Take this free New York Real Estate Salesperson Practice Exam with fully explained answers and instant scoring. It will help you prepare for the actual exam administered by the New York Division of Licensing Services. The actual exam has 75 questions and you are given 90 minutes to complete it.

For complete practice of the actual exam, try our 425 Question New York Real Estate Salesperson Practice Exam Kit which includes online Flash Cards, Exam Review and Testing Tips. It Includes 75 New York specific and 350 Core Real Estate questions and answers for a total of 425 Questions - all with fully explained answers.

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1.	Which of the following is not a fiduciary duty that a real estate agent owes to a client?
		a. Principal
		b. Obedience
		c. Accountability
		d. Confidentiality

2.	A special agent is authorized to do the following:
		a. to represent the principle in a broad range of general matters.
		b. to act as a Power of Attorney in a real estate transaction.
		c. to act on behalf of the principal in specific transactions.
		d. to represent an agent for cooperation and compensation.

3.	Which of the following statements on leasehold estates are true?
		a. A leasehold estate is for a limited time.
		b. A leasehold estate grants possession, but not title.
		c. A and B are true
		d. Neither A nor B are true

4.	Which of the following is not an essential element of a lease?
		a. A formal, legal description of the property.
		b. A lease term
		c. A clause addressing when the tenant is takes possession of the property.
		d. Signatures of the lessee and lessor.

5.	If the loan-to-value ratio is .85 and the purchase price for a property is $250,000. What is the amount the buyer is mortgaging?
		a. $37,500
		b. $212,500
		c. $221,500
		d. $294,117

6.	If a lender charges $2,775 loan origination fee and the mortgage amount of the property is $370,000, what is the loan origination percent payable at closing?
		a. 1.33%
		b. 1 %
		c. .75%
		d. .0075%

7.	The impact of borrowed funds to purchase property when capital is not available is called:
		a. Liquidity
		b. Time value of money
		c. Leverage
		d. Rate of return

8.	A developer wants to build single family homes, a few groupings of townhomes and a small apartment building along with a small park with basketball courts and walking trails. This is an example of what type of zoning?
		a.Cluster zoning
		b.Incentive zoning
		c.Residential zoning
		d.Commercial zoning

9.	In eminent domain, what value is the owner entitled to as compensation for the taking of real property?
		a.Actual cost
		b.Appraised value
		c.Market value
		d.Fair market value

10.	What is the difference between Assessed Value and Appraised Value?
		a. One estimates the property value for insurance coverage and the other is used to compute property taxes.
		b. One is used to determine what a bank is willing to lend for the property and the other is used to determine a return on a certain dollar investment.
		c. One is used to determine a return on a certain dollar investment and the other is used to compute property taxes.
		d. One is used to compute property taxes and the other is used to determine what a bank is willing to lend for the property.

11.	In an appraisal of commercial property, which of the following criteria is used to determine the properties highest and best use?
		a. Physically possible
		b. Financially feasible
		c. Maximally productive
		d. All of the above.

12.	In 1988, the Federal Fair Housing Act was amended to include the following protected class:
		a. Familial status and mental and physical disability
		b. Race or Color
		c. Sex
		d. Religion and national origin

13.	NYSDOS regulations require New York real estate licensees complete ______ hour(s) of approved continuing education in fair housing _______.
		a. 1 hour; annually
		b. 1 hour; every 2 years
		c. 3 hours; annually
		d. 3 hours; every 2 years

14.	Active income, as defined by the IRS, includes:
		a. Interest income
		b. Commissions
		c. Gain from sale of assets
		d. Dividend income.

15.	Real estate taxes are calculated based on:
		a. An assessed value
		b. An average value based on surrounding properties
		c.The last sale price of the property.
		d.The square footage of the original blue print.

16.	To calculate realized gain, you must:
		a. Add the selling expenses to the adjusted basis.
		b. Subtract the capital improvements from the sale price.
		c. Subtract the adjusted basis from the sale price, less selling expenses.
		d. Add adjusted basis, sale price and selling expenses.

17.	When being compensated, the duties that require a real estate license include:
		a. Listing or attempting to list real property.
		b. Negotiating terms of a real estate contract.
		c. Leasing or renting for more than one person.
		d. All the above.

18.	John, Matt and Laura have decided to start their own dog walking business. John will have the bulk of the day-to-day responsibilities; Laura will be in charge of appointments and keeping the books while Matt will contribute money to get the business up and running. They decide to rent a space in an unused plaza to use as their business location. What type of business organization have John, Matt and Laura formed?
		a. S Corporation
		b. Partnership
		c. Sole Proprietorship
		d. Limited Liability Company

19.	In limited liability companies, the owners:
		a. are not personally liable for the obligations of the business.
		b.are only personally liable for some of the company's debts.
		c. have limited management responsibility of the company.
		d. are personally responsible for any business debts.

20.	In residential construction, a framing member that supports the structure over door and window openings:
		a. Sill plate
		b. Beam
		c. Rafter
		d. Header

21.	The purpose of a planning board is to:
		a. Adopt and amend local laws relating to municipal governance.
		b. Plan for a region's future by considering the available natural and supplied resources.
		c. Oversee the quality and appearance of buildings, including historic buildings.
		d. Provide a 'safety valve' for zoning ordinances.

22.	In which type of insurance policy does the insurer bear the burden to prove that a cause of loss is excluded from coverage?
		a. A named peril policy
		b. An all-risk or open perils policy
		c. Commercial property insurance
		d. Homeowner's insurance

23.	Which of the following statements about cooperatives is not accurate?
		a. An owner gets a title transferred by deed.
		b. Title to the property is shown in the deed as the name of the cooperation.
		c. Members who participate have an equal share in governing the property.
		d. Title is transferred through shares.

24.	The person who receives mortgage payments from a borrower including amounts for escrow is a:
		a. Mortgage Loan Originator
		b. Mortgage Broker
		c. Real Estate Agent
		d. Mortgage Loan Servicer

25.	All of the following are components of a property management proposal except:
		a. Description of the land and all its improvements (buildings).
		b. Proposed maintenance record keeping and accounting procedures.
		c. Equity debt limit
		d. Operating budget

New York Real Estate Salesperson Law of Agency

1.	Which of the following is not a fiduciary duty that a real estate agent owes to a client?
		a. Principal
		b. Obedience
		c. Accountability
		d. Confidentiality
Fiduciary duties include Obedience (obey reasonable and legal instructions), Loyalty (diligence to serve the best interests of the client), Disclosure (promptly communicate all information about the transaction), Confidentiality (cannot disclose information given in faith and trust without the permission of the client), Accountability (financial accountability including accurate record keeping) and Reasonable Skill and Care (agents possess the necessary skills and training to perform the requested services). Principal is a person who bound by an agency relationship to represent their client. Incorrect answer. Please choose another answer.

New York Real Estate Contract of Sale and Leases

3.	Which of the following statements on leasehold estates are true?
		a. A leasehold estate is for a limited time.
		b. A leasehold estate grants possession, but not title.
		c. A and B are true
		d. Neither A nor B are true
A leasehold estate grants temporary right of possession to a property without title for a defined amount of time. The title stays with the landlord. The owner of a leasehold estate is a lessee or tenant and has exclusive right of use. Incorrect answer. Please choose another answer.

New York Real Estate Finance

5.	If the loan-to-value ratio is .85 and the purchase price for a property is $250,000. What is the amount the buyer is mortgaging?
		a. $37,500
		b. $212,500
		c. $221,500
		d. $294,117
$250,000 x .85 = $212,500. Purchase price times the loan-to-value ratio equals the mortgage amount. The down payment is $37,500. Incorrect answer. Please choose another answer.

New York Real Estate Land Use Regulation

8.	A developer wants to build single family homes, a few groupings of townhomes and a small apartment building along with a small park with basketball courts and walking trails. This is an example of what type of zoning?
		a.Cluster zoning
		b.Incentive zoning
		c.Residential zoning
		d.Commercial zoning
Cluster zoning is an example of multi-use zoning where a number of residential uses are allowed in one zone. Typically, the builder places residences closer together in exchange for leaving certain areas open and available to the community. Incorrect answer. Please choose another answer.

New York Real Estate Valuation and Pricing

10.	What is the difference between Assessed Value and Appraised Value?
		a. One estimates the property value for insurance coverage and the other is used to compute property taxes.
		b. One is used to determine what a bank is willing to lend for the property and the other is used to determine a return on a certain dollar investment.
		c. One is used to determine a return on a certain dollar investment and the other is used to compute property taxes.
		d. One is used to compute property taxes and the other is used to determine what a bank is willing to lend for the property.
Assessed value is a dollar amount of worth determined by a town, city or village assessor which is applied to a local tax rate to calculate the amount of real property tax. Assessed value is documented in local tax records and is reviewed every one to two years by the municipality. Appraised value is an estimate of value of a property at a given time for a specific purpose used to determine value is sufficient to secure payment of a mortgage loan. Appraised value is documented in a Uniform Residential Appraisal Report (URAR). Incorrect answer. Please choose another answer.

New York Real Estate Fair Housing

12.	In 1988, the Federal Fair Housing Act was amended to include the following protected class:
		a. Familial status and mental and physical disability
		b. Race or Color
		c. Sex
		d. Religion and national origin
Congress passed amendments to the Fair Housing Act in 1988, adding two new protected classes – persons with mental or physical disabilities and familial status. The amendments also added new enforcement provisions for the Department of Housing and Urban Development (HUD) and imposed new regulations for public buildings. Incorrect answer. Please choose another answer.

New York Real Estate Tax and Assessment

14.	Active income, as defined by the IRS, includes:
		a. Interest income
		b. Commissions
		c. Gain from sale of assets
		d. Dividend income.
Active income is income received from performing services, including wages, salaries, commissions, tips and from businesses where the tax payer materially participates. Other types of income are portfolio income; interest, dividends, annuities or royalties and passive income; earnings derived from trade or business where taxpayer is not an active participant and rental activities. Incorrect answer. Please choose another answer.

New York Real Estate Salesperson - Various Exam Topics

17.	When being compensated, the duties that require a real estate license include:
		a. Listing or attempting to list real property.
		b. Negotiating terms of a real estate contract.
		c. Leasing or renting for more than one person.
		d. All the above.
A real estate license is required to carry out a real estate transaction for another person for compensation. Property owners can engage in a real estate transaction on their own behalf without a license. Also exempt from licensure requirements are: attorneys licensed to practice law in New York, public officers performing official duties, persons acting under court order (i.e. trustees, guardians or executors), tenants' associations and non-profits (NYC only) and employees such as building superintendents. Incorrect answer. Please choose another answer.

New York Real Estate Practice Exam