Free New York Real Estate Practice Exam

Q1.Under New York law, two unmarried co-owners hold title to a property with equal, undivided interests and the right of survivorship. Which form of ownership does this BEST describe?

• A.Tenancy in common
• B.Joint tenancy
• C.Tenancy by the entirety
• D.Community property

Q2.In New York, a borrower obtains a $600,000 purchase-money first mortgage on a residential property in New York City. Assuming the New York City mortgage recording tax applies at its standard combined rate for a residential mortgage over $500,000 (city plus state), which of the following statements best describes how the mortgage recording tax is allocated between buyer and lender by custom and law?

• A.The borrower pays the entire combined New York State and New York City mortgage recording tax, with no portion allocated to the lender.
• B.The lender pays 0.25% of the mortgage amount toward the mortgage recording tax, and the borrower pays the remainder of the combined rate.
• C.The mortgage recording tax is split equally between borrower and lender regardless of the mortgage amount.
• D.The mortgage recording tax is only imposed on mortgages exceeding $1,000,000 in New York City.

Q3.Which federal agency is primarily responsible for enforcing the Fair Housing Act?

• A.Federal Trade Commission (FTC)
• B.Consumer Financial Protection Bureau (CFPB)
• C.Department of Justice (DOJ)
• D.Department of Housing and Urban Development (HUD)

Q4.A broker operating under a written buyer-representation agreement has been showing properties to a buyer-client for several weeks. The buyer subsequently contacts a listing broker directly and purchases a property without informing the buyer's broker. The listing broker was unaware of the existing buyer-representation agreement. Under general agency principles, which statement BEST describes the legal outcome?

• A.The buyer's broker has no recourse because agency was terminated by the buyer's unilateral act
• B.The buyer's broker may sue the buyer for breach of the written buyer-representation agreement, and the listing broker has no liability because it lacked actual or constructive notice of the agreement
• C.The listing broker is liable to the buyer's broker for tortious interference because listing brokers always owe duties to all buyer's brokers in the market
• D.The buyer-representation agreement is unenforceable unless it contains a specific commission amount expressed as a fixed dollar figure

Q5.According to New York Real Property Law, a real estate salesperson license is valid for how long before it must be renewed?

• A.1 year
• B.2 years
• C.3 years
• D.4 years

Q6.A New York real estate salesperson's license is about to expire. Under New York Real Property Law Article 12-A and 19 NYCRR Part 175, which continuing education requirement must the salesperson satisfy in order to renew the license?

• A.Complete 22.5 hours of approved continuing education, including at least 3 hours on fair housing and/or discrimination topics, during each two-year renewal cycle.
• B.Complete 45 hours of approved continuing education, mirroring the original pre-licensing course, during each two-year renewal cycle.
• C.Complete 15 hours of approved continuing education, with no mandatory subject-matter breakdown, during each two-year renewal cycle.
• D.Complete 22.5 hours of approved continuing education only for the first renewal; subsequent renewals require no continuing education.

Q7.Under the Fair Housing Act, which of the following actions by a landlord would be considered illegal discrimination?

• A.Refusing to rent to a tenant because they have a criminal conviction for drug manufacturing
• B.Refusing to allow a tenant with a disability to install grab bars in the bathroom at their own expense
• C.Requiring all tenants to have renters insurance
• D.Charging a security deposit equal to one month's rent

Q8.A real estate salesperson is showing homes to a buyer-client. During the showing, the salesperson learns that the seller is going through a divorce and is desperate to sell quickly. What is the salesperson's obligation regarding this information?

• A.Keep the information confidential because the salesperson owes fiduciary duties to the buyer-client, not the seller.
• B.Disclose the information to the seller's agent immediately to maintain transparency in the transaction.
• C.Disclose the information to all parties in the transaction to comply with federal fair dealing requirements.
• D.Ignore the information entirely, as personal circumstances of a seller are never relevant to a real estate transaction.

Q9.What is the purpose of the safety clause (protection clause) in an Arizona listing agreement?

• A.To protect the seller from liability if a buyer is injured on the property during the listing period
• B.To prevent the listing agent from disclosing the seller's motivation to prospective buyers
• C.To allow the broker to automatically extend the listing if the property does not sell
• D.To protect the broker's commission if the seller sells to a buyer the broker introduced during the listing period, even after it expires

Q10.Under New York Real Property Law, a residential landlord seeks to terminate a month-to-month tenancy. Which of the following correctly states the minimum written notice required to terminate such a tenancy in New York for a tenant who has resided in the unit for more than one year but less than two years?

• A.No written notice is required; the landlord may simply demand the tenant vacate at the end of any rental period.
• B.The landlord must provide at least 30 days' written notice prior to the end of the rental period.
• C.The landlord must provide at least 60 days' written notice prior to the end of the rental period.
• D.The landlord must provide at least 90 days' written notice prior to the end of the rental period.

Q11.According to New York Real Property Law Article 12-A, what is the minimum age requirement to obtain a real estate salesperson license?

• A.16 years old
• B.18 years old
• C.21 years old
• D.25 years old

Q12.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

Q13.FinCEN's Geographic Targeting Orders (GTOs) require title companies in covered Arizona markets to:

• A.Report all-cash residential purchases above a threshold to FinCEN
• B.Refuse all-cash transactions without prior government approval
• C.Charge a 1% surcharge on all-cash closings for AML compliance
• D.Notify ADRE of any all-cash transaction within 5 days

Q14.The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide borrowers with which disclosure document within three business days of loan application?

• A.Truth-in-Lending disclosure
• B.Loan Estimate
• C.Closing Disclosure
• D.HUD-1 Settlement Statement

Q15.Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) differs from the stated interest rate (note rate) primarily because the APR:

• A.Includes certain finance charges and loan costs in addition to the interest rate, reflecting the true cost of credit
• B.Represents the maximum interest rate the lender can charge over the life of the loan
• C.Is always lower than the note rate because it accounts for compound interest adjustments
• D.Is calculated by the borrower rather than the lender and submitted to the CFPB for approval