New York Real Estate Practice Exam |
Practice Exam 2026–2027| Multiple-Choice
Questions with Detailed Answers With Rationales
8. Which New York real estate professional represents a seller in a listing agreement?
A. Buyer's agent
B. Tenant representative
C. Listing broker
D. Property manager
CORRECT ANSWER: C. Listing broker
RATIONALE:
C. Listing broker is correct because a listing broker enters into a listing agreement with the
property owner and is responsible for marketing the property and representing the seller's
interests.
2. What is the primary purpose of a deed in a real estate transaction?
A. To establish the property's market value
B. To transfer ownership of real property from one party to another
C. To calculate property taxes
D. To determine mortgage interest rates
CORRECT ANSWER: B. To transfer ownership of real property from one party to another
RATIONALE:
B. To transfer ownership of real property from one party to another is correct because a
deed is the legal document used to convey title from the grantor to the grantee.
10. Which type of ownership allows two or more individuals to own unequal interests in a
property with no right of survivorship?
,A. Tenancy by the entirety
B. Joint tenancy
C. Tenancy in common
D. Cooperative ownership
CORRECT ANSWER: C. Tenancy in common
RATIONALE:
C. Tenancy in common is correct because each owner may hold a different ownership
percentage, and their interest may be transferred to heirs upon death.
5. Which of the following is considered real property?
A. A dining room table
B. A refrigerator that is not attached
C. Land and permanently attached improvements
D. A tenant's furniture
CORRECT ANSWER: C. Land and permanently attached improvements
RATIONALE:
C. Land and permanently attached improvements is correct because real property includes
the land and anything permanently affixed to it, such as buildings and fixtures.
1. What is the primary purpose of a real estate purchase agreement?
A. To insure the property against damage
B. To establish the legal terms and conditions of the sale
C. To determine the assessed property tax
D. To register the property with the local government
CORRECT ANSWER: B. To establish the legal terms and conditions of the sale
, RATIONALE:
B. To establish the legal terms and conditions of the sale is correct because the purchase
agreement outlines the rights, responsibilities, price, contingencies, and obligations of both buyer
and seller.
9. Which fiduciary duty requires a real estate licensee to keep a client's confidential
information private?
A. Obedience
B. Accounting
C. Confidentiality
D. Disclosure
CORRECT ANSWER: C. Confidentiality
RATIONALE:
C. Confidentiality is correct because a real estate licensee must protect confidential client
information even after the agency relationship has ended, unless disclosure is required by law.
4. What is equity in real estate?
A. The property's annual tax assessment
B. The difference between the property's market value and the amount owed on liens
C. The amount of the monthly mortgage payment
D. The total cost of closing expenses
CORRECT ANSWER: B. The difference between the property's market value and the
amount owed on liens
RATIONALE:
B. The difference between the property's market value and the amount owed on liens is
correct because equity represents the owner's financial interest in the property.
Practice Exam 2026–2027| Multiple-Choice
Questions with Detailed Answers With Rationales
8. Which New York real estate professional represents a seller in a listing agreement?
A. Buyer's agent
B. Tenant representative
C. Listing broker
D. Property manager
CORRECT ANSWER: C. Listing broker
RATIONALE:
C. Listing broker is correct because a listing broker enters into a listing agreement with the
property owner and is responsible for marketing the property and representing the seller's
interests.
2. What is the primary purpose of a deed in a real estate transaction?
A. To establish the property's market value
B. To transfer ownership of real property from one party to another
C. To calculate property taxes
D. To determine mortgage interest rates
CORRECT ANSWER: B. To transfer ownership of real property from one party to another
RATIONALE:
B. To transfer ownership of real property from one party to another is correct because a
deed is the legal document used to convey title from the grantor to the grantee.
10. Which type of ownership allows two or more individuals to own unequal interests in a
property with no right of survivorship?
,A. Tenancy by the entirety
B. Joint tenancy
C. Tenancy in common
D. Cooperative ownership
CORRECT ANSWER: C. Tenancy in common
RATIONALE:
C. Tenancy in common is correct because each owner may hold a different ownership
percentage, and their interest may be transferred to heirs upon death.
5. Which of the following is considered real property?
A. A dining room table
B. A refrigerator that is not attached
C. Land and permanently attached improvements
D. A tenant's furniture
CORRECT ANSWER: C. Land and permanently attached improvements
RATIONALE:
C. Land and permanently attached improvements is correct because real property includes
the land and anything permanently affixed to it, such as buildings and fixtures.
1. What is the primary purpose of a real estate purchase agreement?
A. To insure the property against damage
B. To establish the legal terms and conditions of the sale
C. To determine the assessed property tax
D. To register the property with the local government
CORRECT ANSWER: B. To establish the legal terms and conditions of the sale
, RATIONALE:
B. To establish the legal terms and conditions of the sale is correct because the purchase
agreement outlines the rights, responsibilities, price, contingencies, and obligations of both buyer
and seller.
9. Which fiduciary duty requires a real estate licensee to keep a client's confidential
information private?
A. Obedience
B. Accounting
C. Confidentiality
D. Disclosure
CORRECT ANSWER: C. Confidentiality
RATIONALE:
C. Confidentiality is correct because a real estate licensee must protect confidential client
information even after the agency relationship has ended, unless disclosure is required by law.
4. What is equity in real estate?
A. The property's annual tax assessment
B. The difference between the property's market value and the amount owed on liens
C. The amount of the monthly mortgage payment
D. The total cost of closing expenses
CORRECT ANSWER: B. The difference between the property's market value and the
amount owed on liens
RATIONALE:
B. The difference between the property's market value and the amount owed on liens is
correct because equity represents the owner's financial interest in the property.
