New York State Exam New York Real Estate 3 — Questions and Answers
Question 1: Under New York's Real Property Law, an 'easement appurtenant' benefits:
- A specific individual
- The neighboring dominant estate (Correct answer)
- The public at large
- The municipality
Correct answer: The neighboring dominant estate
An easement appurtenant is attached to and benefits a neighboring parcel called the dominant estate.
Question 2: In a New York co-op transaction, the buyer is actually purchasing:
- Fee simple title to the unit
- Shares in the cooperative corporation and a proprietary lease (Correct answer)
- A leasehold interest only
- A condominium unit deed
Correct answer: Shares in the cooperative corporation and a proprietary lease
Co-op buyers receive shares in the corporation and a proprietary lease, not real property title.
Question 3: The New York State DOS can suspend or revoke a real estate license for which of the following?
- Closing a transaction on a Sunday
- Commingling client funds with personal funds
- Representing both buyer and seller without disclosure
- Both B and C (Correct answer)
Correct answer: Both B and C
Commingling funds and undisclosed dual agency are both grounds for license suspension or revocation in New York.
Question 4: A real estate salesperson in New York may only be employed by:
- Multiple brokers simultaneously
- One sponsoring broker at a time (Correct answer)
- A real estate attorney
- Any licensed professional
Correct answer: One sponsoring broker at a time
New York law requires a salesperson to be sponsored by and work under a single licensed broker at a time.
Question 5: Under New York's 'law of agency,' a broker representing only the seller owes the buyer a duty of:
- Undivided loyalty and fiduciary care
- Honest dealing and disclosure of material facts (Correct answer)
- Full disclosure of seller's bottom line
- No duties whatsoever
Correct answer: Honest dealing and disclosure of material facts
Even as the seller's agent, the broker must deal honestly and disclose material facts that could affect the buyer's decision.
Question 6: Which type of depreciation affecting New York real property is considered incurable because it originates outside the property?
- Physical deterioration
- Functional obsolescence
- External obsolescence (Correct answer)
- Structural depreciation
Correct answer: External obsolescence
External (economic) obsolescence results from outside factors like nearby industrial development and cannot be cured by the owner.
Question 7: A New York buyer's agent who learns that the seller is desperate to sell because of an imminent foreclosure must:
- Disclose this to the buyer immediately (Correct answer)
- Keep it confidential as it came from the listing broker
- Report it to the DOS
- Ignore it as irrelevant
Correct answer: Disclose this to the buyer immediately
A buyer's agent has a fiduciary duty to disclose material information to their client, including the seller's motivation.
New York State Exam New York Real Estate 3
Under New York's Real Property Law, an 'easement appurtenant' benefits: