NEW YORK STATE REAL ESTATE STUDY GUIDE QUESTIONS WITH
SOLUTIONS A+ 2025/2026
✔✔If one roommate dies and the other automatically inherits, what kind of ownership
was it? - ✔✔Ownership by Entirety and Joint Tenants have survivorship.
✔✔How many points does it take to be a broker? - ✔✔3500
✔✔How old does a broker have to be? - ✔✔20
✔✔How many total hours of class does a broker need? - ✔✔75 hours salesperson + 45
hours broker = 120 hours
✔✔How much do salesperson and broker licenses cost? - ✔✔Salesperson is $55 and
Broker is $155
✔✔Over how many years is commercial investment property depreciable on a straight-
line basis? - ✔✔39 years
✔✔Over how many years is an apartment building depreciable on a straight-line basis?
- ✔✔27.5 years
✔✔What kind of real estate can never be depreciated for tax? - ✔✔Land
✔✔How do you figure out what the depreciation deduction is? - ✔✔Total value - land =
building total, divided by the number of years of depreciation (39 or 27.5 for apartments)
✔✔If an apartment property is worth $300,000 and land is worth $50,000, what is the
tax deduction amount this year? - ✔✔$250,000 x 3.636% = $9,900
✔✔What do you call gradual repayment of a mortgage debt in equal installments over
time? - ✔✔Amortization
✔✔What is the most common mortgage? - ✔✔Fixed-rate
✔✔What is the most common mortgage in which the interest rate never changes and a
borrower pays the same amount of interest each month for 30 years? - ✔✔30 Year
Fixed-Rate Mortgage
✔✔What kind of mortgage has a large principal payment at the end? - ✔✔A non-
amortized mortgage aka Balloon
,✔✔What groups do federal laws protect? - ✔✔Race, national origin, religion, sex,
disability and family status (kids).
✔✔What groups do state laws protect? - ✔✔Race, national origin, religion, sex,
disability, family status (kids), age, marital status, sexual orientation as well as military
status.
✔✔Do the Feds and NYS protect citizenship, legal source of income and lawful
occupation? - ✔✔No.
✔✔What is the difference between pre-qualification and pre-approval? - ✔✔Pre-
qualification is the first step, the lender looks at your income and how much you can
afford. In pre-approval, the next step, they do research on your financial status and give
you a written conditional commitment letter for an exact loan amount. Pre-approval is in
writing.
✔✔What is it called when a lender looks at a buyer's finances and says in writing the
amount they will loan this buyer? - ✔✔Pre-approval.
✔✔Who makes the lender's final decision on a loan application? - ✔✔The underwriter
✔✔What is it called when another state honors your real estate license? -
✔✔Reciprocity
✔✔Who is the mortgagor? - ✔✔The borrower
✔✔What do you call the lender who makes a loan to be secured by a mortgage lien? -
✔✔The mortgagee
✔✔Who receives the mortgage? - ✔✔The mortgagee/lender (the bank) receives the
mortgage or IOU
✔✔How many points are needed for equivalent experience for Mortgage brokers? -
✔✔5250
✔✔When does a lawyer need a real estate license? - ✔✔If they want to open a
brokerage and hire salespersons.
✔✔If an applicant is already a real estate broker, what is the experience requirement for
mortgage broker registration? - ✔✔They don't need any additional experience, because
they already had two salesperson experience years to become a broker.
,✔✔If someone is a real estate salesperson, how many years' experience must they
document with their mortgage broker application? - ✔✔Two
✔✔What state department registers mortgage professionals? - ✔✔Department of
Financial Services (previously called the Dept. of Banking)
✔✔What is the difference between a mortgage banker and a mortgage broker? -
✔✔Mortgage bankers originate (make) loans; mortgage brokers compare loans from
many banks.
✔✔What kind of multi-family building is always owned as tenants in common? - ✔✔A
condo
✔✔What kind of property is a co-op, real or personal? - ✔✔Personal
✔✔Is a co-op freehold or leasehold? - ✔✔Leasehold
✔✔Who holds title to a specific co-op apartment? - ✔✔The co-op corporation that owns
the building.
✔✔Who is responsible for running a co-op? - ✔✔Board of Directors
✔✔What are common charges? - ✔✔Charges to cover the costs of maintaining the
common areas of the building (cleaning, payroll, utilities, repairs, etc.)
✔✔What kind of loan does a co-op buyer get to finance the purchase of the co-op? -
✔✔Share loan
✔✔What documents do condo and co-op owners get? - ✔✔A condo owner gets a deed
and a mortgage, a co-op owner gets a stock certificate and a proprietary lease.
✔✔What is a condop? - ✔✔A building that is part condo, part co-op. It's split into two
condos, the downstairs condo becomes a store, the upstairs is split into apartments for
co-op.
✔✔If a building is divided into two condos for residential and commercial use, what is
this called? - ✔✔A condop
✔✔What is the term for a building that includes both co-op and condo ownership? -
✔✔A condop
✔✔What % of a co-op's income can come from a store tenant and still allow
shareholders to get tax deductions? - ✔✔20%
, ✔✔If money supply increases, do interest rates go up or down? - ✔✔Down
✔✔If money in circulation increases without increase in goods and services, what
happens in the economy? - ✔✔Inflation
✔✔What is an example of an encumbrance? - ✔✔Lien, easements, deed restrictions, lis
pendens, unpaid bills and taxes.
✔✔Real estate tax is what type of encumbrance? - ✔✔Lien
✔✔What do you call a debt related to real estate? - ✔✔Lien
✔✔What year was Brown v. Board of Education? - ✔✔1954
✔✔What case did Brown v. Board overturn? - ✔✔Plessy v. Ferguson
✔✔What practice did Brown v. Board stop? - ✔✔Separate but equal
✔✔What document might a buyer prepare to predict future income of a building? -
✔✔Pro forma
✔✔What financial doc is a planning tool to help owners make decisions about a
property? - ✔✔Pro forma
✔✔What statement is used by an investor to estimate and project a property's future
financial potential? - ✔✔Pro forma
✔✔What is the difference between an operating statement and pro forma? - ✔✔An
operating statement shows actual performance, a pro forma is a forecast of potential
revenue.
✔✔What is a vertical piece used to frame a house? - ✔✔Stud
✔✔What is the slope of the roof called? - ✔✔Pitch
✔✔How long should you keep real estate records? - ✔✔3 years for residential
brokerage, 7 years for commercial. It's better to keep them for longer.
✔✔How long should you keep lead paint disclosure forms? - ✔✔Indefinitely
✔✔What property is assessed for tax? - ✔✔All property
SOLUTIONS A+ 2025/2026
✔✔If one roommate dies and the other automatically inherits, what kind of ownership
was it? - ✔✔Ownership by Entirety and Joint Tenants have survivorship.
✔✔How many points does it take to be a broker? - ✔✔3500
✔✔How old does a broker have to be? - ✔✔20
✔✔How many total hours of class does a broker need? - ✔✔75 hours salesperson + 45
hours broker = 120 hours
✔✔How much do salesperson and broker licenses cost? - ✔✔Salesperson is $55 and
Broker is $155
✔✔Over how many years is commercial investment property depreciable on a straight-
line basis? - ✔✔39 years
✔✔Over how many years is an apartment building depreciable on a straight-line basis?
- ✔✔27.5 years
✔✔What kind of real estate can never be depreciated for tax? - ✔✔Land
✔✔How do you figure out what the depreciation deduction is? - ✔✔Total value - land =
building total, divided by the number of years of depreciation (39 or 27.5 for apartments)
✔✔If an apartment property is worth $300,000 and land is worth $50,000, what is the
tax deduction amount this year? - ✔✔$250,000 x 3.636% = $9,900
✔✔What do you call gradual repayment of a mortgage debt in equal installments over
time? - ✔✔Amortization
✔✔What is the most common mortgage? - ✔✔Fixed-rate
✔✔What is the most common mortgage in which the interest rate never changes and a
borrower pays the same amount of interest each month for 30 years? - ✔✔30 Year
Fixed-Rate Mortgage
✔✔What kind of mortgage has a large principal payment at the end? - ✔✔A non-
amortized mortgage aka Balloon
,✔✔What groups do federal laws protect? - ✔✔Race, national origin, religion, sex,
disability and family status (kids).
✔✔What groups do state laws protect? - ✔✔Race, national origin, religion, sex,
disability, family status (kids), age, marital status, sexual orientation as well as military
status.
✔✔Do the Feds and NYS protect citizenship, legal source of income and lawful
occupation? - ✔✔No.
✔✔What is the difference between pre-qualification and pre-approval? - ✔✔Pre-
qualification is the first step, the lender looks at your income and how much you can
afford. In pre-approval, the next step, they do research on your financial status and give
you a written conditional commitment letter for an exact loan amount. Pre-approval is in
writing.
✔✔What is it called when a lender looks at a buyer's finances and says in writing the
amount they will loan this buyer? - ✔✔Pre-approval.
✔✔Who makes the lender's final decision on a loan application? - ✔✔The underwriter
✔✔What is it called when another state honors your real estate license? -
✔✔Reciprocity
✔✔Who is the mortgagor? - ✔✔The borrower
✔✔What do you call the lender who makes a loan to be secured by a mortgage lien? -
✔✔The mortgagee
✔✔Who receives the mortgage? - ✔✔The mortgagee/lender (the bank) receives the
mortgage or IOU
✔✔How many points are needed for equivalent experience for Mortgage brokers? -
✔✔5250
✔✔When does a lawyer need a real estate license? - ✔✔If they want to open a
brokerage and hire salespersons.
✔✔If an applicant is already a real estate broker, what is the experience requirement for
mortgage broker registration? - ✔✔They don't need any additional experience, because
they already had two salesperson experience years to become a broker.
,✔✔If someone is a real estate salesperson, how many years' experience must they
document with their mortgage broker application? - ✔✔Two
✔✔What state department registers mortgage professionals? - ✔✔Department of
Financial Services (previously called the Dept. of Banking)
✔✔What is the difference between a mortgage banker and a mortgage broker? -
✔✔Mortgage bankers originate (make) loans; mortgage brokers compare loans from
many banks.
✔✔What kind of multi-family building is always owned as tenants in common? - ✔✔A
condo
✔✔What kind of property is a co-op, real or personal? - ✔✔Personal
✔✔Is a co-op freehold or leasehold? - ✔✔Leasehold
✔✔Who holds title to a specific co-op apartment? - ✔✔The co-op corporation that owns
the building.
✔✔Who is responsible for running a co-op? - ✔✔Board of Directors
✔✔What are common charges? - ✔✔Charges to cover the costs of maintaining the
common areas of the building (cleaning, payroll, utilities, repairs, etc.)
✔✔What kind of loan does a co-op buyer get to finance the purchase of the co-op? -
✔✔Share loan
✔✔What documents do condo and co-op owners get? - ✔✔A condo owner gets a deed
and a mortgage, a co-op owner gets a stock certificate and a proprietary lease.
✔✔What is a condop? - ✔✔A building that is part condo, part co-op. It's split into two
condos, the downstairs condo becomes a store, the upstairs is split into apartments for
co-op.
✔✔If a building is divided into two condos for residential and commercial use, what is
this called? - ✔✔A condop
✔✔What is the term for a building that includes both co-op and condo ownership? -
✔✔A condop
✔✔What % of a co-op's income can come from a store tenant and still allow
shareholders to get tax deductions? - ✔✔20%
, ✔✔If money supply increases, do interest rates go up or down? - ✔✔Down
✔✔If money in circulation increases without increase in goods and services, what
happens in the economy? - ✔✔Inflation
✔✔What is an example of an encumbrance? - ✔✔Lien, easements, deed restrictions, lis
pendens, unpaid bills and taxes.
✔✔Real estate tax is what type of encumbrance? - ✔✔Lien
✔✔What do you call a debt related to real estate? - ✔✔Lien
✔✔What year was Brown v. Board of Education? - ✔✔1954
✔✔What case did Brown v. Board overturn? - ✔✔Plessy v. Ferguson
✔✔What practice did Brown v. Board stop? - ✔✔Separate but equal
✔✔What document might a buyer prepare to predict future income of a building? -
✔✔Pro forma
✔✔What financial doc is a planning tool to help owners make decisions about a
property? - ✔✔Pro forma
✔✔What statement is used by an investor to estimate and project a property's future
financial potential? - ✔✔Pro forma
✔✔What is the difference between an operating statement and pro forma? - ✔✔An
operating statement shows actual performance, a pro forma is a forecast of potential
revenue.
✔✔What is a vertical piece used to frame a house? - ✔✔Stud
✔✔What is the slope of the roof called? - ✔✔Pitch
✔✔How long should you keep real estate records? - ✔✔3 years for residential
brokerage, 7 years for commercial. It's better to keep them for longer.
✔✔How long should you keep lead paint disclosure forms? - ✔✔Indefinitely
✔✔What property is assessed for tax? - ✔✔All property
