NYS REAL ESTATE LATEST
BROKER LICENSE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A vacation home used as a secondary residence would not be exempt
from the claims of a creditor in a Chapter 7 bankruptcy proceeding in
New York - ANSWERS-Is True
Which of the following is a method of Alternative Dispute Resolution in
which a party has the power to make a final, binding decision? -
ANSWERS-Arbitration
The capital gain on a sale is computed as - ANSWERS-The net sale
proceeds minus adjusted basis
The formula for return on equity is - ANSWERS-cashflow divided by
equity
Mary bought a home fir $80,000, paying $10,000 down and taking a
mortgage loan of $70,000. The following year she had a new roof put
on, at a cost of $2,000. What is Mary's adjusted basis in the house if she
now sells the house for $100,000 - ANSWERS-$82,000
END OF
PAGE
1
, NYS REAL ESTATE LATEST
BROKER LICENSE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
An office building has a potential income of $500,000 and vacancy of
10%. Its cash-paid bills total $300,000 and annual depreciation is
$5,000. Payments on the loan total $100,000. What is the property pre-
tax cash flow? - ANSWERS-$50,000
A property is purchased for $200,000. Improvements account for 75%of
the value. Given a 39 year depreciation term, what is the annual
depreciation expense? - ANSWERS-$3,846
An income property is bought for $500,000. Gross income is $100,000,
and net operating income is $60,000. Cash flow is $10,000. What is the
return on investment (ROI)? - ANSWERS-12%
Whats the formula for deriving the tax base of a jurisdiction? -
ANSWERS-The total of all assessed values minus exemptions..
The purpose of a homestead tax exemption is - ANSWERS-To offer tax
abatement on a principal residence
END OF
PAGE
2
, NYS REAL ESTATE LATEST
BROKER LICENSE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A homeowner's tax bill for a taxing district is derived by - ANSWERS-
Multiplying the tax rate times the taxable value of the property
One aim of the statute of frauds is to - ANSWERS-Require certain
conveyances to be in writing
A buyer accepts all terms of a sellers offer and sends notice of
acceptance back to the seller, The seller now tells the buyer the deal is
off because he has learned that the home was underpriced. What is true
in this instance? - ANSWERS-The buyer has a binding contract
A principal discloses to the listing agent that she must sell a property
within two months to avoid a financial problem. Nearly seven weeks
later, a buyers agent hears of the seller's difficulty from the listing agent
and advises his buyer to submit an offer of 80% of the listed price. The
buyer complies and the seller accepts the offer. What is true in this
instance? - ANSWERS-The listing agent violated fiduciary duties owed
to the client
END OF
PAGE
3
, NYS REAL ESTATE LATEST
BROKER LICENSE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
An owners agent is showing a buyer an apartment building. The buyer
questions the agent as to wether some cracking paint contains lead. The
agents best course of action is to... - ANSWERS-Inform the seller of the
inquiry and test the paint.
Agent Jerry who works for broker Lucy, obtains a listing to lease a
building. Lucy's other agent , Linda, a tenant representative, locates a
tenant for Lucy's listing. If there is no arrangement to the contrary,
Broker Lucy in this instance is .... - ANSWERS-A dual agent
A transaction broker should disclose his/her agency relationship to the
transaction principals... - ANSWERS-Upon the first substantive contact
An agent obtains a listing which ensures compensation for procuring a
customer, provided the agent is the procuring cause. The agent has
entered into an...... - ANSWERS-Open Listing
A landlord promises to compensate a broker for procuring a tenant,
provided the landlord's brother decides not to rent the property within a
END OF
PAGE
4
BROKER LICENSE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A vacation home used as a secondary residence would not be exempt
from the claims of a creditor in a Chapter 7 bankruptcy proceeding in
New York - ANSWERS-Is True
Which of the following is a method of Alternative Dispute Resolution in
which a party has the power to make a final, binding decision? -
ANSWERS-Arbitration
The capital gain on a sale is computed as - ANSWERS-The net sale
proceeds minus adjusted basis
The formula for return on equity is - ANSWERS-cashflow divided by
equity
Mary bought a home fir $80,000, paying $10,000 down and taking a
mortgage loan of $70,000. The following year she had a new roof put
on, at a cost of $2,000. What is Mary's adjusted basis in the house if she
now sells the house for $100,000 - ANSWERS-$82,000
END OF
PAGE
1
, NYS REAL ESTATE LATEST
BROKER LICENSE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
An office building has a potential income of $500,000 and vacancy of
10%. Its cash-paid bills total $300,000 and annual depreciation is
$5,000. Payments on the loan total $100,000. What is the property pre-
tax cash flow? - ANSWERS-$50,000
A property is purchased for $200,000. Improvements account for 75%of
the value. Given a 39 year depreciation term, what is the annual
depreciation expense? - ANSWERS-$3,846
An income property is bought for $500,000. Gross income is $100,000,
and net operating income is $60,000. Cash flow is $10,000. What is the
return on investment (ROI)? - ANSWERS-12%
Whats the formula for deriving the tax base of a jurisdiction? -
ANSWERS-The total of all assessed values minus exemptions..
The purpose of a homestead tax exemption is - ANSWERS-To offer tax
abatement on a principal residence
END OF
PAGE
2
, NYS REAL ESTATE LATEST
BROKER LICENSE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A homeowner's tax bill for a taxing district is derived by - ANSWERS-
Multiplying the tax rate times the taxable value of the property
One aim of the statute of frauds is to - ANSWERS-Require certain
conveyances to be in writing
A buyer accepts all terms of a sellers offer and sends notice of
acceptance back to the seller, The seller now tells the buyer the deal is
off because he has learned that the home was underpriced. What is true
in this instance? - ANSWERS-The buyer has a binding contract
A principal discloses to the listing agent that she must sell a property
within two months to avoid a financial problem. Nearly seven weeks
later, a buyers agent hears of the seller's difficulty from the listing agent
and advises his buyer to submit an offer of 80% of the listed price. The
buyer complies and the seller accepts the offer. What is true in this
instance? - ANSWERS-The listing agent violated fiduciary duties owed
to the client
END OF
PAGE
3
, NYS REAL ESTATE LATEST
BROKER LICENSE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
An owners agent is showing a buyer an apartment building. The buyer
questions the agent as to wether some cracking paint contains lead. The
agents best course of action is to... - ANSWERS-Inform the seller of the
inquiry and test the paint.
Agent Jerry who works for broker Lucy, obtains a listing to lease a
building. Lucy's other agent , Linda, a tenant representative, locates a
tenant for Lucy's listing. If there is no arrangement to the contrary,
Broker Lucy in this instance is .... - ANSWERS-A dual agent
A transaction broker should disclose his/her agency relationship to the
transaction principals... - ANSWERS-Upon the first substantive contact
An agent obtains a listing which ensures compensation for procuring a
customer, provided the agent is the procuring cause. The agent has
entered into an...... - ANSWERS-Open Listing
A landlord promises to compensate a broker for procuring a tenant,
provided the landlord's brother decides not to rent the property within a
END OF
PAGE
4
