flood insurance is required for federally backed loans.
Citation: FEMA National Flood Insurance Program Guidelines
Q233. Which federal law requires lenders to report loan data to help identify redlining practices?
Correct Answer: C
Explanation: The Home Mortgage Disclosure Act mandates reporting of mortgage data to assist in detecting discriminatory lending and redlining.
Citation: Home Mortgage Disclosure Act (12 U.S.C. § 2801)
Explanation: The Home Mortgage Disclosure Act mandates reporting of mortgage data to assist in detecting discriminatory lending and redlining.
Citation: Home Mortgage Disclosure Act (12 U.S.C. § 2801)
Q234. A contract provision that allows the buyer to cancel if financing is not obtained is called a:
Correct Answer: B
Explanation: A mortgage contingency allows the buyer to withdraw if they cannot secure financing by a specified date.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Explanation: A mortgage contingency allows the buyer to withdraw if they cannot secure financing by a specified date.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Q235. In a triple net lease, the tenant typically pays:
Correct Answer: C
Explanation: A triple net lease obligates the tenant to pay base rent plus property taxes, insurance, and maintenance costs.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Explanation: A triple net lease obligates the tenant to pay base rent plus property taxes, insurance, and maintenance costs.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Q236. Which depreciation method allocates the cost of an asset evenly over its useful life?
Correct Answer: A
Explanation: The straight-line method spreads the depreciable cost equally over each year of the asset’s useful life.
Citation: IRS Publication 946
Explanation: The straight-line method spreads the depreciable cost equally over each year of the asset’s useful life.
Citation: IRS Publication 946
Q237. In New York, a seller’s property condition disclosure is required for residential buildings containing up to how many dwelling units?
Correct Answer: C
Explanation: RPL §462 mandates disclosures for improved residential property of one to four family units.
Citation: NY Real Property Law § 462
Explanation: RPL §462 mandates disclosures for improved residential property of one to four family units.
Citation: NY Real Property Law § 462
Q238. Under New York’s Time-Share Act, a time-share ownership interest is classified as:
Correct Answer: B
Explanation: Time-share interests are treated as personal property under NY Real Property Law § 91-a.
Citation: NY Real Property Law § 91-a
Explanation: Time-share interests are treated as personal property under NY Real Property Law § 91-a.
Citation: NY Real Property Law § 91-a
Q239. Which antitrust violation occurs when brokers conspire to set standard commission rates?
Correct Answer: A
Explanation: Price fixing—agreeing on commission rates—is prohibited under the Sherman Antitrust Act.
Citation: Sherman Antitrust Act § 1
Explanation: Price fixing—agreeing on commission rates—is prohibited under the Sherman Antitrust Act.
Citation: Sherman Antitrust Act § 1
Q240. Which federal law requires financial institutions to provide an annual privacy notice to consumers?
Correct Answer: B
Explanation: The GLBA mandates annual privacy notices explaining how institutions share consumer data.
Citation: Gramm-Leach-Bliley Act § 503
Explanation: The GLBA mandates annual privacy notices explaining how institutions share consumer data.
Citation: Gramm-Leach-Bliley Act § 503
Q241. Which depreciation method accelerates expense recognition earlier in an asset’s life?
Correct Answer: A
Explanation: The SYD method front-loads depreciation, allocating larger expense amounts in early years.
Citation: IRS Publication 946
Explanation: The SYD method front-loads depreciation, allocating larger expense amounts in early years.
Citation: IRS Publication 946
Q242. Which federal agency administers the National Flood Insurance Program?
Correct Answer: A
Explanation: FEMA oversees and implements the NFIP, offering flood insurance to property owners.
Citation: Robert T. Stafford Disaster Relief and Emergency Assistance Act
Explanation: FEMA oversees and implements the NFIP, offering flood insurance to property owners.
Citation: Robert T. Stafford Disaster Relief and Emergency Assistance Act
Q243. Which characteristic is NOT protected under the federal Fair Housing Act?
Correct Answer: D
Explanation: The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability—but not age.
Citation: Fair Housing Act (42 U.S.C. § 3604)
Explanation: The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability—but not age.
Citation: Fair Housing Act (42 U.S.C. § 3604)
Q244. What is a primary advantage of holding investment real estate in an LLC?
Correct Answer: B
Explanation: LLCs shield members’ personal assets from liabilities arising from the property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 108
Explanation: LLCs shield members’ personal assets from liabilities arising from the property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 108
Q245. Commercial lenders typically require a minimum debt service coverage ratio (DSCR) of:
Correct Answer: C
Explanation: A DSCR of 1.20 ensures net operating income covers debt service with a healthy margin.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Explanation: A DSCR of 1.20 ensures net operating income covers debt service with a healthy margin.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Q246. Replacement reserves in an income property budget are set aside to:
Correct Answer: A
Explanation: Reserves ensure funds are available for replacement of major building systems and capital expenditures.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Explanation: Reserves ensure funds are available for replacement of major building systems and capital expenditures.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Q247. In a percentage lease, the tenant’s rent is based on:
Correct Answer: C
Explanation: Percentage leases tie the tenant’s rent to a negotiated percentage of the location’s gross sales.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Explanation: Percentage leases tie the tenant’s rent to a negotiated percentage of the location’s gross sales.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 98
Q248. Which practice involves inducing homeowners to sell by suggesting neighborhood composition changes?
Correct Answer: A
Explanation: Blockbusting uses fear of demographic shifts to pressure owners into selling quickly.
Citation: Fair Housing Act, 42 U.S.C. § 3604
Explanation: Blockbusting uses fear of demographic shifts to pressure owners into selling quickly.
Citation: Fair Housing Act, 42 U.S.C. § 3604
Q249. A periodic tenancy is characterized by:
Correct Answer: B
Explanation: Periodic tenancies renew automatically (e.g., month-to-month) until proper notice is given.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Explanation: Periodic tenancies renew automatically (e.g., month-to-month) until proper notice is given.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Q250. Which form of co-ownership features right of survivorship and can include unrelated individuals?
Correct Answer: B
Explanation: Joint tenancy grants equal shares with right of survivorship among co-owners, regardless of relationship.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Explanation: Joint tenancy grants equal shares with right of survivorship among co-owners, regardless of relationship.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 21
Q251. In the net present value (NPV) analysis, a positive NPV indicates:
Correct Answer: C
Explanation: A positive NPV means discounted cash inflows exceed costs, so the return is above the discount rate.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Explanation: A positive NPV means discounted cash inflows exceed costs, so the return is above the discount rate.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Q252. Which appraisal approach is most applicable for valuing unique, non-income-producing properties?
Correct Answer: A
Explanation: The cost approach estimates value by summing land and replacement cost of improvements, ideal for unique properties.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Explanation: The cost approach estimates value by summing land and replacement cost of improvements, ideal for unique properties.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Q253. A defeasible fee estate may be terminated by:
Correct Answer: B
Explanation: Defeasible fees end automatically or upon grantor’s action when the specified condition occurs.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Explanation: Defeasible fees end automatically or upon grantor’s action when the specified condition occurs.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 20
Q254. Which statutory period applies for foreclosure actions under CPLR in New York?
Correct Answer: D
Explanation: CPLR § 213(4) provides a six-year limitation for actions to foreclose a mortgage.
Citation: NY CPLR § 213
Explanation: CPLR § 213(4) provides a six-year limitation for actions to foreclose a mortgage.
Citation: NY CPLR § 213
Q255. Under New York law, who must sign a listing agreement for it to be valid?
Correct Answer: C
Explanation: A valid written listing requires signatures of both the seller (principal) and the broker (agent).
Citation: NY License Law § 175.15
Explanation: A valid written listing requires signatures of both the seller (principal) and the broker (agent).
Citation: NY License Law § 175.15
Q256. Which contract remedy returns parties to their pre-contract positions?
Correct Answer: B
Explanation: Rescission voids a contract, restoring parties to their original positions as if no contract existed.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Explanation: Rescission voids a contract, restoring parties to their original positions as if no contract existed.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Q257. What type of agency relationship is formed when a broker represents both buyer and seller?
Correct Answer: A
Explanation: Dual agency arises when a single broker represents both sides, requiring informed consent of both parties.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 31
Explanation: Dual agency arises when a single broker represents both sides, requiring informed consent of both parties.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 31
Q258. Which document conveys legal title to real property?
Correct Answer: A
Explanation: A deed is the written instrument by which legal title is transferred from grantor to grantee.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Explanation: A deed is the written instrument by which legal title is transferred from grantor to grantee.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Q259. Under the Federal Fair Housing Act, familial status protects:
Correct Answer: B
Explanation: Familial status prohibits discrimination against families with minors, including pregnant women.
Citation: Fair Housing Act (42 U.S.C. § 3604)
Explanation: Familial status prohibits discrimination against families with minors, including pregnant women.
Citation: Fair Housing Act (42 U.S.C. § 3604)
Q260. Which provision in a lease prevents the tenant from transferring their interest without landlord approval?
Correct Answer: B
Explanation: An assignment clause requires tenant to obtain landlord’s consent before assigning lease rights.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Explanation: An assignment clause requires tenant to obtain landlord’s consent before assigning lease rights.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Q261. Under the Truth in Lending Act, finance charges must be disclosed as:
Correct Answer: A
Explanation: TILA requires disclosure of both the finance charge in dollars and the APR to consumers.
Citation: TILA (15 U.S.C. § 1606)
Explanation: TILA requires disclosure of both the finance charge in dollars and the APR to consumers.
Citation: TILA (15 U.S.C. § 1606)
Q262. What does the principle of conformity in appraisal state?
Correct Answer: A
Explanation: Conformity holds that a property’s value is enhanced when it aligns with surrounding properties in design and use.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Explanation: Conformity holds that a property’s value is enhanced when it aligns with surrounding properties in design and use.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Q263. The principle of anticipation in valuation assumes:
Correct Answer: A
Explanation: Anticipation holds that expected future income or benefits affect a property’s current value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Explanation: Anticipation holds that expected future income or benefits affect a property’s current value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Q264. Which legal description method uses boundary lines and measurements?
Correct Answer: B
Explanation: Metes and bounds trace perimeter by compass directions and distances from a point of beginning.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Explanation: Metes and bounds trace perimeter by compass directions and distances from a point of beginning.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Q265. What is the function of an estoppel in land transactions?
Correct Answer: A
Explanation: An estoppel certificate verifies factual matters like easements or balances to prevent future disputes.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Explanation: An estoppel certificate verifies factual matters like easements or balances to prevent future disputes.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 114
Q266. In a cost-plus contract, the contractor is paid:
Correct Answer: B
Explanation: Cost-plus agreements reimburse actual project costs plus an agreed-upon contractor fee.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 108
Explanation: Cost-plus agreements reimburse actual project costs plus an agreed-upon contractor fee.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 108
Q267. Which mortgage type features a large final payment after smaller periodic payments?
Correct Answer: B
Explanation: Balloon mortgages have small periodic payments with one large lump-sum (“balloon”) at term end.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Explanation: Balloon mortgages have small periodic payments with one large lump-sum (“balloon”) at term end.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 68
Q268. What is a trust deed alternative to a mortgage?
Correct Answer: B
Explanation: A deed of trust conveys title to a trustee as security, serving similarly to a mortgage lien.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 88
Explanation: A deed of trust conveys title to a trustee as security, serving similarly to a mortgage lien.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 88
Q269. The real estate settlement statement (HUD-1) has been replaced by:
Correct Answer: A
Explanation: The HUD-1 has been replaced by the Closing Disclosure under TRID regulations.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Explanation: The HUD-1 has been replaced by the Closing Disclosure under TRID regulations.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Q270. Which entity insures residential mortgages through the Federal Housing Administration?
Correct Answer: B
Explanation: The Federal Housing Administration (FHA) provides mortgage insurance on loans made by approved lenders.
Citation: HUD FHA Handbook
Explanation: The Federal Housing Administration (FHA) provides mortgage insurance on loans made by approved lenders.
Citation: HUD FHA Handbook
Q271. A bank must notify a loan applicant of action taken under ECOA within how many days of receiving application?
Correct Answer: C
Explanation: ECOA requires lenders to notify applicants of credit decisions within 30 days of receiving a completed application.
Citation: ECOA (15 U.S.C. § 1691(d))
Explanation: ECOA requires lenders to notify applicants of credit decisions within 30 days of receiving a completed application.
Citation: ECOA (15 U.S.C. § 1691(d))
Q272. Under RESPA, how often must a lender provide an annual escrow account statement?
Correct Answer: C
Explanation: RESPA § 10 requires annual escrow statements detailing account activity.
Citation: RESPA § 10 (12 U.S.C. § 2609)
Explanation: RESPA § 10 requires annual escrow statements detailing account activity.
Citation: RESPA § 10 (12 U.S.C. § 2609)
Q273. Which form of depreciation accounts for loss in property value due to external factors?
Correct Answer: C
Explanation: Economic obsolescence stems from external factors like zoning changes or market shifts, reducing value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Explanation: Economic obsolescence stems from external factors like zoning changes or market shifts, reducing value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 60
Q274. The HUD-1 Settlement Statement is required for transactions governed by:
Correct Answer: C
Explanation: The HUD-1 is mandated by RESPA for most closed-end consumer mortgages outside TRID’s scope.
Citation: RESPA § 5 (12 U.S.C. § 2604)
Explanation: The HUD-1 is mandated by RESPA for most closed-end consumer mortgages outside TRID’s scope.
Citation: RESPA § 5 (12 U.S.C. § 2604)
Q275. Under the doctrine of relation-back, a deed that is recorded late:
Correct Answer: B
Explanation: Relation-back treats late-recorded deeds as effective from the original delivery date for priority purposes.
Citation: NY Real Property Actions & Proceedings Law § 291
Explanation: Relation-back treats late-recorded deeds as effective from the original delivery date for priority purposes.
Citation: NY Real Property Actions & Proceedings Law § 291
Q276. Which type of deed provides the greatest protection to the grantee?
Correct Answer: A
Explanation: A general warranty deed contains full covenants of title, guaranteeing against defects arising at any time, offering the highest protection.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Explanation: A general warranty deed contains full covenants of title, guaranteeing against defects arising at any time, offering the highest protection.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Q277. To satisfy the Statute of Frauds, a New York real estate contract must be in writing and signed by:
Correct Answer: C
Explanation: The Statute of Frauds requires the contract to be signed by both parties to be enforceable in court.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 34
Explanation: The Statute of Frauds requires the contract to be signed by both parties to be enforceable in court.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 34
Q278. Under New York License Law, brokers must retain transaction records for at least:
Correct Answer: B
Explanation: Brokers must keep all transaction records for three years following the closing or termination of the transaction.
Citation: NY License Law § 175.23
Explanation: Brokers must keep all transaction records for three years following the closing or termination of the transaction.
Citation: NY License Law § 175.23
Q279. Which contract remedy forces a breaching party to perform the contract as agreed?
Correct Answer: A
Explanation: Specific performance is a court-ordered remedy requiring the breaching party to fulfill their contractual obligations.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Explanation: Specific performance is a court-ordered remedy requiring the breaching party to fulfill their contractual obligations.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 115
Q280. The STAR program in New York provides tax relief; STAR stands for:
Correct Answer: A
Explanation: STAR is the School Tax Relief program, offering partial exemption from school property taxes for eligible homeowners.
Citation: NY Department of Taxation and Finance
Explanation: STAR is the School Tax Relief program, offering partial exemption from school property taxes for eligible homeowners.
Citation: NY Department of Taxation and Finance
Q281. Under the Truth in Lending Act, borrowers have the right to rescind certain credit transactions within how many business days?
Correct Answer: B
Explanation: TILA grants a three-business-day right of rescission for certain refinances and home equity lines of credit.
Citation: Truth in Lending Act (15 U.S.C. § 1635)
Explanation: TILA grants a three-business-day right of rescission for certain refinances and home equity lines of credit.
Citation: Truth in Lending Act (15 U.S.C. § 1635)
Q282. Constructive eviction occurs when:
Correct Answer: A
Explanation: When a landlord’s breach deprives the tenant of essential services, the tenant may consider themselves evicted and vacate the premises.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 46
Explanation: When a landlord’s breach deprives the tenant of essential services, the tenant may consider themselves evicted and vacate the premises.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 46
Q283. In property management, capital expenditures are distinguished from operating expenses by being:
Correct Answer: B
Explanation: Capital expenditures are large, non-recurring costs that enhance the property’s value or extend its useful life.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Explanation: Capital expenditures are large, non-recurring costs that enhance the property’s value or extend its useful life.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 64
Q284. A licensed real estate salesperson in New York may engage in brokerage activities only when:
Correct Answer: B
Explanation: Salespersons must be sponsored by a licensed broker and perform all activities under that broker’s supervision.
Citation: NY License Law § 175.6
Explanation: Salespersons must be sponsored by a licensed broker and perform all activities under that broker’s supervision.
Citation: NY License Law § 175.6
Q285. How often must a New York real estate license be renewed?
Correct Answer: B
Explanation: Licenses expire every two years and must be renewed to remain active.
Citation: NY License Law § 175.13
Explanation: Licenses expire every two years and must be renewed to remain active.
Citation: NY License Law § 175.13
Q286. Which listing agreement gives a broker the right to earn a commission regardless of who sells the property?
Correct Answer: C
Explanation: In an exclusive right to sell listing, the broker earns a commission no matter who finds the buyer.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 32
Explanation: In an exclusive right to sell listing, the broker earns a commission no matter who finds the buyer.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 32
Q287. Under New York’s Time-Share Act, a purchaser has how many days to cancel a time-share contract after signing?
Correct Answer: B
Explanation: Buyers may rescind a time-share contract within five days of signing.
Citation: NY Real Property Law § 91-c
Explanation: Buyers may rescind a time-share contract within five days of signing.
Citation: NY Real Property Law § 91-c
Q288. Under the TILA-RESPA Integrated Disclosure rule, the Closing Disclosure must be delivered at least how many business days before loan consummation?
Correct Answer: B
Explanation: The Closing Disclosure must be provided three business days before closing to allow borrower review.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Explanation: The Closing Disclosure must be provided three business days before closing to allow borrower review.
Citation: CFPB TILA-RESPA Integrated Disclosure Rule
Q289. A property manager’s fiduciary duty of loyalty requires the manager to:
Correct Answer: B
Explanation: Loyalty obligates the manager to prioritize the owner’s interests and avoid self-dealing or conflicts.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 102
Explanation: Loyalty obligates the manager to prioritize the owner’s interests and avoid self-dealing or conflicts.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 102
Q290. Which federal agency enforces the Fair Housing Act?
Correct Answer: B
Explanation: HUD administers and enforces the Fair Housing Act’s anti-discrimination provisions.
Citation: Department of Housing and Urban Development
Explanation: HUD administers and enforces the Fair Housing Act’s anti-discrimination provisions.
Citation: Department of Housing and Urban Development
Q291. Which title insurance endorsement provides coverage for losses due to zoning law violations?
Correct Answer: B
Explanation: A zoning endorsement covers losses from violations of zoning ordinances affecting the insured property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 85
Explanation: A zoning endorsement covers losses from violations of zoning ordinances affecting the insured property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 85
Q292. In New York, subdivision plats must be approved by which entity?
Correct Answer: B
Explanation: The municipal planning board reviews and approves subdivision plats under town law.
Citation: NY Town Law § 274-a
Explanation: The municipal planning board reviews and approves subdivision plats under town law.
Citation: NY Town Law § 274-a
Q293. What is the term for adjusting boundary lines between adjacent property owners without creating new parcels?
Correct Answer: C
Explanation: A lot line adjustment modifies property lines between existing lots without creating additional parcels.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Explanation: A lot line adjustment modifies property lines between existing lots without creating additional parcels.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 52
Q294. The combining of two or more adjacent parcels into one larger parcel is called:
Correct Answer: C
Explanation: Assemblage merges adjoining parcels into a single tract, often increasing overall value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Explanation: Assemblage merges adjoining parcels into a single tract, often increasing overall value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Q295. The increase in value resulting from assemblage is known as:
Correct Answer: B
Explanation: Plottage increment is the added value achieved when separate parcels are assembled into one.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Explanation: Plottage increment is the added value achieved when separate parcels are assembled into one.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 24
Q296. A Comparative Market Analysis (CMA) primarily relies on:
Correct Answer: C
Explanation: CMAs use data from recently closed sales of similar properties to estimate market value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Explanation: CMAs use data from recently closed sales of similar properties to estimate market value.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Q297. Assignment of a lease creates which type of privity between the assignee and landlord?
Correct Answer: B
Explanation: Assignment transfers the tenant’s remaining estate, creating privity of estate between assignee and landlord.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Explanation: Assignment transfers the tenant’s remaining estate, creating privity of estate between assignee and landlord.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 44
Q298. A durable power of attorney differs from a general power of attorney in that it remains effective:
Correct Answer: B
Explanation: A durable power of attorney continues to grant authority even if the principal becomes mentally incapacitated.
Citation: NY Estates, Powers & Trusts Law § 5-1503
Explanation: A durable power of attorney continues to grant authority even if the principal becomes mentally incapacitated.
Citation: NY Estates, Powers & Trusts Law § 5-1503
Q299. Which listing agreement allows the seller to find a buyer and avoid paying a commission?
Correct Answer: B
Explanation: Under an exclusive agency, the seller can sell the property themselves without owing the broker a commission.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 32
Explanation: Under an exclusive agency, the seller can sell the property themselves without owing the broker a commission.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 32
Q300. The appraisal principle that states a prudent buyer will pay no more than the cost of acquiring an equally desirable substitute is known as:
Correct Answer: C
Explanation: Substitution holds that a property’s value is limited by the cost of purchasing an equally desirable substitute property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
Explanation: Substitution holds that a property’s value is limited by the cost of purchasing an equally desirable substitute property.
Citation: NY DOS Real Estate Salesperson Candidate Handbook, p. 58
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