What to expect from the NY Real Estate Exam Questions?

Taking the New York Real Estate Exam is a big step in your professional career. To help you prepare better, we provide in this article real examples of questions like the ones you can find in the exam. You’ll have a chance to see how all the knowledge that you’ve acquired is applied, and learn effective strategies of study.

If you’re studying for the NY Real Estate Exam, that means you’ve covered quite a journey already. After all, you need to complete a 77-hour course from a certified school and pass their final exam before applying for the Real Estate Exam. Which begs the question, what is the difference?

Difference between the Pre-Licensing Course and the Real Estate Exam

In the state of New York, to become a salesperson or a broker, you have to pass a 77-hour course, where you’ll learn the full legal foundation and gain broad knowledge across real estate topics. 

You’ll learn a great deal from the instructors and fellow candidates. The courses often include quizzes, open-book exercises, and plenty of discussions. After it, you’ll have to pass the final exam, which is usually less complex than the real estate exam.

Is the NY Real Estate Exam difficult?

It is a challenging test, and there is no doubt about that; the success rate is around 40-50%. But the actual difficulty has more to do with your personal preparation than the questions on the exam. If you study strategically and use the best tools for preparation, you might even find it a bit easier. 

Understanding the test’s objective can help you a great deal:

• It’s not a question of memorizing real estate concepts. You need to reason and apply them in real-life situations. 
• The questions test your ability to make decisions based on what the law requires.
• It includes tricky, scenario-based questions.

NY Real Estate Exam Overview

Exam Structure 

• Format: Multiple-choice
  
• Number of Questions: 75
  
• Time Limit: 1.5 hours (90 minutes)
  
• Passing Score: 70% (that’s at least 53 correct answers)
  

Topics Covered

National + New York Content includes: 

• License Law and Regulation 
• Law of Agency
• Legal Issues
• The Contract of Sales and Leases
• Real Estate Finance
• Land Use Regulations 
• Construction and Environmental Issues
• Valuation Process and Pricing Properties 
• Human Rights and Fair Housing 
• Real Estate Mathematics 
• Municipal Agencies 
• Property Insurance
• Licensee Safety 
• Taxes and Assessments 
• Condominiums and Cooperatives
• Commercial and Investment Properties
• Income Tax Issues in Real Estate Transactions
• Mortgage Brokerage
• Property Management

NY Real Estate Exam Questions

Looking at all the topics covered surely is overwhelming, but what do they look like in the exam? Let’s take a look at real exam-like questions we have prepared in Lexawise.

Question 1 

How should the deed be recorded if a Manhattan resident purchases an investment property in Nassau County?

1. The deed should be dually recorded in both the owner’s Manhattan and Nassau County.
2. The deed does not need to be recorded since the property is being used for investment purposes, not for residential use.
3. The deed should be recorded in Manhattan, where the owner lives.
4. The deed should be recorded in Nassau County, where the investment property is located.

Think for a moment…

Got it? That’s right, the correct answer is 4. The deed should be recorded in Nassau County, where the investment property is located.

Explanation: 

The deed for the investment property should, in fact, be recorded in the county in which the property is located.

Question 2

Effective deed restrictions imposed by the grantor of real estate in New York State may forbid which of the following?

1. Selling the property in the future
2. Obtaining a mortgage for the property
3. Dividing the property into small building lots
4. Renting the property to a member of a particular religious group

Don’t rush it…

That’s right, the correct answer is 3. Dividing the property into small building lots

Explanation: 

The grantor of real estate in New York State may place effective deed restrictions banning the division of the property into small building lots.

Question 3

What is the legal offense committed by a broker who tells a homeowner that a member of a minority group may be moving into the neighborhood, observes the homeowner’s distress, and offers to purchase their house at a lower price?

1. Redlining.
2. Steering.
3. Blockbusting.
4. None of the above.

Got it? That’s right, the correct answer is 3. Blockbusting.

Explanation: 

Blockbusting refers to the practice of inducing a homeowner to sell their property by implying that a large number of minority groups will soon move into the neighborhood. Steering involves guiding potential buyers to specific neighborhoods based on factors such as race, religion, gender, or other characteristics that may be discriminatory in nature. Redlining is the act of discrimination by a banker or insurance company in which they refuse to provide services or coverage to individuals based on their race, religion, or similar factors.

Question 4

When Ms. Thompson’s property was listed, Richard did not review the property tax bill and advertised the taxes to be $6,897 per year, without taking into account her veteran’s exemption of $895, which would not be transferred to the new owner. Richard is guilty of:

1. Fraud.
2. Violating Article 9A of Real Property Law.
3. Nothing, the title company makes the tax determination.
4. Negligent misrepresentation.

Remember the penalties…

Got it? That’s right; the correct answer is 4: Negligent misrepresentation.

Explanation: 

Jerry was guilty of negligent misrepresentation. Article 12A of Real Property Law states that an agent is guilty of misrepresentation when he knows, or should know, a fact about the property. In this case, Jerry was negligent because it was his fiduciary duty to review the tax bill and report the accurate taxes to the public. Fraud is intentional misrepresentation. Article 9A of the Real Property Law regards subdivisions.

Question 5

A math one to end this short example!

What is the square footage of a 3-story building that is 70 x 50?

1. 7,500.
2. 3,500.
3. 10,500.
4. 9,000.

You know the formula, come on…

Got it? That’s right, the correct answer is 3. 10,500.

Explanation: 

To find the square footage of a 3-story building with dimensions of 70 feet by 50 feet, you would multiply the length by the width, and then multiply that by the number of stories.

Square Footage = Length × Width × Number of Stories

Square Footage = (70 feet × 50 feet) × 3

Square Footage = 10,500 square feet

The square footage of the 3-story building is 10,500 square feet.

Tips to Pass the NY Real Estate Exam Questions

Now that you have had a good chance at looking at them and seeing how hard or easy they can be, let’s focus on some study tips. 

• Practice with real estate exam simulators: Practice and consistency are the key to success on the real exam. And with Lexawise’s courses, you’ll have access to over 4,500 real questions like the ones you just solved! 
• Break down the content areas: Focus on one topic at a time, and review the ones you have difficulty with more often. 
• Use flashcards to memorize key terms: You’ll have to apply them, so you have to know them by heart. 
• Use visual and audio aids: They are great for reinforcing tricky concepts, and you can use them while working out or commuting. 
• Study every day: Daily repetition is crucial for memorizing concepts and topics. Even 15-20 minutes a day makes a big difference.

Choose Lexawise for the Best Real Estate Exam Prep

If you choose Lexawise to prepare you for the New York Real Estate Exam, you’ll gain access to over 4,500 exam-like questions built explicitly around New York’s current exam format. And that’s not all, you’ll also get:

• 800+ real estate vocabulary flashcards to master key terms
• 500+ math questions with clear explanations and formulas

• Unlimited practice exams and live exams with a timer to simulate real test pressure
• Tests by topic and the ability to flag questions to review later, giving you full control over your study process

Lexawise places special emphasis on helping you understand the material, rather than just memorizing it for the exam. It provides detailed answers to all questions, including mathematical formulas and a study e-book to further your studies. 

Lexawise functions on any device, allowing you to take your real estate exam prep course with you wherever you go. The materials are constantly updated to reflect all the changes in the Real Estate world, while also providing additional resources, such as engaging concept videos, expert audio lessons, and a built-in AI Chat Tutor.

Common Mistakes that Candidates Made

Memorize without understanding

You’re going to be a salesperson for a broker, won’t you? And real life is full of problems not unlike the ones you’ll see in the exam. So, try understanding the topics.

Ignore the State-Specific Law

Some candidates fail because they over-prepare for the national section, forgetting that the NY-specific law is also an essential part of the exam. Remember that with the national questions alone, you won’t reach the 70% you need to pass. 

Not taking timed practice tests

Doing a practice test at your leisure can be a good preparation when you’re just starting to study the topics. But if you’re closer to the real exam, you’d better try to emulate the conditions of the test. So, put a timer and start!

Cramming all in one day 

An all-nighter might have helped you in high school, but this material is way more dense and specific. Rushing it in one weekend rarely works, and even if it does, you won’t have the deep knowledge of the topic that you’ll need in real life. Try a 2-3 week plan instead, and aim to study about 30-60 minutes per day. 

In Conclusion

Don’t think of the NY Real Estate Exam as just a test that you have to pass, but an opportunity to put to the test all of the knowledge that you’ve been accumulating. The questions might seem hard, but that’s because real life can be incredibly complicated, and you’ll need good preparation and good strategies to become an excellent professional. 

If you still don’t know how to pace your studies or need more resources, try Lexawise’s Real Estate Exam prep courses! You can track your progress, access all of our tools, and get New York-specific practice questions and explanations. 

Start your preparation with Lexawise today and get ready to answer every question with confidence!

Becoming an affiliate broker in Tennessee is the first step toward a real estate career. It requires education, passing an exam, and working under the supervision of a licensed broker. Ready to begin your journey? Start preparing today with Lexawise; your real estate career begins here.