Free NYREB Practice Questions

Question 1

A brokerage receives a buyer's earnest-money check and leaves it in a locked desk for five business days before anyone attempts to deposit it. No dispute or contract condition delayed deposit. What is the broker's most defensible response?

Accepted Answer

Deposit it at once in the separate special account, document the late handling, and correct the control failure

Answer

Continue safeguarding the check until every contingency is removed, because escrow does not begin until the contract is unconditional

Answer

Place the check briefly in the operating account, then transfer the same funds to escrow after the deposit clears

Answer

Return it to the buyer because a late deposit can no longer be accepted into a brokerage escrow account

Question 2

A tenant with a documented disability-related need asks to keep an emotional-support cat in a building with a no-pet policy. The tenant otherwise qualifies. How should the housing provider handle the request?

Accepted Answer

Treat it as a reasonable-accommodation request, waive pet fees and deposits, and apply the ordinary damage policy

Answer

Approve the cat only after collecting the same pet deposit charged to residents who keep pets by choice

Answer

Deny the request because an emotional-support animal is not individually trained to perform a disability-related task

Answer

Require the tenant to rent in a designated pet building so the no-pet rule remains uniform for everyone else

Question 3

A buyer and seller are represented by different salespersons in the same brokerage. Before designated agency is proposed, each client has disclosed a confidential bargaining limit to their own salesperson. Which arrangement is legally and professionally sound?

Accepted Answer

Both clients give informed written consent; the broker remains a dual agent, and each designated salesperson protects the assigned client's confidences

Answer

The salespersons may proceed on verbal consent because each salesperson will continue representing only one side

Answer

The listing agreement supplies consent for both clients once the buyer submits a written purchase offer

Answer

The broker can avoid dual agency by assigning the files to separate branch offices and directing each salesperson to communicate only through office management

Question 4

In a New York town, a homeowner seeks permission to reduce a required 12-foot side setback to 6 feet for a single-family house, a use already permitted in the district. The owner created the narrow lot through a voluntary subdivision last year. What type of relief should be evaluated?

Accepted Answer

An area variance under the five-factor balancing test; the self-created difficulty weighs against relief but is not an automatic bar

Answer

A use variance, requiring proof that the parcel cannot produce a reasonable return under any permitted use and that the hardship satisfies all mandatory findings

Answer

A special-use permit, because any residence on a substandard lot becomes a conditional use

Answer

Recognition as a legal nonconforming use, because the parcel existed before this application was filed

Question 5

A deed conveys land "to the Arts Foundation so long as the premises are used as a public gallery." Which present-estate and future-interest pairing did this language create?

Accepted Answer

A fee simple determinable that ends automatically, paired with the grantor's possibility of reverter

Answer

A fee simple subject to a condition subsequent that requires grantor action, paired with a right of entry

Answer

A life estate, followed by a remainder in the original grantor

Answer

An easement in gross that expires when the stated necessity ends

Question 6

A comparable property sold for $640,000 and has a garage with a supported market contribution of $30,000. The subject property has no garage, and no other adjustments are required. What adjusted sale price should be used for the comparable?

Accepted Answer

$610,000, subtracting the contribution because the comparable is superior to the subject

Answer

$670,000, adding the garage contribution because the subject would be worth more after construction

Answer

$640,000, because a garage adjustment should be based on construction cost rather than market contribution

Answer

$625,000, applying half the contribution because an accessory feature receives only a partial adjustment

Question 7

An apartment property has potential gross income of $600,000, vacancy and collection loss of 6%, other income of $24,000, operating expenses of $210,000, and annual debt service of $140,000. At a 7.5% capitalization rate, what value is indicated by direct capitalization?

Accepted Answer

$5,040,000, using $378,000 of net operating income and excluding debt service

Answer

$3,173,333, after treating the owner's annual debt service as a property operating expense before capitalization

Answer

$5,200,000, using potential gross income minus operating expenses without accounting for vacancy and other income

Answer

$7,840,000, capitalizing effective gross income before deducting the expenses required to operate the property

Question 8

A buyer accepts title subject to the seller's existing mortgage but signs no assumption agreement. The seller says, "The loan is now the buyer's problem." Which statement accurately describes the debt?

Accepted Answer

The seller generally remains personally liable; the buyer is not on the note, takes subject to the lien, and faces due-on-sale risk

Answer

The buyer automatically becomes the note's primary obligor, and the seller receives a complete release without further lender consent

Answer

Neither party remains personally liable unless the lender records a replacement mortgage against the property

Answer

The mortgage automatically converts to nonrecourse debt enforceable only against the real property

Question 9

An investor sells a warehouse held for investment, receives the net sale proceeds directly, identifies a replacement office property on day 20, and closes on day 100. What most clearly jeopardizes deferral under IRC Section 1031?

Accepted Answer

Receiving the proceeds directly before the deferred exchange was protected through a qualified intermediary

Answer

Using a different commercial property type, because warehouse and office ownership interests can never qualify as like-kind real property

Answer

Identifying the replacement property before day 45 instead of waiting until the identification period is nearly over

Answer

Closing on the replacement property before day 180 instead of completing the exchange on the last permitted day

Question 10

A brokerage's written screening policy requires verified income of at least three times an applicant's own monthly rent obligation. Monthly rent is $2,000; a lawful voucher pays $1,500, leaving the applicant responsible for $500. An agent demands proof of $6,000 monthly income. How should the stated policy be applied?

Accepted Answer

Use the applicant's $500 obligation, making the stated income threshold $1,500, and apply the remaining criteria consistently

Answer

Deny the application because an owner may disregard all rental subsidies when measuring ability to pay

Answer

Require a guarantor from every voucher holder and count only wages, although other applicants may use lawful nonwage income without a guarantor

Answer

Suspend processing until the housing agency guarantees every tenant obligation and every possible charge under the lease

Free NYREB Practice Questions

Domain 2: Real Estate Finance

Question 1

Domain 3: Real Property Investment

Question 2

Domain 5: Construction and Development

Question 3

Domain 6: Conveyance of Real Property

Question 4

Domain 8: Taxes and Assessments

Question 5

More NYREB practice questions

Question 6

Question 7

Question 8

Question 9

Question 10

The rest of the NYREB blueprint

That's 10 of 1,030