Free New York Real Estate Practice Exam

Q1.Under New York law, which statement best describes the broker's duty regarding property condition disclosure?

• A.Brokers must inspect all properties and provide written condition reports
• B.Brokers must disclose all material defects they observe or know about
• C.Brokers are only required to disclose defects that affect habitability
• D.Brokers must hire professional inspectors for all listings

Q2.A New York real estate salesperson working under a broker's supervision commits a violation of fair housing law in a transaction. Who bears primary responsibility for this violation?

• A.Only the salesperson who committed the violation
• B.Only the supervising broker
• C.Both the salesperson and the supervising broker
• D.The real estate brokerage firm only

Q3.A property manager discovers that a rent-stabilized apartment building in New York has been receiving preferential rents below the legal regulated rent. The building owner wants to discontinue the preferential rents. Under the Housing Stability and Tenant Protection Act of 2019, when can preferential rents be discontinued?

• A.At any lease renewal with proper notice
• B.Only when the apartment becomes vacant
• C.Never, preferential rents must be maintained permanently
• D.Only with approval from DHCR

Q4.Under New York Real Property Law Article 12-A, which type of agency relationship requires written disclosure to all parties at the first substantive contact?

• A.Seller's agent only
• B.Buyer's agent only
• C.Dual agent only
• D.All agency relationships

Q5.Under ECOA, how long must a creditor retain records of credit applications?

• A.12 months for approved applications, 25 months for denied applications
• B.25 months for all applications
• C.36 months for all applications
• D.60 months for all applications

Q6.Under federal law, which statement about asbestos disclosure requirements is correct?

• A.Sellers must provide an asbestos disclosure form for all residential properties
• B.Only commercial property sellers must disclose known asbestos
• C.There is no federal law requiring asbestos disclosure in real estate transactions
• D.Asbestos disclosure is only required for properties built after 1981

Q7.What is an easement?

• A.Full ownership of another person's property
• B.A right to use another person's property for a specific purpose
• C.A type of lease agreement
• D.A mortgage on real property

Q8.In New York, which type of listing agreement allows the seller to sell the property themselves without paying the listing broker a commission?

• A.Exclusive right to sell
• B.Exclusive agency
• C.Open listing
• D.Net listing

Q9.The Truth-in-Lending Act requires disclosure of the Annual Percentage Rate (APR) for which types of real estate transactions?

• A.Only purchase money mortgages
• B.Only refinance transactions
• C.All residential mortgage loans secured by the borrower's principal dwelling
• D.All commercial and residential real estate loans

Q10.Under New York Real Property Law, which of the following actions would constitute illegal steering?

• A.Showing properties only in neighborhoods the client specifically requested
• B.Directing minority clients away from certain neighborhoods based on racial composition
• C.Recommending properties based solely on the client's budget requirements
• D.Suggesting neighborhoods based on proximity to the client's workplace

Q11.A rectangular lot measures 150 feet by 200 feet. What is the area of this lot in acres?

• A.0.69 acres
• B.30,000 acres
• C.1.38 acres
• D.0.35 acres

Q12.Under GBL Article 12-A, what documentation must a broker maintain regarding salesperson commission splits?

• A.Verbal agreements are sufficient
• B.Written agreements signed by both parties
• C.Email confirmations only
• D.No documentation required if under $10,000

Q13.A real estate agent represents a buyer who is a member of a protected class under the Fair Housing Act. The agent learns that the seller has instructed them not to present offers from buyers of that protected class. How should the agent proceed?

• A.Follow the seller's instructions to maintain the listing relationship
• B.Present the offer but inform the seller of their concerns about the instruction
• C.Refuse to follow the discriminatory instruction and present the offer normally
• D.Withdraw from representing the buyer to avoid the conflict

Q14.Under NY DOS regulations, which circumstance requires a broker to maintain a separate escrow account?

• A.When handling more than 10 transactions monthly
• B.When holding client funds for any period of time
• C.When the brokerage has more than 5 salespersons
• D.When conducting commercial transactions over $1 million

Q15.A broker's trust account earns 2.5% annual interest on the average monthly balance. If the average balance for the year was $125,000, how much interest was earned?

• A.$2,125
• B.$2,500
• C.$3,125
• D.$3,750