Exclusive right-to-sell

The listing broker — no matter who finds the buyer

The broker, unless the owner sells it themselves

Only the broker who actually finds the buyer

Prohibited in New York — a conflict of interest

Guiding buyers toward or away from areas by protected class

Inducing panic selling by claiming a protected class is moving in

A lender refusing to lend or insure in an area by its makeup

Pre-1978 housing; federal disclosure + EPA pamphlet + 10-day test window

Odorless radioactive gas from soil; can accumulate indoors

Old insulation/flooring; remove or encapsulate to control fibers

Grows in damp areas; may require disclosure and remediation

Underground storage tank

Can leak and contaminate soil and groundwater

What score do I need to pass the New York real estate exam?

You must answer at least 70% of the questions correctly to pass the New York salesperson exam. The test is administered by the Department of State (not Pearson VUE), and you schedule and pay for it through the eAccessNY online system.

Who regulates real estate licenses in New York — is there a real estate commission?

No. New York has no 'real estate commission.' Real estate salespersons and brokers are licensed and regulated by the New York Department of State (DOS) through its Division of Licensing Services, under Real Property Law Article 12-A. The Secretary of State issues and disciplines licenses.

How much pre-license education does New York require?

New York requires a 77-hour DOS-approved salesperson qualifying education course before you can sit for the licensing exam — increased from 75 to 77 hours effective December 21, 2022. A broker license requires 152 total qualifying hours, which includes the 77-hour course plus an additional 75-hour broker course.

What is the New York Agency Disclosure Form under RPL 443?

Real Property Law section 443 requires a written agency disclosure form on the sale of one-to-four-family residential property. It explains seller agency, buyer agency, broker's agent, dual agency, and dual agency with designated sales agents. The listing agent gives it to a seller before a listing agreement, and an agent gives it to a buyer at first substantive contact.

When is dual agency allowed in New York?

A New York licensee may act as a dual agent — representing both buyer and seller — only with the advance informed, written consent of both parties. New York also allows dual agency with designated sales agents, where the broker appoints one sales agent for the seller and a different one for the buyer, again only with both parties' written consent.

How much continuing education does New York require, and what must it include?

Most New York licensees must complete 22.5 hours of continuing education every two-year renewal cycle, including at least 3 hours of fair housing, 2 hours of implicit bias, and required hours on agency and ethical business practice. Attorneys admitted to the New York bar are exempt from the CE requirement.

Is there math on the New York real estate exam, and what are the transfer taxes?

Yes — the combined exam includes calculation questions covering commission and splits, seller net, loan-to-value, area, and proration. Know New York's transfer tax of $ 2 per $ 500 of consideration (paid by the seller) and the 1% mansion tax on sales of $ 1,000,000 or more (paid by the buyer).

Is this New York real estate study guide free?

Yes — the full guide, the checkpoints, the glossary, the practice questions, and the flashcards are 100% free, with no account required.

Who regulates real estate licensees in New York?

The New York Department of State (DOS), through its Division of Licensing Services, licenses and regulates real estate salespersons and brokers under Real Property Law Article 12-A. New York has NO 'real estate commission' — the Secretary of State issues, renews, and disciplines licenses statewide. This is a New York regulatory-framework concept. Many states use a 'real estate commission,' but New York does not — the regulator is the Department of State, a frequent exam distractor. New York real estate law flows from the statute (RPL Article 12-A) to the regulations (19 NYCRR Parts 175 and 177) to the DOS, which enforces both.

What education must you complete before the New York salesperson exam?

New York requires a 77-hour DOS-approved salesperson qualifying education course before sitting for the state licensing exam. The requirement rose from 75 to 77 hours effective December 21, 2022. A broker license requires 152 total qualifying hours (the 77-hour course plus an additional 75-hour course). This is a New York licensing concept. After the course, the candidate passes the DOS state exam and applies through the eAccessNY system under a sponsoring broker. The 77-hour course must be completed within eight years before the license application, per the Division of Licensing Services.

How much continuing education does New York require, and what must it include?

Most New York licensees must complete 22.5 hours of continuing education each two-year renewal cycle. It must include at least 3 hours of fair housing, 2 hours of implicit bias, plus required hours on agency, ethical business practice, recent legal matters, and cultural competency. This is a New York license-law concept effective July 1, 2021. Attorneys admitted to the New York bar are exempt from the CE requirement; the exemption does not extend to out-of-state attorneys. The fair-housing and implicit-bias requirements are uniquely New York exam topics — know the hour counts.

When must a New York agent present the RPL 443 Agency Disclosure Form?

Under Real Property Law section 443, the listing agent presents the New York Agency Disclosure Form to a seller or landlord before entering a listing agreement, and a buyer's or seller's agent presents it to a buyer or tenant at the time of first substantive contact. It applies to one-to-four-family residential property. This is a New York agency concept and a top state-exam topic. The form explains seller agency, buyer agency, broker's agent, dual agency, and dual agency with designated sales agents. If a party refuses to sign, the agent notes the refusal on the form and keeps it — the duty to present it still applies.

When is dual agency allowed in New York?

Under RPL 443, a New York licensee may act as a dual agent — representing both buyer and seller in the same transaction — only with the advance informed, written consent of both parties. A dual agent cannot provide undivided loyalty to either client and must keep each side's confidential information private. This is a New York agency concept. New York also recognizes 'dual agency with designated sales agents,' where the broker appoints one sales agent to represent the seller and a different agent to represent the buyer — again only with both parties' written consent. The duty a designated sales agent must specifically explain it cannot provide is undivided loyalty.

How must a New York broker handle clients' money under 19 NYCRR Part 175?

Under 19 NYCRR Part 175, a New York broker must keep money belonging to others — such as an earnest-money deposit — in a separate, special bank escrow account and must not commingle it with the broker's own funds. Commingling or converting trust funds is a ground for discipline by the Department of State. This is a New York license-law concept. If the buyer and seller dispute the deposit, the broker holds the funds in escrow until they resolve the dispute or a court directs disbursement. New York also prohibits net listings and requires that advertising clearly identify the advertiser as a real estate broker.

To whom may a New York salesperson be paid a commission?

Under Real Property Law Article 12-A, a New York salesperson may be paid a commission only by his or her own sponsoring broker — never directly by a buyer, a seller, or another broker. A salesperson may work under just one sponsoring broker, who must be named on the license application. This is a New York license-law concept. To change brokers, the new sponsoring broker files the change with the Department of State and the license is amended to reflect the current sponsor. Owners selling or renting their own property, and New York-admitted attorneys acting within their practice, are exempt from licensure.

What extra protected classes does the New York State Human Rights Law add?

The New York State Human Rights Law protects every class in the federal Fair Housing Act and adds more — including lawful source of income, age, marital status, sexual orientation, gender identity or expression, military status, and domestic-violence-victim status. The Division of Human Rights enforces it in housing. This is a New York fair-housing concept. 'Lawful source of income' (such as a Section 8 voucher) is a frequently tested New York class with no federal equivalent. The classic violations — steering, blockbusting, and redlining — are prohibited under both federal and New York law.

How is the New York State transfer tax and mansion tax assessed?

New York's state real estate transfer tax is \$ 2 for each \$ 500 of consideration (0.4%), generally paid by the seller. An additional 1% 'mansion tax' applies to residential conveyances of \$ 1,000,000 or more and is generally paid by the buyer. This is a New York financing-and-settlement concept. If the seller fails to pay the transfer tax or is exempt, the buyer becomes liable. New York City and some counties add their own transfer taxes on top of the state tax, so closing costs vary by location.

How is foreclosure handled in New York?

New York is a lien-theory, judicial-foreclosure state. The borrower keeps title and gives the lender a mortgage lien, so the lender must file a lawsuit and obtain a court judgment to foreclose. New York also requires a settlement conference for owner-occupied home loans, making foreclosure relatively slow. This is a New York financing concept. Because the security instrument is a mortgage (not a deed of trust), there is no quick non-judicial trustee's sale as in many western states. Closings are typically conducted by attorneys — New York is an 'attorney state.'

What does New York's Real Property Law Article 9-A regulate?

Real Property Law Article 9-A regulates the sale or lease of subdivided vacant lands offered to the public. A subdivider must file an offering statement (and obtain its acceptance) with the Department of State before offering the lots, protecting buyers from fraud and misrepresentation. This is a New York practice concept. Article 9-A is the state's subdivided-lands law, distinct from local municipal subdivision approval. Offering subdivided lands before the DOS accepts the offering statement is a violation.

What are the four government powers over private property?

Even a fee-simple owner's rights are limited by four government powers, remembered as PETE: Police power (regulation such as zoning), Eminent domain (taking for public use with just compensation), Taxation (property taxes that become a lien), and Escheat (property reverts to the state when an owner dies with no will and no heirs). This is a Property Use concept. Police power supports zoning and building codes without compensating the owner; only eminent domain requires just compensation. In New York, condemnation follows the Eminent Domain Procedure Law, and property taxes are administered locally.

What is the difference between joint tenancy and tenancy in common?

Both are forms of co-ownership. Joint tenancy carries the right of survivorship — a deceased owner's share passes automatically to the surviving joint tenants — and requires the four unities of time, title, interest, and possession. Tenancy in common has no survivorship; each owner holds a divisible share that can be willed to heirs. This is a Forms of Ownership concept. New York is NOT a community-property state; married couples commonly hold title as tenants by the entirety, which adds survivorship and creditor protection. In New York, a conveyance to two or more persons is presumed a tenancy in common unless survivorship is expressly stated.

Which deed gives a buyer the most protection?

A general warranty deed (called a full-covenant-and-warranty deed in New York) gives the most protection: the grantor warrants clear title against all defects, even those arising before the grantor's ownership. A bargain-and-sale deed with covenant is common in New York; a quitclaim deed gives no warranties at all. This is a Transfer of Title concept. A deed must be delivered by the grantor and accepted by the grantee to transfer title; recording it then gives constructive notice to the public. In New York, deeds are recorded with the county clerk (the City Register in New York City), usually with a transfer-tax return.

How does the income (capitalization) approach estimate value?

The income approach converts a property's income into value using the formula value = net operating income ÷ capitalization rate. Net operating income is effective gross income minus operating expenses, before any mortgage payment. A higher cap rate signals more risk and produces a lower value. This is a Property Value and Appraisal concept. It is the primary approach for income-producing property such as apartment buildings and commercial space. The other two approaches are the sales comparison approach (comparable sales) and the cost approach (land value plus replacement cost minus depreciation).

What does the federal Fair Housing Act prohibit?

The Fair Housing Act (1968) bans discrimination in the sale, rental, and financing of housing based on race, color, religion, national origin, sex, familial status, and disability — the seven federal protected classes. Prohibited practices include steering, blockbusting, and redlining. This is a Real Estate Practice concept and one of the most heavily tested topics. New York's Human Rights Law adds many more protected classes, such as lawful source of income and age. Housing providers must allow reasonable accommodations and modifications for people with disabilities, such as a service animal.

Who must comply with the federal lead-based paint disclosure rule?

Sellers and landlords of most housing built before 1978 must disclose any known lead-based paint and hazards, give buyers or renters the EPA pamphlet, and — for sales — allow a 10-day window to test for lead. The rule comes from the 1992 Residential Lead-Based Paint Hazard Reduction Act (Title X). This is a Property Disclosures concept that applies in New York alongside the state Property Condition Disclosure Statement. The 10-day inspection opportunity applies to sales; the parties may agree in writing to a different length. Other commonly disclosed environmental hazards include radon, asbestos, mold, and leaking underground storage tanks.

What does RESPA require at a real estate closing?

The Real Estate Settlement Procedures Act (RESPA) governs closings on most federally related mortgage loans. It requires lenders to disclose settlement costs, gives borrowers a Loan Estimate and a Closing Disclosure, and prohibits kickbacks and unearned referral fees among settlement-service providers. This is a Financing and Settlement concept. The Loan Estimate is due within three business days of application; the Closing Disclosure must reach the borrower at least three business days before closing. RESPA's anti-kickback rule is why a New York licensee cannot accept an undisclosed fee for steering a client to a particular title or mortgage company.

How do you calculate a real estate commission?

A commission is the sale price multiplied by the commission rate. A \$ 500,000 sale at a 5% rate produces a \$ 25,000 total commission. That total is then split — first between the listing and cooperating brokerages, then between each brokerage and its agent — by applying each percentage in turn. This is a Real Estate Math concept. To find a price for a target net to the seller, divide the net by (1 − commission rate): a \$ 470,000 net at 6% needs a price of \$ 470,000 ÷ 0.94 = \$ 500,000. In New York, commission is paid to the sponsoring broker, who then compensates the salesperson — a salesperson may not be paid commission directly by a client.

New York Department of State (DOS)

The state agency that licenses and regulates New York real estate salespersons and brokers through its Division of Licensing Services, administering Real Property Law Article 12-A. New York has no separate 'real estate commission.'

Division of Licensing Services

The DOS division that processes real estate license applications, renewals, and education approvals and supports enforcement of Article 12-A.

The head of the New York Department of State, who issues licenses and disciplines licensees (fines, suspension, revocation) under RPL 441-c.

The portion of New York's Real Property Law that governs real estate licensing — salespersons, brokers, agency, compensation, and exemptions.

The DOS regulations on broker conduct — escrow of clients' money, advertising, commissions, and prohibited practices such as net listings.

The single licensed broker who supervises a New York salesperson and is named on the license; the salesperson may be paid commission only by this broker.

The Department of State's online system used to apply for, schedule, renew, and manage New York real estate licenses and exams.

Representing both buyer and seller in one transaction; in New York, lawful only with the advance informed, written consent of both parties.

FREE New York Real Estate Exam Study Guide 2026

This free New York real estate exam study guide covers the New York state-specific law tested by the and the national/general principles tested across the country — all on one combined 75-question exam.^[1]New York’s state material is heavily tested, so we teach it first.

New York is unusual in two ways the exam loves: the regulator is the Department of State, not a “real estate commission,” and the test is a single combined exam needing 70% to pass, administered directly by the DOS through .^[2]It’s interactive, not a wall of text: every area has a built-in checkpoint quiz, hover-able glossary terms, worked math examples, and concept questions.

Read the guide area by area, test yourself at each checkpoint, then round out your free prep with our New York practice questions and flashcards. Two areas reward the most study time on the state side: DOS license law and New York agency and disclosure (RPL 443).

New York Real Estate Exam Snapshot

New York salesperson exam at a glance (2026)
Detail	New York salesperson exam
Regulator	New York Department of State (DOS), Division of Licensing Services — NOT a 'real estate commission'
Testing provider	Administered by the DOS; scheduled and paid through eAccessNY
Exam format	One combined exam of 75 multiple-choice questions (no separate national/state portions)
Passing score	70% correct
Time	1½ hours
Exam fee	$ 15 per attempt
Pre-license education	77-hour DOS-approved salesperson qualifying course (broker: 152 total hours)
License term & CE	Two-year license; 22.5 hours of continuing education per renewal (incl. fair housing + implicit bias + agency)

Confirm the current question counts, fees, and education rules with the Department of State before you test — New York updates its requirements periodically.^[1]^[2] The weighting below reflects the New York emphasis; license law and agency and disclosure dominate the state-specific content:

New York salesperson exam emphasis (2026, ~75 questions)

NY License Law & DOS Regulation (RPL 12-A, 19 NYCRR)22% · Heaviest

Agency, RPL 443 Disclosure & Fair Housing16% · High-yield

Contracts & Listings12%

Property, Estates & Legal Descriptions11%

Financing, Mortgages & Settlement11%

Property Value & Appraisal9%

Ownership, Transfer & Recording8%

Disclosures & Environmental6%

Real Estate Math5%

Treat the percentages as a planning guide — the New York exam interleaves state and national questions on one form.^[1] This guide teaches the New York state law first, then all eight national content areas, each ending in a checkpoint quiz.

The New York salesperson exam at a glance

One combined salesperson exam75 multiple-choice questions1½ hours · 70% to passNew York does NOT split the test into separate national and state portions.

Administered by the Department of StateComputer-based at a DOS test site$ 15 exam fee per attemptSchedule and pay through the eAccessNY online system; not Pearson VUE.

New York uses one combined 75-question exam — pass with 70%, administered directly by the Department of State.

1 · DOS, License Law & Discipline (New York)

The heart of the New York portion. Who regulates real estate in New York, how you become and stay licensed, the continuing education New York requires, and how the Department of State enforces the law.^[2]

New York’s real estate regulatory framework

New York real estate law flows from the statute (RPL Article 12-A) to the regulations (19 NYCRR) to the Department of State that enforces them.

Real Property Law (RPL) Article 12-ANew York's real estate licensing statute, enacted by the Legislature — it governs salespersons, brokers, agency, and disclosure.
19 NYCRR Parts 175 & 177The regulations the Secretary of State adopts to implement Article 12-A — escrow, advertising, conduct, and education.
Department of State (DOS), Division of Licensing ServicesThe state agency that licenses and regulates real estate licensees in New York. New York has NO 'real estate commission.'
Secretary of StateThe DOS official who issues and disciplines licenses (fines up to $ 2,000, suspension, revocation) under RPL 441-c.

Unlike most states, New York is regulated by the Department of State — nota “real estate commission.”

The Department of State & RPL Article 12-A

The , through its , regulates licensees under ; the issues licenses and imposes discipline. The big exam trap: New York has no “real estate commission” — that wording is a distractor. The DOS regulations live in Parts 175 and 177.

New York Licensing & 77-Hour Education

To be licensed, a salesperson completes a 77-hour DOS-approved qualifying course (raised from 75 to 77 hours effective December 21, 2022), passes the combined state exam, and applies through under a .^[1] A salesperson always works under one sponsoring broker and is paid commission only by that broker — never directly by a client. A broker license needs 152 total qualifying hours.

The path to a New York salesperson license

1 · 77-hour qualifying courseComplete a DOS-approved 77-hour salesperson qualifying education course (effective Dec. 21, 2022; formerly 75 hours).
2 · Pass the school & state examsPass the school's final exam, then the DOS state licensing exam (75 questions) with at least 70%.
3 · Find a sponsoring brokerA salesperson can only work under one licensed sponsoring broker, who must be named on the application.
4 · Apply through eAccessNYSubmit the salesperson application and the $ 55 fee to the Department of State through the eAccessNY system.

A salesperson must always work under a single licensed sponsoring broker— never independently, and may be paid only by that broker.

Continuing Education (22.5 hours)

Most New York licensees must complete 22.5 hours of continuing education each two-year renewal cycle (effective July 1, 2021). It must include at least 3 hours of fair housing, 2 hours of implicit bias, plus required hours on the law of agency, ethical business practice, cultural competency, and recent legal matters.^[1] Attorneys admitted to the New York bar are exempt from the CE requirement — out-of-state attorneys are not.

Escrow, Discipline & License Law

Under , a broker must keep money belonging to others in a separate and must never it with the broker’s own funds. New York also prohibits and requires advertising to identify the advertiser as a real estate broker. The Secretary of State may impose a fine up to $ 2,000, suspend, or revoke a license under RPL 441-c.^[2]

Checkpoint · Area 1 · DOS & New York License Law

Question 1 of 10

Which body within New York State government licenses real estate salespersons and brokers and administers Article 12-A of the Real Property Law?

2 · New York Agency, Disclosure & Fair Housing

The most distinctively New York material.The RPL 443 agency disclosure form and dual agency, the Property Condition Disclosure Statement, New York’s expanded fair-housing classes, and the transfer taxes.^[3]

RPL 443 Agency Disclosure & Dual Agency

requires a written Agency Disclosure Form on the sale of one-to-four-family residential property. The listing agent presents it to a seller or landlord before a listing agreement; an agent presents it to a buyer or tenant at first substantive contact.^[3]

is lawful only with the of both parties, and a dual agent cannot give undivided loyalty to either. New York also allows , where the broker appoints one sales agent for the seller and a different one for the buyer.

New York agency disclosure (RPL § 443)

New York requires a written Agency Disclosure Form on the sale of one-to-four-family residential property. It explains seller agency, buyer agency, broker agency, dual agency, and dual agency with designated sales agents.

Disclosure to seller / landlordThe listing agent presents the NY Agency Disclosure Form to the seller or landlord BEFORE entering a listing agreement.
Disclosure to buyer / tenantA buyer's or seller's agent presents the form to a buyer or tenant at the time of first substantive contact.
Advance informed consent for dual agencyA dual agent may represent both parties only with the informed, written consent of both — the agent cannot give undivided loyalty to either.
Dual agent with designated sales agentsWith both parties' consent, the broker appoints one sales agent for the seller and a different sales agent for the buyer.

If a buyer or seller refuses to sign, the agent notes the refusalon the form and keeps it — the duty to present it still applies.

Property Condition Disclosure (2024 change)

A seller of a one-to-four-family home must deliver a before the buyer signs the contract of sale.^[4] Effective March 20, 2024, New York eliminated the former $ 500 credit option, so a seller can no longer skip the disclosure by giving the buyer a $ 500 credit at closing; the amendment also added flood-risk questions.

NY Human Rights Law & Fair Housing

The , enforced by the Division of Human Rights, protects every federal class and adds more — including , age, marital status, sexual orientation, gender identity or expression, and military status.^[5]“Lawful source of income” (such as a Section 8 voucher) is a frequently tested class with no federal equivalent.

Transfer Tax, Mansion Tax & Rent Stabilization

New York’s is $ 2 for each $ 500 of consideration (0.4%), generally paid by the seller. An additional 1% applies to residential sales of $ 1,000,000 or more and is generally paid by the buyer.^[6]

mainly covers apartments in buildings of six or more units built before 1974 in adopting localities. governs the sale of subdivided vacant lands.

Checkpoint · Area 2 · New York Agency, Disclosure & Fair Housing

Question 1 of 10

Under NY Real Property Law section 443, a seller's agent or listing agent must present the New York agency disclosure form to a prospective buyer at what point?

3 · Property, Legal Descriptions & Land Use

National content area.What real property is, the estates and rights an owner can hold, the government’s powers over land, and how land is legally described.^[10]

Estates & the Bundle of Rights

is land, everything permanently attached to it (including ), and the . The largest estate is — absolute and inheritable. Use the MARIA tests (Method of attachment, Adaptability, Relationship, Intention, Agreement) to tell a fixture from personal property.

Government Powers & Encumbrances

Even fee simple is limited by four government powers, remembered as PETE: (zoning, codes), (with just compensation), taxation, and . An — a lien, , or deed restriction — limits title.

The four government powers — “PETE”

Every owner’s rights are subject to four powers of government. Note the key contrast: only eminent domain requires the government to pay the owner.

PPolice powerRegulate land for public health, safety & welfare — zoning, building codes. No payment to the owner.

EEminent domainTake property for public use through condemnation — but pay just compensation.

TTaxationLevy property taxes; unpaid taxes become a lien with high priority.

EEscheatProperty reverts to the state when an owner dies with no will and no heirs.

Legal Descriptions

Three methods describe land precisely: (the method most used in New York), the rectangular (government) survey system, and lot-and-block. One section is 640 acres and one is 43,560 square feet.

The rectangular survey system — a township of 36 sections

1 township
6 mi × 6 mi = 36 sections

1 section
1 sq mile = 640 acres

1 acre
43,560 square feet

Memorize for the exam: 43,560 sq ft/acre and 5,280 ft/mile — these are not provided at the test center. New York mostly uses metes-and-bounds descriptions.

Checkpoint · Area 3 · Property, Legal Descriptions & Land Use

Question 1 of 10

Which scenario most clearly demonstrates the right of an owner of land adjoining a non-flowing body of water, as opposed to a watercourse?

4 · Ownership, Title Transfer & Recording

National content area, with New York differences. How people co-own property in New York, how a deed transfers title, and how recording protects ownership.^[10]

Forms of Ownership in New York

The key difference is the right of survivorship. has it and needs the four unities; does not, so each share passes by will (New York presumes tenancy in common unless survivorship is stated). New York is not a community-property state; married couples commonly hold title as , which adds survivorship and creditor protection.

Forms of ownership in New York
Form	Survivorship?	Who can hold it
Ownership in severalty	N/A — sole owner	One person or entity
Tenancy in common	No — passes by will (NY default)	Any number of co-owners
Joint tenancy	Yes — to survivors	Co-owners with the four unities
Tenancy by the entirety	Yes — to surviving spouse	A married couple in New York

Deeds, Transfer & Recording

A deed conveys title from grantor to grantee. The gives the most protection; a is common in New York; a gives none.

Title passes on delivery and acceptance, not on recording — but recording at the county clerk (the City Register in New York City) gives constructive notice. protects against prior defects.

Checkpoint · Area 4 · Ownership, Title Transfer & Recording

Question 1 of 10

Four siblings own a farm as joint tenants. One sibling becomes financially troubled, and a creditor obtains and forces the sale of that sibling's interest at a judicial sale to satisfy a judgment. After the forced sale, how does the buyer at that sale hold title relative to the three remaining siblings?

5 · Property Value & Appraisal

National content area.What creates value, the three approaches an appraiser uses, and how a licensee’s CMA differs from a formal appraisal.^[10]

Value Principles

is the most probable price under fair conditions — an opinion, distinct from the actual market price. The basis of value is : the legal, possible, feasible, and most profitable use of a site. A helps price a listing; a formal is an impartial USPAP-compliant opinion by a licensed appraiser.

The Three Approaches to Value

An appraiser estimates value three ways, then reconciles them — weighing the indications, not averaging — into one final opinion.

The three approaches to estimating value

Sales comparison approachCompare the subject to recently sold similar properties; adjust for differences. Best for homes.Based on the principle of substitution.

Cost approachLand value + cost to rebuild the improvements new − depreciation. Best for new or special-use property.

Income (capitalization) approachValue = net operating income ÷ capitalization rate. Best for income-producing property.

The appraiser then reconciles the three indications into one final opinion of value — weighing them, not averaging.

Checkpoint · Area 5 · Property Value & Appraisal

Question 1 of 10

In a uniform subdivision where homes are similar in size, style, and quality, values tend to be well supported and stable. Which appraisal principle explains why this consistency tends to maximize and protect value?

6 · Contracts & Agency (National)

A large national area. What makes a contract valid, the kinds of listing agreements, and the fiduciary duties at the heart of agency.^[10]

Contract Law & Listings

A valid needs mutual agreement, consideration, legal purpose, and competent parties — and, for real estate, writing under the . A missing essential element makes it void; a defect like a minor’s signature makes it voidable. In New York, the binding contract of sale is usually attorney-drafted.

Types of listing agreements
Listing type	Who earns the commission
Exclusive right-to-sell	The listing broker — no matter who finds the buyer
Exclusive agency	The broker, unless the owner sells it themselves
Open listing	Only the broker who actually finds the buyer
Net listing	Prohibited in New York — a conflict of interest

Agency & Fiduciary Duties

is a fiduciary relationship between agent and principal. The duties are OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. Confidentiality survives the end of the relationship.

Checkpoint · Area 6 · Contracts & Agency (National)

Question 1 of 10

The statute of frauds requires that contracts for the sale of real estate be evidenced by a signed writing primarily to accomplish which purpose?

7 · Real Estate Practice & Fair Housing

National content area, with New York’s expanded fair-housing classes. Fair housing, handling client money, and the leasing work a licensee does day to day.^[7]

Fair Housing

The (1968) bans discrimination based on race, color, religion, national origin, sex, familial status, and disability — seven federal protected classes.^[7]New York’s Human Rights Law adds many more, including lawful source of income. The classic violations are , blockbusting, and redlining.

Prohibited fair-housing practices
Practice	What it is
Steering	Guiding buyers toward or away from areas by protected class
Blockbusting	Inducing panic selling by claiming a protected class is moving in
Redlining	A lender refusing to lend or insure in an area by its makeup

Trust Funds, Leases & Conduct

A broker must keep client funds — like — in a separate ; is a violation. Commission rates are always negotiable, and fixing them with competitors is an antitrust violation. A lease conveys the right to use property for a term in exchange for rent (landlord = lessor, tenant = lessee); many New York City apartments are covered by .

Checkpoint · Area 7 · Real Estate Practice & Fair Housing

Question 1 of 10

Two brokers privately agree that neither will hire the other's departing agents and that both will refuse to cooperate on transactions with any firm offering buyer cash rebates. Evaluating both parts of this pact, which characterization is most accurate?

8 · Disclosures & Environmental Issues

National content area. What a seller and agent must reveal, and the environmental hazards the exam expects you to recognize.^[9]

Material Facts & Property Disclosure

A — anything that would affect a buyer’s decision or price — must be disclosed, including known . In New York the seller uses the , and since March 20, 2024 the seller can no longer avoid it with a $ 500 credit. The old rule of caveat emptor is now limited by disclosure law.

Environmental Hazards

The most heavily tested federal rule is the : for housing built before 1978, the seller must disclose known lead paint, give the EPA pamphlet, and (for sales) allow a 10-day inspection window.^[9]

Environmental hazards to recognize
Hazard	What to know
Lead-based paint	Pre-1978 housing; federal disclosure + EPA pamphlet + 10-day test window
Radon	Odorless radioactive gas from soil; can accumulate indoors
Asbestos	Old insulation/flooring; remove or encapsulate to control fibers
Mold	Grows in damp areas; may require disclosure and remediation
Underground storage tank	Can leak and contaminate soil and groundwater

Checkpoint · Area 8 · Disclosures & Environmental Issues

Question 1 of 10

An agent learns that the roof of a listed home has an active leak the seller wants kept quiet, yet the leak is concealed above a finished ceiling. Regarding the agent's own duty, which statement is most accurate?

9 · Financing & Settlement

National content area, with key New York differences. The instruments that secure a loan, how New York forecloses, the main loan types, and what happens at closing.^[8]

Mortgages, Notes & Foreclosure

New York is a state: the borrower keeps title and gives the lender a mortgage lien, so foreclosure is — the lender must sue and win a court judgment. New York is also an , so attorneys typically draft the contract and run the closing. The promissory note is the borrower’s promise to repay.

How a New York sale closes — attorney state & transfer taxes

1 · Attorney-drafted contractNew York is an 'attorney state' — each side's attorney negotiates and drafts the binding contract of sale; the seller delivers the Property Condition Disclosure Statement first.
2 · Title search & escrowA title company searches title and issues title insurance; the broker holds the earnest-money deposit in a separate escrow account (19 NYCRR Part 175).
3 · Mortgage & lien theoryNew York is a lien-theory state — the borrower keeps title and gives the lender a mortgage lien; default is enforced by judicial foreclosure.
4 · Closing, transfer taxes & recordingAt closing the seller pays the $ 2-per-$ 500 NY State transfer tax, the buyer may owe the 1% mansion tax on $ 1M+ sales, and the deed is recorded with the county clerk.

New York is a lien-theory, attorney-closing state that uses judicial foreclosure— a heavily tested state difference.

Loan Types, Lending Laws & Closing

Three loan types anchor the exam — conventional, FHA, and VA — and the measures lender risk. Two federal laws govern disclosure: requires settlement-cost disclosures and bans kickbacks, and requires disclosing the cost of credit, including the APR.^[8] At closing, transfer taxes are paid and the deed is recorded with the county clerk.

Checkpoint · Area 9 · Financing & Settlement

Question 1 of 9

A buyer is comparing two thirty-year mortgages and wants a single disclosed figure that reflects the yearly cost of credit including interest plus certain loan fees expressed as a percentage. Under Regulation Z, which disclosed figure serves this comparison purpose?

10 · Real Estate Math

Tested throughout the combined exam. A handful of formulas cover almost every calculation: area, commission, seller net, loan-to-value, taxes, and proration.^[1]

Area, Commission & Net

Area of a rectangle is length × width; convert square feet to acres by dividing by 43,560. Commission = sale price × rate. To find the price for a target seller net, divide the net by (1 − rate).

Core real estate formulas
To find	Formula
Commission	Sale price × commission rate
Price for a target net	Net ÷ (1 − commission rate)
Loan-to-value (LTV)	Loan amount ÷ value (or price)
Value (income approach)	Net operating income ÷ capitalization rate
NY transfer tax	$ 2 × (consideration ÷ $ 500, rounded up)

LTV, Taxes & Proration

is loan ÷ value. splits taxes, rent, and interest by the days each party owns the property — the seller is usually charged through the closing date. New York exam math problems will specify whether to use a 360-day or 365-day year and who owns the closing day.

Checkpoint · Area 10 · Real Estate Math

Question 1 of 8

A salesperson is on a 70/30 split with the brokerage, where the salesperson keeps 70%. After a closing the salesperson received $7,140 as their share. What was the total commission earned by the brokerage on this transaction before the split?

How to Use This Study Guide

A study guide is a map, not the whole territory — pair it with our free New York practice questions and flashcards. Because New York’s state material is heavily tested, lead with license law and New York agency and disclosure (RPL 443), then layer in the national content areas and lock in the math.

A study loop that actually works

1
Read a content area here
Work through one area at a time, New York law first, then the national portions.
2
Take the checkpoint
The quick check at the end of each area exposes what didn't stick.
3
Drill the gaps
Send your weak area straight into the free New York practice questions and flashcards.
4
Take full, timed practice
Sit a full-length practice test to build stamina, then review every miss.

New York Real Estate Concept Questions

Common New York and national real estate principles the salesperson exam actually tests — covering DOS license law, RPL 443 agency and disclosure, the Property Condition Disclosure Statement, the Human Rights Law, transfer taxes, and the national content areas. Tap any card for a short, exam-ready answer backed by an official source (NY DOS, RPL, NY DHR, NY Tax, HUD, CFPB, EPA, or IRS), then test yourself on them as flashcards.

New York Real Estate Glossary

Quick definitions for the terms you’ll see most across the New York real estate exam:

19 NYCRR Part 175: The DOS regulations on broker conduct — escrow of clients' money, advertising, commissions, and prohibited practices such as net listings.
Acre: A unit of land area equal to 43,560 square feet.
Advance informed consent: The written consent both principals must give before a New York licensee may act as a dual agent, after disclosure of the limits on the agent's loyalty.
Agency: A fiduciary relationship in which an agent represents a principal in dealings with third parties.
Appraisal: An impartial, supported opinion of value prepared by a licensed appraiser as of a specific date, following USPAP.
Attorney state: A description of New York practice in which attorneys typically draft the contract of sale and conduct the closing.
Bargain and sale deed: A common New York deed; a bargain-and-sale deed with covenant warrants only against the grantor's own acts, while one without covenant gives no warranties.
Bundle of rights: The rights that come with ownership: possession, use (enjoyment), exclusion, disposition (transfer), and control.
Capitalization rate: The rate of return on an income property: net operating income ÷ value. A higher cap rate implies more risk and lower value.
Commingling: Improperly mixing clients' trust funds (such as an earnest-money deposit) with the broker's own funds — a license-law violation under 19 NYCRR Part 175.
Comparative market analysis (CMA): A licensee's estimate of value from recent comparable sales, used to help price a listing — not a formal appraisal.
Contingency: A condition that must be met for a contract to become binding, such as financing, inspection, or appraisal contingencies.
Contract: A legally enforceable agreement between competent parties to do or refrain from doing a lawful act.
Division of Licensing Services: The DOS division that processes real estate license applications, renewals, and education approvals and supports enforcement of Article 12-A.
Dual agency: Representing both buyer and seller in one transaction; in New York, lawful only with the advance informed, written consent of both parties.
Dual agency with designated sales agents: A New York arrangement in which, with both parties' written consent, the broker appoints one sales agent for the seller and a different sales agent for the buyer.
eAccessNY: The Department of State's online system used to apply for, schedule, renew, and manage New York real estate licenses and exams.
Earnest money: A buyer's good-faith deposit showing serious intent; held in a broker's escrow account and usually applied to the price at closing.
Easement: A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.
Eminent domain: Government's power to take private property for public use through condemnation, paying the owner just compensation.
Encumbrance: Any claim, lien, charge, or right that limits an owner's title — liens, easements, encroachments, and deed restrictions.
Escheat: The reversion of property to the state when an owner dies with no will and no legal heirs.
Escrow account: A separate, special bank account in which a New York broker must hold money belonging to others until a transaction closes or a dispute is resolved.
Fair Housing Act: The 1968 federal law prohibiting housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
Fee simple: The most complete form of ownership — absolute, of unlimited duration, and freely transferable by deed or will. Also called fee simple absolute.
Fiduciary duties: The duties an agent owes the principal — Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (OLD CAR).
Fixture: An item of personal property attached to real property so as to become part of it and transfer with the land. The MARIA tests decide whether an item is a fixture.
Full covenant and warranty deed: New York's name for a general warranty deed — the grantor warrants clear title against all defects, even those arising before the grantor's ownership.
Highest and best use: The legally permissible, physically possible, financially feasible, and most profitable use of a site — the basis of value.
Joint tenancy: Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.
Judicial foreclosure: Foreclosure through a lawsuit and court judgment, the rule in New York because it is a lien-theory state; there is no quick non-judicial trustee's sale.
Latent defect: A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.
Lawful source of income: A New York protected class (such as a Section 8 housing voucher) that has no federal equivalent; refusing to rent because of it is unlawful discrimination.
Lead-based paint disclosure: The federal requirement that sellers and landlords of pre-1978 housing disclose known lead paint and give a 10-day inspection window for sales.
Lien theory: New York's mortgage theory: the borrower keeps title and gives the lender a mortgage lien, so foreclosure is judicial (through a court action).
Listing agreement: A contract employing a broker to find a buyer for the owner's property in exchange for compensation.
Loan-to-value ratio (LTV): The loan amount divided by the property's value or price; a higher LTV means a smaller down payment and more lender risk.
Mansion tax: An additional 1% New York tax on conveyances of residential real property of $ 1,000,000 or more, generally paid by the buyer (grantee).
Market value: The most probable price a property should bring in a competitive, open market under fair-sale conditions; an opinion of value.
Material fact: A fact that would affect a reasonable buyer's decision to buy or the price they would pay; a known material defect must be disclosed.
Metes and bounds: A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning — the method most used in New York.
Net listing: A listing where the broker keeps any amount above a set seller price as commission — a conflict of interest that is prohibited in New York.
Net operating income (NOI): Effective gross income minus operating expenses, before any mortgage payment; the income figure used in the income approach.
New York Department of State (DOS): The state agency that licenses and regulates New York real estate salespersons and brokers through its Division of Licensing Services, administering Real Property Law Article 12-A. New York has no separate 'real estate commission.'
New York State Human Rights Law: New York's anti-discrimination statute, enforced by the Division of Human Rights, which protects more classes than the federal Fair Housing Act, including lawful source of income.
Police power: Government's authority to regulate land for public health, safety, and welfare — the basis for zoning and building codes, with no payment to the owner.
Property Condition Disclosure Statement (PCDS): The form a New York seller of a one-to-four-family home must deliver to the buyer before the buyer signs the contract; the former $ 500 credit option was eliminated March 20, 2024.
Proration: Dividing prepaid or accrued expenses such as taxes, rent, and interest fairly between buyer and seller as of the closing date.
Quitclaim deed: A deed conveying only whatever interest the grantor has, with no warranties; often used to clear a cloud on title.
Real Estate Recovery Fund: Not used in New York the way some states use it; New York instead relies on DOS discipline and an anti-discrimination-in-housing fund supported by certain fines.
Real property: Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.
Rent stabilization: A New York regulation, mainly in buildings of six or more units built before 1974 in adopting localities, that limits rent increases and gives tenants renewal rights.
RESPA: The Real Estate Settlement Procedures Act — a federal law requiring loan-cost disclosures and prohibiting kickbacks at closing.
RPL § 443 (Agency Disclosure Form): The New York statute requiring a written agency disclosure form on the sale of one-to-four-family residential property; it explains seller, buyer, broker, and dual agency.
RPL Article 12-A: The portion of New York's Real Property Law that governs real estate licensing — salespersons, brokers, agency, compensation, and exemptions.
RPL Article 9-A: New York's subdivided-lands law; a subdivider must file an offering statement accepted by the DOS before offering subdivided vacant lands to the public.
Secretary of State: The head of the New York Department of State, who issues licenses and disciplines licensees (fines, suspension, revocation) under RPL 441-c.
Sponsoring broker: The single licensed broker who supervises a New York salesperson and is named on the license; the salesperson may be paid commission only by this broker.
Statute of frauds: The law requiring contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.
Steering: Illegally guiding buyers toward or away from neighborhoods based on a protected class — a fair-housing violation.
Tenancy by the entirety: A form of co-ownership available only to married couples in New York, with the right of survivorship and protection from one spouse's individual creditors.
Tenancy in common: Co-ownership in which each owner holds an undivided, willable share; there is no right of survivorship, and New York presumes it unless survivorship is stated.
TILA: The Truth in Lending Act — a federal law requiring lenders to disclose the cost of credit, including the annual percentage rate (APR).
Title insurance: A policy protecting the insured against loss from title defects that existed before the policy date, such as liens or recording errors.
Transfer tax: New York's real estate transfer tax of $ 2 for each $ 500 of consideration (0.4%), generally paid by the seller (grantor).

Free New York Real Estate Exam Study Materials & Resources

Everything you need to prepare for the New York real estate exam is free here — no paywall, no sign-up. This guide is the foundation; pair it with the rest of our free New York study materials for active recall, timed practice, and last-minute review:

New York Real Estate Practice Test — exam-style questions across the New York and national content areas, with explanations.
New York Real Estate Flashcards — active-recall decks for DOS law, RPL 443 disclosure, fiduciary duties, and math formulas.

New York Real Estate Exam Study Guide FAQ

The New York Department of State salesperson licensing exam is a single, combined exam of 75 multiple-choice questions. Unlike many states, New York does not split the test into separate national and state portions — both the general principles and New York law are tested together on one exam.

References

1.New York Department of State. “Real Estate Salesperson.” DOS (dos.ny.gov). ↑
2.New York State Senate. “Real Property Law Article 12-A — Real Estate Brokers and Salesmen.” nysenate.gov. ↑
3.New York State Senate. “Real Property Law § 443 — Disclosure regarding real estate agency relationship.” nysenate.gov. ↑
4.New York State Senate. “Real Property Law Article 14 — Property Condition Disclosure.” nysenate.gov. ↑
5.New York State Division of Human Rights. “Housing Discrimination.” dhr.ny.gov. ↑
6.New York State Department of Taxation and Finance. “Real Estate Transfer Tax.” tax.ny.gov. ↑
7.U.S. Department of Housing and Urban Development. “Fair Housing Act Overview.” HUD. ↑
8.Consumer Financial Protection Bureau. “Real Estate Settlement Procedures Act (Regulation X).” CFPB. ↑
9.U.S. Environmental Protection Agency. “Real Estate Disclosure (Lead-Based Paint).” EPA. ↑
10.U.S. Geological Survey. “How is the Public Land Survey System organized?.” USGS. ↑

Sources for the concept answers

Every answer in the New York real estate concept questions above is drawn from an authoritative primary source:

Internal Revenue Service. “Sales and Other Dispositions of Assets (Publication 544).” IRS.

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