NEW YORK REAL ESTATE PRACTICE EXAMS 2025/2026
QUESTIONS WITH ANSWERS RATED A+
✔✔CERCLA (Comprehensive Response, Compensation and Liability Act - ✔✔-
superfund
- 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)
✔✔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
✔✔Pro Forma - ✔✔- financial doc that predicts future income of a property for next 10
years
- (like an operating statement) but has columns for this year, next year, etc
- helps buyers, banks, owners make financial decisions for future
✔✔Operating Statement - ✔✔-shows the buildings actual performance this year
✔✔Wall Stud - ✔✔wall column that is part of house frame
- beams are horizontal
columns are vertical
✔✔Rafter - ✔✔- roof beam on house normally placed diagonally
✔✔Pitch - ✔✔slope or angle of roof
✔✔Eave - ✔✔- when rafters hang over the edge of a wall
✔✔Keeping Real Estate Records - ✔✔- keep for 3 years in residential
- Keep for 7 years in commercial
✔✔Property Tax Exemptions - ✔✔- tax exemptions
- religious organizations and governments completely exempt
- Partially exempt:
- STAR (school tax relief)
- Seniors
- Veterans
- Disabilities
- Agricultural props (farms)
QUESTIONS WITH ANSWERS RATED A+
✔✔CERCLA (Comprehensive Response, Compensation and Liability Act - ✔✔-
superfund
- 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)
✔✔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
✔✔Pro Forma - ✔✔- financial doc that predicts future income of a property for next 10
years
- (like an operating statement) but has columns for this year, next year, etc
- helps buyers, banks, owners make financial decisions for future
✔✔Operating Statement - ✔✔-shows the buildings actual performance this year
✔✔Wall Stud - ✔✔wall column that is part of house frame
- beams are horizontal
columns are vertical
✔✔Rafter - ✔✔- roof beam on house normally placed diagonally
✔✔Pitch - ✔✔slope or angle of roof
✔✔Eave - ✔✔- when rafters hang over the edge of a wall
✔✔Keeping Real Estate Records - ✔✔- keep for 3 years in residential
- Keep for 7 years in commercial
✔✔Property Tax Exemptions - ✔✔- tax exemptions
- religious organizations and governments completely exempt
- Partially exempt:
- STAR (school tax relief)
- Seniors
- Veterans
- Disabilities
- Agricultural props (farms)
