Content Flashcards
7 cards from real NY REAL ESTATE EXAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
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Which type of listing gives the broker the right to a commission regardless of who sells the property, including the owner?
Answer: Exclusive right-to-sell listing
An exclusive right-to-sell listing guarantees the broker a commission if the property is sold by anyone — including the seller — during the listing period.
A New York homeowner sells their principal residence. Under federal tax law, how much gain can a married couple filing jointly exclude?
Answer: $500,000
Under IRC §121, married couples filing jointly may exclude up to $500,000 of capital gains from the sale of their principal residence if ownership and use tests are met.
Which document is used in New York to convey title from a deceased person's estate to a buyer?
Answer: Executor's deed
An executor's deed is used by the estate's executor to transfer real property owned by a deceased person to the new owner.
In New York, who is responsible for paying the transfer tax on the sale of a one-to-three family residence?
Answer: The seller
New York State transfer tax (currently $4 per $1,000) is typically the seller's obligation unless otherwise negotiated in the contract.
A lender requires a borrower to maintain a reserve account to cover future property taxes and insurance premiums. This account is called a/an:
Answer: Escrow impound account
An escrow impound account (also called an escrow account) holds funds collected monthly by the lender to pay property taxes and insurance when due.
Which federal act prohibits discriminatory lending practices based on race, color, religion, national origin, sex, marital status, or age?
Answer: Equal Credit Opportunity Act
The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against applicants on the basis of protected characteristics in any aspect of a credit transaction.
A property valued at $450,000 is assessed at 60% of value. If the tax rate is $30 per $1,000 of assessed value, what is the annual property tax?
Answer: $8,100
$450,000 × 0.60 = $270,000 assessed value; $270,000 ÷ $1,000 × $30 = $8,100 annual tax.