New York State Exam New York Real Estate 4 — Questions and Answers
Question 1: In New York, a contract for the sale of real property must be in writing to be enforceable under the:
- Parol Evidence Rule
- Statute of Frauds (Correct answer)
- Statute of Limitations
- Equal Credit Opportunity Act
Correct answer: Statute of Frauds
The Statute of Frauds requires real estate contracts to be in writing and signed to be legally enforceable.
Question 2: Under New York law, a lis pendens recorded against a property provides notice that:
- The property has a tax lien
- Litigation is pending that may affect title (Correct answer)
- A mechanic's lien has been filed
- The seller is in foreclosure
Correct answer: Litigation is pending that may affect title
A lis pendens (notice of pendency) puts the public on notice that a lawsuit affecting the property's title is in progress.
Question 3: Which of the following is an example of a general lien under New York real property law?
- Mortgage lien
- Mechanic's lien
- Judgment lien (Correct answer)
- Property tax lien
Correct answer: Judgment lien
A judgment lien is a general lien that attaches to all of the debtor's real property within the county, not just one parcel.
Question 4: A New York condominium unit owner holds:
- A proprietary lease and shares in a corporation
- Fee simple title to the unit and an undivided interest in common elements (Correct answer)
- A leasehold estate for a fixed term
- A cooperative interest in the building
Correct answer: Fee simple title to the unit and an undivided interest in common elements
Condo owners hold fee simple title to their individual unit plus an undivided interest in the building's common elements.
Question 5: Under New York's lead paint disclosure requirements, sellers of pre-1978 homes must provide buyers with:
- A lead paint inspection report
- An EPA-approved lead paint pamphlet and disclosure form (Correct answer)
- Proof of lead paint removal
- A warranty against lead paint hazards
Correct answer: An EPA-approved lead paint pamphlet and disclosure form
Federal law (implemented in NY) requires providing the EPA 'Protect Your Family' pamphlet and a signed disclosure form for pre-1978 properties.
Question 6: The capitalization rate (cap rate) used in New York commercial property valuation is calculated as:
- Gross income divided by sale price
- Net operating income divided by property value (Correct answer)
- Property value divided by net operating income
- Gross rent multiplier times monthly rent
Correct answer: Net operating income divided by property value
The cap rate equals Net Operating Income (NOI) divided by the property's current market value or purchase price.
Question 7: Which New York State agency oversees the licensing of real estate salespersons and brokers?
- New York State Banking Department
- New York Department of State (DOS) (Correct answer)
- New York Real Estate Commission
- New York Department of Finance
Correct answer: New York Department of State (DOS)
The New York Department of State, Division of Licensing Services, oversees real estate licensing in the state.
New York State Exam New York Real Estate 4
In New York, a contract for the sale of real property must be in writing to be enforceable under the: