NYS Real Estate U Final Exam 2026 | Verified
Questions & Correct Answers | Complete
Exam Prep Study Guide
• This study guide contains 200 verified multiple-choice questions covering all major
topics tested on the NYS Real Estate licensing exam — use it by reading each
question, selecting your answer, then checking the highlighted correct answer and
EXPERT RATIONALE to reinforce understanding.
• Each question follows a consistent format with 5 options (A–E), a clearly marked
correct answer, and a EXPERT RATIONALE — making it ideal for timed practice,
weak-area review, or full exam simulation.
1. Under New York State law, which of the following best describes a "real
property"?
A. Personal belongings of a homeowner
B. Stocks and bonds tied to real estate companies
C. Mortgage notes held by a lender
D. A car parked permanently on a lot
E. Land and anything permanently attached to it
Correct Answer: E. Land and anything permanently attached to it
EXPERT RATIONALE: Real property includes land and all permanent
attachments such as buildings, fences, and fixtures. Personal property (chattels) is
excluded from this definition under NYS law.
2. A real estate salesperson in New York must work under the supervision of:
A. The Department of State directly
B. Any licensed attorney
C. A certified appraiser
D. A licensed home inspector
,E. A licensed real estate broker
Correct Answer: E. A licensed real estate broker
EXPERT RATIONALE: NYS law requires all licensed salespersons to be affiliated
with and supervised by a licensed real estate broker. They cannot operate
independently.
3. Which of the following is an example of an economic characteristic of land?
A. Immobility
B. Indestructibility
C. Uniqueness
D. Scarcity
E. Homogeneity
Correct Answer: D. Scarcity
EXPERT RATIONALE: The four economic characteristics of land are scarcity,
improvements, permanence of investment, and area preference (situs). Immobility,
indestructibility, and uniqueness are physical characteristics.
4. The term "bundle of rights" in real estate refers to:
A. A collection of mortgage documents
B. Rights granted only to commercial property owners
C. Rights held exclusively by the government
D. A group of easements on a property
E. The set of legal rights held by a property owner including use, enjoyment,
and disposition
Correct Answer: E. The set of legal rights held by a property owner including
use, enjoyment, and disposition
, EXPERT RATIONALE: The bundle of rights includes the right to use, enjoy,
exclude others, and transfer property. These rights are fundamental to property
ownership under real estate law.
5. Which type of ownership allows a surviving co-owner to automatically
inherit the deceased owner's share?
A. Tenancy in common
B. Tenancy by the entirety only
C. Sole ownership
D. Corporate ownership
E. Joint tenancy with right of survivorship
Correct Answer: E. Joint tenancy with right of survivorship
EXPERT RATIONALE: Joint tenancy includes the right of survivorship, meaning a
deceased owner's share passes automatically to the surviving joint tenant(s),
bypassing probate.
6. Under New York law, tenancy by the entirety is available to:
A. Business partners
B. Adult siblings only
C. Any two people who co-own property
D. Three or more joint tenants
E. Married couples only
Correct Answer: E. Married couples only
EXPERT RATIONALE: Tenancy by the entirety is a special form of co-ownership
reserved exclusively for married couples in New York. It includes right of
survivorship and protection from individual creditors.
, 7. A fixture is best described as:
A. A piece of furniture regularly moved by the owner
B. Any item listed in a sales contract
C. Personal property that has no value
D. A temporary structure on leased land
E. Personal property that has been permanently attached to real property
Correct Answer: E. Personal property that has been permanently attached to
real property
EXPERT RATIONALE: When personal property is permanently attached to land
or a building, it becomes a fixture and is considered real property. Examples
include built-in cabinets and ceiling fans.
8. The PETE acronym in real estate refers to which government powers?
A. Property, Equity, Title, Encumbrance
B. Purchase, Easement, Transfer, Entitlement
C. Planning, Eminent domain, Taxation, Escheat
D. Possession, Enjoyment, Transfer, Exclusion
E. Police power, Eminent domain, Taxation, Escheat
Correct Answer: E. Police power, Eminent domain, Taxation, Escheat
EXPERT RATIONALE: PETE represents the four government powers that limit
private property rights: Police power (zoning/building codes), Eminent domain
(condemnation), Taxation, and Escheat (property reverts to state when owner dies
without heirs or a will).
9. Eminent domain is the government's right to:
Questions & Correct Answers | Complete
Exam Prep Study Guide
• This study guide contains 200 verified multiple-choice questions covering all major
topics tested on the NYS Real Estate licensing exam — use it by reading each
question, selecting your answer, then checking the highlighted correct answer and
EXPERT RATIONALE to reinforce understanding.
• Each question follows a consistent format with 5 options (A–E), a clearly marked
correct answer, and a EXPERT RATIONALE — making it ideal for timed practice,
weak-area review, or full exam simulation.
1. Under New York State law, which of the following best describes a "real
property"?
A. Personal belongings of a homeowner
B. Stocks and bonds tied to real estate companies
C. Mortgage notes held by a lender
D. A car parked permanently on a lot
E. Land and anything permanently attached to it
Correct Answer: E. Land and anything permanently attached to it
EXPERT RATIONALE: Real property includes land and all permanent
attachments such as buildings, fences, and fixtures. Personal property (chattels) is
excluded from this definition under NYS law.
2. A real estate salesperson in New York must work under the supervision of:
A. The Department of State directly
B. Any licensed attorney
C. A certified appraiser
D. A licensed home inspector
,E. A licensed real estate broker
Correct Answer: E. A licensed real estate broker
EXPERT RATIONALE: NYS law requires all licensed salespersons to be affiliated
with and supervised by a licensed real estate broker. They cannot operate
independently.
3. Which of the following is an example of an economic characteristic of land?
A. Immobility
B. Indestructibility
C. Uniqueness
D. Scarcity
E. Homogeneity
Correct Answer: D. Scarcity
EXPERT RATIONALE: The four economic characteristics of land are scarcity,
improvements, permanence of investment, and area preference (situs). Immobility,
indestructibility, and uniqueness are physical characteristics.
4. The term "bundle of rights" in real estate refers to:
A. A collection of mortgage documents
B. Rights granted only to commercial property owners
C. Rights held exclusively by the government
D. A group of easements on a property
E. The set of legal rights held by a property owner including use, enjoyment,
and disposition
Correct Answer: E. The set of legal rights held by a property owner including
use, enjoyment, and disposition
, EXPERT RATIONALE: The bundle of rights includes the right to use, enjoy,
exclude others, and transfer property. These rights are fundamental to property
ownership under real estate law.
5. Which type of ownership allows a surviving co-owner to automatically
inherit the deceased owner's share?
A. Tenancy in common
B. Tenancy by the entirety only
C. Sole ownership
D. Corporate ownership
E. Joint tenancy with right of survivorship
Correct Answer: E. Joint tenancy with right of survivorship
EXPERT RATIONALE: Joint tenancy includes the right of survivorship, meaning a
deceased owner's share passes automatically to the surviving joint tenant(s),
bypassing probate.
6. Under New York law, tenancy by the entirety is available to:
A. Business partners
B. Adult siblings only
C. Any two people who co-own property
D. Three or more joint tenants
E. Married couples only
Correct Answer: E. Married couples only
EXPERT RATIONALE: Tenancy by the entirety is a special form of co-ownership
reserved exclusively for married couples in New York. It includes right of
survivorship and protection from individual creditors.
, 7. A fixture is best described as:
A. A piece of furniture regularly moved by the owner
B. Any item listed in a sales contract
C. Personal property that has no value
D. A temporary structure on leased land
E. Personal property that has been permanently attached to real property
Correct Answer: E. Personal property that has been permanently attached to
real property
EXPERT RATIONALE: When personal property is permanently attached to land
or a building, it becomes a fixture and is considered real property. Examples
include built-in cabinets and ceiling fans.
8. The PETE acronym in real estate refers to which government powers?
A. Property, Equity, Title, Encumbrance
B. Purchase, Easement, Transfer, Entitlement
C. Planning, Eminent domain, Taxation, Escheat
D. Possession, Enjoyment, Transfer, Exclusion
E. Police power, Eminent domain, Taxation, Escheat
Correct Answer: E. Police power, Eminent domain, Taxation, Escheat
EXPERT RATIONALE: PETE represents the four government powers that limit
private property rights: Police power (zoning/building codes), Eminent domain
(condemnation), Taxation, and Escheat (property reverts to state when owner dies
without heirs or a will).
9. Eminent domain is the government's right to:
