Free New York Real Estate Salesperson Practice Exam 2025

Economic obsolescence is loss of value from external conditions like proximity to a factory.

RESPA prevents illegal referral fees and ensures transparency in real estate settlements.

Fidelity bonds insure businesses against employee theft or dishonest acts.

A net listing allows the agent to keep the excess above the seller’s price, often controversial.

Eminent domain allows the government to take private land for public use with compensation.

A general warranty deed offers the highest level of title protection to the buyer.

Market value is the most likely sale price in a competitive and fair market.

A lien is a creditor’s legal claim on property used as loan collateral.

In a gross lease, the tenant pays rent and the landlord covers operating costs.

A title search identifies ownership history and any legal issues with the property.

Tenancy by the entirety gives automatic inheritance rights to the surviving spouse.

Commingling is when a broker mixes client money with personal funds, which is illegal.

Buyers obtain inspections to uncover structural or mechanical problems before purchase.

Refusing service based on national origin violates the Fair Housing Act.

A valid deed must have the grantor’s signature, and be delivered and accepted.

A deed is the official document transferring property ownership between parties.

Earnest money shows the buyer’s good faith intent to complete the purchase.

The seller typically pays transfer tax unless agreed otherwise or mandated by local rules.

TILA requires lenders to clearly disclose credit terms to help consumers make informed choices.

Specific performance requires a party to complete a contract as agreed, often used in real estate.

An exclusive right-to-sell listing guarantees commission regardless of who finds the buyer.

A built-in dishwasher is a fixture and considered part of the real estate.

A freestanding refrigerator is personal property because it is not permanently attached.

The rectangular survey system uses meridians and base lines to describe land.

A property manager’s highest duty is to the property owner, acting in their best interest.

Involuntary alienation means property is transferred without owner consent (e.g., foreclosure).

An easement ends through a written release by the easement holder.

6% commission on a $195,000 sale equals $11,700.

An appurtenance is something that goes with the land, like easements or improvements.

A deed legally transfers real property ownership when properly delivered and accepted.

Zoning laws are an example of police power, used to promote public safety and welfare.

Scarcity is an economic trait, not a physical one. Physical traits include immobility and uniqueness.

Discussing commission rates can violate antitrust laws; agents should avoid such conversations.

Real property includes permanent fixtures like window blinds, not movable items.

Encroachment is when a structure extends onto another's land without consent, leading to disputes.

Depreciation is not part of the income approach to valuation; it's used in the cost approach.

Earnest money must be placed in escrow unless written permission allows otherwise from all parties.

Failing to perform promised advertising violates the agent’s duty of disclosure to the client.

The Real Estate Commission licenses and regulates real estate professionals but does not set taxes or enforce zoning laws.

An agency relationship ends through mutual agreement, death, or completion of the objective.

An acceleration clause lets the lender demand full payment if the borrower defaults.

Title insurance protects against unknown title defects not revealed in public records.

The cost approach is used for properties lacking comparables, like churches or schools.

Metes and bounds descriptions always begin and end at a point of beginning.

An estate for years has a set start and end date, forming a fixed-term lease.

An exclusive right to sell listing guarantees the broker commission if the property is sold.

Warehouse tenants prioritize easy access to transportation routes in leasing decisions.

Commingling occurs when a broker mixes client earnest money with personal funds.

Puffing involves subjective opinions and is legal unless it includes false factual claims.

RESPA mandates disclosure of settlement costs and bans kickbacks in real estate transactions.

A contract signed under duress is voidable by the coerced party.

If the buyer breaches the contract, the seller may sue for specific performance.

The seller usually pays the transfer tax unless otherwise negotiated.

An agency relationship is created through mutual agreement between agent and principal.

A mortgage lien is an encumbrance as it burdens the property's title.

A void contract has no legal effect from the beginning and cannot be enforced.

Commission is generally earned at closing unless the contract states otherwise.

Eminent domain allows the government to take private property for public use with compensation.

The income approach is based on the property's potential to generate income.

General liens affect all property of a debtor. Specific liens attach only to a designated property.

Appreciation is not a form of depreciation. Recognized types include physical, functional, and economic.

A deed's primary function is to transfer legal ownership of real estate.

Commingling is the illegal act of mixing client trust funds with personal funds.

Agents must disclose known material facts, such as a property's long time on the market.

Water access and soil quality are key factors in appraising agricultural land.

A net lease requires the tenant to pay rent plus property taxes, insurance, and maintenance.

Market value is the most probable sale price in an open and competitive market.

A solar system that adds long-term value is considered a capital improvement.

Annual tax = Market Value × Assessment Ratio × Tax Rate. Example: $350,000 × 0.40 × 0.025 = $3,750.

The essential elements of value are demand, utility, scarcity, and transferability. Competition is not one.

Annual tax = Market Value × Assessment Ratio × Tax Rate. Example: $400,000 × 0.80 × 0.0225 = $2,275.

Before marketing condo units, a sponsor must file and gain approval of an Offering Plan from the Attorney General.

Long-term public use of beachfront may create a prescriptive easement, allowing continued legal access.

Salespersons must receive compensation through their broker. Direct payment from a client is illegal.

New York requires 22.5 hours of continuing education every 2 years to renew a salesperson license.