Free New York Real Estate Practice Exam

Q1.A tenancy has ended, possession was returned, and the tenant demanded the deposit. Which days are excluded when counting the 14-day disposition period?

• A.Only Mondays
• B.Saturdays, Sundays, and other legal holidays
• C.All weekdays
• D.No days are excluded

Q2.A broker represents a seller whose property is being purchased with an FHA-insured loan. The buyer's lender orders an appraisal. Which statement best describes a key characteristic of an FHA appraisal that distinguishes it from a conventional appraisal?

• A.An FHA appraisal also serves as a property condition assessment and must note health and safety deficiencies that could affect the property's eligibility for FHA financing
• B.An FHA appraisal is performed by the buyer rather than a licensed appraiser to reduce costs for low-income borrowers
• C.An FHA appraisal guarantees the property is free of all defects and relieves the buyer of the need for a home inspection
• D.An FHA appraisal establishes the assessed value used by local tax authorities for property tax purposes

Q3.A vendor stores client data. Which broker action is strongest?

• A.Assume the vendor handles every obligation.
• B.Define security and incident-notification expectations, limit access, and monitor the relationship according to risk and applicable law.
• C.Share administrator credentials.
• D.Keep no inventory of vendor access.

Q4.In New York, when two or more persons own real property as joint tenants with right of survivorship, what happens to a deceased joint tenant's interest upon death?

• A.The deceased tenant's interest passes automatically to the surviving joint tenant(s) without going through probate.
• B.The deceased tenant's interest passes to his or her heirs according to New York intestacy laws.
• C.The deceased tenant's interest must be distributed according to the terms of the deceased's will.
• D.The property is automatically converted to a tenancy in common among the surviving owners and the deceased's estate.

Q5.Which is not listed as a protected class in A.R.S. § 41-1491.14?

• A.Familial status
• B.National origin
• C.Disability
• D.Retaliation

Q6.In financing terminology, which provides greater assurance to a seller — a loan approval or a loan commitment?

• A.They are legally identical — no practical difference exists
• B.A loan approval is stronger because it comes earlier in the process
• C.A loan commitment is stronger; it is the lender's binding obligation to fund, subject only to specific remaining conditions
• D.They are equivalent — both can be withdrawn by the lender at any time

Q7.Which of the following is required to create a valid joint tenancy?

• A.The joint tenants must be related by blood or marriage
• B.The property must be residential real estate only
• C.The joint tenancy must be recorded within 30 days of creation
• D.All joint tenants must acquire their interests at the same time, by the same deed, with equal interests and identical rights

Q8.A broker is drafting a commercial purchase agreement that includes a zoning contingency. The buyer intends to use the property as a cannabis dispensary, which is permitted under state law but prohibited under federal law. Which broker-level consideration is MOST critical when drafting this contingency?

• A.The broker must draft the contingency to address both the state zoning approval and the federal legal conflict, and should strongly recommend that both parties obtain independent legal counsel regarding federal Controlled Substances Act exposure before proceeding.
• B.Because the use is permitted under state zoning law, the broker can draft a standard zoning contingency and has no further duty to advise the parties of federal law conflicts.
• C.The broker should refuse to take the listing because facilitating any transaction involving cannabis use constitutes a federal crime for which the broker bears direct criminal liability.
• D.The broker should insert a clause specifying that the transaction is void if federal law changes, making the contingency self-executing.

Q9.Under RESPA's anti-kickback provisions (Section 8), which of the following arrangements would generally be considered permissible?

• A.A title company paying a broker a fee for a referral of settlement services when the fee represents payment for actual, distinct, and necessary services rendered
• B.A lender giving a broker tickets to a sporting event worth $200 in exchange for steering buyers to that lender
• C.A settlement service provider splitting unearned fees with the referring broker as compensation for referring clients
• D.A builder requiring buyers to use the builder's affiliated title company as a condition of purchasing a new home without providing an affiliated business arrangement disclosure

Q10.A real estate salesperson repeatedly contacts homeowners in a Brooklyn neighborhood, warning them that families of a different national origin are moving in and that property values will soon decline, urging them to sell quickly before prices drop. This practice is best described as which illegal act under New York law?

• A.Steering
• B.Blockbusting
• C.Redlining
• D.Panic peddling through a cease-and-desist zone violation

Q11.Under New York Executive Law § 296-a and regulations enforced by the New York State Division of Human Rights, which of the following is a protected class that is recognized in New York State but is NOT included under the federal Fair Housing Act?

• A.Race
• B.National origin
• C.Lawful source of income
• D.Familial status

Q12.A property owner in New York discovers that a neighbor's fence has been erected 18 inches over the property line onto the owner's land. This situation is BEST described as which of the following?

• A.An easement by prescription, which grants the neighbor a permanent right to use that strip of land.
• B.An encroachment, which may entitle the owner to seek removal of the fence or monetary damages.
• C.A license, which the property owner may revoke at any time without legal recourse.
• D.A restrictive covenant running with the land that binds future owners of both properties.

Q13.Under the FHA, "disability" is defined as:

• A.Only mobility impairments documented by a physician
• B.A physical or mental impairment that substantially limits one or more major life activities, plus a record of such impairment OR being regarded as having one
• C.Only conditions covered by Social Security Disability Insurance
• D.Only visible disabilities a licensee can reasonably perceive

Q14.A New York licensee is representing a buyer as a buyer's agent. The buyer confides that he would be willing to pay up to $550,000 for a property, even though he plans to offer $500,000. Under the common-law fiduciary duty of loyalty codified in New York agency law, what must the buyer's agent do with this information?

• A.Disclose it to the seller because all material facts must be shared with all parties
• B.Disclose it to the seller's agent so negotiations can proceed efficiently
• C.Keep it confidential and use it solely to benefit the buyer client
• D.Disclose it in writing to the New York Department of State

Q15.A New York salesperson's license expires and the licensee continues to perform real estate brokerage activities for 45 days without renewal. Under New York Real Property Law § 441-b, what is the MOST likely consequence?

• A.The licensee may continue operating for up to 90 days under an automatic grace period granted by the Department of State
• B.The licensee's actions during the lapsed period are voidable at the option of the sponsoring broker
• C.The licensee is operating illegally and may be subject to penalties; no compensation may be collected for unlicensed activity
• D.The licensee may retroactively collect earned commissions once the license is renewed within 60 days