NYLE - New York Law Exam NY Real Property Law 1 — Questions and Answers
Question 1: Under New York's Statute of Frauds (General Obligations Law § 5-703), which of the following agreements concerning real property is unenforceable if made only orally?
- A month-to-month residential lease
- A contract for the sale of real property (Correct answer)
- An oral license to use a neighbor's driveway temporarily
- A verbal agreement to allow a guest to stay for two weeks
Correct answer: A contract for the sale of real property
GOL § 5-703 requires that contracts for the sale, purchase, or exchange of real property — as well as leases exceeding one year — be in writing and signed by the party to be charged. An oral contract to sell real property is unenforceable under New York's Statute of Frauds.
Question 2: Under New York General Obligations Law 7-103, a landlord of a residential building with six or more units who collects a security deposit must:
- Deposit the funds in a non-interest-bearing account in the landlord's own name
- Deposit the funds in an interest-bearing account and annually pay or credit the net interest to the tenant (Correct answer)
- Apply the deposit toward the last month's rent immediately upon collection
- Hold the deposit in escrow with the county clerk's office
Correct answer: Deposit the funds in an interest-bearing account and annually pay or credit the net interest to the tenant
GOL 7-103(2) requires landlords of buildings with six or more family dwelling units to place security deposits in interest-bearing bank accounts, kept separate from personal funds, and to pay or credit the interest to the tenant annually. The landlord may retain 1% per year as an administrative fee.
Question 3: Under New York Real Property Law, which form of co-ownership is available exclusively to married spouses and cannot be severed by one spouse's unilateral act?
- Tenancy in common
- Joint tenancy with right of survivorship
- Tenancy by the entirety (Correct answer)
- Community property tenancy
Correct answer: Tenancy by the entirety
Tenancy by the entirety (EPTL 6-2.2(b)) is a form of co-ownership available only to married couples. It carries a right of survivorship that neither spouse can defeat unilaterally; the tenancy is converted to a tenancy in common only by divorce (or a joint act).
Question 4: Under New York law, mortgage foreclosure actions on residential property are conducted as:
- Non-judicial trustee's sales administered by the lender
- Judicial proceedings requiring a court action, order of reference, and judicial sale (Correct answer)
- Administrative hearings before the NY Department of Financial Services
- Binding arbitration initiated by the mortgage servicer
Correct answer: Judicial proceedings requiring a court action, order of reference, and judicial sale
New York is a judicial foreclosure state. A lender must commence a court action, obtain a judgment of foreclosure and sale, and proceed through an order of reference and judicial sale overseen by a referee. This process provides significant procedural protections for borrowers and typically takes considerably longer than non-judicial states.
Question 5: Under New York Real Property Law § 223-b, a landlord is prohibited from retaliating against a residential tenant by commencing eviction proceedings, raising rent, or reducing services when the tenant has:
- Failed to pay rent for more than 30 days
- Complained in good faith to a governmental authority about a housing code violation (Correct answer)
- Sublet the apartment without the landlord's written consent
- Refused to allow the landlord to enter for non-emergency repairs
Correct answer: Complained in good faith to a governmental authority about a housing code violation
RPL § 223-b protects tenants who in good faith complain to a governmental authority about health, safety, or housing code violations, or who join or organize a tenants' union, from retaliatory evictions, rent increases, or service reductions. A landlord who retaliates within one year of such protected activity bears the burden of proving a non-retaliatory motive.
Question 6: Under New York Real Property Law 240-b, an owner of real property who conveys it to himself and one or more other persons:
- Makes a void conveyance because a person cannot convey to himself
- Makes a conveyance with the same effect as if a stranger had conveyed, and may create a joint tenancy, tenancy by the entirety or tenancy in common (Correct answer)
- Creates only a tenancy in common regardless of the wording of the deed
- Must obtain court approval before the conveyance is effective
Correct answer: Makes a conveyance with the same effect as if a stranger had conveyed, and may create a joint tenancy, tenancy by the entirety or tenancy in common
RPL 240-b authorizes an owner to convey real property to himself and others (or to himself and a spouse); the conveyance has the same effect as if made by a stranger and can create a sole estate, joint tenancy, tenancy by the entirety or tenancy in common.
