Free New York Real Estate Practice Exam

Q1.A real estate office receives a loan application disclosure package from a lender. Under RESPA requirements, what must the lender provide to the borrower within three business days of receiving a complete loan application?

• A.Loan Estimate (LE) form
• B.Final HUD-1 Settlement Statement
• C.Closing Disclosure (CD) form
• D.Good Faith Estimate (GFE) form

Q2.Under New York Real Property Law, which of the following actions would constitute grounds for revocation or suspension of a real estate license?

• A.Failing to return a client's phone call within 24 hours
• B.Demonstrating untrustworthiness or incompetency
• C.Charging a commission rate higher than the local market average
• D.Working exclusively with buyers rather than sellers

Q3.A condominium association adopts a rule prohibiting residents from displaying any flags, signs, or symbols in common areas or on unit exteriors. A resident with a disability requests an exception to hang a small placard identifying her service animal near her front door as a reasonable accommodation. The board denies the request, citing uniform enforcement of the rule. Under the FHA, which outcome is MOST legally correct?

• A.The board's denial is lawful because a blanket no-signage rule is a legitimate, uniformly applied policy that does not target any protected class
• B.The board's denial is unlawful if the accommodation is reasonable and necessary to afford the resident equal opportunity to use and enjoy the housing, regardless of the neutral rule
• C.The board's denial is lawful because service animal accommodations under the FHA require only that the animal be permitted, not that identifying placards be displayed
• D.The board's denial is unlawful only if the resident can prove the board acted with discriminatory intent in adopting the no-signage rule

Q4.When using the cost approach to determine a property's value, which of the following is the correct sequence of steps?

• A.Estimate land value, add reproduction cost, subtract accrued depreciation
• B.Estimate replacement cost, add land value, subtract accrued depreciation
• C.Estimate land value, add replacement cost, subtract accrued depreciation
• D.Estimate accrued depreciation, add land value, add replacement cost

Q5.A buyer and seller have signed a purchase contract. The buyer later discovers a defect in the property that the seller failed to disclose. For a contract to be voidable by the buyer in this situation, which element must generally be present?

• A.The undisclosed defect must be material, meaning it significantly affects the value or desirability of the property.
• B.The contract must have been written by a licensed attorney.
• C.The buyer must have obtained a home inspection prior to signing the contract.
• D.The seller must have signed the contract in the presence of a notary public.

Q6.Under the Fair Housing Act, which contract provision would be considered discriminatory and illegal?

• A.Requiring proof of income from all buyers
• B.Setting a minimum credit score requirement
• C.Stating 'no children allowed' in the property
• D.Requiring a home inspection

Q7.Which of the following is the most common method of transferring title to real estate?

• A.Deed
• B.Will
• C.Court order
• D.Adverse possession

Q8.A property manager receives a written complaint that one tenant is repeatedly propositioning a neighboring tenant. Under 24 C.F.R. § 100.600(c), the manager must:

• A.Take prompt corrective action within the manager's control
• B.Take no action — tenant-on-tenant conduct is a private matter
• C.Wait for a second complaint before investigating
• D.Report to law enforcement before taking any internal action

Q9.A buyer is purchasing a cooperative apartment in New York City. Unlike a condominium purchase, the buyer will receive which of the following as evidence of ownership?

• A.A deed conveying fee simple title to the specific apartment unit and an undivided interest in the common elements.
• B.A proprietary lease and shares of stock in the cooperative corporation that owns the building.
• C.A condominium unit deed recorded with the county clerk and a membership interest in the homeowners association.
• D.A certificate of occupancy issued by the New York Department of State in the buyer's name.

Q10.Which statement best describes a designated broker's obligation regarding client data security in Arizona?

• A.Brokers are only responsible for paper records; digital data security is the client's responsibility
• B.Brokers must implement reasonable safeguards to protect client personally identifiable information from unauthorized access or disclosure
• C.Data security is solely an IT function with no broker liability
• D.Only social security numbers and financial account numbers require protection; other client data is unregulated

Q11.A broker's affiliated salesperson is representing both the buyer and seller in the same transaction under a disclosed dual agency arrangement. The seller later claims the salesperson shared confidential pricing information with the buyer, resulting in a lower accepted offer. Under the law of agency, which party bears PRIMARY liability to the seller for the salesperson's breach of fiduciary duty?

• A.The salesperson alone, because the breach was the salesperson's personal act
• B.The broker, because the salesperson acted as the broker's agent and the broker is vicariously liable for the salesperson's conduct within the scope of employment
• C.Neither party, because dual agency eliminates all fiduciary duties to both principals
• D.The buyer, because the buyer benefited from the disclosed confidential information

Q12.A homeowner in New York defaults on a mortgage. The lender wishes to foreclose. Which statement BEST describes New York's foreclosure process and a key statutory protection afforded to the borrower?

• A.New York is a title theory state, so the lender automatically holds title upon default and may conduct a non-judicial trustee's sale without court involvement.
• B.New York is a lien theory state requiring judicial foreclosure, and the lender must file a foreclosure action in Supreme Court; additionally, the lender must provide the borrower with a 90-day pre-foreclosure notice before commencing the action on certain residential properties.
• C.New York is a lien theory state, but foreclosure is non-judicial and completed through a statutory power-of-sale clause contained in every standard mortgage.
• D.New York is a lien theory state, but the lender may bypass judicial foreclosure on commercial properties by filing a notice of default with the New York Department of Financial Services.

Q13.Under New York's agency disclosure requirements (RPL §443), at what point must a real estate licensee provide the agency disclosure form to a prospective buyer or seller?

• A.At the first substantive contact with the prospective buyer or seller
• B.Only at the time of closing
• C.After an offer has been accepted
• D.Only when requested by the client

Q14.In a typical New York residential real estate transaction, what is the customary role of attorneys after a buyer and seller sign a binder?

• A.The binder itself constitutes a fully binding contract, so attorneys review it only if a dispute arises.
• B.Attorneys for both parties negotiate and draft the formal contract of sale before the parties are legally bound.
• C.Only the seller's attorney is customarily involved; the buyer is expected to sign without independent counsel.
• D.The real estate salesperson drafts the final contract of sale, and attorneys merely witness the signatures.

Q15.Under New York's 'Tenant Protection Act of 2019' (Housing Stability and Tenant Protection Act), which of the following correctly describes the limitations placed on security deposits for most residential rentals?

• A.Landlords may collect a security deposit of up to three months' rent for unfurnished apartments
• B.Landlords may collect a security deposit of up to two months' rent, regardless of whether the unit is furnished
• C.Landlords may collect a security deposit not to exceed one month's rent
• D.Security deposit limits apply only to rent-stabilized units in New York City