New York Real Estate Institute (NYREI) Practice Exam

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• What percentage of a property's assessed value is $150,000 if it is assessed at 35%?
• What factor contributes to a buyer’s market?
• What is the main function of title insurance?
• What does a contingency clause in a real estate contract do?
• What effect does a property lien have?
• What is one primary function of the Division of Licensing Service in real estate?
• What characterizes an open house in real estate?
• Which of the following is NOT a requirement for obtaining a New York real estate license?
• What does the "HUD-1 Settlement Statement" detail?
• What is typically included in the continuing education requirement for license renewal?
• What is an appraisal?
• What is the primary role of a real estate attorney?
• What is a real estate investment trust (REIT)?
• In the context of real estate, what is the role of a listing agent?
• What is the function of a closing agent in a real estate transaction?
• What type of agency relationship is created when a buyer agrees to work exclusively with one broker?
• What typically necessitates the involvement of a planning board in a property development issue?
• What distinguishes an adjustable-rate mortgage?
• Who is the intended beneficiary of New York's Enhanced STAR Program?
• Which demographic trend can lead to a buyer’s market?
• What is equity in property ownership?
• Who benefits the most from the capital gains tax exclusion for primary residences?
• What requirement was the carpenter bound to regarding his work when hired by Mrs. Wilson?
• How are property taxes determined?
• What is the definition of "market value" in real estate?
• What potential consequence might a seller face if they do not qualify for capital gains exclusion?
• How does practicing real estate without a license affect one's career?
• What designation is given to individuals who complete training courses by BOMA?
• What do fair housing laws in New York aim to prevent?
• What is a lease in real estate terminology?
• If a property is appraised at $150,000 and assessed at 35% value, what would be the annual tax bill if the mills total is 80?
• What is an "offer" in a real estate context?
• In calculating potential gross income, which of the following must be considered?
• What is a common characteristic of a seller’s market?
• What does the Fair Housing Act primarily aim to achieve?
• What is a "real estate investment trust" (REIT)?
• What does the term "foreclosure" refer to?
• How does a fixed-rate mortgage differ from an adjustable-rate mortgage?
• Which of the following best describes "zoning laws"?
• What is dual agency in real estate?
• What is the role of the New York State Department of State (DOS) in real estate?
• Which condition must be met to qualify for exclusion from capital gains tax on the sale of a primary residence?
• What financial situation can result in a buyer's market?
• What is the purpose of a comparative market analysis (CMA)?
• Which of the following describes the term "offer to purchase" accurately?
• Which situation typically leads to foreclosure?
• What is the primary focus of the cost approach in real estate valuation?
• When must disclosure forms be presented to prospective buyers and their agents?
• What is meant by "clean title" in real estate transactions?
• What is the primary role of the Multiple Listing Service (MLS)?
• What does "escrow" mean in real estate transactions?
• In real estate, what does "probate" refer to?
• What is meant by "curb appeal"?
• What is a critical characteristic of an effective appraisal?
• What happens to property if the owner dies without any relatives or will?
• Which entity is responsible for enforcing real estate laws in New York?
• If Jahred sold an investment property for $400,000 that he bought for $275,000 and made $45,000 in improvements, what was his capital gain after broker fees?
• Which type of listing is considered illegal?
• What is the purpose of a Multiple Listing Service (MLS)?
• What does earnest money signify in a real estate transaction?
• What hazardous gas may accumulate in basements and has been linked to lung cancer?
• What does "earnest money" signify in a real estate transaction?
• What is a property disclosure statement?
• A rental property has a return rate of 8% with a monthly net rental of $600. What is the market value of the property?
• Building codes are primarily enforced through which process?
• What is a deed in real estate?
• What is a Comparative Market Analysis (CMA)?
• When it comes to construction loans, which portion generally has an interest-only payment structure?
• In a real estate contract, what does "good faith" imply?
• What are the key requirements for obtaining a real estate salesperson license in New York?
• What typically happens to the speed of home sales in a buyer’s market?
• What type of listing allows a broker to earn a commission even if the seller finds a buyer independently?
• How does "supply and demand" affect property prices in real estate?
• Why is a property disclosure statement important in a real estate transaction?
• What benefits do married couples receive when excluding capital gains tax on the sale of their primary residence?
• What is the primary difference between a conventional loan and an FHA loan?
• What does it mean when a mortgage is described as "adjustable-rate"?
• What does "financial leverage" refer to in real estate investing?
• What describes an agency agreement that allows sellers to procure the buyer themselves?
• What is typically the impact of a buyer's market on negotiation strategies?
• What should a seller do if they receive two offers at the same time?
• Which statute is violated by an agent who discriminates against married couples by stating a unit is reserved for singles only?
• Which of the following is NOT a requirement under RESPA?
• What is the primary purpose of a trade fixture in a rental setting?
• What does "amortization" mean in the context of real estate?
• What is the best method for establishing an agency relationship in real estate?
• What are the eligibility requirements to obtain a New York real estate license?
• What is the maximum amount individuals may exclude from capital gains tax when selling their primary residence?
• What is the meaning of "due diligence" in real estate transactions?
• What does "title insurance" protect against?
• Which method of legal description references a plat of subdivision?
• What type of court order did Jerry seek against his neighbor?
• What is the primary objective of the Fair Housing Act?
• What is required for a real estate licensee to renew their license in New York?
• Why might a buyer's market favor negotiations from buyers' perspectives?
• What does the term "commingling" mean in real estate?
• If an agent claims a unit has the best view in the city, what legal implications does this statement carry?
• Which law mandates that real estate agents disclose lead-based paint?
• What is the total tax deduction John can take for the year based on his home expenses?
• What does homeowners insurance typically cover?
• What does the "Equal Housing Opportunity" logo signify?
• What is a listing agreement in the context of real estate?
• What can affect the validity of a property title?
• According to the Department of State, which of the following statements about a broker's office is NOT true?
• What test must be performed to obtain approval for a septic system before issuing a building permit?
• What is a consequence of not adjusting for vacancy when calculating income for rental property?
• In terms of real estate investments, liquidity refers to what?
• What is typically included in the calculation of a homeowner’s total deductions?
• What are the consequences for practicing real estate without a license in New York?
• Which article of real property law pertains specifically to licensees?
• Which type of lien expires one year after filing?
• Which of the following statements is true regarding listing contracts in New York?
• What type of fixture are the hair dryers at Hair Today Beauty Salon classified as?
• What is the primary purpose of the New York Real Estate Institute (NYREI)?
• What is the difference between a mortgage and a deed of trust?
• Why did the sellers turn down Vicki's offer in favor of another?
• Which of the following is NOT an exemption under the federal Fair Housing Act?
• What is the primary responsibility of a buyer's agent?
• What type of mortgage would a developer typically use for his development?
• What is the purpose of an inspection contingency?
• What is the term for when a planning board suspends property owners' rights to obtain development approvals while new circumstances are considered?
• What law is violated when two companies conspire to list at the same listing price?
• Which of the following is an example of a natural attachment to real property?
• What kind of lease requires a store to pay a fixed rent plus a portion of its gross sales?
• What is one of the primary purposes of closing in a real estate transaction?
• What action did Broker Smithson take that constituted a breach of the agency agreement?
• In real estate, what does the term "as-is" indicate?
• What describes a land contract?
• What is the purpose of a seller's disclosure notice?
• What is a power of attorney in real estate?
• What are the primary responsibilities of a property management company?
• Under what conditions may the Division of Licensing Service suspend or revoke a sales license?
• Which term describes the potential income generated from rental property before deductions?
• Which method of property description is most commonly utilized in New York State?
• What language proficiency issue prevented Oksana from obtaining her real estate license?
• What is the equitable right of redemption in relation to foreclosure?
• Income capitalization is most applicable to which type of property?
• What is the main purpose of an appraisal?
• Which authority sets minimum lot sizes, building heights, and setbacks for home construction?
• When should an agent disclose their representation of the seller to a prospective buyer?
• What type of legal description begins at the northwest corner of a property?
• What role does the buyer's agent play in a real estate transaction?
• What condition negates a seller's ability to exclude capital gains when selling their primary residence?
• How long do buyers typically have to conduct inspections after an accepted offer?
• What is the purpose of a title search in real estate?
• In property law, what does 'trade fixture' specifically refer to?
• What legal option does a roofer have if Mr. and Mrs. Bruger refuse to pay for work done?
• What does "closing" refer to in a real estate transaction?
• What is the primary purpose of a real estate license in New York?
• What regulation requires real estate agents to disclose whom they represent?
• What is "staging" in real estate?
• How does a cooperative differ from a condominium?
• What is the purpose of an escrow account in a real estate transaction?
• What should sellers expect regarding offers in a buyer’s market?
• What legal restriction applies to automatic renewal of listing contracts in New York?
• How long is a New York real estate license valid?
• What are closing costs?
• Which of the following is most likely true in a seller’s market?
• The report of an address change to DOS is an example of what obligation for brokers?
• What is the significance of the NY Real Estate License Law?
• Which of the following is a potential consequence of a prolonged buyer’s market?
• Doris's four-unit apartment building has each unit rented at $500 a month. Considering a 10% vacancy rate and $500 income from a coin-operated washer and dryer, what is the potential gross income?
• What type of real estate is a public library an example of?
• What role does effective gross income play in an investment strategy?
• When is a market condition generally considered a buyer's market?
• What is the monthly income collected per unit in Doris's apartment building?
• What will the Smiths receive at closing when they purchase a cooperative?
• From an investment perspective, what is often the best strategy according to the theory of progression?
• Which type of listing contract guarantees the broker a commission regardless of who sells the property?
• What are the three main approaches to property valuation?
• What is a lease-option agreement?
• What is a "short sale" in real estate?
• What does the term "equity" in real estate refer to?
• What is the effect of a buyer’s market on home prices?
• Which of the following conditions can invalidate a real estate contract?
• What approach is used to prepare a Comparative Market Analysis (CMA) for estimating property sale price?
• What is the difference between a listing agent and a buyer's agent?
• What does a real estate syndicate do?
• How can a seller terminate a listing agreement with their agent?
• What does excess inventory in a real estate market often lead to?
• In real estate transactions, what does the term "disclosure" refer to?
• Which of the following describes the types of agency relationships in real estate?
• What information does a power of attorney allow one person to manage?
• Who is responsible for setting the legal description of a property?
• Who is considered a tenant in real estate terms?
• What is the main goal of conducting a CMA?
• Which of the following best explains "real property"?
• What are capital gains in the context of real estate?
• If the total assessed value of a property is $52,500, what is its appraised value at 35% assessment?
• What is the relationship called when a broker represents both parties in a transaction?
• What is one benefit of staging a home?
• The statement regarding a large group of minorities moving into a neighborhood is an example of what practice?
• What does "zoning" regulate in real estate?
• How often must a seller occupy their residence to qualify for capital gains tax exclusion?
• Bill chose to invest in certificates of deposit instead of real estate primarily due to concerns regarding what?
• The failure of a broker to notify the Department of State (DOS) about a company address change can lead to what consequence?
• What role does a mortgage broker play in real estate transactions?
• What is commonly the main goal of market analysis in real estate?
• What type of easement does Bill receive by having a right of way through his neighbor's property?
• The term "right of survivorship" is most often associated with which type of ownership?
• What is the role of an appraiser in a real estate transaction?
• If the Santiagos listed their home for $100,000 but sold it for $99,000, what is the market price?
• Which of the following best defines "liens" in relation to property titles?
• Is the purchase and sale agreement valid if Tom changed the commission and closing date after initially accepting the offer?
• What is required from real estate agents concerning property defects known to them?
• What is the main function of a property management company?
• What does the sales comparison approach primarily rely on?
• Is the seller required to mitigate a home tested for radon that shows an average reading of 4.8 pCi/L under federal law?
• What might result if an agent fails to disclose their role in a real estate transaction?
• What type of damage is usually excluded under dwelling policies?
• What is one potential risk of selling a home without a clean title?
• If a client instructs their agent not to disclose a defect in the property, what must the agent do?
• How is effective gross income defined in real estate?
• What is an offer to purchase?
• In real estate, what does 'listing' refer to?
• What does the term "capital gains tax" refer to in property sales?
• How old must a theater be to be considered for landmark designation by neighbors in New York City?
• What is the role of the New York State Department of State (DOS) in real estate licensing?
• What does 'fiduciary duty' mean in the context of real estate?
• What do buyers typically find in a buyer's market?
• What is another term for a forced sale in real estate?
• What is the potential consequence if a property seller does not accept a recommended price adjustment by their broker?
• An amenity's market value reflects what aspect of the item?
• What does the term "capital gains" refer to in real estate?
• A lease temporarily transfers the rights of property from which party to which party?
• What is the role of a real estate attorney during a transaction?
• The size of a septic system is most commonly determined by what factor?
• What is the function of a "lease option"?
• What defines a first mortgage?
• What type of information must be disclosed in a seller's disclosure notice?
• If a property rents for $750 per month and the GRM is 110, what is the indicated value of the property?
• Why is obtaining a clean title important for selling property?
• Which of the following is NOT a factor in determining capital gains on a property sale?
• What is the significance of the Homeowner’s Bill of Rights in New York?
• In a buyer's market, how might sellers react to offers?
• How many months of military service are necessary for VA mortgage eligibility?
• Which of the following is NOT a function of a real estate agent?
• What is an adjustable-rate mortgage (ARM)?
• What term describes the decrease in property value due to negative external factors, such as a neighboring farm?
• What is the purpose of a property appraisal?
• Define "zoning" in the context of real estate.
• For the income approach to appraisal, value is best described as what?
• What type of easement allows new homeowners access to cross a neighbor's land?
• What type of mortgage is commonly used by developers to finance a subdivision?
• What information does a title abstract provide?
• What does the term 'market price' refer to in real estate?
• What does "leasehold" refer to in real estate?
• What does the term "profit sharing" mean in the context of a real estate brokerage?
• What is defined as a closing statement in real estate?
• What does due diligence typically involve in real estate?