NYS Broker Exam with correct
answers 100% 2026
A borrower can explain their side of the foreclosure situation by filing this. - Correct Answers
Answer
Which of these provides some protection to lenders in the event that the borrower obtaining a
conventional loan does not have a down payment of 20 to 25%? - Correct Answers Private
Mortgage Insurance
Rachel loves convenience. As you can imagine, she was thrilled when she was able to finance
her mortgage through the same institution where she deposits her payroll checks. Which of
these most likely financed Rachel's mortgage? - Correct Answers Savings and Loan
Fixed rate loan - Correct Answers A loan whose principal and interest payment remains the
same over the life of the loan.
Blanket mortgage - Correct Answers Two or more properties are pledged as security for
repayment of the loan.
Bridge loan - Correct Answers A temporary loan often used by buyers who have not yet closed
on their prior property. Also known as a swing loan.
Amortization - Correct Answers The process of paying off a loan by making periodic payments of
principal and interest.
Purchase money mortgage - Correct Answers Seller financing in which a mortgage is given by
the seller to the buyer toward the purchase price.
,Reverse mortgage - Correct Answers Allows a person to stay in one's home while living off of the
equity by "selling" it to a lender who makes payments to the homeowner in exchange for
ownership interest in the property.
When considering loan risk, which two items will lenders consider in equal measure? - Correct
Answers Borrower and Property
Tom, the seller, is helping the buyer with financing. Tom will give this mortgage to the buyer,
and the money will go toward the down payment. What kind of mortgage is this? - Correct
Answers Purchase Money Mortgage
Q:Which of the following loan transactions would be exempt from TILA disclosure
requirements? - Correct Answers Grocery store, with personal funds used as collateral
A borrower can file this if they only want to be notified of future court proceedings related to
the foreclosure and auction of their property. - Correct Answers Notice of Appearance
Which document includes the size of units, construction, floor plans, amenities, recreation
facilities, make and model of appliances, windows, how the landscaping of the property will be
maintained, and the actual land on which a condominium building is situated? - Correct
Answers Offering Plan
Which of the following would be considered a foreign person according to FIRPTA? - Correct
Answers A company incorporated in France with regional development offices in the U.S.
What is the purchase agreement phrase that wholesalers rely on for their investment strategy? -
Correct Answers Assigns
Why are urban centers popular with foreign investors? - Correct Answers The economic
environment
,What is going concern? - Correct Answers Land value + Business value
For condominium properties, the owner's rights are detailed in which document? - Correct
Answers Bylaws
Morgan is a single taxpayer and real estate investor. She buys homes for cheap, fixes them up
while living in them, and sells them for a profit. How much can she exclude if she realizes a gain
from the sale of her current property (assuming she meets all the criteria to exclude the gain)? -
Correct Answers $250,000
What type of investment strategy is most similar to a 1031 tax-deferred exchange? - Correct
Answers Rolling over funds from one IRA into another
Jennifer is the owner of the single-family residence in which she resides. How long can she take
to depreciate her property? - Correct Answers $0
What is the capital gains exclusion amount? - Correct Answers $250,000 for single taxpayers,
$500,000 for married couples filing jointly
What's an income shelter? - Correct Answers a deductible allowance from net income
Real property is never homogeneous - Correct Answers Real property is never homogeneous
Which of the following is one advantage to working with real estate investor clients? - Correct
Answers Potential for less complicated transactions
Based on capitalization rate alone, which investment involves more risk: one with a 12% cap
rate or one with a 8% cap rate? - Correct Answers 12%
, What is meant by "usable" square footage? - Correct Answers Area occupied by tenant
What "quick and dirty" investment formula seeks to achieve a percentage of gross monthly
rental income as compared to purchase price? - Correct Answers 2%
The ______ can offer direct loans to farmers and ranchers. The loans are funded by
congressional appropriation. - Correct Answers USDA Farm Service Agency
Which entity services rural development loans? - Correct Answers FSA
In which of these theories of home ownership does the borrower receive a deed to the
property, while the lender holds the title and owns the home? - Correct Answers Title theory
The purpose of a variable expense budget, monthly operating budget, or profit center budget is
to ____. - Correct Answers Provide more detail than the general operating budget
A ____ breaks a more general budget line item into details, making it easier to use in guiding
business operations. - Correct Answers Variable Expense Budget
Which of the following components will appear on both the cash flow statement and the
income statement? - Correct Answers Commissions Received
Which of the following components will appear on the cash flow statement but not on the
income statement - Correct Answers Loan Proceeds
For the most accurate profit and loss data, the income statement should be evaluated ______. -
Correct Answers Lengthy Period of Time
answers 100% 2026
A borrower can explain their side of the foreclosure situation by filing this. - Correct Answers
Answer
Which of these provides some protection to lenders in the event that the borrower obtaining a
conventional loan does not have a down payment of 20 to 25%? - Correct Answers Private
Mortgage Insurance
Rachel loves convenience. As you can imagine, she was thrilled when she was able to finance
her mortgage through the same institution where she deposits her payroll checks. Which of
these most likely financed Rachel's mortgage? - Correct Answers Savings and Loan
Fixed rate loan - Correct Answers A loan whose principal and interest payment remains the
same over the life of the loan.
Blanket mortgage - Correct Answers Two or more properties are pledged as security for
repayment of the loan.
Bridge loan - Correct Answers A temporary loan often used by buyers who have not yet closed
on their prior property. Also known as a swing loan.
Amortization - Correct Answers The process of paying off a loan by making periodic payments of
principal and interest.
Purchase money mortgage - Correct Answers Seller financing in which a mortgage is given by
the seller to the buyer toward the purchase price.
,Reverse mortgage - Correct Answers Allows a person to stay in one's home while living off of the
equity by "selling" it to a lender who makes payments to the homeowner in exchange for
ownership interest in the property.
When considering loan risk, which two items will lenders consider in equal measure? - Correct
Answers Borrower and Property
Tom, the seller, is helping the buyer with financing. Tom will give this mortgage to the buyer,
and the money will go toward the down payment. What kind of mortgage is this? - Correct
Answers Purchase Money Mortgage
Q:Which of the following loan transactions would be exempt from TILA disclosure
requirements? - Correct Answers Grocery store, with personal funds used as collateral
A borrower can file this if they only want to be notified of future court proceedings related to
the foreclosure and auction of their property. - Correct Answers Notice of Appearance
Which document includes the size of units, construction, floor plans, amenities, recreation
facilities, make and model of appliances, windows, how the landscaping of the property will be
maintained, and the actual land on which a condominium building is situated? - Correct
Answers Offering Plan
Which of the following would be considered a foreign person according to FIRPTA? - Correct
Answers A company incorporated in France with regional development offices in the U.S.
What is the purchase agreement phrase that wholesalers rely on for their investment strategy? -
Correct Answers Assigns
Why are urban centers popular with foreign investors? - Correct Answers The economic
environment
,What is going concern? - Correct Answers Land value + Business value
For condominium properties, the owner's rights are detailed in which document? - Correct
Answers Bylaws
Morgan is a single taxpayer and real estate investor. She buys homes for cheap, fixes them up
while living in them, and sells them for a profit. How much can she exclude if she realizes a gain
from the sale of her current property (assuming she meets all the criteria to exclude the gain)? -
Correct Answers $250,000
What type of investment strategy is most similar to a 1031 tax-deferred exchange? - Correct
Answers Rolling over funds from one IRA into another
Jennifer is the owner of the single-family residence in which she resides. How long can she take
to depreciate her property? - Correct Answers $0
What is the capital gains exclusion amount? - Correct Answers $250,000 for single taxpayers,
$500,000 for married couples filing jointly
What's an income shelter? - Correct Answers a deductible allowance from net income
Real property is never homogeneous - Correct Answers Real property is never homogeneous
Which of the following is one advantage to working with real estate investor clients? - Correct
Answers Potential for less complicated transactions
Based on capitalization rate alone, which investment involves more risk: one with a 12% cap
rate or one with a 8% cap rate? - Correct Answers 12%
, What is meant by "usable" square footage? - Correct Answers Area occupied by tenant
What "quick and dirty" investment formula seeks to achieve a percentage of gross monthly
rental income as compared to purchase price? - Correct Answers 2%
The ______ can offer direct loans to farmers and ranchers. The loans are funded by
congressional appropriation. - Correct Answers USDA Farm Service Agency
Which entity services rural development loans? - Correct Answers FSA
In which of these theories of home ownership does the borrower receive a deed to the
property, while the lender holds the title and owns the home? - Correct Answers Title theory
The purpose of a variable expense budget, monthly operating budget, or profit center budget is
to ____. - Correct Answers Provide more detail than the general operating budget
A ____ breaks a more general budget line item into details, making it easier to use in guiding
business operations. - Correct Answers Variable Expense Budget
Which of the following components will appear on both the cash flow statement and the
income statement? - Correct Answers Commissions Received
Which of the following components will appear on the cash flow statement but not on the
income statement - Correct Answers Loan Proceeds
For the most accurate profit and loss data, the income statement should be evaluated ______. -
Correct Answers Lengthy Period of Time
