REAL ESTATE SALESPERSON EXAM
2025/2026 QUESTIONS AND ANSWERS
100% PASS
Where is license law written? - ANS Article 12A
Under NYS Real Property Law, when Dept. of State revokes a salesperson's license, the
salesperson can't be relicensed until how much time has expired? - ANS 1 year
If a broker's license is taken away, what happens to the salespersons who work for him? -
ANS Their licenses are suspended until they associate with a new broker.
What could happen to somebody who breaks Article 12A? - ANS Loss of license, $1000 fine,
and year in jail.
Is violation of 12A a felony or misdemeanor? - ANS Misdemeanor
If a married couple sells their house for a profit of $300,000, on what amount of capital gains do
they pay tax? - ANS For married couple there is no cap gains for up to $500k profit.
If a married couple bought a house for $_________ and sold it for $_________, on what
amount do they pay capital gains tax? - ANS (sell price) - (buy price) = $ gain ; ($ gain) -
($500k exemption) = cap gains tax
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is the penalty if seller doesn't deliver condition disclosure statement? - ANS $500
penalty
Which properties do no need a property condition disclosure statement? - ANS Not needed
for residential new constructions, foreclosure sales, co-ops and condos, or commercial sales.
When does seller have to give property condition disclosure to buyer? - ANS When there are
known defects in the property.
What liquid carcinogen can get into water or soil? - ANS PCBs can seep into soil or
groundwater.
What federal law curtailed use of CFCs? - ANS Clean Air Act curtailed CFCs.
What gas that leaks out of air conditioners is covered by Clean Air Act? - ANS CFCs
What is Freon? - ANS It's a brand that used to contain CFCs
What type of UST is not regulated? - ANS USTs under 1100 gallons for gas & diesel are not
regulated.
What NYS Dept. regulates USTs? - ANS Federal Environment Protection Agency regulates
USTs.
What kind of insulation has cancer-causing substance in it? - ANS UFFI is spray insulation w/
formaldehyde.
What info must a real estate ad tell? - ANS Real estate ad must tell: specific location; broker
or brokerage name; and (full address of broker or brokerage) or (phone # of broker or
brokerage).
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is a blind ad? - ANS A blind ad lacks specific location, broker or brokerage name, and
contact info.
Unless it is a lesser estate, what kind of freehold is it? - ANS Fee Simple is fullest and most
common form of freehold.
What kind of ownership includes the full bundle of rights? - ANS Fee Simple freehold.
What kind of estate has the fullest Freehold interest? - ANS Fee Simple.
What right is included in any deed or lease? - ANS Possession, Quiet Enjoyment, and
Exclusion are included in any deed or lease.
Does the landlord have the right to enter a tenant's apartment in a non-emergency situation? -
ANS No, landlord can't enter in non-emergency situation.
What do you call a tenant's right to uninterrupted use of a leased premise? - ANS Quiet
enjoyment is uninterrupted use.
What rights does a tenant have compared to a fee simple owner? - ANS Tenant has PQE
(possession, quiet enjoyment, and exclusion), Fee Simple owner has those and Control and
Disposition (full bundle).
What is it called when title is transferred by deed? - ANS Conveyance is transfer of title by
deed.
What are the essential elements of a deed? - ANS 1. Competent Grantor (sound mind), 2.
identifiable grantee, 3. habenbum clause (to have & hold), 4. consideration (payment), 5. words
of conveyance, 6. legal description, 7. signatures of all grantors, 8. delivery & acceptance.
When is title officially transferred? - ANS Title officially transferred at delivery & acceptance.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Why is old deed needed at closing? - ANS Old deed needed at closing for lawyer to prepare
new deed.
What do you call a person who acquires title to property through a deed? - ANS Grantee
acquires title to property through a deed.
Who must sign a deed? - ANS All grantors must sign a deed.
What do you call an arrangement where a tenant leases their leasehold interest to someone
else? - ANS Sublease
Who is responsible for rent in a sublease? - ANS Lessee is responsible for rent in a sub lease.
What is the difference between assignment and sublease? - ANS The difference is old tenant
leaves when assigning & new tenant takes over lease... in sublease original lessee keeps
responsibility.
What is it called when a new contract substitutes one party for another, relieving the original
party of their obligations.? - ANS Novation.
What law creates requirements for waste sites? - ANS CERCLA (Comprehensive Response,
Compensation, and Liability Act)
What law is also called superfund? - ANS CERCLA is sometimes called superfund because it
helps pay for cleanups.
What law covers PCBs? - ANS The Clean Water Act covers PCBs which come in liquid form.
What law reduced use of CFCs? - ANS The Clean Air Act reduced use of CFCs.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
2025/2026 QUESTIONS AND ANSWERS
100% PASS
Where is license law written? - ANS Article 12A
Under NYS Real Property Law, when Dept. of State revokes a salesperson's license, the
salesperson can't be relicensed until how much time has expired? - ANS 1 year
If a broker's license is taken away, what happens to the salespersons who work for him? -
ANS Their licenses are suspended until they associate with a new broker.
What could happen to somebody who breaks Article 12A? - ANS Loss of license, $1000 fine,
and year in jail.
Is violation of 12A a felony or misdemeanor? - ANS Misdemeanor
If a married couple sells their house for a profit of $300,000, on what amount of capital gains do
they pay tax? - ANS For married couple there is no cap gains for up to $500k profit.
If a married couple bought a house for $_________ and sold it for $_________, on what
amount do they pay capital gains tax? - ANS (sell price) - (buy price) = $ gain ; ($ gain) -
($500k exemption) = cap gains tax
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is the penalty if seller doesn't deliver condition disclosure statement? - ANS $500
penalty
Which properties do no need a property condition disclosure statement? - ANS Not needed
for residential new constructions, foreclosure sales, co-ops and condos, or commercial sales.
When does seller have to give property condition disclosure to buyer? - ANS When there are
known defects in the property.
What liquid carcinogen can get into water or soil? - ANS PCBs can seep into soil or
groundwater.
What federal law curtailed use of CFCs? - ANS Clean Air Act curtailed CFCs.
What gas that leaks out of air conditioners is covered by Clean Air Act? - ANS CFCs
What is Freon? - ANS It's a brand that used to contain CFCs
What type of UST is not regulated? - ANS USTs under 1100 gallons for gas & diesel are not
regulated.
What NYS Dept. regulates USTs? - ANS Federal Environment Protection Agency regulates
USTs.
What kind of insulation has cancer-causing substance in it? - ANS UFFI is spray insulation w/
formaldehyde.
What info must a real estate ad tell? - ANS Real estate ad must tell: specific location; broker
or brokerage name; and (full address of broker or brokerage) or (phone # of broker or
brokerage).
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is a blind ad? - ANS A blind ad lacks specific location, broker or brokerage name, and
contact info.
Unless it is a lesser estate, what kind of freehold is it? - ANS Fee Simple is fullest and most
common form of freehold.
What kind of ownership includes the full bundle of rights? - ANS Fee Simple freehold.
What kind of estate has the fullest Freehold interest? - ANS Fee Simple.
What right is included in any deed or lease? - ANS Possession, Quiet Enjoyment, and
Exclusion are included in any deed or lease.
Does the landlord have the right to enter a tenant's apartment in a non-emergency situation? -
ANS No, landlord can't enter in non-emergency situation.
What do you call a tenant's right to uninterrupted use of a leased premise? - ANS Quiet
enjoyment is uninterrupted use.
What rights does a tenant have compared to a fee simple owner? - ANS Tenant has PQE
(possession, quiet enjoyment, and exclusion), Fee Simple owner has those and Control and
Disposition (full bundle).
What is it called when title is transferred by deed? - ANS Conveyance is transfer of title by
deed.
What are the essential elements of a deed? - ANS 1. Competent Grantor (sound mind), 2.
identifiable grantee, 3. habenbum clause (to have & hold), 4. consideration (payment), 5. words
of conveyance, 6. legal description, 7. signatures of all grantors, 8. delivery & acceptance.
When is title officially transferred? - ANS Title officially transferred at delivery & acceptance.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Why is old deed needed at closing? - ANS Old deed needed at closing for lawyer to prepare
new deed.
What do you call a person who acquires title to property through a deed? - ANS Grantee
acquires title to property through a deed.
Who must sign a deed? - ANS All grantors must sign a deed.
What do you call an arrangement where a tenant leases their leasehold interest to someone
else? - ANS Sublease
Who is responsible for rent in a sublease? - ANS Lessee is responsible for rent in a sub lease.
What is the difference between assignment and sublease? - ANS The difference is old tenant
leaves when assigning & new tenant takes over lease... in sublease original lessee keeps
responsibility.
What is it called when a new contract substitutes one party for another, relieving the original
party of their obligations.? - ANS Novation.
What law creates requirements for waste sites? - ANS CERCLA (Comprehensive Response,
Compensation, and Liability Act)
What law is also called superfund? - ANS CERCLA is sometimes called superfund because it
helps pay for cleanups.
What law covers PCBs? - ANS The Clean Water Act covers PCBs which come in liquid form.
What law reduced use of CFCs? - ANS The Clean Air Act reduced use of CFCs.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
