NY REAL ESTATE EXAM (NEWEST EXAM 2025/2026 UPDATE) COMPLETE TEST QUESTIONS WITH CORRECT VERIFIED SOLUTIONS||A+ GRADED!!!

NY REAL ESTATE EXAM (NEWEST EXAM 2025/2026 UPDATE) COMPLETE TEST QUESTIONS WITH CORRECT VERIFIED SOLUTIONS||A+ GRADED!!! 1) one square mile - ANSWER 640 acres 2) Replacement cost - ANSWER how much it costs to rebuilt the property vs. reproduction cost for custom built homes 3) NYPIUA - ANSWER New York Property Insurance Underwriting Association Government no frills insurance policy - covers residential and commercial 4) FEMA - ANSWER National Flood Insurance Program 5) Deductibles - ANSWER their purpose is to avoid nuisance claims 6) Umbrella policy - ANSWER second policy after a first police uses primary as deductible before they kick in 7) Purpose of taxation - ANSWER pay for services we receive, such as the police 8) Exempt properties - ANSWER government, schools, library partially exempt: veterans, elderly 9) Assessed value - ANSWER government calculation of a property to keep taxes down 10) Special assessments - ANSWER added tax to RE tax bill = shared by a street 11) Tax grievances process - ANSWER 1. meet with the assessor 2. Board of assessment review 3. Supreme court 12) Tax levy - ANSWER money that is needed to run a geographical area after we get handouts from the feds or the state 13) Assessment role - ANSWER total of all the assessment values put together total of properties 14) Assessing unit - ANSWER geographical unit responsible for our own budget 15) Tax rate - ANSWER role divided by the levy should give you the tax rate 16) Co-op - ANSWER leasehold estate personal property shares of stock, owning with a building long term lease tenant shareholder; rent out to sublease 17) Condo - ANSWER real property (deed) 18) sponsor - ANSWER usually person who developed condo for sale after all are sold, board of directors are in charge 19) Real estate investment - ANSWER return of $$$ 20) Risk - ANSWER put money in, home to make a profit cash flow profit when selling 21) Rate of return - ANSWER depends on income 22) Liquidity - ANSWER Real estate is not liquid; cant be changed to cash immediately selling process 23) Types of investment properties - ANSWER multi family (apt building) office (business) industrial (warehouses) retail (stores) health care (hospitals, dr. offices) 24) Commercial leasing - ANSWER lease by square feet (always calculated by year) 25) Gross lease - ANSWER tenant pays rent and owner pays for everything else (like an apartment) 26) Net lease - ANSWER Tenant agrees to pay some or all of the landlord's expenses 27) Percentage lease - ANSWER used in shopping malls profit sharing after a certain point 28) sub lease - ANSWER finding a tenant when you are still the tenant 29) Capital gains tax - ANSWER not for primary residence but for investment property 30) Active income - ANSWER physical work, salaru 31) Passive income - ANSWER stock dividends, investment 32) 1031 tax exchange - ANSWER defer payment on capital gains 33) Tax depriciation - ANSWER loss of value deduct every year for loss of value - 27.5 years for residential investment - 39 years for commercial investment 34) property management - ANSWER agent to take care of property as if they own it need brokers license to manage charge a flat fee or percentage of rent collected 35) insurance and risk management - ANSWER has to make sure property is insured against lawsuits 36) types of property for management - ANSWER office building management retail property management residential property management 37) Operating statement - ANSWER send report to landlord 38) maintenance criteria - ANSWER preventative maintenance (saves money in long run) corrective maintenance (lose money) 39) Which of the following is considered a fixed operating expense? utilities, cleaning expenses, insurance premiums, management fees. - ANSWER Insurance Premiums 40) What is overage rent? - ANSWER Rent calculated on a percentage of sales volume 41) what is the amount a buyer owes at closing equal to? - ANSWER The excess of the buyers debits over the buyers credits 42) real estate agents are typically what kind of agent - ANSWER special agent 43) what is the employment contract between a property manager and owner called - ANSWER management agreement 44) the first fine for a violation of federal fair housing law could be as much as what amount - ANSWER 10,000 45) what is a feature of a deed condition - ANSWER it gives the grantor the right to re possess the property if the grantee violates the condition 46) according to truth in lending, a lender must disclose all of the following except service charges points loan origination fee brokers commission - ANSWER brokers commission 47) if a landlord terminates a lease illegally what type of suit would a tenant file to comply with violated terms - ANSWER specific performance 48) what must a listing agent do before entering into a cooperative agreement creating a subagency - ANSWER obtain the informed consent of the seller 49) what is the minimum period of time over which the owner of an apartment building can depreciate the improvements? - ANSWER 27.5 years 50) who pays the real estate taxes for a condominium - ANSWER condominium owner 51) which type of property usually has the longest lease term - ANSWER industrial 52) what is a policy that protects against claims above and beyond the amount covered by primary policies - ANSWER umbrella 53) what is the amount of the surety bond that a mortgage broker must furnish when applying for licensure in NYS - ANSWER 10,000 54) A section contains how many acres - ANSWER 640 55) seller will retain title to the property until buyer has paid in full. what kind of contract do seller and buyer have? - ANSWER land contract 56) who are the essential parties involved in an estate in trust - ANSWER trustor trustee and beneficiary 57) Allison is moving into a new condo. which of these documents does not apply to her purchase - ANSWER stock certificate 58) what is the difference between a balloon loan and an amortized loan - ANSWER an amortized loan is paid off by the end of the term 59) a daycare center is allowed to open in a residentially zoned area. what is this an example of - ANSWER special use permit 60) which of these cities is the board not required to hold a public hearing each year? Albany buffalo NYC Rochester - ANSWER Rocha Chacha 61) in which of these places is asbestos not likely to be found? roofing, adhesives in pressed wood, textured paint, vinyl floor tiles - ANSWER adhesives in pressed wood 62) which law extended discrimination to include handicap and familial status - ANSWER fair housing amendment act 63) what is an emblement? - ANSWER A plant or crop that is considered personal property 64) which of the following statements about plumbing venting is true - ANSWER venting is not required for structures taller than 2 stories. 65) which statement is not true? mold often grows where it can't be seen, of all environmetnal hazards, radon is the easiest to detect and mitigate, underground storage tanks pose no hazard to residential areas, urea formaldehyde foam insulation is no longer used because of formaldehyde gas emission - ANSWER underground storage tanks pose no hazard to residential areas 66) what is required for a title to be marketable? it must be registered in torrens, it must be free of undisclosed defects and encumbrances, it must be abstracted by and attorney, it must be guaranteed by a title certificate. - ANSWER int must be free of undisclosed defects and encumbrances 67) a loan company was referring loan applicants to a particular insurance company, which in turn paid the loan company a referral fee. this is... - ANSWER illegal, since the real estate settlement procedures act prohibits kickbacks 68) the seller under a land contract is known as - ANSWER the vendor 69) a point, line or surface from which elevations are measured is known as the - ANSWER datum 70) earnest money is provided when - ANSWER the offer to purchase real estate is made 71) madison davidson negotiated for a 30k loan with 200 dollar monthly payments plus 9 percent interest. what is the payment on her first month? - ANSWER 225 72) the tax rate in manatee county is 35 mills how much is this for every 1k of assessed value? - ANSWER 35. ( a mill is one one thousandth of a dollar. a tax rate of one mill means that the owner pays one dollar for every thousand dollars of assessed value. 35 mills is 35 dollars for every 1000 dollars assessed