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NYS REAL ESTATE U FINAL EXAM 2026
ACTUAL SOLVED QUESTIONS
GUARANTEED PASS
⩥ Sponsor. Answer: - A licensed real estate broker that holds the license of a salesperson. ⩥ "Summary of Your Submission". Answer: - Obtained after you register for the New York State Salesperson exam using eAccessNY. You must bring your "Summary of Your Submission" with you when taking the State exam. ⩥ Misdemeanor. Answer: - A crime punishable by up to a year in prison and/or a $1,000 fine. ⩥ Listing Agreement. Answer: - An employment contract between principal and agent, authorizing the agent to perform services for the principle involving the latter's property ⩥ Pocket Card. Answer: - A card issued by the Department of State to each licensee which contains the
photo, name and business address of the licensee, and, in the case of a real estate salesperson, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesperson.
- Must be carried by the agent at all times when serving as a salesperson. ⩥ Fiduciary. Answer: - A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence and trust. ⩥ OLD CAR. Answer: - Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accountability
- Reasonable Care ⩥ Obedience. Answer: - Agent must act in accordance to clients demands/instructions.
exclusive agency is entitled to commissions in addition to the commissions payable to the broker who effected the transaction
- Made between a broker and a seller ⩥ Principal. Answer: - The employer of an agent or broker; the broker's or agent's client. ⩥ Price Fixing. Answer: - Conspiring to establish fixed fees or prices for services or products. ⩥ Market Allocation. Answer: - An agreement between members of a trade conspiring to refrain from competition in specific market areas. ⩥ Independent Contractor Relationship. Answer: - A person that provides services to another under terms specified in a contract or within a verbal agreement. An independent contractor is not an employee.
- The agent does not have to work in a specific location
- The broker cannot control the agent's work activities ⩥ Bundle of Rights. Answer: - The premise that the ownership of real estate consists of the ownership of the various rights associated with it.
These rights include the right to use and/or copy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.
- Includes the right to quiet enjoyment. ⩥ Littoral Rights. Answer: - The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on. ⩥ Riparian Rights. Answer: The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means "riverbank." ⩥ Specific Lien. Answer: A lien that only binds to a specific asset or property. Ex: Mortgage. ⩥ Voluntary Lien. Answer: A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate. Ex: Mortgage ⩥ Tax Lien. Answer: A lien imposed by law upon a property to secure the payment of taxes.
⩥ Delivery and Acceptance. Answer: Legal policy mandates that a deed to real property be a matter of public record; therefore, subsequent to delivery and acceptance, a deed must be property recorded. ⩥ Chain of Title. Answer: The sequence of historical transfers of title to a property. It runs from the present owner back to the original owner of the property. ⩥ Title. Answer: Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. ⩥ Closing Statement. Answer: A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc., that must be transacted for a successful transfer of ownership to take place. ⩥ Essential Elements of a Contract. Answer: 1) Consideration
- Must be in writing
- Must have competent parties ⩥ Estate for Years. Answer: A leasehold estate for any specific period of time. An estate for years is not automatically renewed. ⩥ Express Contract. Answer: A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration)
⩥ Attorney Review Clause. Answer: Clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason. ⩥ Mortgage Contingency Clause. Answer: A clause in a contract that states a mortgage must be obtained in order for the contract to be binding. ⩥ Eviction. Answer: Legal proceeding by a lessor landlord to recover possession of leased property after the expiration of the lease term. ⩥ Triple Net Lease. Answer: A lease commonly found in a building with a single, long-term tenant. ⩥ Mortgage. Answer: Legal Agreement by which a bank lends money in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon payment of the debt. ⩥ APR. Answer: The actual interest rate charged, including loan fees and points. ⩥ Secondary Mortgage Market. Answer: The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors.
⩥ Variance. Answer: The authorization to improve or develop a particular property in a manner not authorized by zoning. ⩥ Building Codes. Answer: Regulations established by state or local governments stating fully that structural requirements for building.
- Building codes are enforced by the issuance of permits. ⩥ Air rights. Answer: Rights in real property to use the space above the surface of the land. ⩥ Certificate of Occupancy (CO). Answer: A document issued by a governmental authority that a building is ready and fit for occupancy. ⩥ Stud. Answer: Vertical framing members found in wall construction. Typically placed 12", 16" or 24" on center. ⩥ Beam. Answer: Horizontal structural member that supports a floor. Beams are typically wood, cold formed metal framing or steel. ⩥ Bearing walls. Answer: Structural walls that transfer building loads down to the foundations. Joists, beams, and roofs are typically supported by bearing walls.
⩥ Bond beam. Answer: Concrete set in soil. ⩥ Circuit breaker. Answer: The safety valves for electrical systems. ⩥ Construction Drawings. Answer: Drawings produced by Architects that describe the QUANTITIES of a building. ⩥ Specifications. Answer: A written document produced by an Architect that described the QUALITY of construction for a building. ⩥ Mandated warranty for a new constructions according to NYS General Business Law 36-B:. Answer: 1) 1 year of workmanship
- 6 years of material defects
- 2 years for plumbing, electrical and HVAC systems ⩥ Title X. Answer: A Federal law that makes real estate licensees liable for the disclosure of lead paint. ⩥ Radon. Answer: A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country. ⩥ Asbestos. Answer: A naturally occurring mineral fiber sometimes found in older homes. It is hazardous to health when a possibility exists
⩥ Sales Comparison Approach. Answer: Valuation method which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions. ⩥ Red-lining. Answer: The refusal to lend money within a specific area for various reasons.
- This practice is illegal. ⩥ Blockbusting. Answer: The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market rates, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values. ⩥ Fair Housing Act of 1968. Answer: Federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability. ⩥ Brown vs. Board of Education. Answer: Determined Separate is NOT Equal.
⩥ Testers. Answer: Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers. ⩥ Acre. Answer: 43,560 sq. ft ⩥ Planning Board. Answer: Responsible for developing and controlling a municipality's comprehensive strategy for growth and development. ⩥ Architectural Review Board. Answer: Oversees and upholds the quality and aesthetics of a neighborhood, town, or city. ⩥ The Office of Receiver of Taxes. Answer: Responsible for collecting taxes. ⩥ Building Department. Answer: A town or city that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances. ⩥ Deductible. Answer: The amount of expenses that must be paid out of pocket before an insurer will pay any expenses. ⩥ Umbrella Policy. Answer: Insurance policy that covers amounts above those covered under one or more other primary policies, and which does
⩥ House rules. Answer: Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution. ⩥ Condominium. Answer: Considered real property, which is conveyed by a deed. ⩥ Maintenance. Answer: Monthly payments by a shareholder to a cooperative corporation. ⩥ Common charges. Answer: Monthly payment by owner of a condominium. ⩥ Sponsor. Answer: The developer or owner organizing and offering for sale a condominium or cooperative development. ⩥ Leverage. Answer: The use of borrowed capital (mortgage) to increase the potential return of an investment. ⩥ Pro-forma Statement. Answer: An accounting statement that forecasts income and expenses for a period of a time, typically five or more years. ⩥ Cap Rate. Answer: NOI/Purchase Price
⩥ Liquid. Answer: The ability to have cash readily available to support the demands of running and maintaining real property. ⩥ Gross Income. Answer: The total amount collected from rents and other income producing opportunities. ⩥ Capital Gain. Answer: A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price. ⩥ Boot. Answer: Cash received in a tax-deferred exchange. ⩥ Tax Shelter. Answer: Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. ⩥ Straight-line depreciation. Answer: A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year.
- Residental property depreciated over 27.5 year period
- Commercial property is depreciated over 39 year period ⩥ 1031 Exchange. Answer: - 45 days to identify a new property
- 180 days to close on a new property
⩥ Exclusive Right to Sell. Answer: An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell if nevertheless ENTITLED TO COMPENSATION. ⩥ Property Condition Disclosure Statement. Answer: The Property Condition Disclosure Statement Act requires the seller to submit to the buyer, a "PCDStatement" prior to signing the contract of sale. If statement is not signed the seller owes the buyers $500 credit against the purchase price of the property.
- Most seller attorneys advise clients NOT to sign statement because opens up to vast amount of liability. ⩥ Sub-agent. Answer: A person appointed by an agent with permission of the principal (seller) to assist in performing some or all of the tasks of the agency.
- Typically occurs when properties listed on MLS. When seller's broker posts a listing on the MLS, he/she are essentially inviting other brokers to join as a subagent. Agent showing the property becomes subagents for the listing broker (and the seller.) ⩥ Independent Contractor. Answer: Sales agents can be provided with Office Phones by their sponsoring broker.
⩥ Ownership in Severalty. Answer: Title to real estate is in the name of only ONE person or entity, it is an estate ownership in severalty... i.e. single individual owns real estate, therefore is 'severed' from all others. ⩥ Easement in Gross. Answer: Ex: Utility Company Right of use in land of another without the requirement that the holder of the right own adjoining land. A.K.A. Commercial Easement in Gross ⩥ Mechanic's Lien. Answer: Security interest in the title to property for the benefit of those who have supplied labor or materials to improve the property. ⩥ Mortgage Lien. Answer: Example of a specific lien. ⩥ Fee Simple Estates. Answer: Absolute ownership of a real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's heirs or distributees. ⩥ Conveyance. Answer: The transfer of the title from one to another. The means or medium by which title of real estate is transferred. A deed is a document used to convey title legally to real property. A.K.A. an instrument of conveyance.
