2024-2025 New York Real Estate Exam Prep Questions & Answers: Study Guide to Passing the Salesperson Real Estate License Exam Effortlessly

By Real Estate Exam Professionals Ltd.

Pass the 2024-2025 New York Real Estate Salesperson Exam effortlessly on your 1st try. In this simple course, which includes both the New York state and question and answer exam prep study guide, not only will you learn to pass the state licensing exam, you will also learn:

- How to study for the NY exam quickly and effectively.

- Secrets to Passing the Real Estate Exam even if you do not know the answer to a question.

- How to tackle hard real estate MATH questions with ease and eliminate your fears.

- Tips and Tricks from Real Estate Professionals, professional exam writers and test proctors.

It will also answer questions like:

- Do I need other course materials from companies like Allied Real Estate School? How about Anthony Real Estate School or Kaplan Real Estate School? Are they even good schools to attend?

- What kinds of questions are on the New York Real Estate License Exam?

- Should I use the NY Real Estate License Exams for Dummies Book?

This Real Estate Study Guide contains over 1200+ real estate exam questions and answers with full explanations. It includes the New York State Specific portion, the portion, real estate MATH ONLY section, and real estate vocabulary only exams. You will receive questions and answers that are similar to those on the New York Department of Real Estate Exam.

You deserve the BEST real estate exam prep program there is to prepare you to pass, and it gets no better than this. The New York Real Estate Salesperson Exam is one of the hardest state test to pass in the United States. We have compiled this simple exam cram book that quickly and easily prepares you to take your state licensing exam and pass it on the 1st try with the exam. Our Real Estate Exam Review is designed to help you pass the real estate exam in the quickest, easiest and most efficient manner possible. Throw away your real estate course test books and class notes, this is all you need to pass!

• Language: English
• Publisher: Fun Science Group
• Release date: Mar 18, 2024
• ISBN: 9798224261055

Real Estate Exam Professionals Ltd.

Real Estate Exam Professionals, Ltd. is group consisting of Real Estate Professionals that include Salespersons, Brokers, Real Estate Attorneys and Ex-Exam Proctors and have been providing real estate exam preparation materials since 2002 for thousands of real estate licensees, professionals and real estate schools throughout the United States. Our online real estate exam materials provide you with the knowledge needed to pass your state exam and quickly help you on your way to becoming a successful real estate agent.

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2024-2025 New York Real Estate Exam Prep. Questions and Answers

Study Guide to Passing the Salesperson Real Estate License Exam Effortlessly

Fun Science Group

Copyright Fun Science Group 2024-2025

Published by the Fun Science Group at Smashwords

Written by

Real Estate Exam Professionals, Ltd.

© 2024-2025 Copyright Fun Science Group – All Rights Reserved.

Visit out website at www.funsciencegroup.com for more titles.

All Rights Reserved. No part of this publication may be reproduced in any form or by any means, including scanning, photocopying, or otherwise without prior written permission of the copyright holder.

Disclaimer and Terms of Use: The Author and Publisher has strived to be as accurate and complete as possible in the creation of this book, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet. While all attempts have been made to verify information provided in this publication, the Author and Publisher assumes no responsibility for errors, omissions, or contrary interpretation of the subject matter herein. Any perceived slights of specific persons, peoples, or organizations are unintentional. In practical advice books, like anything else in life, there are no guarantees of income made. This book is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and finance field.

First Printing, 2024-2025

Printed in the United States of America

Table of Contents

Introduction

How to Use this Guide Effectively

Real Estate Vocabulary

Study Section

Real Estate Vocabulary Exam

New York Real Estate Exam

Real Estate Math Exam

Test Section

Real Estate Vocabulary Exam

New York Real Estate Exam

Real Estate Math Exam

Secrets to Passing the Real Estate Exam

Closing

Limits of Liability

Introduction

Thank you for purchasing this Real Estate Exam Prep. book. We hope you will learn a great deal from our study guide and that you will study well and pass your exam. It is our purpose to provide you with the most up to date information for your state real estate exam. We have made every effort to present this material as the closest possible example to what you will see on your actual state exam. At times, it will appear to be exactly what you will see on the exam. We have tried very hard to make this book as error and typo free as possible. However, we are not without our faults. Real estate exam material and the real estate exams change rapidly and we are continuously updating this book as these changes occur. You may find a typo here and there, but do not be alarmed. We assure you that if you find one, it will be obvious and it will not prevent you from being able to tell what the correct answer is.

You will find that after you have studied this material as instructed in the How to Use this Guide Effectively, you will discover that this is all you need to pass the real estate exam. There are many real estate schools out there such as Allied Real Estate School, Anthony Real Estate School and Kaplan that, although they are good schools, also offer exam cram or exam preparation materials, but are extremely overpriced. Their materials can cost into the $100 and $300 ranges and provide a lot of extra fluff material that will not help you pass the exam and will waste your time. This book offers all the same materials in a condensed and precise manner with no fluff. Once you have taken the department of real estate certified classes and passed them, qualified to for a state exam date then you do not need those classroom materials anymore. All you will need are the answers to the state and national real estate exam questions. Study those, nothing else, memorize them, and you will pass your exam on the 1st try. There is no need to buy expensive materials from other schools, no need to sit in live exam cram courses, and there is no need for the Real Estate Exam for Dummies books. We have been offering this material to thousands of licensees for over 10 years with a tremendous amount of positive reviews and feedback.

Please be aware that the materials in this book including any bonus item you have received with this book are copyrighted. No part of this book in part or in whole may be duplicated, distributed or resold without consent of the publishers. Our staff actively searches the internet everyday for sales of real estate media on thousands of websites and online auctions. If our program is found being copied, distributed or resold we will prosecute to the fullest extent of the law.

How To Use This Guide Effectively

Here you will find tried and true steps to help you use this guide effectively and to get the best results while minimizing your study time. Please understand that as you go through the real estate questions we have prepared for you, you may come across a few that you have never seen before. Do not be alarmed. These are questions that are on the state exam, but were never given to you in the real estate class you took or in your class textbooks. This is why there is such a high failure rate for the real estate exam. The actual questions on the state or national real estate exams are NOT created by the same agency that created the college courses or text books. These college courses are designed by regional college accreditation agencies and the state real estate exams are created by the individual state’s department of real estate or real estate commissions. It is very frustrating, we know. That is why there publishers like us who create exam cram courses and applications to bridge the gap of knowledge for the real estate exams.

STEP 1: Read and understand the VOCABULARY section first. These are very important terms. The key to successful knowledge of real estate is understanding and knowing the vocabulary used. Review them until you are confident to go onto the questions. Do not continue to the questions until you know these terms well.

STEP 2: Begin this book in the STUDY SECTION and read all the real estate questions with their correct answers and explanations. There are a lot of questions. Pace yourself and allow time to understand and memorize the correct answers.

STEP 3: Go back to the VOCABULARY section and review. Again, they are VERY important. You must know these forwards and backwards.

STEP 4: Repeat step 2 until you feel you are scoring 90% or better. Then review the VOCABULARY section again.

STEP 5: Now begin the MATH only portion of the STUDY SECTION. Read the questions with the answers and explanations until you have mastered them just as you did with the regular real estate questions. Make sure you set aside a separate time of the day to ONLY study the math. The reason for this is that the analytical/math function of the human brain works on math problems from different areas of the brain than word problems. When studying it takes approx. 10 min. for the brain to fully switch to a pure analytical/math function. If you are studying word problems and math problems in the same study session, you will be wasting a lot of time and overworking your brain. Time is key here, especially when it comes to the day of the exam, more about that later.

STEP 6: Repeat the MATH ONLY portion in the STUDY SECTION until you feel you are scoring at least 90% or better.

STEP 7: Now you are ready to go on to the TEST SECTION of this book. These questions will simulate what you will find on the actual state exam. You will have a limited time to complete the exam. Set a timer to the amount of time that your state allows for you to complete the state exam. Begin taking one of the exams and write your answers on a blank sheet of paper. When you are finished, check your answers with the correct answers shown in the STUDY SECTION and score yourself. Now continue to Step 8.

STEP 8: Did you score 90% or better? If so, congratulations! You are ready to take the actual state exam and pass on your first try. If you did not score 90% or better, review the questions you missed using the STUDY SECTION. Study them, and retake the corresponding exam in the TESTING SECTION. Continue doing this and review the Vocabulary, if needed, until you are scoring 90% or better.

IMPORTANT!!!

REMEMBER THIS ON THE DAY YOU TAKE YOUR STATE EXAM…

DO NOT ANSWER, OR EVEN READ, THE FIRST 5 QUESTIONS OF THE EXAM. DO THOSE SECOND TO LAST AND ANY MATH RELATED QUESTIONS, VERY LAST!!!

Write the numbers to these questions on a piece of paper to remember to do them later. The reason is that they have placed the hardest questions in the first 5 spots to distract you, make you nervous and frustrated while taking the test. So, do those just before doing the math questions. Do the math questions very last because as we explained earlier, psychologically it takes the brain about 5-10 minutes to go from comprehensive thinking to analytical mathematical thinking. You only have a limited amount of time to complete the real estate exam. Therefore, your time will be very valuable. Do not leave any question unanswered. An unanswered question will be scored as a wrong answer.

Be sure to read the section Secrets to Passing the Real Estate Exam this section was developed by ex-real estate exam proctors. It will give you more detailed steps and inside information on how to use the above method on the day of your exam. It will also show you how to answer a question correctly even if you have completely forgotten the answer.

Good luck and study well!

Real Estate Vocabulary

Due to the length of this Real Estate Glossary, we have included it as a link below. Please understand these are general real estate terms used in almost every state. This is here for review purposes and reference only.

acceleration clause

A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.

adjustable-rate mortgage (ARM)

A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

adjustment date

The date the interest rate changes on an adjustable-rate mortgage

amortization

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

amortization schedule

A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

annual percentage rate (APR)

This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan.

application

The form used to apply for a mortgage loan, containing information about a borrower’s income, savings, assets, debts, and more.

appraisal

A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

appraised value

An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

appraiser

An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.

appreciation

The increase in the value of a property due to changes in market conditions, inflation, or other causes.

assessed value

The valuation placed on property by a public tax assessor for purposes of taxation.

assessment

The placing of a value on property for the purpose of taxation.

assessor

A public official who establishes the value of a property for taxation purposes.

asset

Items of value owned by an individual. Assets that can be quickly converted into cash are considered liquid assets. These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.

assignment

When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.

assumable mortgage

A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must qualify in order to assume the loan.

assumption

The term applied when a buyer assumes the seller’s mortgage.

balloon mortgage

A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

balloon payment

The final lump sum payment that is due at the termination of a balloon mortgage.

bankruptcy

By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a Chapter 7 No Asset bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an A paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.

bill of sale

A written document that transfers title to personal property. For example, when selling an automobile to acquire funds which will be used as a source of down payment or for closing costs, the lender will usually require the bill of sale (in addition to other items) to help document this source of funds.

biweekly mortgage

A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage. Note: there are independent companies that encourage you to set up bi-weekly payment schedules with them on your thirty year mortgage. They charge a set-up fee and a transfer fee for every payment. Your funds are deposited into a trust account from which your monthly payment is then made, and the excess funds then remain in the trust account until enough has accrued to make the additional payment which will then be paid to reduce your principle. You could save money by doing the same thing yourself, plus you have to have faith that once you transfer money to them that they will actually transfer your funds to your lender.

bond market

Usually refers to the daily buying and selling of thirty year treasury bonds. Lenders follow this market intensely because as the yields of bonds go up and down, fixed rate mortgages do approximately the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time. That is why rates change daily, and in a volatile market can and do change during the day as well.

bridge loan

Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favor is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, sellers often prefer to accept offers from buyers who have already sold their property.

broker

Broker has several meanings in different situations. Most Realtors are agents who work under a broker. Some agents are brokers as well, either working form themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. (See the Home Loan Library that discusses the different types of lenders). As a normal definition, a broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.

buydown

Usually refers to a fixed rate mortgage where the interest rate is bought down for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower’s payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower’s monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A lender funded buydown is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to qualify at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

call option

Similar to the acceleration clause.

cap

Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as caps. Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.

cash-out refinance

When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a cash out refinance.

certificate of deposit

A time deposit held in a bank which pays a certain amount of interest to the depositor.

certificate of deposit index

One of the indexes used for determining interest rate changes on some adjustable rate mortgages. It is an average of what banks are paying on certificates of deposit.

Certificate of Eligibility

A document issued by the Veterans Administration that certifies a veteran’s eligibility for a VA loan.

Certificate of Reasonable Value (CRV)

Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.

chain of title

An analysis of the transfers of title to a piece of property over the years.

clear title

A title that is free of liens or legal questions as to ownership of the property.

closing

This has different meanings in different states. In some states a real estate transaction is not consider closed until the documents record at the local recorders office. In others, the closing is a meeting where all of the documents are signed and money changes hands.

closing costs

Closing costs are separated into what are called non-recurring closing costs and pre-paid items. Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. Pre-paids are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.

closing statement

See Settlement Statement.

cloud on title

Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action.

co-borrower

An additional individual who is both obligated on the loan and is on title to the property.

collateral

In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.

collection

When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan goes to collection. As part of the collection effort, the lender must mail and record certain documents in case they are eventually required to foreclose on the property.

commission

Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors generally earn the largest commissions, followed by lenders, then the others.

common area assessments

In some areas they are called Homeowners Association Fees. They are charges paid to the Homeowners Association by the owners