NY Real Estate Exam Content 3

Question 1

Which type of listing gives the broker the right to a commission regardless of who sells the property, including the owner?

Accepted Answer

Exclusive right-to-sell listing

Answer

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.

Question 2

A New York homeowner sells their principal residence. Under federal tax law, how much gain can a married couple filing jointly exclude?

Accepted Answer

$500,000

Answer

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.

Question 3

Which document is used in New York to convey title from a deceased person's estate to a buyer?

Accepted Answer

Executor's deed

Answer

An executor's deed is used by the estate's executor to transfer real property owned by a deceased person to the new owner.

Question 4

In New York, who is responsible for paying the transfer tax on the sale of a one-to-three family residence?

Accepted Answer

The seller

Answer

New York State transfer tax (currently $4 per $1,000) is typically the seller's obligation unless otherwise negotiated in the contract.

Question 5

A lender requires a borrower to maintain a reserve account to cover future property taxes and insurance premiums. This account is called a/an:

Accepted Answer

Escrow impound account

Answer

An escrow impound account (also called an escrow account) holds funds collected monthly by the lender to pay property taxes and insurance when due.

(NY Real Estate Exam) New York Real Estate Exam Practice Test

(NY Real Estate Exam) New York Real Estate Exam Practice Test

NY Real Estate Exam Content 3