Free New York Property Practice Test — LicenseIQ

Question 1

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 2

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 3

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 4

A Queens condo sells for $800,000. What is the NYC Real Property Transfer Tax?

Accepted Answer

For residential conveyances over $500,000, the RPTT is 1.425% of the entire price: 800,000 × 0.01425 = $11,400. The $8,000 distractor wrongly applies the 1% rate. The $4,275 distractor taxes only the amount above $500,000.

Question 5

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 6

A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

Accepted Answer

EGI = $240,000 - 8% = $220,800; value = $220,800 x 6 = $1,324,800.

Question 7

A title search is performed primarily to:

Accepted Answer

A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)

Question 8

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 9

The RP-5217 filed when a deed is recorded in New York is the:

Accepted Answer

The RP-5217 Real Property Transfer Report gives sale information to the state for assessment purposes. It is not a tax return or a disclosure form.

Question 10

The government's power to take private property for public use with just compensation is:

Accepted Answer

Eminent domain (exercised through condemnation) allows taking for public use with just compensation. Escheat applies when an owner dies without a will or heirs.

Question 11

A special warranty deed warrants title only against defects that:

Accepted Answer

Special (limited) warranty deeds protect only against problems created during the grantor's ownership; general warranty deeds cover the entire history.

Question 12

Under New York General Obligations Law §5-701(a)(10), an agreement to pay compensation for negotiating the purchase of real estate must be in writing EXCEPT when the claimant is:

Accepted Answer

GOL §5-701(a)(10) requires a written agreement for finder's or negotiation fees, but it expressly does not apply to licensed real estate brokers and salespersons, attorneys or auctioneers.

Question 13

A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

Accepted Answer

Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.

Question 14

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 15

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 16

A property is assessed at $200,000 and the tax rate is $2.50 per $100 of assessed value. What is the annual tax?

Accepted Answer

$200,000 / 100 = 2,000 units; 2,000 x $2.50 = $5,000.

Question 17

Under the Property Condition Disclosure Act, when must the seller deliver the Property Condition Disclosure Statement?

Accepted Answer

RPL §462(1) requires delivery to the buyer or buyer's agent before the buyer signs a binding contract of sale, and a copy signed by both parties is attached to the contract.

Question 18

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 19

The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

Accepted Answer

Value requires Demand, Utility, Scarcity and Transferability.

Question 20

At a New York co-op closing, the seller transfers ownership by delivering:

Accepted Answer

Co-op ownership is personal property, so it is transferred with a stock power for the shares and an assignment of the proprietary lease. No deed is recorded.

Question 21

What is the New York State real estate transfer tax on a $425,000 sale?

Accepted Answer

The tax is $2 per $500 of consideration. 425,000 ÷ 500 = 850 units, and 850 × $2 = $1,700. The $850 distractor counts the units without multiplying by $2.

Question 22

The NYC Real Property Transfer Tax return and payment are due within how many days of the transfer?

Accepted Answer

The Department of Finance requires the RPTT return and payment within 30 days after the transfer, even if no tax is due.

Question 23

Which property sale is subject to New York's Property Condition Disclosure Act?

Accepted Answer

RPL §461 defines covered property as one-to-four family dwellings and expressly excludes condominium units, cooperative apartments and unimproved land.

Question 24

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 25

How many members serve on the New York State Real Estate Board?

Accepted Answer

RPL §442-i provides for the Secretary of State, the Superintendent of Financial Services and 13 additional members, for 15 in total. Thirteen is the tempting wrong answer because it counts only the appointed members.

New York real estate property practice test

1. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

2. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

3. In a deed, the party conveying title is the and the party receiving title is the .

4. A Queens condo sells for $800,000. What is the NYC Real Property Transfer Tax?

5. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

6. A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

7. A title search is performed primarily to:

8. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

9. The RP-5217 filed when a deed is recorded in New York is the:

10. The government's power to take private property for public use with just compensation is:

11. A special warranty deed warrants title only against defects that:

12. Under New York General Obligations Law §5-701(a)(10), an agreement to pay compensation for negotiating the purchase of real estate must be in writing EXCEPT when the claimant is:

13. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

14. An owner's title insurance policy protects against:

15. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

16. A property is assessed at $200,000 and the tax rate is $2.50 per $100 of assessed value. What is the annual tax?

17. Under the Property Condition Disclosure Act, when must the seller deliver the Property Condition Disclosure Statement?

18. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

19. The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

20. At a New York co-op closing, the seller transfers ownership by delivering:

21. What is the New York State real estate transfer tax on a $425,000 sale?

22. The NYC Real Property Transfer Tax return and payment are due within how many days of the transfer?

23. Which property sale is subject to New York's Property Condition Disclosure Act?

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

25. How many members serve on the New York State Real Estate Board?

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