Free New York Real Estate Practice Exam

Q1.A homebuyer obtains a mortgage loan for $240,000 at a 7% annual interest rate. What is the amount of interest the borrower will pay in the first month?

• A.$1,400
• B.$16,800
• C.$1,680
• D.$2,000

Q2.Under New York's Statute of Frauds (General Obligations Law § 5-703), which of the following agreements related to real property is ENFORCEABLE even if it is NOT in writing?

• A.A contract for the sale of a parcel of land for $500.
• B.A lease of a residential apartment for a term of three years.
• C.An oral month-to-month lease of a residential apartment.
• D.A contract to convey a life estate in real property.

Q3.Which of the following would make a real estate contract voidable?

• A.The contract involves an illegal purpose
• B.One party was a minor when the contract was signed
• C.The contract lacks consideration
• D.The property description is completely missing

Q4.A client reports a fraudulent wire moments ago. What should occur first?

• A.Wait for the next business day.
• B.Delete the email.
• C.Immediately contact the sending financial institution for a recall or freeze and initiate the incident plan and IC3 report.
• D.Post the details publicly.

Q5.Under the Fair Housing Act, which scenario would constitute illegal discrimination based on familial status?

• A.Refusing to rent a studio apartment to a family of four due to legitimate occupancy standards
• B.Advertising 'adults only' for a 55+ senior housing community that qualifies for the housing for older persons exemption
• C.Requiring all tenants to provide references regardless of family composition
• D.Requiring higher security deposits from families with children due to potential property damage

Q6.Under RESPA, a lender is required to deliver or mail the Loan Estimate to a mortgage applicant within how many business days after receiving a completed loan application?

• A.5 business days
• B.3 business days
• C.7 business days
• D.10 business days

Q7.A broker is listing a pre-1978 single-family home. Under federal EPA rules implementing the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. § 4852d), what is the minimum number of days the buyer must be given to conduct a lead-based paint inspection or risk assessment before becoming obligated under the purchase contract?

• A.10 days
• B.5 days
• C.3 days
• D.7 days

Q8.How much of the broker's own money may § 32-2151 allow in a trust account solely to keep it open or avoid insufficient-minimum-balance charges?

• A.No more than $500
• B.No more than $1,000
• C.No more than $5,000
• D.Any amount the broker chooses

Q9.A New York real estate salesperson accepts a $10,000 earnest money deposit from a buyer during a residential transaction. According to New York Department of State regulations, how must this deposit be handled?

• A.The salesperson may deposit the funds into the broker's general operating account to simplify accounting.
• B.The salesperson must personally hold the funds in a secure location until closing.
• C.The funds must be deposited into a separate escrow (trust) account maintained by the sponsoring broker.
• D.The funds must be forwarded directly to the seller within three business days of receipt.

Q10.A broker learns that an unlicensed employee has been negotiating leases at several unrelated properties. What is the best immediate control response?

• A.Expand the employee's title
• B.Stop the unauthorized activity, preserve affected files, assess transactions, and correct the assignment
• C.Wait until the next annual review
• D.Ask the employee to sign the leases retroactively

Q11.A managing broker oversees a branch office where salesperson Rodriguez is practicing as a designated buyer's agent for a client, and salesperson Kim is acting as the designated seller's agent for the opposing party in the same transaction. The managing broker has been informed of the designation. Under a designated agency model, which of the following statements is MOST accurate regarding the broker's fiduciary obligations?

• A.The broker becomes a dual agent representing both parties equally and must disclose all confidential information to both sides
• B.The broker functions as a dual agent at the brokerage level but may remain neutral, while each designated agent retains full fiduciary duties exclusively to their respective client
• C.The broker must withdraw from the transaction entirely to avoid a conflict of interest
• D.Designated agency eliminates the need for any written disclosure or client consent

Q12.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

Q13.A New York real estate salesperson discovers that a residential property listed for sale was the site of a homicide three years ago. Under New York Real Property Law § 443-a, which of the following statements is MOST accurate regarding the salesperson's disclosure obligations?

• A.The salesperson must proactively disclose the homicide to all prospective buyers as a material fact
• B.The salesperson is not required to disclose the homicide, but cannot make a misrepresentation if directly asked by a buyer
• C.The salesperson must disclose the homicide only if it occurred within the past two years
• D.The salesperson must disclose the homicide in writing on the Property Condition Disclosure Statement

Q14.An owner directs rent to the owner's own bank account. Which access rule applies to the broker?

• A.The broker must always be a signer
• B.The broker may not have access to that owner account
• C.The broker may use the account for other owners
• D.The account becomes the broker's operating account

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