Real Estate U Exam Complete Questions
with Correct Answers Updated
2025/2026 Already Graded!!!100%
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Property Tax Exemptions - ANSWER ✓ - Veterans
- Senior Citizens
- Disabled
The STAR program allows qualified owner-occupied, primary residences to be
exempt from school property taxes.
NYS Department of Financial Services (formerly known as the NYS Banking
Department) - ANSWER ✓ Rregisters and licenses all companies and individuals
who conduct mortgage related services in New York.
- This includes mortgage broker licenses.
Dual Agency Disclosure under the Banking and New York Real Property Laws -
ANSWER ✓ When a mortgage broker representing the buyer is also the real estate
broker representing the seller in the same transaction, a dual agency is created.
The dual agency relationship must be disclosed at the first substantive contact
between the mortgage broker and the prospective buyer.
The buyer/borrower and the seller must sign a Mortgage Broker Disclosure Form.
Corrective Maintenance - ANSWER ✓ A maintenance task performed to identify,
isolate, and rectify a problem with a property so that the property can be restored to
an acceptable condition.
In other words, corrective maintenance does NOT involve major repairs or capital
expenditures.
An example of this would include fixing a leaky faucet.
, Preventative Maintenance - ANSWER ✓ Involves keeping property and
equipment in a good state of repair so as to minimize the need for more costly
repair work or replacement.
An example would include changing air filters in air conditioners and furnaces.
Management Agreement - ANSWER ✓ Signed between the property owner and
the property manager.
This contract creates an agency relationship in which the owner is the principal and
the property manager is the agent for the purposes specified in the agreement.
It creates a general agency relationship between the owner and property manager.
Operating Statement - ANSWER ✓ Used by property managers to project the net
operating income for the property.
It defines all of the income and expenses for the property.
Stabilized Budget - ANSWER ✓ A forecast of income and expenses as may be
reasonably projected over a short term, typically five years.
Capital Reserve Budget - ANSWER ✓ Money set aside by a property owner for
long-term capital expenditures to a property.
Also known as a replacement reserve.
Real Estate License Requirements - ANSWER ✓ When a property manager works
for only one owner, a real estate license is not required.
However, when an individual (or company) serves as a property manager for more
than one owner, at least a real estate salesperson license is required.
- you do not need a real estate license to negotiate a mortgage.
Attorney General - ANSWER ✓ According to Article 12-A (NYS Real Property
Law), the Attorney General shall prosecute criminal actions for violations of the
Real Property Law.
, Agency Disclosure Form - ANSWER ✓ The Agency Disclosure Form is a written
explanation, to be signed by a prospective buyer or seller of real estate, explaining
to the client the role that the broker plays in the transaction.
This Agency Disclosure Form is known as the 'New York State Disclosure Form
for Buyer and Seller'.
The Agency Disclosure Form outlines the following:
- The agent's duties to the client.- Explains that an agent owes a fiduciary duty to
the client.
- Allows for advance consent to dual agency.
Dual Agency - ANSWER ✓ Dual agency occurs when a broker represents both
the buyer and seller in a transaction.
Dual agency is permitted in New York State; however, advanced informed consent
by BOTH parties is required.
Dual agency inherently puts the agents fiduciary duty of loyalty at risk.
Estoppel - ANSWER ✓ An agency by estoppel exists when a principal does not
stop an individual from representing his or her interests, thus creating an agency
relationship between the two.
Listing Contracts - ANSWER ✓ A listing contract is created between a seller and
a broker (NOT a salesperson).
The listing agreement creates an express agency relationship.
Exclusive Right to Sell Agreement: - ANSWER ✓ This listing contract offers the
most security to the broker. The seller must work exclusively with the broker to
sell their property. The broker is entitled to a commission even if the seller finds a
buyer themselves.
Exclusive Agency Agreement: - ANSWER ✓ The seller must work exclusively
with the broker to sell their property, BUT the seller does not have to pay the
broker a commission if they find a buyer themselves.
, Open Listing Contract: - ANSWER ✓ The seller is allowed to work with any
broker who brings them a buyer. Only the broker who brings a buyer is entitled to
a commission. This is the riskiest type of listing contract for a broker.
An open listing contract is an example of a unilateral contract.
Net Listing - ANSWER ✓ A net listing is not technically a listing agreement, but
a method of establishing the listing broker's commission as all money above a
specified net amount to the seller.
Net listings are illegal in New York.
Commissions - ANSWER ✓ Real Estate Salespersons/Agents DO NOT collect
money or commissions.
Any commissions earned are paid to the salesperson's broker, who in turn, pays the
salesperson his/her portion of the commission.
Commissions are determined between the client and broker and are always
negotiable (there is no 'standard' commission rate).
Commissions are typically calculated as a percentage of the sales price (not the
listing price).
Commission between the broker and salesperson are always negotiable.
A commission is technically earned when the agent finds a "ready, willing and able
buyer" for the seller.
NYS Department of State - ANSWER ✓ The Department of State is primarily
responsible for issuing real estate licenses, pocket cards, and handing down
disciplinary action.
Article 12-A of the NYS Real Property Law outlines the roles/duties of the
Department of State.
Independent Contractor Relationship - ANSWER ✓ A salesperson must work
under a sponsoring broker. Their relationship must be that of an independent
contractor.
with Correct Answers Updated
2025/2026 Already Graded!!!100%
Guaranteed Pass!!
Property Tax Exemptions - ANSWER ✓ - Veterans
- Senior Citizens
- Disabled
The STAR program allows qualified owner-occupied, primary residences to be
exempt from school property taxes.
NYS Department of Financial Services (formerly known as the NYS Banking
Department) - ANSWER ✓ Rregisters and licenses all companies and individuals
who conduct mortgage related services in New York.
- This includes mortgage broker licenses.
Dual Agency Disclosure under the Banking and New York Real Property Laws -
ANSWER ✓ When a mortgage broker representing the buyer is also the real estate
broker representing the seller in the same transaction, a dual agency is created.
The dual agency relationship must be disclosed at the first substantive contact
between the mortgage broker and the prospective buyer.
The buyer/borrower and the seller must sign a Mortgage Broker Disclosure Form.
Corrective Maintenance - ANSWER ✓ A maintenance task performed to identify,
isolate, and rectify a problem with a property so that the property can be restored to
an acceptable condition.
In other words, corrective maintenance does NOT involve major repairs or capital
expenditures.
An example of this would include fixing a leaky faucet.
, Preventative Maintenance - ANSWER ✓ Involves keeping property and
equipment in a good state of repair so as to minimize the need for more costly
repair work or replacement.
An example would include changing air filters in air conditioners and furnaces.
Management Agreement - ANSWER ✓ Signed between the property owner and
the property manager.
This contract creates an agency relationship in which the owner is the principal and
the property manager is the agent for the purposes specified in the agreement.
It creates a general agency relationship between the owner and property manager.
Operating Statement - ANSWER ✓ Used by property managers to project the net
operating income for the property.
It defines all of the income and expenses for the property.
Stabilized Budget - ANSWER ✓ A forecast of income and expenses as may be
reasonably projected over a short term, typically five years.
Capital Reserve Budget - ANSWER ✓ Money set aside by a property owner for
long-term capital expenditures to a property.
Also known as a replacement reserve.
Real Estate License Requirements - ANSWER ✓ When a property manager works
for only one owner, a real estate license is not required.
However, when an individual (or company) serves as a property manager for more
than one owner, at least a real estate salesperson license is required.
- you do not need a real estate license to negotiate a mortgage.
Attorney General - ANSWER ✓ According to Article 12-A (NYS Real Property
Law), the Attorney General shall prosecute criminal actions for violations of the
Real Property Law.
, Agency Disclosure Form - ANSWER ✓ The Agency Disclosure Form is a written
explanation, to be signed by a prospective buyer or seller of real estate, explaining
to the client the role that the broker plays in the transaction.
This Agency Disclosure Form is known as the 'New York State Disclosure Form
for Buyer and Seller'.
The Agency Disclosure Form outlines the following:
- The agent's duties to the client.- Explains that an agent owes a fiduciary duty to
the client.
- Allows for advance consent to dual agency.
Dual Agency - ANSWER ✓ Dual agency occurs when a broker represents both
the buyer and seller in a transaction.
Dual agency is permitted in New York State; however, advanced informed consent
by BOTH parties is required.
Dual agency inherently puts the agents fiduciary duty of loyalty at risk.
Estoppel - ANSWER ✓ An agency by estoppel exists when a principal does not
stop an individual from representing his or her interests, thus creating an agency
relationship between the two.
Listing Contracts - ANSWER ✓ A listing contract is created between a seller and
a broker (NOT a salesperson).
The listing agreement creates an express agency relationship.
Exclusive Right to Sell Agreement: - ANSWER ✓ This listing contract offers the
most security to the broker. The seller must work exclusively with the broker to
sell their property. The broker is entitled to a commission even if the seller finds a
buyer themselves.
Exclusive Agency Agreement: - ANSWER ✓ The seller must work exclusively
with the broker to sell their property, BUT the seller does not have to pay the
broker a commission if they find a buyer themselves.
, Open Listing Contract: - ANSWER ✓ The seller is allowed to work with any
broker who brings them a buyer. Only the broker who brings a buyer is entitled to
a commission. This is the riskiest type of listing contract for a broker.
An open listing contract is an example of a unilateral contract.
Net Listing - ANSWER ✓ A net listing is not technically a listing agreement, but
a method of establishing the listing broker's commission as all money above a
specified net amount to the seller.
Net listings are illegal in New York.
Commissions - ANSWER ✓ Real Estate Salespersons/Agents DO NOT collect
money or commissions.
Any commissions earned are paid to the salesperson's broker, who in turn, pays the
salesperson his/her portion of the commission.
Commissions are determined between the client and broker and are always
negotiable (there is no 'standard' commission rate).
Commissions are typically calculated as a percentage of the sales price (not the
listing price).
Commission between the broker and salesperson are always negotiable.
A commission is technically earned when the agent finds a "ready, willing and able
buyer" for the seller.
NYS Department of State - ANSWER ✓ The Department of State is primarily
responsible for issuing real estate licenses, pocket cards, and handing down
disciplinary action.
Article 12-A of the NYS Real Property Law outlines the roles/duties of the
Department of State.
Independent Contractor Relationship - ANSWER ✓ A salesperson must work
under a sponsoring broker. Their relationship must be that of an independent
contractor.
