Real Estate License Exam New York 2026 May Update Real
Questions & Answers (Broker Pack) Most Asked 100
Questions And Verified Answers | A+ Success Kit”
CASE BASED QUESTIONS
1. A buyer signs a contract to purchase a property in Brooklyn, NY. The contract includes
an inspection contingency. The inspection reveals major structural issues. What is the
buyer’s most appropriate legal option?
A. Must proceed with purchase
B. Cancel the contract without penalty
C. Forfeit deposit automatically
D. Force seller to repair without negotiation
The inspection contingency allows the buyer to withdraw if material defects are found,
protecting the deposit.
2. A real estate broker in New York receives an earnest money deposit from a buyer. What
must the broker do immediately?
A. Deposit into personal account
B. Hold until closing without record
C. Place in a separate escrow account
D. Give it to the seller
NY law requires earnest money to be held in a designated escrow account separate from business
funds.
3. A seller accepts an offer but later receives a higher bid before closing. The seller attempts
to cancel the first contract. What is true?
A. Seller can cancel anytime
B. Seller is legally bound to the first contract
C. Higher offer automatically replaces first
D. Broker decides which offer stands
Once a valid contract is executed, it is legally binding regardless of higher offers.
4. A broker represents both buyer and seller in the same transaction in New York without
disclosure. This is:
A. Legal dual agency
B. Standard practice
C. Illegal without informed consent
D. Encouraged for efficiency
Dual agency must be disclosed and agreed to by both parties in writing.
, 5. A tenant complains about unsafe living conditions. The landlord refuses repairs. Which
agency enforces housing standards in NYC?
A. IRS
B. FBI
C. NYC Department of Housing Preservation and Development (HPD)
D. SEC
HPD enforces housing safety and habitability standards.
PRACTICAL QUESTIONS
6. What is the standard duration of a real estate salesperson license in New York?
A. 1 year
B. 2 years
C. 2 years
D. 5 years
NY salesperson licenses must be renewed every two years.
7. Which document is required before a broker can collect commission?
A. Oral agreement
B. Property deed
C. Written brokerage agreement
D. Tax statement
Commission agreements must be in writing to be enforceable.
8. What type of ownership includes right of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Leasehold
D. Fee simple
Joint tenancy automatically transfers ownership upon death.
9. Which is NOT considered real property?
A. Land
B. Buildings
C. Fixtures
D. Furniture
Furniture is personal property, not real estate.
, 10. A broker misrepresents property details knowingly. This is:
A. Negligence
B. Honest mistake
C. Fraud
D. Appreciation
Intentional misrepresentation constitutes fraud.
11. The main purpose of zoning laws is to:
A. Set property prices
B. Regulate land use
C. Control mortgage rates
D. Manage taxes
Zoning controls how land can be used in specific areas.
12. Which clause protects lenders in mortgage agreements?
A. Escalation clause
B. Due-on-sale clause
C. Inspection clause
D. Option clause
Due-on-sale requires loan repayment when property is sold.
13. Which is a fiduciary duty of a broker?
A. Self-interest
B. Loyalty to client
C. Public disclosure only
D. Independent pricing
Brokers must prioritize client interests.
14. What does “escrow” mean?
A. Tax payment
B. Neutral holding of funds by third party
C. Loan approval
D. Property appraisal
Escrow ensures safe handling of transaction funds.
15. A property has a lien. This means:
A. It is rented
B. It is insured
Questions & Answers (Broker Pack) Most Asked 100
Questions And Verified Answers | A+ Success Kit”
CASE BASED QUESTIONS
1. A buyer signs a contract to purchase a property in Brooklyn, NY. The contract includes
an inspection contingency. The inspection reveals major structural issues. What is the
buyer’s most appropriate legal option?
A. Must proceed with purchase
B. Cancel the contract without penalty
C. Forfeit deposit automatically
D. Force seller to repair without negotiation
The inspection contingency allows the buyer to withdraw if material defects are found,
protecting the deposit.
2. A real estate broker in New York receives an earnest money deposit from a buyer. What
must the broker do immediately?
A. Deposit into personal account
B. Hold until closing without record
C. Place in a separate escrow account
D. Give it to the seller
NY law requires earnest money to be held in a designated escrow account separate from business
funds.
3. A seller accepts an offer but later receives a higher bid before closing. The seller attempts
to cancel the first contract. What is true?
A. Seller can cancel anytime
B. Seller is legally bound to the first contract
C. Higher offer automatically replaces first
D. Broker decides which offer stands
Once a valid contract is executed, it is legally binding regardless of higher offers.
4. A broker represents both buyer and seller in the same transaction in New York without
disclosure. This is:
A. Legal dual agency
B. Standard practice
C. Illegal without informed consent
D. Encouraged for efficiency
Dual agency must be disclosed and agreed to by both parties in writing.
, 5. A tenant complains about unsafe living conditions. The landlord refuses repairs. Which
agency enforces housing standards in NYC?
A. IRS
B. FBI
C. NYC Department of Housing Preservation and Development (HPD)
D. SEC
HPD enforces housing safety and habitability standards.
PRACTICAL QUESTIONS
6. What is the standard duration of a real estate salesperson license in New York?
A. 1 year
B. 2 years
C. 2 years
D. 5 years
NY salesperson licenses must be renewed every two years.
7. Which document is required before a broker can collect commission?
A. Oral agreement
B. Property deed
C. Written brokerage agreement
D. Tax statement
Commission agreements must be in writing to be enforceable.
8. What type of ownership includes right of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Leasehold
D. Fee simple
Joint tenancy automatically transfers ownership upon death.
9. Which is NOT considered real property?
A. Land
B. Buildings
C. Fixtures
D. Furniture
Furniture is personal property, not real estate.
, 10. A broker misrepresents property details knowingly. This is:
A. Negligence
B. Honest mistake
C. Fraud
D. Appreciation
Intentional misrepresentation constitutes fraud.
11. The main purpose of zoning laws is to:
A. Set property prices
B. Regulate land use
C. Control mortgage rates
D. Manage taxes
Zoning controls how land can be used in specific areas.
12. Which clause protects lenders in mortgage agreements?
A. Escalation clause
B. Due-on-sale clause
C. Inspection clause
D. Option clause
Due-on-sale requires loan repayment when property is sold.
13. Which is a fiduciary duty of a broker?
A. Self-interest
B. Loyalty to client
C. Public disclosure only
D. Independent pricing
Brokers must prioritize client interests.
14. What does “escrow” mean?
A. Tax payment
B. Neutral holding of funds by third party
C. Loan approval
D. Property appraisal
Escrow ensures safe handling of transaction funds.
15. A property has a lien. This means:
A. It is rented
B. It is insured
