ESTUDYR
NYS REAL ESTATE MOST TESTED QUESTIONS AND
ANSWERS GRADED A+ WITH RATIONALES
The fullest interest one can have in real estate is called a:
A. Life estate
B. Leasehold estate
C. Fee simple estate
D. Easement estate
– Rationale: Fee simple grants unlimited ownership rights, subject only to government powers.
A heating system that no longer meets current tenants’ needs demonstrates:
A. Functional obsolescence
B. Physical deterioration
C. Economic obsolescence
D. External obsolescence
– Rationale: When external factors (market demands) render improvements inadequate, it’s
obsolescence.
Which protected class was added by the 1974 Fair Housing Amendment?
A. Race
B. Religion
C. Gender (sex)
D. Familial status
– Rationale: The 1974 amendment added “sex” (gender) discrimination to the original act.
A pro-forma statement in real estate finance is a:
A. Historical income statement
B. Tenant roster
C. Schedule of projected income and expenses
D. Appraisal summary
– Rationale: Pro-formas estimate future cash flows for investment analysis.
An exception to Fair Housing Act prohibitions is discrimination based on:
A. Race
B. Religion
C. Gender
D. Color
– Rationale: Sex (gender) was added as a protected class, not an exception—none are valid exceptions.
Which agency typically oversees community land use and development?
A. Zoning Board of Appeals
B. Department of Environmental Conservation
,ESTUDYR
C. Building Department
D. Planning Board
– Rationale: Planning boards set comprehensive land-use plans and development guidelines.
Using another’s property openly, continuously, and without permission to claim title is:
A. Easement by necessity
B. Prescriptive easement only
C. Adverse possession (or easement by prescription)
D. License
– Rationale: Adverse possession grants ownership when use meets statutory criteria.
Your neighbor’s land that benefits from an easement over your property is called the:
A. Dominant estate
B. Licensee
C. Servient estate
D. Encumbered estate
– Rationale: The servient estate is subject to the easement.
A building combining condominium units and cooperative shares is known as a:
A. Condo-coop
B. Condop
C. Conversion
D. PUD
– Rationale: A condop is legally a cooperative but sold as condos.
Which classes were added by the 1988 Fair Housing Amendment?
A. Race and color
B. Handicap (disability) and familial status
C. National origin and religion
D. Sex and marital status
– Rationale: The 1988 amendment expanded protections to disabled persons and families with children.
Analyzing recent sales, listings, expirations, and buyer appeal is called a:
A. Broker’s opinion of value
B. Automated valuation model
C. Comparative Market Analysis (CMA)
D. Certified appraisal
– Rationale: A CMA uses comparable data to advise on pricing.
Who signs the standard Contract of Sale first?
A. Lender
B. Seller
C. Buyer
, ESTUDYR
D. Broker
– Rationale: The buyer’s signature makes the offer; the seller signs to accept.
Upon signing the contract, the buyer attaches:
A. Title insurance policy
B. Appraisal report
C. Earnest money deposit (down payment)
D. Home inspection
– Rationale: The deposit demonstrates the buyer’s good-faith commitment.
Who typically drafts the real estate Contract of Sale?
A. Listing salesperson
B. Mortgage broker
C. Seller’s attorney
D. Appraiser
– Rationale: Legal counsel prepares the binding contractual language.
Tracking back ownership via deeds is known as reviewing the:
A. Title abstract
B. Appraisal trail
C. Chain of title
D. Escrow history
– Rationale: The chain of title lists successive owners recorded in public records.
A synonym for “proration” in closing statements is:
A. Appraisal
B. Adjustment
C. Depreciation
D. Amortization
– Rationale: Prorations adjust taxes, utilities, and other items proportionally.
A mortgage that starts with lower payments and rises over time is a:
A. Adjustable-rate mortgage
B. Balloon mortgage
C. Interest-only loan
D. Graduated payment mortgage
– Rationale: Payments “graduate” upward as the borrower’s income is expected to grow.
A CMA is not an:
A. Opinion of value
B. Market analysis
C. Appraisal
D. Pricing tool
– Rationale: Only a licensed appraiser can produce a formal appraisal.
NYS REAL ESTATE MOST TESTED QUESTIONS AND
ANSWERS GRADED A+ WITH RATIONALES
The fullest interest one can have in real estate is called a:
A. Life estate
B. Leasehold estate
C. Fee simple estate
D. Easement estate
– Rationale: Fee simple grants unlimited ownership rights, subject only to government powers.
A heating system that no longer meets current tenants’ needs demonstrates:
A. Functional obsolescence
B. Physical deterioration
C. Economic obsolescence
D. External obsolescence
– Rationale: When external factors (market demands) render improvements inadequate, it’s
obsolescence.
Which protected class was added by the 1974 Fair Housing Amendment?
A. Race
B. Religion
C. Gender (sex)
D. Familial status
– Rationale: The 1974 amendment added “sex” (gender) discrimination to the original act.
A pro-forma statement in real estate finance is a:
A. Historical income statement
B. Tenant roster
C. Schedule of projected income and expenses
D. Appraisal summary
– Rationale: Pro-formas estimate future cash flows for investment analysis.
An exception to Fair Housing Act prohibitions is discrimination based on:
A. Race
B. Religion
C. Gender
D. Color
– Rationale: Sex (gender) was added as a protected class, not an exception—none are valid exceptions.
Which agency typically oversees community land use and development?
A. Zoning Board of Appeals
B. Department of Environmental Conservation
,ESTUDYR
C. Building Department
D. Planning Board
– Rationale: Planning boards set comprehensive land-use plans and development guidelines.
Using another’s property openly, continuously, and without permission to claim title is:
A. Easement by necessity
B. Prescriptive easement only
C. Adverse possession (or easement by prescription)
D. License
– Rationale: Adverse possession grants ownership when use meets statutory criteria.
Your neighbor’s land that benefits from an easement over your property is called the:
A. Dominant estate
B. Licensee
C. Servient estate
D. Encumbered estate
– Rationale: The servient estate is subject to the easement.
A building combining condominium units and cooperative shares is known as a:
A. Condo-coop
B. Condop
C. Conversion
D. PUD
– Rationale: A condop is legally a cooperative but sold as condos.
Which classes were added by the 1988 Fair Housing Amendment?
A. Race and color
B. Handicap (disability) and familial status
C. National origin and religion
D. Sex and marital status
– Rationale: The 1988 amendment expanded protections to disabled persons and families with children.
Analyzing recent sales, listings, expirations, and buyer appeal is called a:
A. Broker’s opinion of value
B. Automated valuation model
C. Comparative Market Analysis (CMA)
D. Certified appraisal
– Rationale: A CMA uses comparable data to advise on pricing.
Who signs the standard Contract of Sale first?
A. Lender
B. Seller
C. Buyer
, ESTUDYR
D. Broker
– Rationale: The buyer’s signature makes the offer; the seller signs to accept.
Upon signing the contract, the buyer attaches:
A. Title insurance policy
B. Appraisal report
C. Earnest money deposit (down payment)
D. Home inspection
– Rationale: The deposit demonstrates the buyer’s good-faith commitment.
Who typically drafts the real estate Contract of Sale?
A. Listing salesperson
B. Mortgage broker
C. Seller’s attorney
D. Appraiser
– Rationale: Legal counsel prepares the binding contractual language.
Tracking back ownership via deeds is known as reviewing the:
A. Title abstract
B. Appraisal trail
C. Chain of title
D. Escrow history
– Rationale: The chain of title lists successive owners recorded in public records.
A synonym for “proration” in closing statements is:
A. Appraisal
B. Adjustment
C. Depreciation
D. Amortization
– Rationale: Prorations adjust taxes, utilities, and other items proportionally.
A mortgage that starts with lower payments and rises over time is a:
A. Adjustable-rate mortgage
B. Balloon mortgage
C. Interest-only loan
D. Graduated payment mortgage
– Rationale: Payments “graduate” upward as the borrower’s income is expected to grow.
A CMA is not an:
A. Opinion of value
B. Market analysis
C. Appraisal
D. Pricing tool
– Rationale: Only a licensed appraiser can produce a formal appraisal.
