New York Real Estate Salesperson Exam - Questions & Verified Answers
Article 12A: NYS Real Property Law "Real Estate License Law"
- violation is a misdemeanor punishable by loss of license, $1000 fine, revoking of
license
- all salespersons have license suspended
- after 1 year broker can apply to get license back
Capital Gains Tax Exemption -profit from sale that is taxed
- single person has first $250,000 tax free
- married couple $500,000 tax free
Property Condition Disclosure Statement - 6 page statement seller must fill out on condition of property BEFORE buyer signs
contract
- if seller does not provide, has to pay $500 at closing
- NOT needed for new construction residential, foreclosure sales, condos and co-
ops, or commercial
CFC Chloro-fluoro-carbons Gases that leak out of air conditioning units and go into air
- regulated by Clean Air Act
- Freon
- illegal
PCBs Poly-chlorinated Biphenyls Liquids used to cool power plants
- cancer causing and can seep into soil or ground water
USTs Underground Storage Tanks - Regulated by Department of Environmental CONSERVATION
- USTs under 1100 gallons that hold gas or diesel are not regulated
Blind Ad - ad that is ambiguous or does not give actual geographic location
- location is required and must be specific
- also must put you have a real estate license
Fee Simple Absolute - owning is freehold
- fee simple is fullest and most common form of freehold interest
- gives full Bundle of Rights
Bundle of Rights -Possession (access and use)
- Quiet Enjoyment (no nuisance, danger)
- Disposition (right to sell, give away)
- Exclusion (keep people out)
- Control (build, tear down)
Deed, Title, Conveyance Deed is paper showing ownership
- Title is idea of ownership
- Conveyance transfers title to new owner by deed
Elements of valid deed - competent grantor
- signature of grantor
- identifiable grantee
- consideration
- words of conveyance
- legal description
- delivery and acceptance
Assignment - tenant who has to break a lease can assign lease to new tenant who has same
lease teams (money, rent, time, etc) old tenant leaves and new is responsible for
lease
Sublease - tenant who sublets is responsible for getting payments from sublease to landlord
(lessor)
Stuvia | Academic Year (2026-2027)
, New York Real Estate Salesperson Exam - Questions & Verified Answers
Clean Air Act - sets limits on pollutants in air
- radon not covered by clean air act
- covers CFCs (air conditioning gas)
Clean Water Act - stops pollutants in rivers, lakes, aquifers
- PCBs which come in liquid form are covered by this law
Safe Drinking Water Act - nationwide standards for drinking water quality
- Feds supervise the states and private water suppliers
- NYS Dept of Health follows law and is in charge for NY
CERCLA (Comprehensive Response, Compensation and - superfund
Liability Act - helps pay for clean ups
- when uncontrolled or hazardous spill this fun responds for clean up and sees who
is responsible
Sheathing and Flashing - Sheathing is panels that they put outside to keep the rain out- nailed to the wall
studs or roof rafters
- flashing is a flexible material (aluminum) which covers cracks
Survivorship - if one owner dies the other owners automatically inherit the real estate
- survivorship applies to owner by entirety (married couple) and joint tenants (2 or
more married people with equal ownership shares)
How to become salesperson - 18 years old
- 75 hour class
- state test and school test
- Department of state approves
- can only be paid by broker
How to become a broker -120 hours of class
- 2 years experience as salesperson
age 20
- need 3500 points (residential sale is 250)
Depreciation ` - decrease in value: economic or tax
- Economic- building losing value
Tax- tax break given by IRS based on the idea that buildings have lifespan
- apartment buildings 27.5 years
- office buildings 39 years
Amortized mortgage - slowly kill a loan
- equal monthly payments until the last payment when loan balance is zero
Fixed Rate amortized - most common mortgage
- interest rate never changes
Balloon Payment - non amortized loan (not equal monthly payments)
- if borrower pays interest at beginning and principal at end in one payment
New York State Fair Housing Laws - federal law protects Race, national origin, religion, gender (Sex), disability and
family status (kids)
- states and cities protect age, marriage, sexual orientation
Pre-Qualification - bank lender looks at income, debt, and assets and tells you how much you can
afford (often over the phone)
Stuvia | Academic Year (2026-2027)
, New York Real Estate Salesperson Exam - Questions & Verified Answers
Pre- Approval - banker does research on your financial status and give you condition commitment
in writing for an exact loan amount
Underwriter -person at bank who makes the final decision on whether a buyer gets a mortgage
loan
Equivalent Experience - if you have worked in industry as property manager, mortgage broker, or other you
can become a broker without being a salesperson because of Equivalent
Experience
- need 120 hours of class and pass test to be broker (don't need salesperson
license)
- but needs 5250 points instead of 3500
Lawyers - automatically brokers- exempt from license requirements
- unless they want to open brokerage- then must take test
Department of State - licenses real estate professionals-
Department of Financial Services - licenses mortgage brokers
Condo - building where residents own their apartment and percent of common areas as
tenant in common with other residents
- gets deed and mortgage
- real property in freehold
- pay real estate tax and common charges to cover costs of common areas
Co-op - building owned by a corporation
- residents own part of building as shareholders, own part of corporation
- owner gets stock certificate and proprietary lease
- managing agent and board of directors
- personal property possessed in leasehold
- pay monthly maintenance which also covers common area, and portion of
buildings mortgage and real estate tax
- mortgage interest and real estate tax are tax deductible so part of maintenance is
deductible on income tax
Grantor person giving up the real estate
- seller
- deed must be signed by all grantors
- must be 18 with sound mind
Grantee - person getting the real estate
Encumbrance - something that "weighs down" real estate making it harder to sell
- ex: liens, easements, taxes
- burden the property and make less marketable
- most common is a lien
Brown v Board of Education - 1954 Supreme court
- Linda Brown- all white school- supreme court-
- determined not ok to separate black and white
Please V Ferguson - allowed for separate but equal
Stuvia | Academic Year (2026-2027)
Article 12A: NYS Real Property Law "Real Estate License Law"
- violation is a misdemeanor punishable by loss of license, $1000 fine, revoking of
license
- all salespersons have license suspended
- after 1 year broker can apply to get license back
Capital Gains Tax Exemption -profit from sale that is taxed
- single person has first $250,000 tax free
- married couple $500,000 tax free
Property Condition Disclosure Statement - 6 page statement seller must fill out on condition of property BEFORE buyer signs
contract
- if seller does not provide, has to pay $500 at closing
- NOT needed for new construction residential, foreclosure sales, condos and co-
ops, or commercial
CFC Chloro-fluoro-carbons Gases that leak out of air conditioning units and go into air
- regulated by Clean Air Act
- Freon
- illegal
PCBs Poly-chlorinated Biphenyls Liquids used to cool power plants
- cancer causing and can seep into soil or ground water
USTs Underground Storage Tanks - Regulated by Department of Environmental CONSERVATION
- USTs under 1100 gallons that hold gas or diesel are not regulated
Blind Ad - ad that is ambiguous or does not give actual geographic location
- location is required and must be specific
- also must put you have a real estate license
Fee Simple Absolute - owning is freehold
- fee simple is fullest and most common form of freehold interest
- gives full Bundle of Rights
Bundle of Rights -Possession (access and use)
- Quiet Enjoyment (no nuisance, danger)
- Disposition (right to sell, give away)
- Exclusion (keep people out)
- Control (build, tear down)
Deed, Title, Conveyance Deed is paper showing ownership
- Title is idea of ownership
- Conveyance transfers title to new owner by deed
Elements of valid deed - competent grantor
- signature of grantor
- identifiable grantee
- consideration
- words of conveyance
- legal description
- delivery and acceptance
Assignment - tenant who has to break a lease can assign lease to new tenant who has same
lease teams (money, rent, time, etc) old tenant leaves and new is responsible for
lease
Sublease - tenant who sublets is responsible for getting payments from sublease to landlord
(lessor)
Stuvia | Academic Year (2026-2027)
, New York Real Estate Salesperson Exam - Questions & Verified Answers
Clean Air Act - sets limits on pollutants in air
- radon not covered by clean air act
- covers CFCs (air conditioning gas)
Clean Water Act - stops pollutants in rivers, lakes, aquifers
- PCBs which come in liquid form are covered by this law
Safe Drinking Water Act - nationwide standards for drinking water quality
- Feds supervise the states and private water suppliers
- NYS Dept of Health follows law and is in charge for NY
CERCLA (Comprehensive Response, Compensation and - superfund
Liability Act - helps pay for clean ups
- when uncontrolled or hazardous spill this fun responds for clean up and sees who
is responsible
Sheathing and Flashing - Sheathing is panels that they put outside to keep the rain out- nailed to the wall
studs or roof rafters
- flashing is a flexible material (aluminum) which covers cracks
Survivorship - if one owner dies the other owners automatically inherit the real estate
- survivorship applies to owner by entirety (married couple) and joint tenants (2 or
more married people with equal ownership shares)
How to become salesperson - 18 years old
- 75 hour class
- state test and school test
- Department of state approves
- can only be paid by broker
How to become a broker -120 hours of class
- 2 years experience as salesperson
age 20
- need 3500 points (residential sale is 250)
Depreciation ` - decrease in value: economic or tax
- Economic- building losing value
Tax- tax break given by IRS based on the idea that buildings have lifespan
- apartment buildings 27.5 years
- office buildings 39 years
Amortized mortgage - slowly kill a loan
- equal monthly payments until the last payment when loan balance is zero
Fixed Rate amortized - most common mortgage
- interest rate never changes
Balloon Payment - non amortized loan (not equal monthly payments)
- if borrower pays interest at beginning and principal at end in one payment
New York State Fair Housing Laws - federal law protects Race, national origin, religion, gender (Sex), disability and
family status (kids)
- states and cities protect age, marriage, sexual orientation
Pre-Qualification - bank lender looks at income, debt, and assets and tells you how much you can
afford (often over the phone)
Stuvia | Academic Year (2026-2027)
, New York Real Estate Salesperson Exam - Questions & Verified Answers
Pre- Approval - banker does research on your financial status and give you condition commitment
in writing for an exact loan amount
Underwriter -person at bank who makes the final decision on whether a buyer gets a mortgage
loan
Equivalent Experience - if you have worked in industry as property manager, mortgage broker, or other you
can become a broker without being a salesperson because of Equivalent
Experience
- need 120 hours of class and pass test to be broker (don't need salesperson
license)
- but needs 5250 points instead of 3500
Lawyers - automatically brokers- exempt from license requirements
- unless they want to open brokerage- then must take test
Department of State - licenses real estate professionals-
Department of Financial Services - licenses mortgage brokers
Condo - building where residents own their apartment and percent of common areas as
tenant in common with other residents
- gets deed and mortgage
- real property in freehold
- pay real estate tax and common charges to cover costs of common areas
Co-op - building owned by a corporation
- residents own part of building as shareholders, own part of corporation
- owner gets stock certificate and proprietary lease
- managing agent and board of directors
- personal property possessed in leasehold
- pay monthly maintenance which also covers common area, and portion of
buildings mortgage and real estate tax
- mortgage interest and real estate tax are tax deductible so part of maintenance is
deductible on income tax
Grantor person giving up the real estate
- seller
- deed must be signed by all grantors
- must be 18 with sound mind
Grantee - person getting the real estate
Encumbrance - something that "weighs down" real estate making it harder to sell
- ex: liens, easements, taxes
- burden the property and make less marketable
- most common is a lien
Brown v Board of Education - 1954 Supreme court
- Linda Brown- all white school- supreme court-
- determined not ok to separate black and white
Please V Ferguson - allowed for separate but equal
Stuvia | Academic Year (2026-2027)
