Free New York Real Estate Practice Test (2026) — LicenseIQ

Question 1

Before commencing foreclosure on a home loan, a New York lender must send the borrower a pre-foreclosure notice at least how many days in advance?

Accepted Answer

RPAPL §1304 requires a 90-day pre-foreclosure notice, including a list of housing counseling agencies.

Question 2

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 3

A New York condominium unit owner holds:

Accepted Answer

Under the Condominium Act (RPL Article 9-B), a condo is real property. The owner holds title to the unit and an undivided percentage interest in the common elements.

Question 4

The minimum down payment typically required on an FHA-insured loan is as low as:

Accepted Answer

FHA allows down payments as low as 3.5%. Zero down is associated with VA and USDA loans.

Question 5

An owner of lakefront property holds:

Accepted Answer

Littoral rights apply to properties abutting standing bodies of water such as lakes and oceans. (Reclassified from section 16 to section 1 / CORE.)

Question 6

The cost approach is MOST useful for:

Accepted Answer

The cost approach suits new or special-purpose properties (schools, churches, government buildings) that lack comparable sales or income.

Question 7

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Question 8

When a seller changes a term of the buyer's offer and returns it, this creates a:

Accepted Answer

Altering any term rejects the original offer and creates a counteroffer, which the buyer may accept or reject.

Question 9

A candidate passed the New York salesperson exam. How long is a passing result valid for applying for the license?

Accepted Answer

The DOS states that passing exam results are valid for two years. A candidate who waits longer must retake the exam. The 'indefinitely' distractor confuses the exam result with completed qualifying coursework, which does not expire once applied to a license.

Question 10

A buyer's 10-day inspection contingency expires without the buyer acting on serious issues found in the report. The buyer generally:

Accepted Answer

Contingencies have deadlines; once the period lapses without action, the buyer's protection on that item ends.

Question 11

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 12

An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

Accepted Answer

Profit = $36,000; $36,000 / $180,000 (cost) = 20%. Dividing by the sale price ($216,000) would give 16.7%.

Question 13

Which form is filed with a New York deed to report and pay the State real estate transfer tax?

Accepted Answer

The TP-584 is the combined real estate transfer tax return. The RP-5217 is the Real Property Transfer Report, which provides sales data, not the transfer tax.

Question 14

A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

Accepted Answer

Down payment = $60,000; 1 point = $240,000 x 0.01 = $2,400; total = $60,000 + $2,400 + $450 + $1,800 = $64,650; minus $10,000 earnest money = $54,650.

Question 15

A buyer earns $8,000 per month gross. Using a 28% front-end ratio, what is the maximum monthly housing payment (PITI)?

Accepted Answer

$8,000 x 0.28 = $2,240. $2,880 uses the 36% back-end ratio.

Question 16

On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

Accepted Answer

Only the seller completes the form, reporting what is known and stating when something is unknown; guessing creates liability.

Question 17

How many hours of approved qualifying education must a New York salesperson applicant complete?

Accepted Answer

The current salesperson qualifying course is 77 hours (RPL §441(1-A)(d)). Seventy-five hours was the old course length. Applicants who took it must add a 2-hour fair housing and/or implicit bias course. 152 hours is the broker total.

Question 18

Before a sponsor may offer new condominium units for sale in New York, the offering plan must be:

Accepted Answer

Under General Business Law §352-e (the Martin Act), cooperative and condominium offering plans must be filed with and accepted for filing by the Attorney General before units are offered.

Question 19

Which is a lawful source of income that New York landlords and brokers must treat equally with wages?

Accepted Answer

NYSDHR guidance lists child support, alimony, foster care subsidies, Social Security, public assistance and housing assistance as protected lawful income. Providers may still verify income and decline unlawful or unverifiable funds.

Question 20

A new highway interchange built next to a residential subdivision lowers home values. This is:

Accepted Answer

Loss in value caused by factors outside the property boundaries is external obsolescence.

Question 21

Who sets the maximum annual increases for rent-stabilized lease renewals in New York City?

Accepted Answer

The Rent Guidelines Board votes each year on allowable increases for one- and two-year renewal leases. DHCR administers the system but does not set the annual guidelines.

Question 22

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 23

A modest home located among larger, more expensive homes tends to increase in value due to the principle of:

Accepted Answer

Progression: a lower-value property benefits from surrounding higher-value properties. Regression is the opposite effect on the most expensive home.

Question 24

What is the New York State transfer tax on a sale price of $350,250?

Accepted Answer

Count each $500 or fraction thereof: 350,250 ÷ 500 = 700.5, which rounds up to 701 units. 701 × $2 = $1,402. Dropping the fraction gives the $1,400 distractor.

Question 25

A buyer considers it important to know whether any death occurred in a home. Under RPL §443-a, the proper procedure is for the buyer to:

Accepted Answer

Section 443-a(3) lets a buyer for whom such facts matter submit a written inquiry during negotiations. The seller decides whether to respond, and the seller's agent reports any response, subject to privacy law.

New York real estate practice test

1. Before commencing foreclosure on a home loan, a New York lender must send the borrower a pre-foreclosure notice at least how many days in advance?

2. An agent authorized to perform a single specific act for a principal is a:

3. A New York condominium unit owner holds:

4. The minimum down payment typically required on an FHA-insured loan is as low as:

5. An owner of lakefront property holds:

6. The cost approach is MOST useful for:

7. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

8. When a seller changes a term of the buyer's offer and returns it, this creates a:

9. A candidate passed the New York salesperson exam. How long is a passing result valid for applying for the license?

10. A buyer's 10-day inspection contingency expires without the buyer acting on serious issues found in the report. The buyer generally:

11. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

12. An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

13. Which form is filed with a New York deed to report and pay the State real estate transfer tax?

14. A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

15. A buyer earns $8,000 per month gross. Using a 28% front-end ratio, what is the maximum monthly housing payment (PITI)?

16. On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

17. How many hours of approved qualifying education must a New York salesperson applicant complete?

18. Before a sponsor may offer new condominium units for sale in New York, the offering plan must be:

19. Which is a lawful source of income that New York landlords and brokers must treat equally with wages?

20. A new highway interchange built next to a residential subdivision lowers home values. This is:

21. Who sets the maximum annual increases for rent-stabilized lease renewals in New York City?

22. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

23. A modest home located among larger, more expensive homes tends to increase in value due to the principle of:

24. What is the New York State transfer tax on a sale price of $350,250?

25. A buyer considers it important to know whether any death occurred in a home. Under RPL §443-a, the proper procedure is for the buyer to:

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