How to Pass the New York Real Estate
Exam in 2026

About 12 questions test Article 12-A of the New York Real Property Law (RPL §440 et seq.) and the Department of State (DOS) Division of Licensing Services rules that govern every NY salesperson and broker. Expect detail on the 77-hour pre-license course (must be completed within 8 years of the exam), the 70% passing score on the 75-question state exam, the 22.5-hour CE requirement per 2-year renewal cycle (including 3 hours fair housing, 1 hour agency, 2.5 hours implicit bias, 1 hour cultural competency, 1 hour recent legal matters), and the supervising broker requirement (every salesperson must work under a sponsoring broker; no independent salesperson practice). Pitfall: candidates confuse DOS with DOB or DEC — the Department of State, not the Department of Buildings, regulates real estate licensure. Advertising rules under 19 NYCRR 175.25 require the broker's licensed name and the words "Licensed Real Estate Broker" or "Licensed Associate Real Estate Broker" on every ad. Click2CE drills the exact NYCRR cite the exam reuses and walks through every CE category.

About 15 questions cover NY agency disclosure (the single most-tested NY-specific gotcha), buyer agency, dual agency with designated sales agents, and purchase contracts. The Agency Disclosure Form (NY DOS-1736-a residential / DOS-1735 commercial) MUST be presented and signed at first substantive contact — defined as before showing property in person, before discussing terms or motivations, and before any negotiation. NOT before an offer, NOT before contract — before SHOWING. Pitfall #1: candidates think the form is delivered at offer or signing — it is not. Pitfall #2: missing that NY allows "advance consent to dual agency" and "advance consent to dual agency with designated sales agents" — both require separate written disclosure. Sub-agency is NOT presumed in NY (unlike historical common-law presumption). Earnest money in NY must be deposited within 3 banking days of receipt and the broker must keep written records for 3 years. The Property Condition Disclosure Statement (PCDS) under RPL §462 must be delivered for 1-4 unit residential transfers; if the seller refuses, the buyer is entitled to a $500 credit at closing. AS IS sales do NOT exempt the PCDS — only the $500 credit substitutes for the form. Click2CE walks through the form by signature line so candidates recognize the exam's questions.

About 10 questions test NY real property concepts including co-ops, condos, condops, mineral and air rights, riparian rights along NY waterways, and the unique New York City forms of ownership. The single biggest NY-specific concept: a cooperative apartment is PERSONAL property, not real property — the buyer purchases shares of stock in the cooperative corporation and receives a proprietary lease, not a deed. Co-op transfers require board approval, often involve interview packages, and are NOT subject to the same recording statutes as real property. A condominium IS real property — owner gets a deed and owns the unit plus an undivided interest in the common elements. A condop is a hybrid building (commercial condo on the bottom, residential co-op above). Pitfall: candidates mark co-ops as real property and miss the proprietary-lease vocabulary. NY recognizes fee simple, life estate, and leasehold; tenancy by the entirety is the default for married couples on residential property and provides creditor protection. Click2CE drills the co-op vs. condo vs. condop pattern that appears every exam cycle.

About 10 questions cover mortgage instruments (NY uses both mortgages and lien-theory; foreclosure is judicial), loan qualification, FHA/VA/USDA, NY-specific mortgage recording tax, and CEMA. NY mortgage recording tax is one of the highest in the country: $0.50 to $2.80 per $100 of mortgage debt depending on county, with NYC adding additional surtaxes (NYC base 1.8% on mortgages under $500K, 1.925% on $500K+). Pitfall: candidates miss CEMA (Consolidation, Extension, and Modification Agreement) — when refinancing in NY, the borrower can pay mortgage tax only on the NEW money instead of the entire new loan, saving thousands. NY foreclosure is judicial and one of the slowest in the U.S. — typically 1,000+ days from filing to sale, with a mandatory settlement conference under CPLR 3408. Pitfall: candidates assume non-judicial foreclosure or the 90-day timelines used in deed-of-trust states. RPAPL Article 13 governs the foreclosure process. TRID applies federally; NY has no extra TRID-style state disclosure beyond the federal package.

About 8 questions cover the federal Fair Housing Act AND the New York State Human Rights Law (Executive Law §296), which adds protected classes well beyond federal minimums. NY State protected classes include: race, color, creed, national origin, sex (including pregnancy), sexual orientation, gender identity or expression, age, marital status, military status, familial status, disability, source of income (including Section 8 vouchers since 2019), and lawful occupation. NYC Human Rights Law adds even more (lawful source of income, partnership status, alienage and citizenship status, immigration status). Pitfall #1: candidates apply only the 7 federal classes and miss source-of-income — refusing a Section 8 voucher is a NY Human Rights violation. Pitfall #2: anti-blockbusting questions — under RPL §442-h, no licensee may solicit listings or induce panic selling on the basis of any protected class (the case law surrounding Bushwick and other Brooklyn neighborhoods is the historical context). Mrs. Murphy exemption applies federally but NY narrows it. Click2CE walks through the NY Human Rights additions.

About 10 calculation questions cover the three approaches to value, CMA, commission splits, prorations, and NY transfer taxes. NY State transfer tax is $4 per $1,000 of consideration ($2 per $500), paid by the seller. NYC additionally charges the Real Property Transfer Tax (RPTT) — 1% on residential under $500K, 1.425% on residential $500K+, 1.425% on most commercial under $500K, 2.625% on commercial $500K+. The Mansion Tax is paid by the BUYER on $1M+ residential: the NY State Mansion Tax (Tax Law §1402-a) is a flat 1% statewide on $1M+ — applied everywhere in NY including NYC. For NYC residential transfers ONLY, NYC adds an Additional Base Tax (Tax Law §1402-b, effective 2019) on top of the state 1%: an additional 0.25% from $2M-$3M, 0.5% $3M-$5M, 1.25% $5M-$10M, 2.25% $10M-$15M, 2.5% $15M-$20M, 2.75% $20M-$25M, and 2.9% above $25M. Worked example: a $1.5M Manhattan condo owes the buyer the 1% state Mansion Tax = $15,000 (the NYC additional kicks in at $2M); the seller pays the NY State transfer tax ($6,000) and NYC RPTT 1.425% ($21,375). Pitfall: confusing who pays each tax (seller pays state and NYC RPTT; buyer pays mansion tax) and missing that the NYC Additional Base Tax is layered on top of the 1% state mansion tax. Click2CE drills every NYC-specific stack.

About 10 questions on RPL Article 12-A licensing rules, escrow, the STAR property tax exemption, environmental issues, and other NY-specific statutes. STAR (School Tax Assessment Relief) is a partial property-tax exemption for primary-residence homeowners — Basic STAR (no income cap historically, now $250K AGI), Enhanced STAR (seniors 65+, income limits). Earnest money escrow: brokers must deposit within 3 banking days, maintain a separate trust account, and keep written records for 3 years (DOS audits routinely). The Recovery Fund: NY has no traditional state real estate recovery fund (unlike Florida or Arizona); aggrieved consumers pursue civil remedies and DOS license discipline. Environmental: Property Condition Disclosure must address known asbestos, lead-based paint (federal pre-1978 disclosure), oil tanks, and flood-zone status. Article 9-A of the General Business Law regulates subdivided lands sold in NY. Click2CE focuses on the timing rules (3 banking days, 3-year records, 24 banking-hour earnest money handling) that DOS tests every cycle.