Which of the following individuals is NOT required to have a real estate

license?
AA real estate salesperson
BA real estate broker
CAn associate real estate broker
DAn attorney admitted to the NY State Bar
Correct Answer:D Your Answer: B
Your answer is incorrect.

If a real estate salesperson violates Article 12-A of the Real Property Law, they
shall be guilty of a/an…?
AMisdemeanor
BFelony
CCriminal crime
DCivil crime
Correct Answer:A Your Answer: D
Your answer is incorrect.

According to this fiduciary duty, the agent must put the interests of the client
above their own interests?
AConfidentiality
BObedience
CAccountability
DLoyalty
Correct Answer:D Your Answer: D
Your answer is correct.

Someone in a position of great trust serves as a/an…?

ACustomer
BFiduciary
CCooperating agent
DSub-agent
Correct Answer:B Your Answer: D
Your answer is incorrect.

This type of agency is created when a principal does not stop an individual
from representing his or her interests?
AAgency by estoppel
BGeneral agency
CUniversal agency
DExpress agency
Correct Answer:A Your Answer: A
Your answer is correct.
A licensee is guilty of what if they conceal a material fact from the prospective
buyer?
AMisrepresentation
BMaterial misstatement
CCommingling
DMisappropriation
Correct Answer:A Your Answer: C
Your answer is incorrect.

Everything that is not real property is considered…?

AReal estate
BBundle of rights
CPersonal property
DImprovements
Correct Answer:C Your Answer: B
Your answer is incorrect.

Which of the following interests in real property offer the most complete form
of ownership?
ALife estates
BLeasehold estates
CFee simple absolute estates
DCooperative estates
Correct Answer:C Your Answer: D
Your answer is incorrect.

A couple owns a property as a tenancy by the entirety. When one of the

spouses passes away, the other spouse gains full ownership of the property.
When the remaining spouse passes away, the children inherit the property.
This is known as what type of interest in real property?
ALife estate
BLeasehold estate
CJoint tenancy
DTenancy in common
Correct Answer:A Your Answer: A
Your answer is correct.

This form of co-ownership does NOT include the ‘right of survivorship’?

AJoint tenancy
BLife estate
CTenancy in common
DEstate for years
Correct Answer:C Your Answer: C
Your answer is correct.
Which of the following leasehold estates automatically renews for another
fixed period of time?
AEstate at will
BEstate for years
CPeriodic estate
DEstate at sufferance
Correct Answer:C Your Answer: B
Your answer is incorrect.

What happens to real estate prices when demand is greater than supply?
APrices will increase
BPrices will decrease
CPrices will stay the same
DReal estate prices are not effected by supply and demand
Correct Answer:A Your Answer: A
Your answer is correct.

How many hours of continuing education is a real estate salesperson required

to complete every two years?
A16 hours
B20 hours
C22.5 hours
D26 hours
Correct Answer:C Your Answer: D
Your answer is incorrect.

What type of easement is commonly used by utility companies?

AEasement by necessity
BEasement by condemnation
CEasement in gross
DEasement by prescription
Correct Answer:C Your Answer: D
Your answer is incorrect.

If a property owner builds a fence that partially crosses the neighbor’s

property line, what has been created?
AEasement
BEncroachment
CLien
DParty wall
Correct Answer:B Your Answer: C
Your answer is incorrect.
Under which section of a deed will the property’s address be listed?
ALegal description of the property
BHabendum clause
CGranting clause
DSubject-to clause
Correct Answer:A Your Answer: A
Your answer is correct.

The grantor of a deed must be at least ……….years old.

A16
B18
C21
D25
Correct Answer:B Your Answer: C
Your answer is incorrect.

The person appointed by a court to distribute the intestate decedent’s

property is known as a/an…?
AAdministrator
BExecutor
CDower
DCurtsey
Correct Answer:A Your Answer: B
Your answer is incorrect.

Which of the following documents shows the list of owners to a property, from
the original owner to the present owner?
ACertificate of Occupancy
BTitle insurance
CDeed
DChain of title
Correct Answer:D Your Answer: A
Your answer is incorrect.

In a sub-lease, who is responsible for paying rent to the landlord?

AThe new tenant
BThe original tenant
CBoth tenants
DNeither tenants
Correct Answer:B Your Answer: A
Your answer is incorrect.

The division of expenses and income between a buyer and seller at closing is
known as…?
AAccrual
BDebit
CDedication
DProration
Correct Answer:D Your Answer: B
Your answer is incorrect.

Who typically signs the sales contract first?

AThe seller
BThe buyer
CThe listing broker
DThe buyer’s broker
Correct Answer:B Your Answer: D
Your answer is incorrect.

A homeowner recently hired a broker to sell their house. If the property is

destroyed by fire, what happens to the agency relationship between the
owner and their listing broker?
AThe agency relationship is terminated.
BThe agency relationship is suspended for 6 months.
CThe agent must still serve as a fiduciary to the seller.
DThe agency relationship will not terminate until the listing agreement
expires.
Correct Answer:A Your Answer: C
Your answer is incorrect.

Who is responsible for prosecuting criminal actions for violations of the Real
Property Law?
AAttorney General
BState Governor
CReal Estate Commission
DNAR
Correct Answer:A Your Answer: D
Your answer is incorrect.

This occurs when a landlord takes matters into their own hands and removes
a tenant from the property?
AActual eviction
BConstructive eviction
CLegal eviction
DAbandonment by tenant
Correct Answer:A Your Answer: B
Your answer is incorrect.
Which of the following loans is considered interest-only?
AFixed-rate mortgage
BBalloon loan
CStraight-term loan
DPartially amortized loan
Correct Answer:C Your Answer: A
Your answer is incorrect.

In which of the following loan types does the seller become the mortgagee?
ABlanket mortgage
BGraduated payment mortgage
CTerm loan
DPurchase money mortgage
Correct Answer:D Your Answer: A
Your answer is incorrect.

Which of the following loans has a monthly payment that is lower in the early
years but increases over the term of the loan?
ATerm loan
BFixed-rate mortgage
CSwing loan
DGraduated payment mortgage
Correct Answer:D Your Answer: A
Your answer is incorrect.

Loans created by commercial banks are bought and sold in the ………..
mortgage market.
APrimary
BSecondary
CInstitutional
DReal estate
Correct Answer:B Your Answer: C
Your answer is incorrect.

Which of the following parties gives a mortgage?

AMortgagor
BGrantor
CMortgagee
DGrantee
Correct Answer:A Your Answer: A
Your answer is correct.

Which of the following allows a borrower to obtain a lower interest rate by

paying additional points upfront to the lender?
ABuydown
BPrepayment
CAccelerated payment
DInterest payment
Correct Answer:A Your Answer: D
Your answer is incorrect.

If a property owner has been using their property as a manufacturing facility

for the past 40 years, but the current zoning laws only allow residential use in
the neighborhood, the manufacturing facility will be considered as a/an...?
AVariance
BNon-conforming use
CAs-of-right use
DSpecial use
Correct Answer:B Your Answer: D
Your answer is incorrect.

If a property owner needs to obtain a variance on their property, which of the

following should they apply to…?
AZoning Board of Appeals
BDepartment of Buildings
CDepartment of Finance
DArchitectural Planning Board
Correct Answer:A Your Answer: B
Your answer is incorrect.

Which of the following construction elements sits on top of the foundation of a

wood-framed house?
ASill plate
BBase plate
CHeader plate
DColumn
Correct Answer:A Your Answer: B
Your answer is incorrect.

Brokers must maintain records of all real estate transactions for at least…?
A1 year
B2 years
C3 years
D4 years
Correct Answer:C Your Answer: A
Your answer is incorrect.

The slope of a roof is also referred to as the…?

AEave
BSoffit
CPitch
DFascia
Correct Answer:C Your Answer: C
Your answer is correct.

The lowest part of a roof, which projects beyond the wall of the structure is
known as a/an…?
ASoffit
BFlashing
CEave
DFascia
Correct Answer:C Your Answer: B
Your answer is incorrect.

Sheathing on the exterior of a building is typically what material?

AGypsum board
BPlywood
CAluminum
DVinyl
Correct Answer:B Your Answer: C
Your answer is incorrect.

Which of the following building systems can provide both heating and cooling
through the same ducts?
ASteam system
BRadiant panels
CElectric heating system
DForced warm air system
Correct Answer:D Your Answer: A
Your answer is incorrect.

A circuit breaker is similar to which of the following?

AFuse
BBX cable
CConduit
DRadian system
Correct Answer:A Your Answer: D
Your answer is incorrect.

Which of the following is a friable, naturally occurring mineral fiber material

sometimes found in insulation in older homes?
AAsbestos
BLead
CUFFI
DPCBs
Correct Answer:A Your Answer: B
Your answer is incorrect.

Disclosures about lead-based paint must be provided for the sale of any home
built prior to what year?
A1968
B1978
C1988
D1992
Correct Answer:B Your Answer: B
Your answer is correct.

The Fair Housing Act was enacted as part of what federal legislation?
ACivil Rights Act of 1866
BCivil Rights Act of 1964
CCivil Rights Act of 1968
DHousing and Community Development Act of 1974
Correct Answer:C Your Answer: B
Your answer is incorrect.

The Civil Rights Act of 1866 made ……… only a protected class.
ARace
BReligion
CDisability
DNationality
Correct Answer:A Your Answer: C
Your answer is incorrect.

A broker represents an Asian-American client who is looking to rent a 2-

bedroom apartment. If the broker only shows the client apartments in
predominantly Asian neighborhoods, they will most likely be guilty of…?
ASteering
BBlockbusting
CRedlining
DTesting
Correct Answer:A Your Answer: D
Your answer is incorrect.

Which of the following individuals is required to file a Schedule C of the

federal income tax Form 1040?
AA real estate salesperson working under a sponsoring broker
BA real estate assistant who earns a salary
CA real estate office manager who earns a salary
DEveryone working in a broker’s office must file a Schedule C
Correct Answer:A Your Answer: B
Your answer is incorrect.

Residential properties are appraised using which method?

AIncome approach
BCost approach
CSales comparison approach
DComparative market approach
Correct Answer:C Your Answer: D
Your answer is incorrect.

Which of the following is performed by an agent to determine how to market a

residential listing within a given marketplace?
AAppraisal
BHighest and best use analysis
CPro forma analysis
DResidential market analysis
Correct Answer:D Your Answer: A
Your answer is incorrect.

A broker earns a total commission of 5% from the sale of a house. If the

broker received $14,250 in commissions, what was the final sales price of the
house?
A150,000 Dollars ($)
B185,000 Dollars ($)
C235,000 Dollars ($)
D285,000 Dollars ($)
Correct Answer:D Your Answer: A
Your answer is incorrect.

Which of the following municipal agencies is responsible for enforcing the

Building Code?
ADepartment of Buildings
BLandmark Commission
CArchitectural Review Board
DPlanning Board
Correct Answer:A Your Answer: C
Your answer is incorrect.

Which of the following is a basic insurance policy what will cover the home
and its contents in the event of a fire?
AHO-1
BHO-4
CHO-6
DHO-8
Correct Answer:A Your Answer: C
Your answer is incorrect.

Which of the following federal agencies helps homeowners obtain flood

insurance?
AFEMA
BFDIC
CHUD
DFNMA
Correct Answer:A Your Answer: B
Your answer is incorrect.

This type of insurance protects against claims alleging that one’s negligence
or inappropriate action resulted in bodily injury or property damage?
AWorker’s compensation
BLiability insurance
CLife insurance
DHealth insurance
Correct Answer:B Your Answer: A
Your answer is incorrect.

Which of the following insurance policies may be purchased by landlords for

their rental properties?
ACommercial general liability
BHO-4
CWorker’s compensation
DHO-6
Correct Answer:A Your Answer: D
Your answer is incorrect.

Real estate agents must carry what type of insurance?

ALiability insurance
BWorker’s compensation
CCar insurance
DHomeowners insurance
Correct Answer:A Your Answer: C
Your answer is incorrect.

If a property is assessed at 40% of market value, what would be the assessed

value if the property holds a market value of $250,000?
A80,000 Dollars ($)
B100,000 Dollars ($)
C120,000 Dollars ($)
D140,000 Dollars ($)
Correct Answer:B Your Answer: B
Your answer is correct.

If a broker and seller enter into an Exclusive Agency Agreement, who is

entitled to a commission if the seller finds the buyer themselves?
AA commission is not paid to anyone since the seller found the buyer.
BThe seller’s broker is still entitled to their full commission.
CThe seller’s broker is only entitled to a pre-determined flat fee.
DOnly the buyer’s broker is entitled to a commission.
Correct Answer:A Your Answer: A
Your answer is correct.

Which of the following is an example of a non-homestead property?

ASingle family home
BVacant land of 5 acres
CFarm land
DIndustrial warehouse
Correct Answer:D Your Answer: B
Your answer is incorrect.

A condominium owner receives which of the following at closing?

AProprietary lease
BBoard package
CRecognition agreement
DDeed
Correct Answer:D Your Answer: D
Your answer is correct.

A building that includes condominium and cooperative ownership in the same

structure is known as a/an…?
ACondop
BOffice building
CSpecial-use building
DSpecial-purpose building
Correct Answer:A Your Answer: D
Your answer is incorrect.

Which of the following describes the rights and obligations of owners for a
condominium?
ABy-laws
BHouse rules
CCPS-1
DDeclaration
Correct Answer:A Your Answer: C
Your answer is incorrect.

Which of the following types of leases will most likely be used when leasing an
unoccupied office building?
AGross lease
BNet lease
CGround lease
DPercentage lease
Correct Answer:B Your Answer: B
Your answer is correct.

A percentage lease is most commonly used by which of the following?

AOffice tenants
BResidential tenants
CRetail tenants
DReal estate developers
Correct Answer:C Your Answer: D
Your answer is incorrect.

What type of lease is typically used for an open, unfinished commercial

space?
AGross lease
BNet lease
CLand lease
DLoft lease
Correct Answer:D Your Answer: A
Your answer is incorrect.

The difference between the rentable and usable area in a commercial space is
known as the…?
ANet usable area
BLoss factor
CCommon areas
DGross area
Correct Answer:B Your Answer: C
Your answer is incorrect.

The cash flow from a commercial property (before paying any debt service) is
known as…?
AEffective gross income
BGross income
CNet operating income
DAfter tax cash flow
Correct Answer:C Your Answer: C
Your answer is correct.

What type of income is earned through salaries or in a business in which the

taxpayer actively participates?
AActive income
BPortfolio income
CPassive activity income
DCapital income
Correct Answer:A Your Answer: A
Your answer is correct.

If a real estate salesperson closes a deal with a client, whom should the
salesperson go to receive their commission?
AThe seller
BThe buyer
CThe seller’s attorney
DTheir sponsoring broker
Correct Answer:D Your Answer: D
Your answer is correct.

Which of the following does not qualify as like-kind property for a tax-deferred
exchange?
AAn office building for a shopping mall
BAn apartment house for a tract of land
CAn office building for an apartment building
DA residence for a residence
Correct Answer:D Your Answer: B
Your answer is incorrect.

For tax purposes, commercial properties depreciate over how many years
using the straight-line depreciation method?
A22 years
B27.5 years
C32 years
D39 years
Correct Answer:D Your Answer: D
Your answer is correct.

Upon selling their home, married couples are exempt from paying taxes on
capital gains up to…?
A250,000 Dollars ($)
B300,000 Dollars ($)
C500,000 Dollars ($)
D1,000,000 Dollars ($)
Correct Answer:C Your Answer: D
Your answer is incorrect.

If the seller’s broker in a transaction also serves as the mortgage broker to the
buyer, what form must be signed by both the seller and buyer?
AMortgage Broker Disclosure Form
BHUD-1
CGFE
DBuyer Representation Agreement
Correct Answer:A Your Answer: C
Your answer is incorrect.

Which of the following is a budget that forecasts income and expenses as may
be reasonably projected over a short term?
AOperating budget
BVariable budget
CStabilized budget
DCapital reserve budget
Correct Answer:C Your Answer: A
Your answer is incorrect.

What should an agent do if a prospective buyer refuses to sign the New York
State Disclosure Form for Buyer and Seller at the first substantive contact?
ARefuse to show the property.
BSign the disclosure form on behalf of the prospective buyer.
CComplete a declaration form that states the facts of the meeting and keep
for their records.
DDo nothing and ignore the situation.
Correct Answer:C Your Answer: B
Your answer is incorrect.

Which of the following fiduciary duties is most at risk when a broker operates
as a dual agent?
AConfidentiality
BLoyalty
CReasonable skill
DObedience
Correct Answer:B Your Answer: A
Your answer is incorrect.