Free New York State Law Practice Test — LicenseIQ

Question 1

Under 19 NYCRR §175.24, a residential exclusive listing must include the state's explanation of 'exclusive right to sell' and 'exclusive agency.' Under the exclusive agency explanation, if a cooperating broker procures a buyer, the owner:

Accepted Answer

The required explanation warns that under an exclusive agency, if another broker finds a buyer, the owner will owe a commission to both the selling broker and the present listing broker. The owner avoids a commission only by finding the buyer personally.

Question 2

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 3

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 4

Which class is protected in housing under the New York City Human Rights Law but is not specifically named in the State Human Rights Law?

Accepted Answer

The NYC law protects lawful occupation and partnership status in housing, in addition to the classes the state also protects. Race, disability and familial status are protected under both.

Question 5

A licensee mails flyers suggesting that homeowners should 'sell now before the neighborhood changes' as a particular ethnic group moves in. This is:

Accepted Answer

Inducing sales by suggesting that members of a protected class are entering an area is blockbusting. It is barred by 19 NYCRR §175.17, fair housing laws, and the cease-and-desist zone powers in RPL §442-h.

Question 6

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 7

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 8

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 9

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 10

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 11

Before the DOS will review an online salesperson license application, what must happen?

Accepted Answer

A salesperson must be sponsored, and the sponsoring broker authorizes the application in the online system before review. The Real Estate Board does not approve individual applicants. The DOS licenses.

Question 12

How many hours of continuing education must most New York licensees complete during each two-year license term?

Accepted Answer

The DOS requires 22.5 hours of approved CE per two-year term for all licensees except New York attorneys. Twenty-four hours is a common distractor because it is used in other states.

Question 13

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 14

Since when has New York State prohibited housing discrimination based on lawful source of income?

Accepted Answer

The source-of-income amendment took effect April 12, 2019. June 11, 2025 is the FARE Act date, and March 20, 2024 is the PCDA amendment date.

Question 15

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 16

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 17

Under the State Human Rights Law, the maximum civil fine for an unlawful discriminatory practice found to be willful, wanton or malicious is:

Accepted Answer

Executive Law §297(4)(c) allows civil fines and penalties up to $50,000, or up to $100,000 if the act was willful, wanton or malicious. The $50,000 distractor is the ordinary maximum. The $2,000 figure is the DOS license-fine cap.

Question 18

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 19

After a hearing, what is the maximum fine the Department of State may impose on a licensee under RPL §441-c in lieu of suspension or revocation?

Accepted Answer

RPL §441-c(1)(a), as currently in force, authorizes a fine not exceeding $2,000, with half going to the anti-discrimination in housing fund. Older materials say $1,000, which is why that distractor is tempting.

Question 20

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 21

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 22

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 23

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 24

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 25

A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Accepted Answer

Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

New York real estate state law practice test

1. Under 19 NYCRR §175.24, a residential exclusive listing must include the state's explanation of 'exclusive right to sell' and 'exclusive agency.' Under the exclusive agency explanation, if a cooperating broker procures a buyer, the owner:

2. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

3. A real estate licensee who is not an attorney may:

4. Which class is protected in housing under the New York City Human Rights Law but is not specifically named in the State Human Rights Law?

5. A licensee mails flyers suggesting that homeowners should 'sell now before the neighborhood changes' as a particular ethnic group moves in. This is:

6. Which statement about dual agency is correct?

7. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

8. Under an open listing, the seller owes a commission to:

9. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

10. Under the statute of frauds, a real estate sales contract must be:

11. Before the DOS will review an online salesperson license application, what must happen?

12. How many hours of continuing education must most New York licensees complete during each two-year license term?

13. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

14. Since when has New York State prohibited housing discrimination based on lawful source of income?

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

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

17. Under the State Human Rights Law, the maximum civil fine for an unlawful discriminatory practice found to be willful, wanton or malicious is:

18. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

19. After a hearing, what is the maximum fine the Department of State may impose on a licensee under RPL §441-c in lieu of suspension or revocation?

20. Which is the most common and desirable way a real estate sales contract terminates?

21. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

22. In a lease, the tenant holds a estate and the landlord holds a .

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

24. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

25. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

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