Pg. 1
NEW YORK PRE-LICENSING KEY
TERMS EXAM 2025-2026. 520
QUESTIONS & CORRECT VERIFIED
ANSWERS. GRADED A+
"taking" as defined by courts - CORRECT ANSWER - the power of government
to seize private property for public use
abstract of title - CORRECT ANSWER - an abbreviated history of a property,
including info on any transfers, grants, wills, conveyances, liens, and
encumbrances
abutting - CORRECT ANSWER - sharing at least one common boundary with
another property
acceleration clause - CORRECT ANSWER - a clause in a security instrument
which makes the entire loan amount due immediately upon default
accession - CORRECT ANSWER - he right to all that one's own property
produces, including that which is added, either naturally or by human action, to the
property already owned
accessory apartment use - CORRECT ANSWER - a second dwelling unit located
on the same property as a single family home; usually smaller in size than the
primary residence
accessory use - CORRECT ANSWER - a use of property that is secondary or
incidental to the principal use of the property
, Pg. 2
accounting - CORRECT ANSWER - an agent's duty to account for all funds and/or
property a client has entrusted to them during their agency relationship; one of the
fiduciary duties an agent owes the principal that extends beyond termination of the
agency relationship
accretion - CORRECT ANSWER - the process that results in the gradual increase
in land area through deposits of soil by natural forces
acknowledgment - CORRECT ANSWER - a formal declaration that the person
signing a document is doing so by choice; takes place in the presence of a notary or
other authorized public officer
acre - CORRECT ANSWER - a unit of area measurement used to determine the
size of land — 1 acre = 43,560 square feet
act of waste - CORRECT ANSWER - using a property in a way that damages it or
diminishes its market value
active income - CORRECT ANSWER - earnings (including wages, salaries,
commissions, and bonuses) from a trade or business where the taxpayer is an
active participant
actual cash value - CORRECT ANSWER - replacement cost less any depreciation;
used to determine the reimbursement amount in a property loss claim for many
insurance policies
actual eviction - CORRECT ANSWER - the process by which a tenant is expelled
from a property due to the tenant's violation of the lease's terms
, Pg. 3
actual notice - CORRECT ANSWER - when an individual has explicit knowledge
of a fact, they are said to have actual notice
ad valorem tax - CORRECT ANSWER - a tax calculated according to the assessed
value of a piece of real estate
adjustable rate mortgage (ARM) - CORRECT ANSWER - a mortgage with an
interest rate that can be adjusted based on fluctuations in the cost of money
adjusted basis - CORRECT ANSWER - the loss incurred by selling a capital asset
administrative discipline - CORRECT ANSWER - the enforcement of real estate
license laws by the New York Department of State through reprimand and denial,
as well as the suspension and revocation of licenses
advance consent to dual agency - CORRECT ANSWER - consent to a possible
dual agency transaction given prior to the occurrence
adverse possession - CORRECT ANSWER - involuntary transfer of title from an
owner who does not use or inspect their land for a number of years to another
person who has some claim to the land and takes possession
after tax cash flow - CORRECT ANSWER - a property's annual income that
remains after paying its operating expenses, debt service, and taxes
agency disclosure form - CORRECT ANSWER - required disclosure form that
describes permitted forms of agency relationships and the rights and obligations
those relationships entail; given upon the first substantive contact
, Pg. 4
agent - CORRECT ANSWER - an individual with authority to act on behalf of
another; a state license is required to operate as an agent in real estate
air rights - CORRECT ANSWER - the right to use the airspace above the surface
of the land
alluvion - CORRECT ANSWER - the soil that gets deposited in the process of
accretion
alteration agreement - CORRECT ANSWER - a written agreement that is signed
by co-op shareholder-tenants prior to any renovations, modifications, repairs, or
alterations
Americans with Disabilities - CORRECT ANSWER - a federal civil rights law
enacted to prohibit discrimination against and create standards for people with
disabilities
amortization - CORRECT ANSWER - the process of paying off a debt/mortgage
in regular installments based on a fixed payment schedule
amperage - CORRECT ANSWER - the strength of an electric current; measured in
amperes, or amps
anchor stores - CORRECT ANSWER - major retail chain or department stores in a
shopping center which provide exposure to smaller, complementary satellite stores
anchor tenant - CORRECT ANSWER - the leading tenant in a shopping center
who can generate higher foot traffic than lesser-known neighbor tenants; typically
pays a lower rent rate
NEW YORK PRE-LICENSING KEY
TERMS EXAM 2025-2026. 520
QUESTIONS & CORRECT VERIFIED
ANSWERS. GRADED A+
"taking" as defined by courts - CORRECT ANSWER - the power of government
to seize private property for public use
abstract of title - CORRECT ANSWER - an abbreviated history of a property,
including info on any transfers, grants, wills, conveyances, liens, and
encumbrances
abutting - CORRECT ANSWER - sharing at least one common boundary with
another property
acceleration clause - CORRECT ANSWER - a clause in a security instrument
which makes the entire loan amount due immediately upon default
accession - CORRECT ANSWER - he right to all that one's own property
produces, including that which is added, either naturally or by human action, to the
property already owned
accessory apartment use - CORRECT ANSWER - a second dwelling unit located
on the same property as a single family home; usually smaller in size than the
primary residence
accessory use - CORRECT ANSWER - a use of property that is secondary or
incidental to the principal use of the property
, Pg. 2
accounting - CORRECT ANSWER - an agent's duty to account for all funds and/or
property a client has entrusted to them during their agency relationship; one of the
fiduciary duties an agent owes the principal that extends beyond termination of the
agency relationship
accretion - CORRECT ANSWER - the process that results in the gradual increase
in land area through deposits of soil by natural forces
acknowledgment - CORRECT ANSWER - a formal declaration that the person
signing a document is doing so by choice; takes place in the presence of a notary or
other authorized public officer
acre - CORRECT ANSWER - a unit of area measurement used to determine the
size of land — 1 acre = 43,560 square feet
act of waste - CORRECT ANSWER - using a property in a way that damages it or
diminishes its market value
active income - CORRECT ANSWER - earnings (including wages, salaries,
commissions, and bonuses) from a trade or business where the taxpayer is an
active participant
actual cash value - CORRECT ANSWER - replacement cost less any depreciation;
used to determine the reimbursement amount in a property loss claim for many
insurance policies
actual eviction - CORRECT ANSWER - the process by which a tenant is expelled
from a property due to the tenant's violation of the lease's terms
, Pg. 3
actual notice - CORRECT ANSWER - when an individual has explicit knowledge
of a fact, they are said to have actual notice
ad valorem tax - CORRECT ANSWER - a tax calculated according to the assessed
value of a piece of real estate
adjustable rate mortgage (ARM) - CORRECT ANSWER - a mortgage with an
interest rate that can be adjusted based on fluctuations in the cost of money
adjusted basis - CORRECT ANSWER - the loss incurred by selling a capital asset
administrative discipline - CORRECT ANSWER - the enforcement of real estate
license laws by the New York Department of State through reprimand and denial,
as well as the suspension and revocation of licenses
advance consent to dual agency - CORRECT ANSWER - consent to a possible
dual agency transaction given prior to the occurrence
adverse possession - CORRECT ANSWER - involuntary transfer of title from an
owner who does not use or inspect their land for a number of years to another
person who has some claim to the land and takes possession
after tax cash flow - CORRECT ANSWER - a property's annual income that
remains after paying its operating expenses, debt service, and taxes
agency disclosure form - CORRECT ANSWER - required disclosure form that
describes permitted forms of agency relationships and the rights and obligations
those relationships entail; given upon the first substantive contact
, Pg. 4
agent - CORRECT ANSWER - an individual with authority to act on behalf of
another; a state license is required to operate as an agent in real estate
air rights - CORRECT ANSWER - the right to use the airspace above the surface
of the land
alluvion - CORRECT ANSWER - the soil that gets deposited in the process of
accretion
alteration agreement - CORRECT ANSWER - a written agreement that is signed
by co-op shareholder-tenants prior to any renovations, modifications, repairs, or
alterations
Americans with Disabilities - CORRECT ANSWER - a federal civil rights law
enacted to prohibit discrimination against and create standards for people with
disabilities
amortization - CORRECT ANSWER - the process of paying off a debt/mortgage
in regular installments based on a fixed payment schedule
amperage - CORRECT ANSWER - the strength of an electric current; measured in
amperes, or amps
anchor stores - CORRECT ANSWER - major retail chain or department stores in a
shopping center which provide exposure to smaller, complementary satellite stores
anchor tenant - CORRECT ANSWER - the leading tenant in a shopping center
who can generate higher foot traffic than lesser-known neighbor tenants; typically
pays a lower rent rate
