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New York Real Estate Salesperson Examination practice questions

220 free questions with answers and explanations.

Practice test
  1. 51.A New York real estate broker is acting as a property manager for an owner. The broker collects security deposits from tenants. According to New York law, where must these security deposits be held?New York State Specific Laws and Regulations
  2. 52.A landlord in New York City is considering refusing to rent an apartment to a prospective tenant because the tenant uses a wheelchair and the landlord believes the tenant would cause damage to the property. Which New York State law is most directly violated by this action?New York State Specific Laws and Regulations
  3. 53.A New York real estate salesperson is involved in a transaction where the seller explicitly instructs them not to disclose a known, non-material defect in the property (e.g., a small crack in the garage floor that does not affect structural integrity). What is the salesperson's ethical obligation in this situation?New York State Specific Laws and Regulations
  4. 54.A tenant in a rent-controlled apartment in New York City is paying $800 per month. The landlord applies to the New York State Homes and Community Renewal (HCR) for an increase due to a major capital improvement (MCI) in the building. The HCR approves an MCI increase of 6% of the current rent. What will be the tenant's new maximum monthly rent?New York State Specific Laws and Regulations
  5. 55.A developer purchased a 10-acre parcel of land for $250,000. They plan to subdivide it into 25 equal lots. Road and utility installation costs are estimated at $75,000. If the developer wants to make a 25% profit on the total project cost, what is the minimum selling price per lot?Real Estate Calculations
  6. 56.A New York real estate salesperson is asked by a client to recommend a specific mortgage lender. The salesperson has a long-standing business relationship with a particular lender and receives a referral fee for every client they send to them. What is the salesperson's ethical and legal obligation when recommending this lender?New York State Specific Laws and Regulations
  7. 57.A New York real estate salesperson is showing a fully renovated loft apartment in a building constructed in 1905. The buyer asks about the potential for mold, especially since the building is old. What is the salesperson's most appropriate response?Property Condition and Disclosures
  8. 58.A real estate salesperson is preparing to present an offer on behalf of a buyer client. The seller's agent informs the salesperson that the seller will only consider offers submitted on their proprietary offer form. The salesperson's buyer client insists on using the standard New York State Bar Association (NYSBA) contract. What is the most appropriate action for the salesperson?New York State Specific Laws and Regulations
  9. 59.A New York real estate salesperson is involved in a transaction where the seller failed to provide a Property Condition Disclosure Statement (PCDS) to the buyer before the signing of the contract of sale. What is the established statutory credit the seller must provide to the buyer at closing in this scenario?New York State Specific Laws and Regulations
  10. 60.A buyer is purchasing a home for $300,000. The lender requires a 20% down payment. If the buyer also needs to pay 2 points at closing, what is the total amount the buyer will pay for the down payment and points?Real Estate Calculations
  11. 61.A New York real estate salesperson is representing a buyer interested in a commercial building that was previously used as a gas station. The buyer's lender requires a Phase I Environmental Site Assessment (ESA). What is the primary purpose of this Phase I ESA?Property Condition and Disclosures
  12. 62.A New York real estate broker decides to operate their brokerage from a small home office. They ensure the office has a separate entrance, a dedicated phone line, and is clearly distinguishable from their living space. Is this setup compliant with New York license law regarding a definite place of business?New York State Specific Laws and Regulations
  13. 63.A New York real estate salesperson is involved in a transaction where they represent the seller. The buyer's agent tells the salesperson that their buyer is pre-approved for a mortgage but does not provide the pre-approval letter. The salesperson relays this information to their seller client. What is the salesperson's ethical duty regarding the verification of this information?New York State Specific Laws and Regulations
  14. 64.A New York real estate salesperson is showing a commercial property, a former dry cleaning establishment. The buyer's environmental engineer reports finding perchloroethylene (PCE) contamination in the soil and groundwater. The seller claims they were unaware of the contamination as they purchased the property 'as-is' years ago. Under CERCLA (Superfund) and New York's 'Brownfield' program, what is the most likely implication for the current owner?Property Condition and Disclosures
  15. 65.A New York real estate salesperson is representing a buyer who wishes to purchase a cooperative apartment. The buyer has been approved by the building's co-op board, and the salesperson is assisting with the closing process. What is the buyer primarily purchasing in a cooperative transaction?New York State Specific Laws and Regulations
  16. 66.A real estate broker has an exclusive right-to-sell agreement with a seller. The seller finds a buyer on their own, without any assistance from the broker. What is the broker's entitlement to a commission in this scenario?New York State Specific Laws and Regulations
  17. 67.A New York real estate broker is representing a buyer interested in a property. During negotiations, the seller's agent inadvertently discloses that the seller is highly motivated to sell quickly due to an impending job transfer and would accept a lower offer than listed. What is the broker's ethical obligation regarding this information?New York State Specific Laws and Regulations
  18. 68.A buyer is interested in a rural New York property with a private well and septic system. The listing agent mentions that radon gas testing was performed by the previous owner three years ago, with results indicating levels slightly above the EPA's action level. The seller, however, did not take any mitigation steps. Which of the following is the most appropriate action for the buyer's agent?Property Condition and Disclosures
  19. 69.A New York real estate salesperson is representing a seller. During a showing, a prospective buyer, who is not represented by an agent, asks the salesperson about the best way to make a competitive offer. The salesperson advises the buyer on offer strategies and market comparables. What agency relationship has been created or implied by the salesperson's actions?New York State Specific Laws and Regulations
  20. 70.A New York real estate agent is listing a property located near a former industrial site. The seller informs the agent that the property's groundwater was tested years ago due to concerns about contamination from the adjacent site, and the results indicated the presence of volatile organic compounds (VOCs). The seller, however, has not taken any remediation steps. What is the agent's most appropriate action regarding this information?Property Condition and Disclosures
  21. 71.A New York real estate salesperson is assisting a buyer who is interested in a condominium unit. The buyer is concerned about potential future expenses beyond the monthly common charges. What is the most significant additional financial obligation a condominium owner might face that a salesperson should disclose?New York State Specific Laws and Regulations
  22. 72.A New York real estate salesperson is assisting a buyer client who wants to purchase a property currently listed for $450,000. The buyer wants to offer $420,000. The salesperson, eager to close the deal, advises the buyer to offer $440,000, stating that a lower offer would be insulting and likely rejected. Which ethical duty is the salesperson potentially violating?New York State Specific Laws and Regulations
  23. 73.A real estate salesperson is showing a property to a prospective buyer who expresses concern about the property's proximity to a former industrial site. The salesperson, eager to make the sale, states, 'Don't worry, the state cleaned all that up years ago; it's perfectly safe now.' The salesperson has no independent verification of this claim. This action could be considered an example of:New York State Specific Laws and Regulations
  24. 74.A real estate licensee is listing a property that is part of a cooperative housing corporation. Which of the following statements is true regarding the sale of a co-op unit in New York?New York State Specific Laws and Regulations
  25. 75.According to New York State License Law, if a real estate salesperson leaves the employ of their sponsoring broker, what happens to their real estate license?New York State Specific Laws and Regulations
  26. 76.A property's assessed value is $250,000. The local tax rate is $18 per $1,000 of assessed value. What is the annual property tax bill?Real Estate Calculations
  27. 77.A New York real estate salesperson is representing a buyer interested in an older home built in 1972. During the initial showing, the buyer notices some peeling paint on the window sills and asks about potential hazards. What is the salesperson's primary responsibility regarding lead-based paint disclosure in this scenario?Property Condition and Disclosures
  28. 78.A real estate salesperson, licensed in New York, is asked by a buyer to draft a purchase agreement for a complex commercial property. The salesperson has some experience with residential contracts but no formal legal training. What is the most appropriate action for the salesperson to take?New York State Specific Laws and Regulations
  29. 79.A tenant with a disability requests that their landlord install a ramp at the building's entrance to accommodate their wheelchair. The building has 10 units and was built in 1990. Under New York's Fair Housing Laws, what is the landlord's obligation?New York State Specific Laws and Regulations
  30. 80.A seller lists their property for $450,000. Their broker charges a 6% commission. If the seller agrees to pay an additional 1.5% bonus commission for a quick sale, and the property sells for $440,000, what is the total commission paid by the seller?Real Estate Calculations
  31. 81.A New York real estate salesperson is working with a buyer who is interested in a property where a death occurred due to natural causes two years ago. The buyer's agent is aware of this fact. What is the salesperson's obligation to disclose this information under New York law?Property Condition and Disclosures
  32. 82.A real estate salesperson is assisting a buyer who is interested in a condominium unit. The buyer asks about the monthly common charges and what they cover. Which of the following is typically included in condominium common charges?New York State Specific Laws and Regulations
  33. 83.A real estate broker is preparing to list a single-family home for sale. The seller informs the broker that the basement occasionally floods during heavy rain, but they have always managed it with a sump pump. Under New York's Property Condition Disclosure Act (PCDA), what is the broker's primary responsibility regarding this information?New York State Specific Laws and Regulations
  34. 84.A New York real estate salesperson is listing a property. The seller informs the salesperson that the property was the site of a widely publicized murder-suicide five years ago. The salesperson is aware that this is a 'stigmatized property' under New York law. What is the salesperson's primary ethical and legal obligation regarding this information?New York State Specific Laws and Regulations
  35. 85.An individual applies for a real estate salesperson license in New York. The Department of State (DOS) discovers that the applicant was convicted of larceny five years ago, a felony. What action is the DOS most likely to take regarding this application?New York State Specific Laws and Regulations
  36. 86.A New York real estate broker is negotiating a lease for a commercial property. The prospective tenant requests several modifications to the standard lease agreement. The broker, eager to finalize the deal, advises the landlord client that the requested changes are 'minor legal technicalities' and encourages them to accept without seeking legal counsel. What ethical principle is the broker violating?New York State Specific Laws and Regulations
  37. 87.A buyer is purchasing a newly constructed home in New York. The salesperson presents the buyer with a Property Condition Disclosure Statement (PCDS) that indicates 'unknown' for most items. The buyer is concerned about the lack of specific information. What is the salesperson's most accurate advice regarding the PCDS for new construction?Property Condition and Disclosures
  38. 88.A New York real estate salesperson is listing a property with an underground heating oil tank. The seller states the tank has been out of use for 10 years and was simply filled with sand. What is the most critical disclosure or recommendation the salesperson should ensure is made to potential buyers?Property Condition and Disclosures
  39. 89.The New York State Department of State (DOS) has the authority to investigate complaints against real estate licensees. If a licensee is found guilty of a violation, which of the following disciplinary actions is the DOS LEAST likely to impose as a primary punishment for a first-time, minor infraction?New York State Specific Laws and Regulations
  40. 90.A real estate broker in New York is managing a property for a client. The tenant pays monthly rent directly to the broker. According to New York License Law, how must the broker handle these funds?New York State Specific Laws and Regulations
  41. 91.A New York real estate salesperson is listing a property built in 1965. The seller mentions that during a renovation in the 1990s, they had some pipe insulation removed, and the contractor suggested it might have contained asbestos. The seller did not keep any records of the removal. What is the salesperson's ethical and legal obligation regarding this information?Property Condition and Disclosures
  42. 92.A licensed real estate broker in New York decides to open their own brokerage. Which of the following is a mandatory requirement for establishing and operating a real estate brokerage in New York?New York State Specific Laws and Regulations
  43. 93.A developer plans to build a new housing subdivision near a protected wetland area. Before construction can proceed, the developer is required to conduct an environmental impact assessment and obtain approvals from state and federal agencies to ensure the project does not harm the ecosystem. This requirement falls primarily under which category of land use controls?Land Use Controls and Regulations
  44. 94.A developer is planning a large commercial complex that will involve extensive excavation and construction over several acres. The site is known to have historical significance due to indigenous artifacts found nearby. Which of the following environmental regulations would most likely require a review or assessment of the project's potential impact on cultural resources?Land Use Controls and Regulations
  45. 95.A homeowner discovers that a new fence they installed encroaches by 6 inches onto their neighbor's property, violating the local setback requirements. The homeowner wishes to keep the fence in its current location. Which of the following would be the most appropriate course of action for the homeowner to pursue with the local zoning board?Land Use Controls and Regulations
  46. 96.A commercial property owner wants to expand their retail store, but the proposed addition would bring the building closer to the property line than allowed by current zoning setback requirements. To obtain permission for this expansion, the owner would most likely apply for a/an:Land Use Controls and Regulations
  47. 97.A developer purchases a large tract of land with the intention of building a new residential community. Before construction can begin, the developer must submit detailed plans demonstrating how the land will be divided into individual lots, how streets and utilities will be laid out, and how open spaces will be preserved. This process is governed by which of the following?Land Use Controls and Regulations
  48. 98.A homeowner wants to convert their garage into an accessory dwelling unit (ADU) for rental income. The local zoning ordinance permits ADUs in residential zones but requires a specific review process to ensure adequate parking, sanitation, and neighborhood compatibility. What type of permit would the homeowner most likely need to obtain?Land Use Controls and Regulations
  49. 99.A developer plans to construct a 15-story residential building in a neighborhood currently zoned for single-family homes. To proceed with this project, the developer must first apply for a specific type of land-use approval from the local planning board. Which of the following permits or variances is most appropriate for this situation?Land Use Controls and Regulations
  50. 100.A municipality adopts a new zoning ordinance that changes a previously commercial area into a residential zone. Several existing businesses in the affected area are now non-conforming to the new zoning. What is the legal status of these existing businesses under the new ordinance?Land Use Controls and Regulations