NYS REAL ESTATE EXAM QUESTIONS AND ANSWERS .Buy
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Which of the following statements on leasehold estates are true?
a. A leasehold estate is for a limited time.
b. A leasehold estate grants possession, but not title.
c. A and B are true
d. Neither A nor B are true
c. A and B are true
Which of the following is not an essential element of a lease?
a. A formal, legal description of the property.
b. A lease term
c. A clause addressing when the tenant is takes possession of the property.
d. Signatures of the lessee and lessor.
a. A formal, legal description of the property.
A developer wants to build single family homes, a few groupings of townhomes
and a small apartment building along with a small park with basketball courts and
walking trails. This is an example of what type of zoning?
a.Cluster zoning
b.Incentive zoning
c.Residential zoning
d.Commercial zoning
a.Cluster zoning
Cluster zoning is an example of multi-use zoning where a number of residential uses
are allowed in one zone. Typically, the builder places residences closer together in
exchange for leaving certain areas open and available to the community.
In eminent domain, what value is the owner entitled to as compensation for the
taking of real property?
a.Actual cost
b.Appraised value
c.Market value
d.Fair market value
d.Fair market value
In an appraisal of commercial property, which of the following criteria is used to
determine the properties highest and best use?
a. Physically possible
b. Financially feasible
c. Maximally productive
d. All of the above.
,d. All of the above.
Highest and best use refers to the use of the land that preserves its usefulness,
provides the greatest income and results in the highest property value. This is
particularly important with commercial properties. Evaluating what is legally allowable,
physically possible, maximally productive and financially feasible are all tests that must
be considered.
In 1988, the Federal Fair Housing Act was amended to include the following
protected class:
a. Familial status and mental and physical disability
b. Race or Color
c. Sex
d. Religion and national origin
a. Familial status and mental and physical disability
NYSDOS regulations require New York real estate licensees complete ______
hour(s) of approved continuing education in fair housing _______.
a. 1 hour; annually
b. 1 hour; every 2 years
c. 3 hours; annually
d. 3 hours; every 2 years
d. 3 hours; every 2 years
Active income, as defined by the IRS, includes:
a. Interest income
b. Commissions
c. Gain from sale of assets
d. Dividend income.
b. Commissions
What is a Realized gain?
a gain earned by selling an asset at a price higher than the original purchase price.
When an asset is sold at a higher price than its original purchase price, a realized
gain is achieved
To calculate realized gain, you must
:a. Add the selling expenses to the adjusted basis.
b. Subtract the capital improvements from the sale price.
c. Subtract the adjusted basis from the sale price, less selling expenses.
d. Add adjusted basis, sale price and selling expenses.
c. Subtract the adjusted basis from the sale price, less selling expenses.
In limited liability companies, the owners:
a. are not personally liable for the obligations of the business.
b.are only personally liable for some of the company's debts.
, c. have limited management responsibility of the company.
d. are personally responsible for any business debts.
a. are not personally liable for the obligations of the business.
In residential construction, a framing member that supports the structure over
door and window openings:
a. Sill plate
b. Beam
c. Rafter
d. Header
d. Header
In which type of insurance policy does the insurer bear the burden to prove that a
cause of loss is excluded from coverage?
a. A named peril policy
b. An all-risk or open perils policy
c. Commercial property insurance
d. Homeowner's insurance
b. An all-risk or open perils policy
An insurance company bears the burden to prove that a specific cause of loss is
excluded under an all-risk or open perils insurance policy. An all-risk or open perils
policy covers all risks of loss except for those specifically excluded. On the other hand,
a named peril policy provides coverage for only causes of loss listed in the policy. So, if
there is a loss under a named peril policy, the insured has the burden to show the cause
of loss is a named peril or within the terms of the policy.
Which of the following statements about cooperatives is not accurate?
a. An owner gets a title transferred by deed.
b. Title to the property is shown in the deed as the name of the cooperation.
c. Members who participate have an equal share in governing the property.
d. Title is transferred through shares.
a. An owner gets a title transferred by deed.
The person who receives mortgage payments from a borrower including amounts
for escrow is a:
a. Mortgage Loan Originator
b. Mortgage Broker
c. Real Estate Agent
d. Mortgage Loan Servicer
d. Mortgage Loan Servicer
In New York, real estate licenses are under the supervision of the
A. Department of Education
B. Real Estate Commission
C. Board of REALTORS
D. Department of State
Quality Materials
Which of the following statements on leasehold estates are true?
a. A leasehold estate is for a limited time.
b. A leasehold estate grants possession, but not title.
c. A and B are true
d. Neither A nor B are true
c. A and B are true
Which of the following is not an essential element of a lease?
a. A formal, legal description of the property.
b. A lease term
c. A clause addressing when the tenant is takes possession of the property.
d. Signatures of the lessee and lessor.
a. A formal, legal description of the property.
A developer wants to build single family homes, a few groupings of townhomes
and a small apartment building along with a small park with basketball courts and
walking trails. This is an example of what type of zoning?
a.Cluster zoning
b.Incentive zoning
c.Residential zoning
d.Commercial zoning
a.Cluster zoning
Cluster zoning is an example of multi-use zoning where a number of residential uses
are allowed in one zone. Typically, the builder places residences closer together in
exchange for leaving certain areas open and available to the community.
In eminent domain, what value is the owner entitled to as compensation for the
taking of real property?
a.Actual cost
b.Appraised value
c.Market value
d.Fair market value
d.Fair market value
In an appraisal of commercial property, which of the following criteria is used to
determine the properties highest and best use?
a. Physically possible
b. Financially feasible
c. Maximally productive
d. All of the above.
,d. All of the above.
Highest and best use refers to the use of the land that preserves its usefulness,
provides the greatest income and results in the highest property value. This is
particularly important with commercial properties. Evaluating what is legally allowable,
physically possible, maximally productive and financially feasible are all tests that must
be considered.
In 1988, the Federal Fair Housing Act was amended to include the following
protected class:
a. Familial status and mental and physical disability
b. Race or Color
c. Sex
d. Religion and national origin
a. Familial status and mental and physical disability
NYSDOS regulations require New York real estate licensees complete ______
hour(s) of approved continuing education in fair housing _______.
a. 1 hour; annually
b. 1 hour; every 2 years
c. 3 hours; annually
d. 3 hours; every 2 years
d. 3 hours; every 2 years
Active income, as defined by the IRS, includes:
a. Interest income
b. Commissions
c. Gain from sale of assets
d. Dividend income.
b. Commissions
What is a Realized gain?
a gain earned by selling an asset at a price higher than the original purchase price.
When an asset is sold at a higher price than its original purchase price, a realized
gain is achieved
To calculate realized gain, you must
:a. Add the selling expenses to the adjusted basis.
b. Subtract the capital improvements from the sale price.
c. Subtract the adjusted basis from the sale price, less selling expenses.
d. Add adjusted basis, sale price and selling expenses.
c. Subtract the adjusted basis from the sale price, less selling expenses.
In limited liability companies, the owners:
a. are not personally liable for the obligations of the business.
b.are only personally liable for some of the company's debts.
, c. have limited management responsibility of the company.
d. are personally responsible for any business debts.
a. are not personally liable for the obligations of the business.
In residential construction, a framing member that supports the structure over
door and window openings:
a. Sill plate
b. Beam
c. Rafter
d. Header
d. Header
In which type of insurance policy does the insurer bear the burden to prove that a
cause of loss is excluded from coverage?
a. A named peril policy
b. An all-risk or open perils policy
c. Commercial property insurance
d. Homeowner's insurance
b. An all-risk or open perils policy
An insurance company bears the burden to prove that a specific cause of loss is
excluded under an all-risk or open perils insurance policy. An all-risk or open perils
policy covers all risks of loss except for those specifically excluded. On the other hand,
a named peril policy provides coverage for only causes of loss listed in the policy. So, if
there is a loss under a named peril policy, the insured has the burden to show the cause
of loss is a named peril or within the terms of the policy.
Which of the following statements about cooperatives is not accurate?
a. An owner gets a title transferred by deed.
b. Title to the property is shown in the deed as the name of the cooperation.
c. Members who participate have an equal share in governing the property.
d. Title is transferred through shares.
a. An owner gets a title transferred by deed.
The person who receives mortgage payments from a borrower including amounts
for escrow is a:
a. Mortgage Loan Originator
b. Mortgage Broker
c. Real Estate Agent
d. Mortgage Loan Servicer
d. Mortgage Loan Servicer
In New York, real estate licenses are under the supervision of the
A. Department of Education
B. Real Estate Commission
C. Board of REALTORS
D. Department of State
