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New York Real Estate Salesperson Practice Test

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Cheat Sheets

Interview question

Q: The planning board is an appointed municipal body. It works with the master plan and subdivision approval. It advises other boards on land-use matters. It does not collect taxes or serve as the zoning board of appeals merely because both address land use. What are the key responsibilities of the planning board, and how do they differ from other municipal bodies like the receiver of taxes or the zoning board of appeals? Strong answer: The planning board is appointed and focuses on master planning, subdivision approval, and advising other boards on land-use implications. Unlike the receiver of taxes, it doesn't handle tax collection. Unlike the zoning board of appeals, it doesn't primarily deal with variances or interpretations. Its role is specifically tied to long-term planning and development.

Understanding of the planning board's appointed status
Ability to articulate the board's functions (master planning, subdivision approval, advisory role)
Distinction between the planning board's responsibilities and those of other municipal bodies

Caution: Do not restate the multiple-choice stem or ask the learner merely to name a product, rule, or term.

Question 1 A developer submits a residential subdivision with revised street and traffic plans. The appointed municipal body must compare the proposal with the master plan, decide the subdivision application, and advise another board on the land-use implications. Which body performs that work?

Answer choices

A. The receiver of taxes, because subdivision review depends on future tax collections
B. The zoning board of appeals, because it adopts the master plan and approves every subdivision
C. The elected town council acting only in its budget-setting capacity
D. The planning board, using its master-planning, subdivision-approval, and advisory functions

Correct answer

The planning board, using its master-planning, subdivision-approval, and advisory functions

The planning board is appointed and works with the master plan, subdivision approval, and advice to other boards on land-use matters. Tax collection, legislative budgeting, and variance review belong to different municipal functions.

Wrong-answer review

A. The receiver of taxes, because subdivision review depends on future tax collections: The receiver of taxes collects revenue and does not perform master-plan or subdivision review.
B. The zoning board of appeals, because it adopts the master plan and approves every subdivision: The zoning board of appeals handles variances and interpretations rather than serving as the subdivision-approval planning body.
C. The elected town council acting only in its budget-setting capacity: The elected council adopts laws and budgets, but the scenario combines functions assigned to the appointed planning board.

Extra learning features

Objective/domain: 11. Municipal Agencies

Source: New York Real Estate Salesperson 77-Hour Curriculum

Question 2 An office receptionist works alone after dark. The rear entrance has poor lighting, delivery visitors are not logged, and several former workers may still know the shared door code. Which response addresses both the immediate hazards and ongoing access control?

A. Tell the receptionist to remain at the front desk and leave all existing security arrangements unchanged
B. Add a camera at the rear entrance but continue using the shared code and informal visitor access
C. Improve lighting and surveillance, log visitors, and replace shared access with controlled current keys or codes
D. Stop every after-hours delivery permanently without reviewing the building’s other access weaknesses

Improve lighting and surveillance, log visitors, and replace shared access with controlled current keys or codes

Objective/domain: 13. Licensee Safety

Question 3 A lender requires a shopping-center tenant's lease to be subordinate to the mortgage. The tenant will agree only if foreclosure will not disturb its possession while it performs the lease. Which paired protection best addresses both sides?

A. An estoppel certificate that changes mortgage priority and guarantees the tenant's business profits
B. Subordination paired with a nondisturbance provision protecting the performing tenant's occupancy after foreclosure
C. An assignment clause transferring the tenant's lease to any buyer before foreclosure
D. A use clause allowing the tenant to ignore both the mortgage and any successor landlord

Subordination paired with a nondisturbance provision protecting the performing tenant's occupancy after foreclosure

Objective/domain: 16. Commercial and Investment Properties

Question 4 Firm A accepts a borrower's information and compares products offered by several lenders. Firm B originates through its lending institution and works directly within that funding channel. Which description best distinguishes the firms?

A. Firm A is a mortgage banker because bankers always shop every unaffiliated lender; Firm B is an appraiser
B. Both firms are mortgage brokers because any company discussing a loan has the same role
C. Firm A is acting as a mortgage broker intermediary, while Firm B is acting as a mortgage banker
D. Firm A is a title insurer, while Firm B is a real estate salesperson

Firm A is acting as a mortgage broker intermediary, while Firm B is acting as a mortgage banker

Objective/domain: 18. Mortgage Brokerage

Question 5 An owner occupying a house is choosing among HO-1, HO-2, and HO-3 coverage. The owner wants the widely used form that covers losses to the home except those specifically excluded, rather than a basic or named-peril expansion. Which policy fits?

A. HO-2 Broad Form
B. HO-3 Special Form
C. HO-1 Basic Policy
D. HO-4 Tenant or Cooperative Owner Policy

HO-3 Special Form

Objective/domain: 12. Property Insurance

Question 6 A project is intended and operated under the qualifying fifty-five-plus housing standards, but its manager assumes the age exception also permits rejecting an otherwise qualified applicant because of race. Which conclusion is correct?

A. The project may use any protected characteristic once it adopts a fifty-five-plus marketing plan
B. The project loses every age-related exception unless all residents are at least sixty-two
C. An informal owner preference for older tenants creates the same exception without qualifying operations
D. A qualifying senior-housing exception addresses age or familial-status rules but does not erase other protected-class prohibitions

A qualifying senior-housing exception addresses age or familial-status rules but does not erase other protected-class prohibitions

Objective/domain: 9. Human Rights and Fair Housing

Source: New York Real Estate License Law (January 2024)

Question 7 A seller gives a signed deed to a title company only for safekeeping and expressly forbids release to the buyer. Without new authority, a salesperson removes it and hands it to the buyer, who accepts it. Has title transferred by valid deed delivery?

A. Yes, because any physical transfer to an accepting buyer proves the grantor's delivery intent
B. Yes, because a signed deed transfers title before delivery or acceptance occurs
C. Yes, because the salesperson may disregard the grantor's express limitation after execution
D. No, because the grantor lacked present intent to deliver and the unauthorized handoff cannot supply that missing intent

No, because the grantor lacked present intent to deliver and the unauthorized handoff cannot supply that missing intent

Objective/domain: 4. The Contract of Sales and Leases

Source: Cornell Wex - Deed

Question 8 A parcel consists of two nonoverlapping rectangles. One measures 300 feet by 200 feet, and the other measures 100 feet by 100 feet. Using 43,560 square feet per acre, approximately how many acres are in the combined parcel?

A. 1.38 acres
B. 1.61 acres
C. 2.07 acres
D. 16.07 acres

1.61 acres

Objective/domain: 10. Real Estate Mathematics

Source: National Park Service - Finding Area and Perimeter

Question 9 An inspection notes a private well, an on-site septic system, and an old fuse panel. A trainee labels all three as plumbing components because they serve the same house. Which classification is accurate?

A. The well and fuse panel are municipal sewer components, while the septic system is an electrical device
B. The well is a private water source, the septic system handles on-site sanitary waste, and the fuses provide electrical overcurrent protection
C. The well and septic system are electrical capacity devices, while the fuses regulate water pressure
D. All three are plumbing fixtures because no building system can be classified separately

The well is a private water source, the septic system handles on-site sanitary waste, and the fuses provide electrical overcurrent protection

Objective/domain: 7. Construction and Environmental Issues

Question 10 A taxpayer plans to transfer a warehouse held solely for investment and acquire a rental apartment building to continue an investment use. Which comparison identifies why this transaction can enter Section 1031 analysis while other assets cannot?

A. A principal residence qualifies merely because it is real property
B. Land held as dealer inventory qualifies whenever the replacement is more expensive
C. Corporate stock qualifies when exchanged for an interest in a rental building
D. Both the relinquished warehouse and replacement building are real property held for business or investment

Both the relinquished warehouse and replacement building are real property held for business or investment

Objective/domain: 17. Income Tax Issues in Real Estate Transactions

Source: Like-Kind Exchanges - Real Estate Tax Tips

New York Real Estate Salesperson Practice Test

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A developer submits a residential subdivision with revised street and traffic plans. The appointed municipal body must compare the proposal with the master plan, decide the subdivision application, and advise another board on the land-use implications. Which body performs that work?

An office receptionist works alone after dark. The rear entrance has poor lighting, delivery visitors are not logged, and several former workers may still know the shared door code. Which response addresses both the immediate hazards and ongoing access control?

A lender requires a shopping-center tenant's lease to be subordinate to the mortgage. The tenant will agree only if foreclosure will not disturb its possession while it performs the lease. Which paired protection best addresses both sides?

Firm A accepts a borrower's information and compares products offered by several lenders. Firm B originates through its lending institution and works directly within that funding channel. Which description best distinguishes the firms?

An owner occupying a house is choosing among HO-1, HO-2, and HO-3 coverage. The owner wants the widely used form that covers losses to the home except those specifically excluded, rather than a basic or named-peril expansion. Which policy fits?

A project is intended and operated under the qualifying fifty-five-plus housing standards, but its manager assumes the age exception also permits rejecting an otherwise qualified applicant because of race. Which conclusion is correct?

A seller gives a signed deed to a title company only for safekeeping and expressly forbids release to the buyer. Without new authority, a salesperson removes it and hands it to the buyer, who accepts it. Has title transferred by valid deed delivery?

A parcel consists of two nonoverlapping rectangles. One measures 300 feet by 200 feet, and the other measures 100 feet by 100 feet. Using 43,560 square feet per acre, approximately how many acres are in the combined parcel?

An inspection notes a private well, an on-site septic system, and an old fuse panel. A trainee labels all three as plumbing components because they serve the same house. Which classification is accurate?

A taxpayer plans to transfer a warehouse held solely for investment and acquire a rental apartment building to continue an investment use. Which comparison identifies why this transaction can enter Section 1031 analysis while other assets cannot?

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