NEW YORK STATE REAL ESTATE
SALESPERSON LICENSING EXAM
QUESTIONS AND ANSWERS
What is the cash on cash return on a $2,000,000 property with a down payment of
$500,000 and $15,000 monthly rental income? - ANSWER -36%
Who hires the agent? - ANSWER -Principal or client
What is not a CMA (Comparative Market Analysis?) - ANSWER -An appraisal
What cannot a salesperson do? - ANSWER -Collect money directly from the client or
customer
When should the Agency disclosure form be submitted? - ANSWER -At the first
substantive contact
Which document describes the agency (who he or she represents) of the salesperson?
- ANSWER -Agency disclosure form
What is another name for the slope of a roof? - ANSWER -Pitch
What carcinogenic component was used as insulation in electric transformers that
contaminated soil and ground water? - ANSWER -PCB's or polychlorinated biphenyls
What can brokers provide their salespeople if they are independent contractors? -
ANSWER -Office phone
Whats right to access whiter from a river or stream called? - ANSWER -Riparian
What did the civil rights act of 1866 protect without exception? - ANSWER -Race
What did the 1988 amendment to the civil rights act protect? - ANSWER -Disability and
familial status
What is convincing owners to sell/lease property by telling them a particular group of
people are moving into the area called? - ANSWER -Blockbusting
What is it called when lenders/insurance agents refuse to do business in a certain area
based on the characteristics of the people living there? - ANSWER -Redlining
Unless specified a lesser estate, transfer of title to real property in NYS creates what
type of interest? - ANSWER -Fee Simple
, In NYS, how old must one be to enter into contracts? - ANSWER -18
What other capability should they possess? - ANSWER -Mental and emotional
capability
What happens if one of the parties to the contract is a minor? - ANSWER -The contract
is voidable by the minor
What does the zoning board of appeals do? - ANSWER -Grants variances
What regulates construction standards in NYS? - ANSWER -Building codes
What does municipal engineer's office do? - ANSWER -Oversees planning and
construction of major highways, sweet systems and water connections
If a property ad states that the property is near the vicinity of a geographical area, what
else mud the ad include? - ANSWER -It must include the name of the geographical area
where the property is actually located
Who is usually exempt from property taxes? - ANSWER -Disabled, veterans, farmers,
elderly gold star parents *kids die in the war, star program homeowners
Who is not usually exempt from property taxes? - ANSWER -Second home owners
What covers fully or personal property lost in a fire? - ANSWER -Replacement cost
Find the square footage of a rectangular shaped floor plan. How do you find the area of
a square/rectangle? - ANSWER -Length x Width = Area
What is another name for transfer of title to real property? - ANSWER -Conveyance
What is it called when the government dictates how a property can be used? -
ANSWER -Zoning
Who issues real estate licenses? - ANSWER -NY Department of State
Who oversees licensing and registration of mortgage bankers and brokers? - ANSWER
-NYS banking department
Which department oversees drinking water safety? - ANSWER -Department of Health
Who determines commission? - ANSWER -Principal/Client and the broker
What occurs when the agent represents the seller but also works in the best interests of
the buyer? - ANSWER -Undisclosed dual agency
SALESPERSON LICENSING EXAM
QUESTIONS AND ANSWERS
What is the cash on cash return on a $2,000,000 property with a down payment of
$500,000 and $15,000 monthly rental income? - ANSWER -36%
Who hires the agent? - ANSWER -Principal or client
What is not a CMA (Comparative Market Analysis?) - ANSWER -An appraisal
What cannot a salesperson do? - ANSWER -Collect money directly from the client or
customer
When should the Agency disclosure form be submitted? - ANSWER -At the first
substantive contact
Which document describes the agency (who he or she represents) of the salesperson?
- ANSWER -Agency disclosure form
What is another name for the slope of a roof? - ANSWER -Pitch
What carcinogenic component was used as insulation in electric transformers that
contaminated soil and ground water? - ANSWER -PCB's or polychlorinated biphenyls
What can brokers provide their salespeople if they are independent contractors? -
ANSWER -Office phone
Whats right to access whiter from a river or stream called? - ANSWER -Riparian
What did the civil rights act of 1866 protect without exception? - ANSWER -Race
What did the 1988 amendment to the civil rights act protect? - ANSWER -Disability and
familial status
What is convincing owners to sell/lease property by telling them a particular group of
people are moving into the area called? - ANSWER -Blockbusting
What is it called when lenders/insurance agents refuse to do business in a certain area
based on the characteristics of the people living there? - ANSWER -Redlining
Unless specified a lesser estate, transfer of title to real property in NYS creates what
type of interest? - ANSWER -Fee Simple
, In NYS, how old must one be to enter into contracts? - ANSWER -18
What other capability should they possess? - ANSWER -Mental and emotional
capability
What happens if one of the parties to the contract is a minor? - ANSWER -The contract
is voidable by the minor
What does the zoning board of appeals do? - ANSWER -Grants variances
What regulates construction standards in NYS? - ANSWER -Building codes
What does municipal engineer's office do? - ANSWER -Oversees planning and
construction of major highways, sweet systems and water connections
If a property ad states that the property is near the vicinity of a geographical area, what
else mud the ad include? - ANSWER -It must include the name of the geographical area
where the property is actually located
Who is usually exempt from property taxes? - ANSWER -Disabled, veterans, farmers,
elderly gold star parents *kids die in the war, star program homeowners
Who is not usually exempt from property taxes? - ANSWER -Second home owners
What covers fully or personal property lost in a fire? - ANSWER -Replacement cost
Find the square footage of a rectangular shaped floor plan. How do you find the area of
a square/rectangle? - ANSWER -Length x Width = Area
What is another name for transfer of title to real property? - ANSWER -Conveyance
What is it called when the government dictates how a property can be used? -
ANSWER -Zoning
Who issues real estate licenses? - ANSWER -NY Department of State
Who oversees licensing and registration of mortgage bankers and brokers? - ANSWER
-NYS banking department
Which department oversees drinking water safety? - ANSWER -Department of Health
Who determines commission? - ANSWER -Principal/Client and the broker
What occurs when the agent represents the seller but also works in the best interests of
the buyer? - ANSWER -Undisclosed dual agency
