NY Real Estate Exam NY Real Estate Contracts & Closings 2

Question 1

What is the role of a title company in a NY real estate closing?

Accepted Answer

To conduct a title search, issue title insurance, and ensure clear title transfer from seller to buyer

Answer

To set the sale price

Answer

To conduct home inspections

Answer

To approve mortgage applications

Question 2

What is a certificate of occupancy (CO) and why is it important in NY?

Accepted Answer

A document from the building department certifying that a building complies with codes and may be legally occupied for its stated use

Answer

A deed proving ownership

Answer

A mortgage approval letter

Answer

A real estate license document

Question 3

What is a cooperative (co-op) apartment in New York?

Accepted Answer

A form of ownership where buyers purchase shares in a corporation that owns the building, along with a proprietary lease for their unit

Answer

A regular condominium

Answer

A rental apartment

Answer

A government-subsidized housing unit

Question 4

What is the difference between a co-op and a condo in New York?

Accepted Answer

Co-op owners hold shares in a corporation; condo owners hold real property with individual deeds. Co-ops require board approval for sales; condos generally do not

Answer

They are identical forms of ownership

Answer

Condos are always more expensive

Answer

Co-ops are only in Manhattan

Question 5

What is a flip tax in NYC co-ops?

Accepted Answer

A fee charged by the co-op corporation when shares are transferred, typically paid by the seller as a percentage of the sale price

Answer

A tax on house-flipping profits

Answer

A penalty for selling within one year

Answer

A tax on renovation profits

Question 6

What are the NY attorney general disclosure requirements for new construction?

Accepted Answer

The AG must approve an offering plan for new condominiums and co-ops with 10+ units before units can be marketed or sold

Answer

No AG approval is needed for new construction

Answer

Only buildings over 50 stories need approval

Answer

The AG reviews individual purchase contracts