New York State Exam New York Real Estate 5 — Questions and Answers
Question 1: In New York, a mortgage in which the lender can call the entire balance due at any time is called a:
- Balloon mortgage
- Demand mortgage (Correct answer)
- Adjustable-rate mortgage
- Wraparound mortgage
Correct answer: Demand mortgage
A demand mortgage (or call mortgage) allows the lender to require full repayment at any time upon notice.
Question 2: Under New York's Article 9-B of the Real Property Law, the offering of condominiums for sale requires the developer to file a(n):
- Certificate of Occupancy
- Offering Plan (Red Herring) with the Attorney General (Correct answer)
- Environmental Impact Statement
- Special Use Permit
Correct answer: Offering Plan (Red Herring) with the Attorney General
New York requires condominium developers to file an Offering Plan with the Attorney General before marketing units to the public.
Question 3: A property owner in New York grants an easement by deed to a utility company. This easement is best described as:
- Easement by prescription
- Easement in gross (Correct answer)
- Easement appurtenant
- Easement by necessity
Correct answer: Easement in gross
A utility easement benefits a company rather than an adjacent parcel, making it an easement in gross.
Question 4: Under the New York Human Rights Law, which of the following protected classes is NOT included in the federal Fair Housing Act?
- Race
- Religion
- Marital status (Correct answer)
- National origin
Correct answer: Marital status
New York State adds marital status as a protected class, which is not included in the federal Fair Housing Act.
Question 5: A New York homeowner who fails to pay property taxes may eventually lose their property through a process called:
- Judicial foreclosure
- Tax lien foreclosure (Correct answer)
- Adverse possession
- Eminent domain
Correct answer: Tax lien foreclosure
Unpaid property taxes result in a tax lien, and continued non-payment can lead to tax lien foreclosure by the municipality.
Question 6: In New York, which document officially transfers title from the seller to the buyer at closing?
- Purchase contract
- Deed (Correct answer)
- Mortgage note
- Title insurance policy
Correct answer: Deed
The deed is the legal instrument that conveys title (ownership) of real property from grantor to grantee.
Question 7: Under New York's agency disclosure requirements, a licensee must present the Agency Disclosure Form to a prospective buyer or seller:
- Only at closing
- At the first substantive contact (Correct answer)
- After an offer is accepted
- Only when representing both parties
Correct answer: At the first substantive contact
New York law requires the Agency Disclosure Form to be presented and explained at the first substantive contact with a potential client.
New York State Exam New York Real Estate 5
In New York, a mortgage in which the lender can call the entire balance due at any time is called a: