1
NYREI Exam Prep Questions and
Answers Latest 2023
2026 Solved
solved
A leasehold estate that continues for a successive periods of equal length until
terminated by proper notice from either party is a Answer- Periodic tenancy
Physical land and everything attached to it is called Answer- Real Estate
Equipment a tenant installs for use in his or her business is called Answer- Trade
fixture
The illegal practice of inducing homeowners to sell their homes (Usually at a deflated
price) by suggesting the ethinic or racial composition of the neighborhood Is changing,
with the implication that property values will decline is called Answer- Blockbusting
Loans that follow the criteria set by secondary markets are called Answer- Conforming
loans
A "Rule" that says an informed buyer will not pay more for one home than a comparable
one is Answer- Substitution
Funds offered as an indication of good faith regarding a future performance of a
purchase agreement is called Answer- Earnest money
Possession of property by a holdover tenant is Answer- Tenancy at sufferance
An agent authorized to do everything that can be lawfully delegated to be a
representative is a Answer- Universal agent
The relationship between the cost of borrowing money and the total amount financed is
Answer- APR
A revocable, non assignable permission to enter another persons land for a particular
purpose is Answer- License
Lease for which a landlord pays all property taxed, insurance ect Answer- Gross lease
Loan where the interest rate remains the same for the duration of the loan Answer-
Fixed rate loan
When something outside the control of a property makes it less desirable Answer-
Economic/External obsolescence
,2
An acre is a measure of a land area that is equal to Answer- 43,560 feet
A title that is free and clear from undisclosed encumbrances or other defects that would
expose a purchaser to litigation or to impede a purchasers ability to enjoy the property
or to later sell the property Answer- Marketable title
A right that goes along with the ownership of real property Answer- Appurtenance
A financial encumbrance on the owners title is called a Answer- Lien
A written agency between a seller and broker is a Answer- Listing
The effect when a loan balance grows because of a differed interest when payments
are not covering the interest portion of the loan are called Answer- Negative
Amortization
The agent who finds a buyer in a real estate transaction Answer- Sellers agent
Broker Bob uses money from the firms escrow account to pay the electrical bill. This
could be best described as Answer- Conversion (Conversion is another word for
stealing)
A latent defect can be best described as Answer- Not plainly visible
A clause requiring commission to be paid even if the property is sold AFTER the listing
agreement expires is known as a Answer- Protection period clause
Rachel and Monica work for different brokers. One morning over coffee, Rachel
mentions that her broker has raised her commission to 7.5%. This can be considered
what type of violation? Answer- Antitrust
When is a broker/agent entitled to commission? Answer- When a ready, willing, and
able buyer is found on the terms accepted to the seller
Errors and omissions insurance cover all of the following except Answer- Fraud
(E&O) cover mistakes and negligence
What duties does an agent owe a customer? Answer- Fair dealing, Honesty, and
integrity
They only owe loyalty to their client
How long must a New York Broker maintain record of sales? Answer- 3 years for one
too four family dwellings
,3
What does an independent contractor receive at the end of the year that details his
compensation for the year? Answer- An independent contractor receives a 1099
MISC form detailing any commission based income
A common law independent contractor Answer- Is not subject to withholding
requirements (An independent contractor mus manage his taxes himself. His employee
does not withhold anything)
A commercial property has a first year gross operating income of $64,000 and
expenses of $12,000. If the capitalization rate for similar properties in the same area is
8% what is the estimate value? Answer- $650,000 (The formula for determining value
is Net Operating income 64,000-12,000=52,000 divded by the rate 8% 52,000/.08=
650,000
What would be considered external obsolescence? Answer- A home fronting on a
busy four-lane highway
(External Obsolescence is when something outside the control of the property makes it
less desirable. In this case, a high way.
When is the income approach best used? Answer- The income approach is a valuable
appraisal method when determining the value of an investment property
Paul is doing an appraisal for fannie mae. What is the minimum number of comps he
needs to consider when using the sales comparison approach? Answer- 3
Which appraisal report is required when processing a VA loan application? Answer-
Certificate of reasonable value
The accepted standards of ethics and appraisals practice are known as Answer-
USPAP (Uniform Standards Of Professional Appraisal Practice)
The first step of the appraisal process is to Answer- Define the appraisal also known
as stating the problem
Market price is Answer- The amount in dollars actually paid for the property
A quitclaim deed Answer- Is often used to clear clouds on a title (Is often used to clear
clouds on a title, comes with no warranties and is not transferable or court ordered)
Equitable title is Answer- An interest in real property created by the execution of a
valid sales contract
Which is not a guarantee that comes with a warranty deed? Answer- Guardian
Authority
, 4
A deed contains a guarantee that the grantor really owns the property. This is an
example of which covenant" Answer- Seizen (Seizen is the grantors guarantee that he
or she does own the property)
A new connector road needs to be built to relieve congestion that is causing many
accidents. The city purchases 20 houses and tears them down to build that road. The
act of taking the houses and tearing them down is called? Answer- Condemnation
(Condemnation or Appropriation is the actual act of taking private property for public
use. The right to take private property is eminent domain.)
What is not an example of the governments police power? Answer- Taxation (Police
power can take the form of land use controls, zoning laws, environmental protection
laws, eminent domain, and escheat. Taxation is a governmental revenue-generating
power.)
Lyle dies intestate. According to NY law, who would be the first in line to get Lyle's
estate? Answer- His wife, his children, then his ex wife.
Taking occurs when: Answer- The government acquires private property for public
use by appropriation without compensation to the land owner. (Taking differs from
eminent domain in that the government acquisition of private property for public use by
appropriation is done without compensation to the land owner)
Intestate VS Testate- Answer- Intestate is when a person dies without leaving a valid
will and without heirs, whereas testate is when a person dies leaving a will
When a planning board temporarily suspends the rights of property owners to obtain
development approvals while the local legislature considers the impact of new or
changing circumstances not adequately dealt with by current laws. This is known as
Answer- A moratorium ( A moratorium may be imposed by a planning board to allow
time to study a situation that involves land use regulation or rules)
A provision in a deed that limits the use of the property is known as Answer- Covenant
( A deed restriction also known as a restrictive covenant, is a provision placed in the
deed when the property is conveyed.)
Which is not a way in which zoning ordinances are typically enforced? Answer-
Federal government interventions ( Zoning is a local issue that is typically enforced
through building permits, zoning permits, occupancy, and use permits, or possibly
through the courts.)
Insurance coverage can be purchased by which of the following? Answer- Captive
agents, Direct writing companies, and independent agents
A temporary insurance contract formed by oral or written agreement between the
customer and the insurance company is called Answer- A binder
NYREI Exam Prep Questions and
Answers Latest 2023
2026 Solved
solved
A leasehold estate that continues for a successive periods of equal length until
terminated by proper notice from either party is a Answer- Periodic tenancy
Physical land and everything attached to it is called Answer- Real Estate
Equipment a tenant installs for use in his or her business is called Answer- Trade
fixture
The illegal practice of inducing homeowners to sell their homes (Usually at a deflated
price) by suggesting the ethinic or racial composition of the neighborhood Is changing,
with the implication that property values will decline is called Answer- Blockbusting
Loans that follow the criteria set by secondary markets are called Answer- Conforming
loans
A "Rule" that says an informed buyer will not pay more for one home than a comparable
one is Answer- Substitution
Funds offered as an indication of good faith regarding a future performance of a
purchase agreement is called Answer- Earnest money
Possession of property by a holdover tenant is Answer- Tenancy at sufferance
An agent authorized to do everything that can be lawfully delegated to be a
representative is a Answer- Universal agent
The relationship between the cost of borrowing money and the total amount financed is
Answer- APR
A revocable, non assignable permission to enter another persons land for a particular
purpose is Answer- License
Lease for which a landlord pays all property taxed, insurance ect Answer- Gross lease
Loan where the interest rate remains the same for the duration of the loan Answer-
Fixed rate loan
When something outside the control of a property makes it less desirable Answer-
Economic/External obsolescence
,2
An acre is a measure of a land area that is equal to Answer- 43,560 feet
A title that is free and clear from undisclosed encumbrances or other defects that would
expose a purchaser to litigation or to impede a purchasers ability to enjoy the property
or to later sell the property Answer- Marketable title
A right that goes along with the ownership of real property Answer- Appurtenance
A financial encumbrance on the owners title is called a Answer- Lien
A written agency between a seller and broker is a Answer- Listing
The effect when a loan balance grows because of a differed interest when payments
are not covering the interest portion of the loan are called Answer- Negative
Amortization
The agent who finds a buyer in a real estate transaction Answer- Sellers agent
Broker Bob uses money from the firms escrow account to pay the electrical bill. This
could be best described as Answer- Conversion (Conversion is another word for
stealing)
A latent defect can be best described as Answer- Not plainly visible
A clause requiring commission to be paid even if the property is sold AFTER the listing
agreement expires is known as a Answer- Protection period clause
Rachel and Monica work for different brokers. One morning over coffee, Rachel
mentions that her broker has raised her commission to 7.5%. This can be considered
what type of violation? Answer- Antitrust
When is a broker/agent entitled to commission? Answer- When a ready, willing, and
able buyer is found on the terms accepted to the seller
Errors and omissions insurance cover all of the following except Answer- Fraud
(E&O) cover mistakes and negligence
What duties does an agent owe a customer? Answer- Fair dealing, Honesty, and
integrity
They only owe loyalty to their client
How long must a New York Broker maintain record of sales? Answer- 3 years for one
too four family dwellings
,3
What does an independent contractor receive at the end of the year that details his
compensation for the year? Answer- An independent contractor receives a 1099
MISC form detailing any commission based income
A common law independent contractor Answer- Is not subject to withholding
requirements (An independent contractor mus manage his taxes himself. His employee
does not withhold anything)
A commercial property has a first year gross operating income of $64,000 and
expenses of $12,000. If the capitalization rate for similar properties in the same area is
8% what is the estimate value? Answer- $650,000 (The formula for determining value
is Net Operating income 64,000-12,000=52,000 divded by the rate 8% 52,000/.08=
650,000
What would be considered external obsolescence? Answer- A home fronting on a
busy four-lane highway
(External Obsolescence is when something outside the control of the property makes it
less desirable. In this case, a high way.
When is the income approach best used? Answer- The income approach is a valuable
appraisal method when determining the value of an investment property
Paul is doing an appraisal for fannie mae. What is the minimum number of comps he
needs to consider when using the sales comparison approach? Answer- 3
Which appraisal report is required when processing a VA loan application? Answer-
Certificate of reasonable value
The accepted standards of ethics and appraisals practice are known as Answer-
USPAP (Uniform Standards Of Professional Appraisal Practice)
The first step of the appraisal process is to Answer- Define the appraisal also known
as stating the problem
Market price is Answer- The amount in dollars actually paid for the property
A quitclaim deed Answer- Is often used to clear clouds on a title (Is often used to clear
clouds on a title, comes with no warranties and is not transferable or court ordered)
Equitable title is Answer- An interest in real property created by the execution of a
valid sales contract
Which is not a guarantee that comes with a warranty deed? Answer- Guardian
Authority
, 4
A deed contains a guarantee that the grantor really owns the property. This is an
example of which covenant" Answer- Seizen (Seizen is the grantors guarantee that he
or she does own the property)
A new connector road needs to be built to relieve congestion that is causing many
accidents. The city purchases 20 houses and tears them down to build that road. The
act of taking the houses and tearing them down is called? Answer- Condemnation
(Condemnation or Appropriation is the actual act of taking private property for public
use. The right to take private property is eminent domain.)
What is not an example of the governments police power? Answer- Taxation (Police
power can take the form of land use controls, zoning laws, environmental protection
laws, eminent domain, and escheat. Taxation is a governmental revenue-generating
power.)
Lyle dies intestate. According to NY law, who would be the first in line to get Lyle's
estate? Answer- His wife, his children, then his ex wife.
Taking occurs when: Answer- The government acquires private property for public
use by appropriation without compensation to the land owner. (Taking differs from
eminent domain in that the government acquisition of private property for public use by
appropriation is done without compensation to the land owner)
Intestate VS Testate- Answer- Intestate is when a person dies without leaving a valid
will and without heirs, whereas testate is when a person dies leaving a will
When a planning board temporarily suspends the rights of property owners to obtain
development approvals while the local legislature considers the impact of new or
changing circumstances not adequately dealt with by current laws. This is known as
Answer- A moratorium ( A moratorium may be imposed by a planning board to allow
time to study a situation that involves land use regulation or rules)
A provision in a deed that limits the use of the property is known as Answer- Covenant
( A deed restriction also known as a restrictive covenant, is a provision placed in the
deed when the property is conveyed.)
Which is not a way in which zoning ordinances are typically enforced? Answer-
Federal government interventions ( Zoning is a local issue that is typically enforced
through building permits, zoning permits, occupancy, and use permits, or possibly
through the courts.)
Insurance coverage can be purchased by which of the following? Answer- Captive
agents, Direct writing companies, and independent agents
A temporary insurance contract formed by oral or written agreement between the
customer and the insurance company is called Answer- A binder
