Revise with instant feedback: the moment you pick an answer you see whether it was right, with the written, source-cited explanation. Untimed, ideal before you sit a mock exam. Questions you miss keep coming back until you know them.
Exam-day conditions: no feedback until you submit, each module scored separately so you can see your weak areas, plus an overall score against the pass mark, with a full question-by-question review at the end.
Each module is scored separately here so you know exactly where you stand. To pass the real New York exam you need 70%, the passing score approved schools report (the Department of State does not publish one).
The free sample is one full practice exam's worth of questions, with at least 5 in every module so you can revise each topic: 79 questions in all. The full bank contains every question, with written, source-cited explanations. $49, one time, lifetime access on up to 3 devices, every state we add later included.
✓ One purchase, use it on up to 3 of your devices · no subscription · no account needed
| Delivered by | New York Department of State (Division of Licensing Services exam unit) |
|---|---|
| Official exam | New York Real Estate Salesperson Qualifying Examination |
| Time | 1 hour 30 minutes |
| Exam fee | $15 written exam fee; separate $65 licence application fee |
| Pre-licensing or eligibility | Required: 77 hours of approved salesperson qualifying education, plus a school-administered proctored exam |
| Book your exam | appext20.dos.ny.gov/nydos/nydoslogin.do?header=true |
Checked 11 October 2026 from the official sources below. Rules and fees change, so confirm with New York Department of State (Division of Licensing Services exam unit) before you book.
Gable is a $49 practice question bank for 7 states, not a pre-licensing course. Here is how it compares with the courses and banks candidates usually consider, including where they are the better choice. See the comparison with PrepAgent, AceableAgent, Colibri and others.
New York runs its own salesperson exam through the Department of State, Division of Licensing Services, and you book it through eAccessNY. The Department describes it as a multiple-choice exam based on the 77-hour pre-licensing course, with 1.5 hours allowed and a $15 fee, and it reports results as pass or fail only. It does not publish the number of questions or the passing score; approved schools consistently report 75 questions and a 70% pass mark. The Department also publishes no split by topic, so this bank follows the curriculum's units and weights each module by its classroom hours, from 4 exam-length questions per module up to 9 for commercial and investment property.
You need 70%, the passing score approved schools report (the Department of State does not publish one). Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.
No. The New York Department of State does not publish the live exam, and nothing here is recalled or copied from it. Every question is original, written to the official content outline and grounded in public-domain sources, including the New York Real Property Law (including Article 12-A), 19 NYCRR Parts 175 to 179, the Executive Law's Human Rights Law, the General Obligations Law, the Real Property Tax Law and the other New York and federal law the 77-hour curriculum names, with the source cited in each explanation.
The full New York bank contains 1,632 questions with written, source-cited explanations: enough distinct questions for 15 full-length practice exams of 75 questions each. The free sample is one full practice exam's worth of questions, with at least 5 in every module so you can revise each topic: 79 questions in all.
$49, one time, for lifetime access, and it includes every state we add later at no extra charge. No subscription.
Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practice wherever you are. Your progress is saved on each device.
No. The practice tests run in your browser with no signup. Your score history is saved on your own device.
It is organized into 14 modules that follow the exam's own content outline: New York — License Law, Regulations & Licensee Safety, New York — Agency: Relationships & Fiduciary Duties, New York — Agency: Disclosure, Dual Agency & Antitrust, New York — Estates, Ownership, Liens & Easements, New York — Deeds, Title Closing & Closing Costs, New York — Contracts, Leases & Property Management, New York — Real Estate Finance & Mortgage Brokerage, New York — Land Use Regulation & Municipal Agencies, New York — Construction, Environmental Issues & Property Insurance, New York — Valuation, Pricing & Real Estate Math, New York — Human Rights & Fair Housing, New York — Property Taxes, Assessments & Income Tax Issues, New York — Condominiums & Cooperatives and New York — Commercial & Investment Properties. Each module is drilled and scored separately, so you can see exactly which areas are exam-ready and which still need work.
Last updated 13 October 2026. The bank is revised whenever the source material it cites changes, and every question carries the source its explanation is drawn from.
A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.
A co-op corporation earns 25% of its gross income from ground-floor shops, so it fails the 80% income test. How can it still be a cooperative housing corporation under 26 U.S.C. 216?
Why: 26 U.S.C. 216(b)(1)(D): the corporation must meet 1 OR MORE OF THE FOLLOWING REQUIREMENTS: (i) 80 PERCENT OR MORE OF THE CORPORATION'S GROSS INCOME for the year is derived from tenant-stockholders; (ii) AT ALL TIMES DURING SUCH TAXABLE YEAR, 80 PERCENT OR MORE OF THE TOTAL SQUARE FOOTAGE OF THE CORPORATION'S PROPERTY IS USED OR AVAILABLE FOR USE BY THE TENANT-STOCKHOLDERS FOR RESIDENTIAL PURPOSES OR PURPOSES ANCILLARY TO SUCH RESIDENTIAL USE; or (iii) 90 PERCENT OR MORE OF THE EXPENDITURES OF THE CORPORATION are for the property for the tenant-stockholders' benefit. The old '80/20 rule' is now only the first of these.
For real property tax purposes, what is a parcel in a New York condominium that is not a leasehold condominium?
Why: Real Property Law 339-y(1)(a): outside a qualified leasehold condominium, EACH UNIT AND ITS COMMON INTEREST ... SHALL BE DEEMED TO BE A PARCEL AND SHALL BE SUBJECT TO SEPARATE ASSESSMENT AND TAXATION ... NEITHER THE BUILDING, THE PROPERTY NOR ANY OF THE COMMON ELEMENTS SHALL BE DEEMED TO BE A PARCEL.
For how long does a money judgment docketed with the county clerk bind the debtor's real property there?
Why: CPLR 5203(a): no transfer of the judgment debtor's interest in real property is effective against the judgment creditor FROM THE TIME OF THE DOCKETING OF THE JUDGMENT WITH THE CLERK OF THE COUNTY IN WHICH THE PROPERTY IS LOCATED UNTIL TEN YEARS AFTER FILING OF THE JUDGMENT-ROLL.
A tenant stays in a shop after the lease term ends without a new agreement. What is the tenant called?
Why: DRE Reference Book ch. 27: a HOLDOVER TENANT is a TENANT WHO REMAINS IN POSSESSION OF LEASED PROPERTY AFTER THE EXPIRATION OF THE LEASE TERM.
What is the main health risk the EPA links to breathing radon?
Why: EPA, A Citizen's Guide to Radon: RADON IS A CANCER-CAUSING, RADIOACTIVE GAS ... WHEN YOU BREATHE AIR CONTAINING RADON, YOU CAN GET LUNG CANCER; it is estimated to cause about 21,000 lung cancer deaths a year.
A building could rent for $200,000 a year. Vacancy and collection loss run 5%, and operating expenses are $70,000. What is the net operating income?
Why: DRE Reference Book ch. 15: potential gross $200,000 - 5% vacancy ($10,000) = effective gross $190,000; minus operating expenses $70,000 = net operating income $120,000.
A lender charges 2 discount points on a $300,000 loan. How much is that?
Why: DRE Reference Book ch. 27, Discount Points: A POINT EQUALS ONE PERCENT OF THE LOAN. Two points on $300,000 = 2% x $300,000 = $6,000.
A 1,800-square-foot house sells for $540,000. What is the price per square foot?
Why: DRE Reference Book ch. 26, percentage and area formulas: price per square foot = price ÷ area. $540,000 ÷ 1,800 = $300.
A contractor finished building a strip mall on March 1. By when must the contractor file a notice of mechanic's lien?
Why: Lien Law 10(1): notice of lien may be filed during the work OR, WITHIN EIGHT MONTHS AFTER THE COMPLETION OF THE CONTRACT, or the final performance of the work or furnishing of materials; for a SINGLE FAMILY DWELLING the period is FOUR MONTHS.
An individual lender makes a $50,000 personal loan at a rate above New York's civil usury limit. What happens to the loan contract, in general?
Why: General Obligations Law 5-511(1): ALL OTHER CONTRACTS OR SECURITIES WHATSOEVER ... WHEREUPON OR WHEREBY THERE SHALL BE RESERVED OR TAKEN ... ANY GREATER SUM ... THAN IS PRESCRIBED IN SECTION 5-501, SHALL BE VOID, except that a savings bank or savings and loan association forfeits only the interest.
Which transaction is covered by the agency disclosure requirement of Real Property Law 443?
Why: Real Property Law 443(1)(f) and (2): the section applies only to residential real property improved by a ONE-TO-FOUR FAMILY DWELLING OR ... CONDOMINIUM OR COOPERATIVE APARTMENTS, and it covers landlord-tenant transactions, for which 443(4)(b) sets out a separate form. A twelve-unit building, a shop and bare land are outside it.
A neighbor's new swimming pool extends two feet across the property line. What is that?
Why: DRE Reference Book ch. 27: an ENCROACHMENT is AN UNLAWFUL INTRUSION ONTO ANOTHER'S ADJACENT PROPERTY BY IMPROVEMENTS TO REAL PROPERTY, E.G. A SWIMMING POOL BUILT ACROSS A PROPERTY LINE.
A licensee shows a buyer of one national origin homes only in neighborhoods where others of that origin live, and steers her away from other areas. Which federal provision does that breach?
Why: 42 U.S.C. 3604(a) makes it unlawful TO REFUSE TO SELL OR RENT ... OR OTHERWISE MAKE UNAVAILABLE OR DENY, A DWELLING TO ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, FAMILIAL STATUS, OR NATIONAL ORIGIN. Steering a buyer away from homes for that reason makes them unavailable to her.
What does a septic tank do?
Why: DRE Reference Book ch. 27: a SEPTIC TANK is AN UNDERGROUND TANK IN WHICH SEWAGE FROM THE HOUSE IS REDUCED TO LIQUID BY BACTERIAL ACTION AND DRAINED OFF.
A seller signs and notarises a deed but keeps it in her desk. When does title pass to the buyer?
Why: Real Property Law 244: A GRANT TAKES EFFECT, SO AS TO VEST THE ESTATE OR INTEREST INTENDED TO BE CONVEYED, ONLY FROM ITS DELIVERY.
A rectangular lot measures 300 feet by 290.4 feet. How many acres is it?
Why: DRE Reference Book ch. 26: AREA = LENGTH X WIDTH, and 1 ACRE = ... 43,560 SQUARE FEET. 300 x 290.4 = 87,120 square feet; 87,120 ÷ 43,560 = 2 acres.
How many members sit on a town zoning board of appeals?
Why: Town Law 267(2): each town board adopting zoning SHALL APPOINT A BOARD OF APPEALS CONSISTING OF THREE OR FIVE MEMBERS AS SHALL BE DETERMINED BY SUCH LOCAL LAW OR ORDINANCE, and designate the chairperson. Town board members are ineligible (267(3)).
What indoor relative humidity does the EPA's mold guide recommend?
Why: EPA, A Brief Guide to Mold, Moisture and Your Home: KEEP INDOOR HUMIDITY BELOW 60 PERCENT (IDEALLY BETWEEN 30 AND 50 PERCENT) RELATIVE HUMIDITY.
How does an appraiser get from potential gross income to effective gross income?
Why: DRE Reference Book ch. 15: DEDUCT FROM POTENTIAL GROSS INCOME AN ANNUAL ALLOWANCE FOR VACANCY FACTOR AND RENT COLLECTION LOSS. THE REMAINDER IS CALLED THE 'EFFECTIVE' GROSS INCOME; operating expenses are then deducted to reach net operating income.
What does New York require for a valid formal will?
Why: Estates, Powers and Trusts Law 3-2.1(a): the will SHALL BE SIGNED AT THE END THEREOF by the testator, and THERE SHALL BE AT LEAST TWO ATTESTING WITNESSES, WHO SHALL, WITHIN ONE THIRTY DAY PERIOD, BOTH ATTEST THE TESTATOR'S SIGNATURE.
A court finds that a contractor wilfully exaggerated the amount in a notice of mechanic's lien. What follows?
Why: Lien Law 39: IF THE COURT SHALL FIND THAT A LIENOR HAS WILFULLY EXAGGERATED THE AMOUNT FOR WHICH HE CLAIMS A LIEN ... HIS LIEN SHALL BE DECLARED TO BE VOID AND NO RECOVERY SHALL BE HAD THEREON, and no further lien may be filed for the same claim.
In real estate investment terminology, what is cash flow?
Why: DRE Reference Book ch. 27: CASH FLOW is THE NET INCOME GENERATED BY A PROPERTY BEFORE DEPRECIATION AND OTHER NONCASH EXPENSES. Investors often also measure cash flow after mortgage payments.
How may the fair housing disclosure notice be given to a prospective tenant?
Why: 19 NYCRR 175.28(b): the notice MAY BE PROVIDED ... BY ANY OF THE FOLLOWING MEANS: EMAIL, TEXT, ELECTRONIC MESSAGING SYSTEM, FACSIMILE, OR HARDCOPY.
When must a licensee give a prospective buyer or seller the Department's Housing and Anti-Discrimination Disclosure notice?
Why: 19 NYCRR 175.28(a): the broker must ensure each associated licensee PROVIDES TO A PROSPECTIVE PURCHASER, TENANT, SELLER, OR LANDLORD UPON FIRST SUBSTANTIVE CONTACT A DISCLOSURE NOTICE FURNISHED BY THE DEPARTMENT, containing the substance of the Human Rights Law and how to file a complaint.
A private lender knowingly charges 30% a year interest on a loan. Under the Penal Law, what offense is that?
Why: Penal Law 190.40: a person who, not being authorized by law, knowingly charges interest AT A RATE EXCEEDING TWENTY-FIVE PER CENTUM PER ANNUM is guilty of CRIMINAL USURY IN THE SECOND DEGREE ... A CLASS E FELONY.
Who does 'familial status' protect under the Fair Housing Act?
Why: 42 U.S.C. 3602(k): 'FAMILIAL STATUS' MEANS ONE OR MORE INDIVIDUALS (WHO HAVE NOT ATTAINED THE AGE OF 18 YEARS) BEING DOMICILED WITH A PARENT OR ANOTHER PERSON HAVING LEGAL CUSTODY, or a designee; it also protects a person who is pregnant.
A salesperson offers to pay the rent and costs of a new branch office in return for a bigger commission split. Is that allowed?
Why: 19 NYCRR 175.20(a): every branch office SHALL BE OWNED, MAINTAINED AND OPERATED ONLY BY THE LICENSED BROKER, and may not be run under an arrangement where A LICENSED SALESPERSON OR EMPLOYEE OF THE BROKER SHALL PAY, OR BE RESPONSIBLE FOR, ANY EXPENSE OR OBLIGATION of its operation. 175.20(b) requires the broker's direct supervision.
When may an owner file an assessment complaint?
Why: Real Property Tax Law 524(1): COMPLAINTS ... MAY BE FILED WITH THE ASSESSOR AT ANY TIME PRIOR TO THE HEARING OF THE BOARD OF ASSESSMENT REVIEW OR WITH THE BOARD OF ASSESSMENT REVIEW AT SUCH HEARING, but not at an adjourned hearing.
When may a real estate broker file a mechanic's lien for an unpaid commission?
Why: Lien Law 10(1): IN THE CASE OF A LIEN BY A REAL ESTATE BROKER, THE NOTICE OF LIEN MAY BE FILED ONLY AFTER THE PERFORMANCE OF THE BROKERAGE SERVICES AND EXECUTION OF LEASE BY BOTH LESSOR AND LESSEE AND ONLY IF A COPY OF THE ALLEGED WRITTEN AGREEMENT OF EMPLOYMENT OR COMPENSATION IS ANNEXED to the notice.
A homeowner takes a home equity loan from a new lender, secured by her principal dwelling. Until when may she rescind, if all notices and disclosures were given at closing?
Why: 12 CFR 1026.23(a)(3): THE CONSUMER MAY EXERCISE THE RIGHT TO RESCIND UNTIL MIDNIGHT OF THE THIRD BUSINESS DAY FOLLOWING CONSUMMATION, DELIVERY OF THE NOTICE ... OR DELIVERY OF ALL MATERIAL DISCLOSURES, WHICHEVER OCCURS LAST.
A homeowner buys a new NFIP flood insurance policy on her own, not in connection with a loan. When does coverage generally take effect?
Why: 42 U.S.C. 4013(c)(1): COVERAGE UNDER A NEW CONTRACT FOR FLOOD INSURANCE ... SHALL BECOME EFFECTIVE UPON THE EXPIRATION OF THE 30-DAY PERIOD BEGINNING ON THE DATE THAT ALL OBLIGATIONS FOR SUCH COVERAGE ... ARE SATISFACTORILY COMPLETED; (2) the wait does not apply to coverage bought in connection with making, increasing, extending or renewing a loan.
A broker collects rents for a client and has unspent money left over. What must the broker do?
Why: 19 NYCRR 175.2: A REAL ESTATE BROKER SHALL, WITHIN A REASONABLE TIME, RENDER AN ACCOUNT TO THIS CLIENT AND REMIT TO HIM, ANY MONIES COLLECTED FOR HIS CLIENT, AND UNEXPENDED FOR HIS ACCOUNT.
A co-op apartment in Buffalo sells for $1,200,000. Does the additional ('mansion') transfer tax apply?
Why: Tax Law 1402-a(a): residential real property SHALL INCLUDE A ONE, TWO, OR THREE-FAMILY HOUSE, AN INDIVIDUAL CONDOMINIUM UNIT, OR A COOPERATIVE APARTMENT UNIT, and the tax applies at one million dollars or more.
At least how long before starting a foreclosure on a home loan must the lender send the borrower New York's statutory 'at risk of foreclosure' notice?
Why: RPAPL 1304(1): with regard to a home loan, AT LEAST NINETY DAYS BEFORE A LENDER, AN ASSIGNEE OR A MORTGAGE LOAN SERVICER COMMENCES LEGAL ACTION AGAINST THE BORROWER ... INCLUDING MORTGAGE FORECLOSURE, it must give the notice in at least fourteen-point type.
A zoning board grants a use variance. How large a variance should it grant?
Why: Town Law 267-b(2)(c): the board SHALL GRANT THE MINIMUM VARIANCE THAT IT SHALL DEEM NECESSARY AND ADEQUATE TO ADDRESS THE UNNECESSARY HARDSHIP PROVEN BY THE APPLICANT, while protecting the neighborhood's character and the community.
A single homeowner sells the house she has owned and lived in for the past four years at a $300,000 gain. How much can she exclude from income?
Why: 26 U.S.C. 121(a)-(b)(1): gain on a principal residence owned and used for PERIODS AGGREGATING 2 YEARS OR MORE in the 5 years before sale is excluded, but the exclusion SHALL NOT EXCEED $250,000 ($500,000 for qualifying joint filers). $50,000 is taxable.
Which instrument falls outside the definition of a 'conveyance' in New York's recording article?
Why: Real Property Law 290(3): 'conveyance' includes every written instrument by which an interest in real property is created, transferred, mortgaged or assigned, EXCEPT A WILL, A LEASE FOR A TERM NOT EXCEEDING THREE YEARS, AN EXECUTORY CONTRACT FOR THE SALE OR PURCHASE OF LANDS, and certain others.
What minimum type size does the regulation set for the explanation of exclusive listings that must accompany a residential exclusive listing?
Why: 19 NYCRR 175.24(b): the broker shall have attached to or printed on the listing, SIGNED OR INITIALED BY THE HOMEOWNER OR THE HOMEOWNER'S AGENT, the explanation IN TYPE SIZE OF NOT LESS THAN SIX POINT.
When must a seller deliver the property condition disclosure statement?
Why: Real Property Law 462(1): every seller of residential real property SHALL COMPLETE AND SIGN A PROPERTY CONDITION DISCLOSURE STATEMENT ... AND CAUSE IT ... TO BE DELIVERED TO A BUYER OR BUYER'S AGENT PRIOR TO THE SIGNING BY THE BUYER OF A BINDING CONTRACT OF SALE; a copy signed by both is attached to the contract.
What causes equity build-up?
Why: DRE Reference Book ch. 27: EQUITY BUILD-UP is THE INCREASE OF OWNER'S EQUITY IN PROPERTY DUE TO MORTGAGE PRINCIPAL REDUCTION AND VALUE APPRECIATION.
Which transaction in pre-1978 housing is exempt from the federal lead-based paint disclosure rule?
Why: 40 CFR 745.101: the subpart applies to all sales and leases of target housing EXCEPT (a) SALES OF TARGET HOUSING AT FORECLOSURE; (b) leases of housing certified lead-based paint free; (c) SHORT-TERM LEASES OF 100 DAYS OR LESS, WHERE NO LEASE RENEWAL OR EXTENSION CAN OCCUR; and (d) certain renewals.
How many hours of continuing education must a licensee complete in the two years before each renewal?
Why: Real Property Law 441(3)(a): no renewal license shall issue unless the licensee has, WITHIN THE TWO YEAR PERIOD IMMEDIATELY PRECEDING SUCH RENEWAL ATTENDED AT LEAST TWENTY-TWO AND ONE-HALF HOURS (22.5) of approved continuing education.
The same building, with an adjusted basis of $520,000, sells for net proceeds of $700,000. What is the capital gain?
Why: DRE Reference Book ch. 27: CAPITAL GAIN is THE AMOUNT BY WHICH THE NET SALE PROCEEDS EXCEED THE ADJUSTED COST BASIS. $700,000 - $520,000 = $180,000.
A contractor repaints the condominium's lobby at the managing agent's request and is not paid. What protects the contractor?
Why: Real Property Law 339-l(2): NO LABOR PERFORMED ON OR MATERIALS FURNISHED TO THE COMMON ELEMENTS SHALL BE THE BASIS FOR A LIEN THEREON, but all common charges received and to be received SHALL CONSTITUTE TRUST FUNDS for paying for work done at the request of the manager, managing agent or board, and must be spent on it first.
According to IRS Publication 936's test, points on a loan to buy a main home can be fully deductible in the year paid only if what is true?
Why: IRS Publication 936, 'Are My Points Fully Deductible This Year?': the first test is IS THE LOAN SECURED BY YOUR MAIN HOME?, followed by whether paying points is an established practice in the area and not more than generally charged, among others.
Which principle of value is the basis of the appraisal process?
Why: DRE Reference Book ch. 15: the PRINCIPLE OF SUBSTITUTION ... IS THE BASIS OF THE APPRAISAL PROCESS: VALUE WILL TEND TO BE SET BY THE COST OF ACQUIRING AN EQUALLY DESIRABLE SUBSTITUTE.
Under Banking Law 590, what does a registered mortgage broker do?
Why: Banking Law 590(1)(g): a 'mortgage broker' is registered to engage in the business of SOLICITING, PROCESSING, PLACING OR NEGOTIATING MORTGAGE LOANS FOR OTHERS; a 'mortgage banker' (590(1)(f)) is licensed to engage in the business of MAKING MORTGAGE LOANS; a servicer (590(1)(h)) collects payments.
Which transfer is exempt from the property condition disclosure requirement?
Why: Real Property Law 463: no statement is required for, among others, transfers by court order, foreclosure sales, deeds in lieu, and (463(7)) A TRANSFER BY A FIDUCIARY IN THE COURSE OF THE ADMINISTRATION OF A DESCENDENT'S ESTATE [sic, meaning a decedent's estate], A GUARDIANSHIP, A CONSERVATORSHIP, OR A TRUST. An ordinary owner's sale of a one-to-four-family house, lived in or rented out, needs the statement.
In which building does a tenant under an existing lease have a statutory right to sublet, with consent that may not be unreasonably withheld?
Why: Real Property Law 226-b(2)(a): A TENANT RENTING A RESIDENCE PURSUANT TO AN EXISTING LEASE IN A DWELLING HAVING FOUR OR MORE RESIDENTIAL UNITS SHALL HAVE THE RIGHT TO SUBLEASE ... SUBJECT TO THE WRITTEN CONSENT OF THE LANDLORD ... SUCH CONSENT SHALL NOT BE UNREASONABLY WITHHELD.
Under Real Property Law 443, who is a 'buyer's agent'?
Why: Real Property Law 443(1)(c): 'Buyer's agent' means an agent WHO CONTRACTS TO LOCATE RESIDENTIAL REAL PROPERTY FOR A BUYER OR WHO FINDS A BUYER FOR A PROPERTY AND PRESENTS AN OFFER TO PURCHASE TO THE SELLER OR SELLER'S AGENT AND NEGOTIATES ON BEHALF OF THE BUYER. An agent co-operating with a listing agent is a seller's agent under 443(1)(h).
A broker wants to buy, through his cousin, a house listed with his own firm. What must he do first?
Why: 19 NYCRR 175.4: a broker SHALL NOT DIRECTLY OR INDIRECTLY BUY FOR HIMSELF PROPERTY LISTED WITH HIM, NOR SHALL HE ACQUIRE ANY INTEREST THEREIN WITHOUT FIRST MAKING HIS TRUE POSITION CLEARLY KNOWN TO THE LISTING OWNER.
A zoning code allows a daycare in a residential district only if stated conditions are met. What approval is that?
Why: Town Law 274-b(1): a 'SPECIAL USE PERMIT' is AN AUTHORIZATION OF A PARTICULAR LAND USE WHICH IS PERMITTED IN A ZONING ORDINANCE OR LOCAL LAW, SUBJECT TO REQUIREMENTS imposed to assure the use is in harmony and will not adversely affect the neighborhood.
Under New York's Human Rights Law, may an owner restrict the rental of all rooms in her boarding house to women?
Why: Executive Law 296(5)(a)(4)(i)-(ii): the housing bans do not apply TO THE RESTRICTION OF THE RENTAL OF ALL ROOMS IN A HOUSING ACCOMMODATION TO INDIVIDUALS OF THE SAME SEX.
An exclusive listing ends on June 30 'and renews month to month unless canceled'. What is wrong with it?
Why: 19 NYCRR 175.15: NO REAL ESTATE BROKER SHALL BE A PARTY TO AN EXCLUSIVE LISTING CONTRACT WHICH SHALL CONTAIN AN AUTOMATIC CONTINUATION OF THE PERIOD OF SUCH LISTING BEYOND THE FIXED TERMINATION DATE SET FORTH THEREIN.
In a bargain and sale deed with covenant against grantor's acts, what does the grantor promise?
Why: Real Property Law 258, Statutory Form C (bargain and sale deed with covenant against grantor): the grantor COVENANTS THAT HE HAS NOT DONE OR SUFFERED ANYTHING WHEREBY THE said premises have been incumbered in any way whatever. Full warranty belongs to Form A.
Which covenants does New York's statutory deed with full covenants contain?
Why: Real Property Law 258, Statutory Form A (deed with full covenants): the grantor covenants FIRST, that he IS SEIZED OF SAID PREMISES IN FEE SIMPLE; SECOND, that the grantee SHALL QUIETLY ENJOY; THIRD, that the premises ARE FREE FROM INCUMBRANCES; FOURTH, FURTHER NECESSARY ASSURANCE; FIFTH, that he WILL FOREVER WARRANT THE TITLE.
Under New York's real estate transfer tax, who files the transfer tax return for a conveyance?
Why: Tax Law 1409(a)(1): A JOINT RETURN SHALL BE FILED BY BOTH THE GRANTOR AND THE GRANTEE FOR EACH CONVEYANCE WHETHER OR NOT A TAX IS DUE THEREON (apart from certain nominal public utility easements).
How may a seller give advance informed consent to dual agency when she lists her home?
Why: Real Property Law 443(3)(f): A SELLER/LANDLORD OR BUYER/TENANT MAY PROVIDE ADVANCE INFORMED CONSENT TO DUAL AGENCY AND DUAL AGENCY WITH DESIGNATED SALES AGENTS BY INDICATING THE SAME ON THE FORM. 443(1)(p) defines the consent as written informed consent signed by the party.
Which title does the Department of State's advertising rule forbid a salesperson to use?
Why: 19 NYCRR 175.25(c)(4): advertisements must correctly state the license type; licensees may abbreviate it if the abbreviation is not misleading, but THE USE OF THE TITLES, “SALES ASSOCIATE”, “LICENSED SALES AGENT” OR SIMPLY “BROKER” IS PROHIBITED.
A seller's agent is talking with a buyer about a listed home for the first time in any real detail. When must the agent give that buyer the disclosure form?
Why: Real Property Law 443(3)(b): a SELLER'S AGENT ... SHALL PROVIDE THE DISCLOSURE FORM ... TO A BUYER, BUYER'S AGENT, TENANT OR TENANT'S AGENT AT THE TIME OF THE FIRST SUBSTANTIVE CONTACT WITH THE BUYER OR TENANT.
A salesperson tells a buyer that a listed house is already sold because of the buyer's creed, though it is still available. Under the Human Rights Law, what is that?
Why: Executive Law 296(5)(c)(1): it is unlawful for ANY REAL ESTATE BROKER, REAL ESTATE SALESPERSON OR EMPLOYEE OR AGENT THEREOF ... TO REPRESENT THAT ANY HOUSING ACCOMMODATION ... IS NOT AVAILABLE FOR INSPECTION, SALE, RENTAL OR LEASE WHEN IN FACT IT IS SO AVAILABLE because of creed or another protected characteristic.
A farmer sells the right to build on her fields so a developer can build more densely in a designated area. What is being used?
Why: Town Law 261-a: DEVELOPMENT RIGHTS are the rights permitted to land as to use, density, bulk or height; they may be moved from a sending district to a RECEIVING DISTRICT ... IN WHICH INCREASED DEVELOPMENT IS PERMITTED TO OCCUR by reason of the transfer.
A salesperson earned a $9,000 commission at a 3% rate on her side of a sale. What was the sale price?
Why: DRE Reference Book ch. 26, Commission Formula: COMMISSION = SALE PRICE X RATE, so S=C÷R. $9,000 ÷ 0.03 = $300,000.
An investor wants to exchange a New York rental building for a rental building in Canada under 26 U.S.C. 1031. Does the exchange qualify?
Why: 26 U.S.C. 1031(h): REAL PROPERTY LOCATED IN THE UNITED STATES AND REAL PROPERTY LOCATED OUTSIDE THE UNITED STATES ARE NOT PROPERTY OF A LIKE KIND.
A mortgage on an office building lets the lender, on default, take possession and collect the rents toward the loan. What is that provision?
Why: DRE Reference Book ch. 27: an ASSIGNMENT OF RENTS is a provision under which the lender MAY, UPON DEFAULT ... TAKE POSSESSION OF THE PROPERTY, COLLECT INCOME FROM THE PROPERTY AND APPLY IT TO THE LOAN BALANCE.
Before a buyer is bound to purchase a 1960 house, what must the seller provide under the lead disclosure rule?
Why: 40 CFR 745.107(a)(1): THE SELLER OR LESSOR SHALL PROVIDE THE PURCHASER OR LESSEE WITH AN EPA-APPROVED LEAD HAZARD INFORMATION PAMPHLET and (a)(2) disclose any known lead-based paint; nothing requires the seller to test or abate.
How long may a buyer of a non-exempt lot revoke the contract under the Interstate Land Sales Act?
Why: 15 U.S.C. 1703(b): a non-exempt contract MAY BE REVOKED AT THE OPTION OF THE PURCHASER OR LESSEE UNTIL MIDNIGHT OF THE SEVENTH DAY FOLLOWING THE SIGNING, or a later time state law requires, and the contract must say so.
A broker receives a buyer's deposit. What does the regulation require?
Why: 19 NYCRR 175.1: a broker SHALL NOT COMMINGLE the principal's money with his own and shall maintain A SEPARATE, SPECIAL BANK ACCOUNT used exclusively for such monies, WHICH DEPOSIT SHALL BE MADE WITHIN THREE BUSINESS DAYS; the money may not be placed in any depository, fund or investment OTHER THAN A FEDERALLY INSURED BANK ACCOUNT.
A tenant pays base rent plus the building's taxes, insurance and maintenance. What kind of lease is that?
Why: DRE Reference Book ch. 27: a NET LEASE is A LEASE REQUIRING A LESSEE TO PAY CHARGES AGAINST THE PROPERTY SUCH AS TAXES, INSURANCE AND MAINTENANCE COSTS IN ADDITION TO RENTAL PAYMENTS.
A landlord deposits a tenant's security money in a bank. What must he do?
Why: General Obligations Law 7-103: deposit money SHALL CONTINUE TO BE THE MONEY OF THE PERSON MAKING SUCH DEPOSIT, is HELD IN TRUST and SHALL NOT BE MINGLED WITH THE PERSONAL MONEYS of the landlord; on depositing it in a bank the landlord SHALL THEREUPON NOTIFY IN WRITING each tenant GIVING THE NAME AND ADDRESS OF THE BANKING ORGANIZATION ... AND THE AMOUNT.
A broker finds a buyer client a building in which the broker himself holds a share. Before the client buys, to whom must the broker disclose that interest?
Why: 19 NYCRR 175.5: BEFORE A REAL ESTATE BROKER BUYS PROPERTY FOR A CLIENT IN THE OWNERSHIP OF WHICH THE BROKER HAS AN INTEREST, HE SHALL DISCLOSE HIS INTEREST TO ALL PARTIES TO THE TRANSACTION.
A landlord takes a security deposit she plans to return at the end of the lease. Is it rental income when received?
Why: IRS Publication 527: DON'T INCLUDE A SECURITY DEPOSIT IN YOUR INCOME WHEN YOU RECEIVE IT IF YOU PLAN TO RETURN IT TO YOUR TENANT AT THE END OF THE LEASE. BUT IF YOU KEEP PART OR ALL OF THE SECURITY DEPOSIT ... INCLUDE THE AMOUNT YOU KEEP IN YOUR INCOME IN THAT YEAR; a deposit meant as the final month's rent is advance rent.
A salesperson finds an apartment to rent for a tenant client. Which disclosure form applies?
Why: Real Property Law 443(4)(b): FOR LANDLORD-TENANT TRANSACTIONS, THE FOLLOWING SHALL BE THE DISCLOSURE FORM: NEW YORK STATE DISCLOSURE FORM FOR LANDLORD AND TENANT. The section's duties in 443(3) run to tenants and landlords as well as buyers and sellers.
Who prosecutes criminal violations of New York's real estate license law?
Why: Real Property Law 442-e: any violation is A MISDEMEANOR, and CRIMINAL ACTIONS FOR VIOLATIONS OF THIS ARTICLE SHALL BE PROSECUTED BY THE ATTORNEY GENERAL, OR HIS DEPUTY, IN THE NAME OF THE PEOPLE OF THE STATE.
A broker wants to pay a $500 referral fee to a friend, an unlicensed accountant, who sent him a buyer. May he?
Why: Real Property Law 442(1): no broker shall pay any part of a fee or commission to any person UNLESS SUCH A PERSON BE A DULY LICENSED REAL ESTATE SALESPERSON REGULARLY ASSOCIATED WITH SUCH BROKER OR A DULY LICENSED REAL ESTATE BROKER OR A PERSON REGULARLY ENGAGED IN THE REAL ESTATE BROKERAGE BUSINESS IN A STATE OUTSIDE OF NEW YORK.
Net operating income stays the same, but the capitalization rate an investor uses falls. What happens to the indicated value?
Why: DRE Reference Book ch. 15: in I ÷ R = V, THE LOWER THE RATE, THE GREATER THE VALUATION, and the greater the assumed security of the investment.
Before closing, a condo buyer obtains the board of managers' statement of unpaid common charges. For charges that accrued before the conveyance, what is the buyer's exposure?
Why: Real Property Law 339-z: any grantor or grantee is ENTITLED TO A STATEMENT FROM THE MANAGER OR BOARD OF MANAGERS setting out unpaid common charges, and NEITHER SUCH GRANTOR NOR GRANTEE SHALL BE LIABLE FOR ... ANY UNPAID COMMON CHARGES ... ACCRUED PRIOR TO SUCH CONVEYANCE IN EXCESS OF THE AMOUNT THEREIN SET FORTH. Unpaid charges are paid out of the sale proceeds or by the grantee, so the buyer is not wholly free of them.
What is a 'hundred percent location'?
Why: DRE Reference Book ch. 27: a HUNDRED PERCENT LOCATION is A CITY RETAIL BUSINESS LOCATION WHICH IS CONSIDERED THE BEST AVAILABLE FOR ATTRACTING BUSINESS.
A landlord of an ordinary (non-rent-stabilised) apartment renting at $2,400 a month asks for a $4,800 security deposit. What is the most he may take?
Why: General Obligations Law 7-108(1-a)(a): NO DEPOSIT OR ADVANCE SHALL EXCEED THE AMOUNT OF ONE MONTH'S RENT (subject to exceptions for seasonal units and owner-occupied co-ops). One month here is $2,400.