NEW YORK 30-HOUR REMEDIAL COURSE COMPLETE REVIEW
2026/2027 | PRACTICE TEST QUESTIONS & ANSWERS | EXAM PREP
STUDY GUIDE | MOST TESTED CONCEPTS | DETAILED EXPLANATIONS
| UPDATED 2026 VERSION
1. What is the name of the budget that focuses on revenue details to reduce
vacancy rates in commercial properties?
Operating budget
Revenue budget
Capital budget
Cash flow budget
2. A Comparative Market Analysis (CMA) is developed by an agent to compare
similar properties in the same general neighborhood. It is an essential tool
when attempting to determine:
The type of advertising to use
The market value of a specific home
The fee to charge the owner
None of the above
3. What is one key responsibility of a real estate professional concerning
property taxes?
Advise clients to avoid paying property taxes.
Only focus on property sales and ignore taxes.
Ignore property tax issues until they arise.
Stay informed about property tax regulations and changes.
4. Who is referred to as the lessor in a lease agreement?
, The property manager
The property owner or landlord
The real estate agent
The tenant or lessee
5. Real Estate Agency regulations require that every listing agreement
explicitly provide that the owner notify the principal real estate broker
of the owner's intention to cancel the listing after the expiration date.
is to be released in its entirety to every potential buyer.
explicitly require the owner to pay two or more commissions on one
sale if the owner lists the property with a second or subsequent
principal real estate broker after the termination of the first listing.
state a definite expiration date.
6. Describe the significance of the cap rate in real estate investment analysis.
The cap rate is used to determine the market value of a property.
The cap rate indicates the total expenses of maintaining a property.
The cap rate helps investors assess the potential return on an
investment property relative to its value.
The cap rate measures the appreciation of property value over time.
7. What is the definition of an Estate at sufferance in real estate?
An Estate at sufferance occurs when a tenant remains in possession
of a property after the lease has expired without the landlord's
consent.
An Estate at sufferance is a type of lease agreement that allows
tenants to occupy a property indefinitely.
, An Estate at sufferance is a legal term for a property that is under
foreclosure.
An Estate at sufferance refers to a property that is owned jointly by
multiple parties.
8. If a tenant continues to occupy a rental property after their lease has expired
and the landlord has not given consent for them to stay, what legal actions
might the landlord consider taking?
The landlord might consider initiating eviction proceedings to
remove the tenant from the property.
The landlord could automatically renew the lease without the tenant's
consent.
The landlord must wait for the tenant to voluntarily leave the property.
The landlord can increase the rent without notifying the tenant.
9. When Sarah closed on her co-op, in addition to her proprietary lease, she
received _.
A refund of application fees
Shares of stock in the corporation
A redecorating credit
An invitation to serve on the board
10. What term describes the practice of purchasing a property and then selling
it for a profit shortly thereafter?
foreclosing
investing
flipping
, leasing
11. Describe the purpose of a revenue budget in the context of commercial real
estate management.
A revenue budget outlines expected income and strategies to
minimize vacancy rates in commercial properties.
A revenue budget details the expenses associated with property
maintenance and management.
A revenue budget is used to calculate the total investment required
for property acquisition.
A revenue budget focuses on the legal aspects of lease agreements
in commercial properties.
12. Why are property taxes considered a stable revenue source?
Property taxes always increase, creating ever greater revenue.
Everyone has to pay property taxes.
Property tends to hold value over time.
Homeowners like paying property taxes.
13. Represents the remaining funds available after all operating expenses have
been taken care of, the debt service has been paid, and the income taxes
have been accounted for.
Debt Service
Before-Tax Cash Flow
After-Tax Cash Flow
Cash Flow
2026/2027 | PRACTICE TEST QUESTIONS & ANSWERS | EXAM PREP
STUDY GUIDE | MOST TESTED CONCEPTS | DETAILED EXPLANATIONS
| UPDATED 2026 VERSION
1. What is the name of the budget that focuses on revenue details to reduce
vacancy rates in commercial properties?
Operating budget
Revenue budget
Capital budget
Cash flow budget
2. A Comparative Market Analysis (CMA) is developed by an agent to compare
similar properties in the same general neighborhood. It is an essential tool
when attempting to determine:
The type of advertising to use
The market value of a specific home
The fee to charge the owner
None of the above
3. What is one key responsibility of a real estate professional concerning
property taxes?
Advise clients to avoid paying property taxes.
Only focus on property sales and ignore taxes.
Ignore property tax issues until they arise.
Stay informed about property tax regulations and changes.
4. Who is referred to as the lessor in a lease agreement?
, The property manager
The property owner or landlord
The real estate agent
The tenant or lessee
5. Real Estate Agency regulations require that every listing agreement
explicitly provide that the owner notify the principal real estate broker
of the owner's intention to cancel the listing after the expiration date.
is to be released in its entirety to every potential buyer.
explicitly require the owner to pay two or more commissions on one
sale if the owner lists the property with a second or subsequent
principal real estate broker after the termination of the first listing.
state a definite expiration date.
6. Describe the significance of the cap rate in real estate investment analysis.
The cap rate is used to determine the market value of a property.
The cap rate indicates the total expenses of maintaining a property.
The cap rate helps investors assess the potential return on an
investment property relative to its value.
The cap rate measures the appreciation of property value over time.
7. What is the definition of an Estate at sufferance in real estate?
An Estate at sufferance occurs when a tenant remains in possession
of a property after the lease has expired without the landlord's
consent.
An Estate at sufferance is a type of lease agreement that allows
tenants to occupy a property indefinitely.
, An Estate at sufferance is a legal term for a property that is under
foreclosure.
An Estate at sufferance refers to a property that is owned jointly by
multiple parties.
8. If a tenant continues to occupy a rental property after their lease has expired
and the landlord has not given consent for them to stay, what legal actions
might the landlord consider taking?
The landlord might consider initiating eviction proceedings to
remove the tenant from the property.
The landlord could automatically renew the lease without the tenant's
consent.
The landlord must wait for the tenant to voluntarily leave the property.
The landlord can increase the rent without notifying the tenant.
9. When Sarah closed on her co-op, in addition to her proprietary lease, she
received _.
A refund of application fees
Shares of stock in the corporation
A redecorating credit
An invitation to serve on the board
10. What term describes the practice of purchasing a property and then selling
it for a profit shortly thereafter?
foreclosing
investing
flipping
, leasing
11. Describe the purpose of a revenue budget in the context of commercial real
estate management.
A revenue budget outlines expected income and strategies to
minimize vacancy rates in commercial properties.
A revenue budget details the expenses associated with property
maintenance and management.
A revenue budget is used to calculate the total investment required
for property acquisition.
A revenue budget focuses on the legal aspects of lease agreements
in commercial properties.
12. Why are property taxes considered a stable revenue source?
Property taxes always increase, creating ever greater revenue.
Everyone has to pay property taxes.
Property tends to hold value over time.
Homeowners like paying property taxes.
13. Represents the remaining funds available after all operating expenses have
been taken care of, the debt service has been paid, and the income taxes
have been accounted for.
Debt Service
Before-Tax Cash Flow
After-Tax Cash Flow
Cash Flow
