NY Real Estate Exam Content

Question 1

Which of the following is NOT considered a freehold estate?

Accepted Answer

Leasehold estate

Answer

Fee simple estate

Answer

Life estate

Answer

Estate in reversion

Question 2

Which of the following is an example of an involuntary lien?

Accepted Answer

Both B and C

Answer

Mortgage lien

Answer

Tax lien

Answer

Mechanic’s lien

Question 3

What is the fiduciary duty of loyalty in real estate agency law?

Accepted Answer

The agent must prioritize the client’s interests above their own

Answer

The agent must obey all instructions from the client, even if illegal

Answer

The agent must maintain confidentiality indefinitely

Answer

The agent must perform all duties with reasonable skill and care

Question 4

In a real estate transaction, who typically holds the earnest money deposit until closing?

Accepted Answer

The escrow agent or broker

Answer

The buyer’s attorney

Answer

The seller

Answer

The real estate agent

Question 5

What is the primary purpose of the Truth in Lending Act (TILA)?

Accepted Answer

To require full disclosure of loan terms and costs to consumers

Answer

To regulate real estate commissions

Answer

To protect lenders from fraudulent borrowers

Answer

To ensure that interest rates remain low