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New York Real Estate Salesperson Examination practice questions

220 free questions with answers and explanations.

Practice test
  1. 101.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
  2. 102.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
  3. 103.A real estate broker is approached by a potential buyer who wishes to remain anonymous and wants to purchase a property without the seller knowing their identity. The broker agrees to represent this buyer. What type of agency has been created?Laws of Agency
  4. 104.A buyer's agent shows a property to their client. The client expresses strong interest but then decides to purchase a For Sale By Owner (FSBO) property directly from a seller, without the agent's involvement. The buyer's agent still believes they are entitled to a commission. Under what circumstances might this be true?Laws of Agency
  5. 105.A real estate salesperson is showing a property to a potential buyer. The buyer asks about the property's boundaries, as a fence appears to be encroaching on the neighbor's land. The salesperson, eager to close the sale, states, 'Don't worry, the fence is definitely on this property.' The salesperson has not verified this information. What duty has the salesperson breached?Laws of Agency
  6. 106.A licensed real estate salesperson is representing a buyer in a transaction. The salesperson discovers a significant structural defect in the property during a showing. What is the salesperson's primary duty regarding this discovery?Laws of Agency
  7. 107.A buyer's agent receives a confidential email from their client detailing their financial struggles and urgent need to close on a property quickly. The agent later casually mentions this information to the seller's agent during a lunch meeting. Which fiduciary duty has the buyer's agent violated?Laws of Agency
  8. 108.A real estate broker is representing a buyer. The buyer informs the broker that they are willing to pay up to $500,000 for a specific property, but they want to start their offer at $450,000. The broker then communicates this full financial capacity ($500,000) to the seller's agent during negotiations. Which fiduciary duty has the buyer's broker breached?Laws of Agency
  9. 109.A real estate salesperson is working with a buyer who has verbally agreed to be represented by the salesperson. The salesperson has shown the buyer several properties and provided market analysis. However, they have not signed a written buyer agency agreement. Under New York law, what is the status of this verbal agreement?Laws of Agency
  10. 110.A seller lists their property with a broker. The listing agreement states that the broker will receive a commission of 5% of the sale price. During negotiations, the buyer's agent offers a price that the seller finds acceptable. However, the seller's agent (the listing broker) advises the seller to reject the offer and wait for a higher one, even though the current offer is fair and meets the seller's needs. Which fiduciary duty is the seller's agent potentially violating?Laws of Agency
  11. 111.A real estate salesperson is assisting a buyer who is interested in a property. The salesperson provides the buyer with information about comparable sales in the area and helps them prepare an offer. However, the buyer has not signed any written agreement with the salesperson. What type of agency relationship, if any, exists between the salesperson and the buyer?Laws of Agency
  12. 112.A prospective tenant contacts a real estate agent to help them find an apartment. The agent shows the tenant several listings and assists with the application process, but the tenant has not signed any agreement to pay the agent. If the agent receives a commission from the landlord for finding a tenant, what type of agency relationship exists between the agent and the tenant?Laws of Agency
  13. 113.A buyer enters into an exclusive buyer agency agreement with a real estate broker. Later, the buyer finds a property on their own, without any assistance from the broker, and purchases it directly from the seller. Is the buyer still obligated to pay a commission to the broker?Laws of Agency
  14. 114.A real estate broker agrees to represent both the buyer and the seller in the same transaction with the written consent of both parties. What type of agency relationship has been created?Laws of Agency
  15. 115.A real estate salesperson is showing a listing to a potential buyer. The buyer asks, 'Why is the seller moving?' What is the most appropriate response for the salesperson if they are acting as the seller's agent?Laws of Agency
  16. 116.A real estate salesperson is working with a seller under a valid listing agreement. The seller informs the salesperson that they have accepted an offer from a buyer. Before the closing, the seller unexpectedly dies. What happens to the listing agreement?Laws of Agency
  17. 117.A buyer's agent discovers that the seller of a property has a serious financial hardship and is desperate to sell quickly. The agent knows this information could give her buyer a significant negotiating advantage. What is the agent's ethical and legal obligation regarding this information?Laws of Agency
  18. 118.A real estate broker lists a property for sale. The seller informs the broker that the basement occasionally floods after heavy rain, but they have always managed to clean it up quickly. The seller instructs the broker not to disclose this information to potential buyers. What is the broker's primary obligation in this situation?Laws of Agency
  19. 119.A buyer's agent discovers a significant structural defect in a property during an inspection. The buyer decides to proceed with the purchase anyway, but instructs the agent not to disclose this defect to the seller or the seller's agent. What is the buyer's agent's obligation regarding this information?Laws of Agency
  20. 120.A seller engages a real estate broker to sell their property under an exclusive agency agreement. If the seller finds a buyer on their own without any assistance from the broker, what commission, if any, is the broker entitled to?Laws of Agency
  21. 121.An agent is preparing an offer for a buyer client. The agent includes a clause stating that the offer is contingent upon the buyer obtaining financing at an interest rate not exceeding 6%. This type of clause is an example of the agent fulfilling which fiduciary duty?Laws of Agency
  22. 122.An agent lists a property for sale. A potential buyer expresses strong interest, but the agent believes the property is significantly undervalued and could sell for much more. The agent then secretly arranges for a relative to make an offer on the property, intending to flip it for a profit. What fiduciary duty has the agent primarily breached?Laws of Agency
  23. 123.An agency relationship can be terminated by several actions. Which of the following would NOT typically terminate an agency relationship?Laws of Agency
  24. 124.A real estate salesperson is working with a potential buyer. The salesperson provides information about several properties, arranges showings, and offers advice on market conditions. However, the buyer has not yet signed an agency agreement. What is the salesperson's relationship to the buyer in this scenario?Laws of Agency
  25. 125.A real estate salesperson is representing a seller. A potential buyer, who is not represented by an agent, asks the salesperson, 'What do you think is the lowest price the seller would accept for this property?' How should the salesperson respond?Laws of Agency
  26. 126.A homebuyer is attempting to secure a mortgage. The lender performs a credit check and finds several discrepancies, including late payments and high credit card balances. The lender then requires the borrower to provide a written explanation for these issues and demonstrate a plan to improve their financial standing before approving the loan. This requirement is part of which stage of the loan application process?Financing
  27. 127.A buyer is applying for a mortgage. The lender calculates the buyer's housing expense ratio by dividing their proposed monthly housing expenses (PITI) by their gross monthly income. If the lender's guideline is a maximum housing expense ratio of 28%, what is the maximum allowable PITI for a buyer with a gross monthly income of $7,500?Financing
  28. 128.A buyer has submitted a loan application for a new home. As part of the underwriting process, the lender requests a copy of the buyer's most recent tax returns and employment verification. What specific aspect of the buyer's financial health is the lender primarily trying to evaluate with these documents?Financing
  29. 129.A developer is planning to construct a new residential subdivision and needs financing that will cover the cost of acquiring the land, installing infrastructure like roads and utilities, and building the homes. What type of loan is best suited for this comprehensive project?Financing
  30. 130.A lender is preparing to underwrite a loan for a property with significant deferred maintenance and a unique layout that may appeal to a very limited buyer pool. During the underwriting process, what specific characteristic of the property is the lender most likely concerned about, and how does it relate to the '3 Cs' of underwriting?Financing
  31. 131.A buyer is applying for a mortgage and has a gross monthly income of $6,000. Their proposed monthly housing expenses (principal, interest, taxes, insurance) would be $1,800. Additionally, they have other recurring monthly debts totaling $500 (car payment, credit cards). What is the buyer's debt-to-income (DTI) ratio, and would they likely qualify for a conventional loan requiring a maximum DTI of 36%?Financing
  32. 132.A buyer is purchasing a newly constructed home and wants to include the cost of kitchen appliances and window treatments in their mortgage loan. Which type of mortgage financing would allow them to bundle these personal property items with the real estate?Financing
  33. 133.A buyer is securing a mortgage for a new home purchase. The lender requires private mortgage insurance (PMI) for the loan. Which of the following conditions most likely triggered this requirement?Financing
  34. 134.A lender is attempting to verify a borrower's employment history as part of the loan application process. Which of the following methods would provide the most direct and reliable confirmation of the borrower's current employment and income?Financing
  35. 135.A homeowner has defaulted on their mortgage, and the lender has initiated foreclosure proceedings. After the property is sold at a public auction, the sale proceeds are insufficient to cover the outstanding mortgage balance and all associated costs. What legal action might the lender pursue to recover the remaining debt?Financing
  36. 136.A real estate agent is advising a seller who wants to offer a portion of the purchase price as a loan to the buyer, allowing the buyer to make a smaller down payment and avoid some traditional lender fees. This arrangement would typically be structured as a:Financing
  37. 137.A first-time homebuyer with limited savings is looking for a mortgage that requires a very low down payment, often as low as 3.5%, and is insured by the federal government. Which type of loan is most suitable for this buyer?Financing
  38. 138.A lender is evaluating a loan application for a property in an area recently designated as a federal disaster zone. Due to the increased risk, the lender decides to impose stricter lending criteria, including a higher down payment and a more rigorous appraisal process, compared to similar properties outside the zone. This practice, if applied uniformly to all applicants in the designated zone, is an example of:Financing
  39. 139.A borrower is seeking a mortgage for a property that is located in a designated rural area. They have limited income, but the property itself meets specific criteria for basic, decent, safe, and sanitary housing. Which government-sponsored program is most likely to offer a 0% down payment loan for this borrower?Financing
  40. 140.A buyer is considering two mortgage options: one with a fixed interest rate for the entire loan term and another with an interest rate that adjusts periodically based on an index. Which type of mortgage carries the risk of increased monthly payments over time?Financing
  41. 141.A potential homebuyer is concerned about fluctuating interest rates and wants to ensure their monthly mortgage payments remain constant over the life of the loan. Which of the following mortgage types would best meet this buyer's requirement?Financing
  42. 142.A real estate investor is purchasing a commercial property and plans to rent out individual units. The investor secures a mortgage where the lender retains an equity interest in the property, potentially participating in the property's income or appreciation in addition to receiving interest payments. What type of financing arrangement is this?Financing
  43. 143.A lender is reviewing a loan application and notices that the borrower has a credit score of 580. The lender is likely to categorize this borrower as having a higher risk profile. What is the primary impact this higher risk profile will have on the loan terms offered to the borrower?Financing
  44. 144.A homeowner has fallen behind on their mortgage payments due to job loss. The lender has initiated the foreclosure process. After the property is sold at auction, the sale proceeds are insufficient to cover the outstanding mortgage balance and foreclosure costs. The lender then seeks a court order to collect the remaining debt from the borrower. What is this court order called?Financing
  45. 145.A borrower approaches a lender for a loan, but the proposed interest rate exceeds the maximum legal limit set by New York state law for that type of transaction. If the lender were to proceed with this loan, it would be considered an act of:Financing
  46. 146.A buyer enters into a purchase agreement for a commercial property. The agreement specifies that the buyer must obtain financing within 30 days. If the buyer fails to secure financing within this timeframe, and the contract states it becomes void, what type of contract condition was this?Contracts
  47. 147.A seller accepts an offer from a buyer. Before closing, the seller's property is significantly damaged by a fire, rendering it uninhabitable. The purchase agreement did not include any specific clauses regarding property damage before closing. What is the most likely legal outcome for the contract?Contracts
  48. 148.A tenant signs a lease agreement for an apartment. The landlord subsequently fails to provide a habitable living space, violating local housing codes and rendering the apartment unsafe. If the tenant chooses to move out without fulfilling the remainder of the lease term, what legal doctrine might they invoke to justify their actions?Contracts
  49. 149.A buyer and seller sign a real estate purchase agreement. Before the closing date, the seller decides they no longer want to sell the property and refuses to complete the transaction. The buyer, who is eager to purchase this specific property, wishes to compel the seller to go through with the sale. What legal remedy would the buyer most likely pursue?Contracts
  50. 150.A buyer submits an offer to purchase a property. The seller makes a counteroffer, changing the closing date and increasing the earnest money deposit. Which of the following is true regarding the buyer's original offer?Contracts