Real Estate Salesperson Practice Exam 1
Real Estate Salesperson Practice Exam 1
Congratulations - you have completed Real Estate Salesperson Practice Exam 1. You scored %%SCORE%% out of %%TOTAL%%. Your performance has been rated as %%RATING%%
Your answers are highlighted below.
Question 1 |
Which is the law that allows one to appeal a decision made by DOS?
Article 9A | |
Article 7B | |
Article 78 | |
Article 12A |
Question 2 |
Real estate professionals are required to take how many hours of continuing education every two years?
20 | |
35 | |
17.5 | |
22.5 |
Question 3 |
What is the term when another state will recognize the qualifications and education held by a New York licensee when applying for a real estate license in that state?
exchange | |
reciprocal | |
novatel | |
escheat |
Question 3 Explanation:
The law of reciprocity allows you to use your real estate license education and qualifications in other states while applying for a license in that state.
Question 4 |
What is the license which allows one to deal with apartments and charge fees?
apartment showing vendor | |
apartment rental person | |
apartment exchange agent | |
apartment information vendor |
Question 4 Explanation:
These individuals pay a fee for licensing and they are only able to post information about available apartments.
Question 5 |
Who can sell real estate and charge a fee without a license?
auctioneer | |
property manager | |
for sale by owner | |
attorney |
Question 5 Explanation:
An Attorney has the right to act as a real estate broker by holding a law license. If an attorney chooses to hire agents, they must apply for a broker’s license.
Question 6 |
For a deed to be recorded, it must be in writing and:
signed by the grantee | |
delivered immediately to the court | |
signed by the grantor(s) | |
have at least 2 grantors |
Question 6 Explanation:
For a deed to be considered valid the Grantor (owner) must sign the deed. The Grantee does not have to sign the deed for it to be a valid transfer
Question 7 |
Which of the following is a choice for a broker license?
single | |
substitute | |
implied | |
associate |
Question 7 Explanation:
An associate broker is one that has the credentials to be a licensed broker but chooses to work under another broker
Question 8 |
Which of the following is the term for allowing a change to occur in a real estate transaction between two or more parties?
disclosure with informed consent | |
allowment in writing | |
statute of frauds | |
consent by agency |
Question 8 Explanation:
Changes can be made to any real estate transaction as long as all parties are informed and all parties agree to the change. We call this disclosure with informed consent
Question 9 |
A broker can charge commission from both the seller and buyer only if
the buyer is a friend | |
the seller gets an offer above the listing price | |
all parties are aware of the situation | |
it is paid in cash |
Question 9 Explanation:
A broker can charge both sides of the transaction as long as all parties to the transaction are aware and give consent.
Question 10 |
Another term for the transfer of real property is:
alienation | |
condemnation | |
escheat | |
implied |
Question 10 Explanation:
Alienation is the giving or transfer of real property to another.
Question 11 |
A deed must
show the legal usage of the structure | |
show the selling price of the house | |
be in writing | |
be recorded |
Question 11 Explanation:
All deeds must be in writing to be valid. A deed does not have to be recorded to be valid.
Question 12 |
Real estate plus the ____________ results in real property.
land | |
fixtures | |
trees | |
bundle of rights |
Question 12 Explanation:
Real property is more than just the land itself, it also includes the RIGHTS that come with ownership. These rights are possession, control, enjoyment, exclude and disposition.
Question 13 |
Another term for personal property is
mobile | |
trade | |
chattel | |
lally |
Question 13 Explanation:
Personal property is all that does not fit the definition of real property. Sometimes called chattel or personalty.
Question 14 |
Which of the following terms defines when one entity controls a certain market?
status | |
constitute | |
gross profit | |
monopoly |
Question 14 Explanation:
A monopoly is when one company controls the entire market in a specific industry i.e (DMV)
Question 15 |
A percentage lease usually occurs
in a parking lot | |
in an apartment building | |
in a shopping mall | |
in a house rental |
Question 15 Explanation:
A percentage lease is when a retailer pays a land owner a percentage of the earnings. This is most common in retail because the landlord is partially responsible for bringing the traffic to the store location.
Question 16 |
What is the term when no specific end date is defined in a lease, but there is a repeated agreed-upon interval?
estate for years | |
periodic estate | |
estate at will | |
estate at sufferance |
Question 16 Explanation:
A periodic estate would be a week to week, month to month or year to year tenancy.
Question 17 |
A freehold estate is
permanent ownership | |
temporary ownership | |
periodic ownership | |
some time ownership |
Question 17 Explanation:
A freehold estate is ownership in land for an indeterminate length of time.
Question 18 |
The Multiple Listing Service is a
government program | |
service for cooperating brokerages | |
service for elderly people | |
program for unemployed agents |
Question 18 Explanation:
The MLS is a data base of listings in a specific area for brokerages to cooperate in the sale of the listings.
Question 19 |
What type of listing is it, when a seller must pay commission to an agent, no matter who sells the property?
an open listing | |
an exclusive agency listing | |
an exclusive right to sell | |
all of the above |
Question 19 Explanation:
The listing brokerage will earn commission no matter who brings the buyer. The brokerage will earn commission even if the seller finds the buyer.
Question 20 |
Which listing is illegal to practice in New York?
net listing | |
gross listing | |
sub listing | |
contract listing |
Question 20 Explanation:
The broker will earn any amount of money over a set sales price as commission. This will pit the broker's commission against the seller's net proceeds.
Question 21 |
An owner who seeks a mortgage loan that includes 3 properties is what type of mortgage?
a blanket mortgage | |
an FHA mortgage | |
a wraparound mortgage | |
a chattel mortgage |
Question 21 Explanation:
A blanket mortgage will encumber more than one property. Sub-dividers commonly use this type of mortgage.
Question 22 |
A junior mortgage is
a lien on personal property | |
the first mortgage recorded | |
always made by the seller | |
a lien after the first mortgage (usually a second mortgage) |
Question 22 Explanation:
A junior mortgage is one that is subordinate to an existing lien on the same property. Priority is usually set by recording date.
Question 23 |
Which of the following is an attachment that gives a lender the right to seize the personal property of a borrower who has not fulfilled their obligations of a loan?
general lien | |
mechanic's lien | |
specific lien | |
acceleration lien |
Question 23 Explanation:
A general lien attaches to the person and all that they own.
Question 24 |
The lien that is paid first in a court auction is which of the following?
real estate tax | |
mortgage | |
mechanic's | |
materialmen's |
Question 24 Explanation:
Real estate taxes take priority over other liens.
Question 25 |
A deed is usually recorded at
the State Department | |
the New York State Banking Dept. | |
the county clerk courthouse | |
the lawyer's office |
Question 25 Explanation:
Properties are recorded in the county which they are physically located.
Question 26 |
Real estate appraisers are licensed by the
Association of Appraisers | |
Banking Department | |
Commerce Dept. | |
State |
Question 26 Explanation:
Appraisers have to be licensed for many federally related transactions and also are required to be licensed or certified by the state.
Question 27 |
Which of the following is seller financing?
sales financing | |
personal loan | |
primary mortgage | |
purchase money mortgage |
Question 27 Explanation:
A purchase money mortgage is seller financing.
Question 28 |
How old must one be to qualify for a reverse annuity mortgage?
65 | |
62 | |
60 | |
55 |
Question 28 Explanation:
To qualify for a reverse annuity mortgage the person must be 62 or older.
Question 29 |
What approach does an appraiser use to estimate the value of a 1 - 4 unit dwelling?
cost | |
income | |
sales comparison | |
investment |
Question 29 Explanation:
Up to a four unit dwelling is residential.
Question 30 |
The number of square feet in 1 square yard is
3 | |
4 | |
9 | |
5 |
Question 30 Explanation:
3 feet x 3 feet = 9 square feet
Question 31 |
An appraisal report must be
verbal with witnesses | |
in writing | |
on legal paper | |
sent to the seller and buyer |
Question 31 Explanation:
The appraisal report should be in writing to be used as an estimate of value with a loan.
Question 32 |
A mortgage is a
involuntary lien | |
voluntary lien | |
custom lien | |
purpose lien |
Question 32 Explanation:
The borrower would voluntarily give the lien to the lender as security for the loan.
Question 33 |
Assessed value is usually used by the
bank | |
lender | |
government | |
appraiser |
Question 33 Explanation:
Assessed value is usually used when calculating property tax.
Question 34 |
The process of combining adjacent parcels of land to form one larger parcel is
parcel | |
assemblage | |
sub-division | |
plot |
Question 34 Explanation:
Combined parcels for a greater value is plottage. The process is assemblage.
Question 35 |
The engineer that draws an aerial view of the lot is known as the
civil engineer | |
mechanical engineer | |
land surveyor | |
land engineer |
Question 35 Explanation:
The surveyor will outline the property boundaries.
Question 36 |
Which appraisal approach can be used for an apartment building?
Direct sales comparison | |
Cost approach | |
Income approach | |
Insured approach |
Question 36 Explanation:
An apartment building is an income producing building.
Question 37 |
The land owner that has the right to use an easement over another person's land is
servient | |
dominant | |
ownership rights | |
encroachment |
Question 37 Explanation:
The dominant estate benefits from the easement.
Question 38 |
A visual easement is called
affirmative | |
negative | |
subtract | |
relay |
Question 39 |
Regulation Z does not cover which of the following properties?
1 unit family dwelling | |
2 unit family dwelling | |
commercial | |
residential |
Question 39 Explanation:
Regulation Z regulates residential transactions.
Question 40 |
Something of value in a contract is called
credit | |
consideration | |
deposit | |
prorations |
Question 40 Explanation:
Consideration maybe money, love and affection, nominal or something of value.
Question 41 |
The starting point in drawing a survey is called
metes & bounds | |
starting point | |
point of origin | |
point start |
Question 41 Explanation:
Sometimes called the point of beginning.
Question 42 |
A licensee can lose their license for
representing a client | |
qualifying a buyer before showing a property | |
doing a credit check on a potential tenant | |
commingling funds of clients |
Question 42 Explanation:
Commingling is mixing client funds with personal or brokerage operation funds.
Question 43 |
Which of the following is NOT realty?
Fee simple estate | |
Freehold estate | |
Timber | |
Life Estate |
Question 43 Explanation:
Timber is severed from the land, making it personal property.
Question 44 |
What is the term that describes the government's right to take private property for public use?
encroachment | |
easement | |
eminent domain | |
novation |
Question 44 Explanation:
Eminent Domain is the government's right to take private property for a public use.
Question 45 |
The landlord of a lease is called the
grantor | |
grantee | |
lessor | |
lessee |
Question 45 Explanation:
The lessor is the owner.
Question 46 |
Rent for a 50 by 80 feet office is $830 per month. What is the annual rent per square foot?
$2.49 | |
$10.37 | |
$4.00 | |
$16.60 |
Question 46 Explanation:
$830 x 12 = $9960 rent/year 50' x 80' = 4000 square feet $9960/4000 sq ft = $2.49 per sq ft
Question 47 |
Which of the following is an example of the bundle of rights?
mortgage | |
air rights | |
leases | |
all of the above |
Question 47 Explanation:
The bundle of rights consists of possession, enjoyment, disposition, control and exclusion.
Question 48 |
Which method of advertising is usually the most expensive?
newspapers | |
magazines | |
radio and TV | |
word of mouth |
Question 49 |
In NYS, how many related exchange points are required to qualify for a Broker's License?
1750 | |
3500 | |
5250 | |
5520 |
Question 50 |
Which fiduciary duty is involved when temporarily holding someone's money?
disclosure | |
loyalty | |
accountability | |
confidentiality |
Question 50 Explanation:
An agent must be able to account for all monies received from a client.
Question 51 |
Another type of exclusive listing other than an exclusive agency listing is called an
Exclusive Right to Sell | |
Exclusive Selling Listing | |
Exclusive Tenancy | |
Exclusive Open Listing |
Question 51 Explanation:
The exclusive right to sell listing provides maximum protection for the brokerage.
Question 52 |
The law agents follow when conducting real estate services is:
Article 98A | |
Article 78A | |
Article 12A | |
Article 62A |
Question 52 Explanation:
Article 12A is New York State Real Property Law
Question 53 |
A kickback is
allowable under certain instances | |
only allowable if the seller agrees | |
illegal to take | |
none of the above |
Question 53 Explanation:
A kickback is an unearned fee for services not provided.
Question 54 |
A severe crime is called a
Violation | |
Lien | |
Felony | |
Misdemeanor |
Question 54 Explanation:
A felony is a serious violation. More severe than a misdemeanor.
Question 55 |
A client should receive
client should receive a fiduciary relationship | |
Only Acknowledgment | |
Full Attention | |
Client Privileges |
Question 55 Explanation:
An agent should provide all fiduciary duties to a client.
Question 56 |
A trustee represents the
beneficiary | |
seller | |
buyer | |
sales agent |
Question 56 Explanation:
The beneficiary is the lender.
Question 57 |
The document that gives a person the authorization to act on behalf of another is
disclosure with informed consent | |
power of attorney | |
attorney in fact | |
agency acknowledgment |
Question 57 Explanation:
An attorney in fact may act on behalf of another.
Question 58 |
Which of the following is not considered a fiduciary duty?
Loyalty | |
Confidentiality | |
Accountability | |
Assumability |
Question 58 Explanation:
The fiduciary duties an agent owes to a client are care, obedience, loyalty, disclosure, accountability and confidentiality.
Question 59 |
A Subagent represents the
buyer | |
seller | |
government | |
none of the above |
Question 59 Explanation:
A subagent represents the broker's client.
Question 60 |
A Co-broke is where
an office lists and sells the same property | |
two offices are involved in the listing and selling of the same property | |
an office goes broke in the real estate business | |
company brokerage that does business |
Question 60 Explanation:
Both brokerages cooperate in the sale of the property.
Question 61 |
Which ownership contains the Right of Survivorship?
tenancy by Entirety | |
tenancy in Common | |
Joint Tenancy | |
both A and C |
Question 61 Explanation:
Tenancy in common does not include the right of survivorship, therefore ownership can be inherited.
Question 62 |
Which type of ownership has a condition of married at the time of purchase?
ownership in severalty | |
tenancy in common | |
joint tenancy | |
tenancy by entirety |
Question 62 Explanation:
The purchasers must be married to co-own as tenants by the entirety.
Question 63 |
Which is the best deed for the grantee?
Warranty Deed | |
Bargain and Sale Deed | |
Quitclaim Deed | |
Judicial Deed |
Question 63 Explanation:
The general warranty deed provides the grantee with the most guarantees.
Question 64 |
The engineer that draws the dimensions of the land is called a(n)
engineer of drawing | |
surveyor | |
blue-printer | |
appraiser |
Question 64 Explanation:
A survey will identify the boundaries and area of a parcel of land.
Question 65 |
An encumbrance is also known as
anything that lessens the bundle of rights to property | |
an inconvenience | |
a disturbance | |
a nuisance |
Question 65 Explanation:
An encumbrance is an imperfection on title to land.
Question 66 |
A lien is
a violation | |
evidence of a debt | |
lawsuit against someone | |
a foreclosure action |
Question 66 Explanation:
A lien is a charge against a property that provides security for a debt.
Question 67 |
Another term for transfer is
alliance | |
alienation | |
avoidance | |
attitude |
Question 67 Explanation:
Alienation is transferring property to another.
Question 68 |
A freehold estate is a
personal property interest | |
real property interest | |
temporary property interest | |
rental property interest |
Question 68 Explanation:
A freehold estate is ownership for an indeterminate length of time.
Question 69 |
A leasehold estate is a
possession without ownership | |
real property interest | |
forever property interest | |
rental property interest |
Question 69 Explanation:
A leasehold estate is a tenant's right to occupy real estate.
Question 70 |
The only time the grantee signs the deed is when
the grantee backs out of the sale | |
the grantee assumes the grantors mortgage | |
the grantee pays all cash for the property | |
the grantee purchases furniture along with the property |
Question 70 Explanation:
The grantee will assume all of the liabilities of the existing mortgage.
Question 71 |
Actual eviction means
the tenant evicts themselves | |
the landlord illegally changes the locks | |
the landlord evicts the tenant through the legal process | |
an eviction goes wrong |
Question 71 Explanation:
Actual eviction is a legal process that removes the tenant from the premises.
Once you are finished, click the button below. Any items you have not completed will be marked incorrect.
There are 71 questions to complete.

Leaving the page and or closing the browser now or at any moment during the exam will reset your answers. You can always go back and retake any practice test. You can also go over your answers at any moment during the practice test by clicking "List" and picking one of the questions that interests you.