New York Real Estate Salesperson — All Questions

Which of the following is considered real property rather than personal property?

• a.Loose furniture staged for a showing
• b.A tenant's freestanding refrigerator brought into an apartment
• c.A car parked in the driveway
• d.A built-in central heating system permanently attached to the building✓

Real property includes land and anything permanently affixed to it, such as a built-in heating system. Items that are movable and not attached, like a refrigerator brought in by a tenant, are personal property (chattel). The test of a fixture looks at attachment, adaptation, and intent.

The bundle of rights in real property ownership does NOT typically include which of the following?

• a.The right to sell or transfer the property
• b.The right to violate local zoning laws✓
• c.The right to exclude others
• d.The right to use the property

The bundle of rights includes possession, control, enjoyment, exclusion, and disposition. It never includes a right to break the law, so violating zoning ordinances is not part of ownership rights. All ownership rights remain subject to government limits such as police power.

A fee simple absolute estate is best described as:

• a.A lease that lasts for 99 years
• b.The highest and most complete form of ownership, with unlimited duration✓
• c.An estate that automatically ends when the owner dies
• d.A right to use land owned by another

Fee simple absolute is the greatest interest one can hold in real property, lasting indefinitely and freely inheritable and transferable. A life estate ends at death and an easement is only a right to use another's land. It remains subject to government powers such as taxation and eminent domain.

An easement appurtenant benefits:

• a.A specific individual regardless of land ownership
• b.The servient tenement exclusively
• c.Only the government
• d.The dominant tenement, and it transfers with that parcel of land✓

An easement appurtenant runs with the land and benefits the dominant tenement while burdening the servient tenement. When the dominant parcel is sold, the easement transfers automatically. An easement in gross, by contrast, benefits a person or entity rather than a parcel.

Which government power allows the taking of private property for public use with just compensation?

• a.Taxation
• b.Escheat
• c.Eminent domain✓
• d.Police power

Eminent domain is the power to take private property for public use, exercised through condemnation, and it requires payment of just compensation. Escheat transfers property to the state when an owner dies without heirs. Police power regulates use for public welfare, such as zoning.

The process by which the state acquires property when an owner dies leaving no will and no heirs is called:

• a.Eminent domain
• b.Accretion
• c.Adverse possession
• d.Escheat✓

Escheat returns property to the state when a person dies intestate with no identifiable heirs, preventing land from being ownerless. Adverse possession is a private acquisition through hostile, open use over time. Accretion is the gradual addition of land by natural deposit of soil.

A form of co-ownership that includes the right of survivorship is:

• a.Ownership in severalty
• b.A leasehold estate
• c.Joint tenancy✓
• d.Tenancy in common

Joint tenancy carries the right of survivorship, so a deceased owner's share passes automatically to the surviving joint tenants rather than to heirs. Tenancy in common has no survivorship, and each share passes by will or inheritance. Ownership in severalty means a single owner holds title alone.

Which of the following describes an encumbrance on real property?

• a.A synonym for fee simple ownership
• b.A claim, lien, or restriction that affects the title or use of property✓
• c.The complete absence of any ownership interest
• d.The physical dimensions of a parcel

An encumbrance is any claim or liability attached to property that may affect its value or use, such as a lien, easement, or deed restriction. It does not prevent transfer of title but travels with the property. Buyers usually want title free of undisclosed encumbrances.

A physical feature of a property that reduces its value, such as an outdated floor plan, is an example of:

• a.Highest and best use
• b.Physical accretion
• c.Functional obsolescence✓
• d.Economic obsolescence

Functional obsolescence is a loss in value caused by outdated or poorly designed features within the property itself, like a bad floor plan. Economic (external) obsolescence comes from factors outside the property, such as a nearby nuisance. Both are forms of depreciation considered in the cost approach.

The principle that a property's maximum value is achieved when it is used in the way that produces the greatest return is called:

• a.Contribution
• b.Substitution
• c.Regression
• d.Highest and best use✓

Highest and best use is the legally permissible, physically possible, financially feasible, and maximally productive use of a site. Appraisers analyze it because value is tied to the most profitable reasonable use. Substitution, regression, and contribution are other valuation principles.

Under the principle of substitution, a buyer will pay no more for a property than:

• a.The original construction cost
• b.The cost of acquiring an equally desirable substitute property✓
• c.The assessed value for tax purposes
• d.The cost of the most expensive comparable in the market

The principle of substitution holds that value is set by the cost of an equally desirable alternative. This idea underlies the sales comparison approach to appraisal. A rational buyer will not overpay when a comparable substitute is available for less.

A metes and bounds legal description relies on:

• a.Distances, directions, and monuments to define boundaries✓
• b.The street address alone
• c.Township and range grid lines
• d.Lot and block numbers on a recorded plat

Metes and bounds describes a parcel by measured distances and compass directions between reference points and monuments, always returning to the point of beginning. The lot and block system uses recorded subdivision plats. The rectangular survey system uses township and range grids.

The gradual increase of land along a shoreline caused by the deposit of soil is called:

• a.Avulsion
• b.Reliction
• c.Accretion✓
• d.Erosion

Accretion is the slow buildup of land by natural deposits of soil or sediment, and the new land belongs to the adjacent owner. Erosion is the gradual loss of land. Avulsion is a sudden loss or change of land, such as from a flood.

Which type of depreciation is generally considered incurable?

• a.A broken window
• b.Deferred maintenance such as peeling paint
• c.External (economic) obsolescence caused by a nearby factory✓
• d.A worn carpet

External or economic obsolescence stems from factors outside the property, such as a neighboring nuisance, which the owner cannot fix, so it is typically incurable. Deferred maintenance and many functional issues can be corrected at reasonable cost. Curability depends on whether the fix adds value at least equal to its cost.

A private limitation placed in a deed that controls how an owner may use their property is known as a:

• a.Mechanic's lien
• b.Easement in gross
• c.Restrictive covenant✓
• d.Prescriptive easement

A restrictive covenant is a private limitation in a deed or subdivision declaration that controls land use, such as prohibiting commercial activity. It runs with the land and binds future owners. Courts will not enforce covenants that are illegal or discriminatory.

In real estate valuation, the term 'situs' refers to:

• a.The preference or economic attractiveness of a location✓
• b.The chain of title
• c.The soil composition of a lot
• d.A type of mortgage

Situs is the economic attractiveness of a location, reflecting people's preference for one area over another. It is one reason location so strongly influences value. Because land is immobile, its situs cannot be moved, only the surrounding conditions can change.

Which of the following is a physical characteristic of land?

• a.Immobility✓
• b.Permanence of investment
• c.Situs
• d.Scarcity

The physical characteristics of land are immobility, indestructibility, and uniqueness (nonhomogeneity). Scarcity, situs, permanence of investment, and improvements are economic characteristics. These traits explain why land markets are local and why no two parcels are identical.

A life estate is an ownership interest that:

• a.Automatically converts to a lease after ten years
• b.Lasts for the duration of a specified person's life✓
• c.Is always held by a corporation
• d.Lasts forever and passes to heirs

A life estate grants ownership for the lifetime of a named person, after which title passes to the remainderman or reverts to the grantor. The life tenant may use and profit from the property but cannot commit waste. It cannot be willed because it ends at death.

Riparian rights refer to a landowner's rights concerning:

• a.Mineral deposits beneath the surface
• b.Underground utility easements
• c.Air space above the property
• d.The use of water in a river or stream adjacent to the land✓

Riparian rights govern an owner's use of water from a flowing watercourse such as a river or stream bordering the land. Littoral rights apply to owners bordering large, static bodies of water like lakes or oceans. Both are appurtenant to the land.

The concept that property value tends to be maximized when there is reasonable similarity among properties in a neighborhood is called:

• a.Anticipation
• b.Change
• c.Competition
• d.Conformity✓

The principle of conformity states that homes maintain and increase value when they are reasonably similar in style, size, and quality to surrounding properties. Sharp differences can drag value through regression or lift it through progression. Anticipation ties value to expected future benefits.

When a lower-value home gains value because it is located among higher-value homes, this illustrates the principle of:

• a.Substitution
• b.Progression✓
• c.Regression
• d.Contribution

Progression is the increase in a lesser property's value due to the presence of better, higher-value properties nearby. Regression is the reverse, where a superior property loses value among lesser ones. Both flow from the broader principle of conformity.

An appurtenance is best defined as:

• a.A temporary license to enter land
• b.A right or improvement that belongs to and transfers with the land✓
• c.A movable item of personal property
• d.A lien recorded against the title

An appurtenance is a right, privilege, or improvement that attaches to and passes with the land when it is conveyed, such as an easement or water right. It is included in a sale unless specifically excluded. A license, by contrast, is a revocable personal permission that does not transfer.

In New York, a form of co-ownership available only to a legally married couple, carrying an automatic right of survivorship, is:

• a.Ownership in severalty, meaning title is held by a single individual owner alone
• b.Tenancy by the entirety✓
• c.Tenancy in common, under which each spouse may freely convey a share to an outside third party
• d.A tenancy at will that is created automatically by the marriage certificate itself

Tenancy by the entirety is a special joint ownership reserved for married spouses in New York and carries the right of survivorship. Neither spouse can unilaterally sever it or convey their interest without the other's consent, and it offers some protection from the individual creditors of one spouse.

Which statement about a tenancy in common is correct?

• a.It automatically includes a right of survivorship among all of the co-owners
• b.Each co-owner holds an undivided interest that can pass to heirs by will✓
• c.Only legally married couples are permitted to hold title in this manner in New York
• d.It always requires that every co-owner hold an exactly equal fractional ownership share

In a tenancy in common, co-owners hold undivided interests that need not be equal, and there is no right of survivorship. When a tenant in common dies, that share passes by will or intestate succession to heirs, not to the other co-owners.

If one joint tenant sells their interest to an outside third party, the new owner generally holds title as a:

• a.Life tenant whose interest automatically ends upon the death of the selling joint tenant
• b.Tenant in common with the remaining owners✓
• c.Tenant by the entirety with the remaining owners under a newly formed marital estate
• d.Joint tenant together with all of the remaining original owners, keeping full survivorship

Selling a joint tenant's interest destroys the unity of the parties and severs the joint tenancy as to that share. The buyer takes title as a tenant in common, while any remaining original owners continue to hold their shares in joint tenancy among themselves.

An owner of a condominium unit in New York typically holds:

• a.A life estate in the unit that automatically terminates whenever the owner moves away
• b.Shares of stock in a cooperative corporation together with a proprietary lease to occupy the unit
• c.A renewable long-term ground lease of the land with no ownership of the structure itself
• d.Fee simple title to the unit plus an undivided interest in the common elements✓

A condominium owner holds fee simple (real property) title to their individual unit and shares an undivided interest in the common elements with the other owners. This differs from a cooperative, where the resident owns shares of stock and a proprietary lease rather than real property.

A purchaser of a cooperative apartment in New York City actually acquires:

• a.Shares in the cooperative corporation and a proprietary lease to the unit✓
• b.An undivided fractional ownership interest in the underlying land parcel only
• c.A condominium unit deed together with an undivided share of the building's common elements
• d.Fee simple title to the physical apartment unit, recorded as a deed with the county clerk

A cooperative buyer does not receive real property title; instead they buy shares of stock in the corporation that owns the building and receive a proprietary lease giving the right to occupy a specific unit. The interest is legally personal property, not real property.

A distinctive feature of buying into a New York cooperative, compared with a condominium, is that:

• a.The cooperative's board of directors may interview and approve or reject the prospective buyer✓
• b.No monthly maintenance or common charges are ever owed once the shares are purchased
• c.The buyer always receives a recorded deed conveying real property to the individual unit
• d.The purchase can never involve any financing because shares cannot be pledged as collateral

Cooperative boards typically have the power to interview prospective purchasers and approve or reject them, subject to fair housing law. Condominium boards usually have only a limited right of first refusal, so co-op purchases involve more buyer scrutiny.

A deed conveys land 'so long as it is used as a public library,' with title reverting automatically if that use ever ends. This creates a:

• a.Fee simple absolute, the highest and most complete form of ownership with unlimited duration
• b.Fee simple determinable✓
• c.Nonfreehold leasehold estate that must be renewed by the municipality every year
• d.Conventional life estate measured by the lifetime of the current library director

Language such as 'so long as' creates a fee simple determinable, a defeasible estate that ends automatically if the stated condition is violated. The grantor retains a possibility of reverter, so title returns to the grantor without the need for a lawsuit.

In a life estate, the third party who receives full title when the measuring life ends is the:

• a.Grantor taking the property back through the doctrine of escheat to the state
• b.Trustee who administers the property during any subsequent foreclosure proceeding
• c.Remainderman✓
• d.Servient tenant burdened by the appurtenant easement running with the land

When a life estate ends, title passes to the remainderman if a third party was named to receive it. If instead the property returns to the original grantor, the grantor is said to hold a reversion rather than a remainder.

An owner whose land borders a large lake or the ocean holds which type of water rights?

• a.Prior appropriation rights allocated by state permit to the first beneficial user
• b.Riparian rights, which govern the use of water in a flowing river or stream
• c.Percolating rights covering underground water not flowing in a defined channel
• d.Littoral rights✓

Littoral rights belong to owners of land bordering large, static bodies of water such as lakes, seas, and oceans, generally extending to the mean high-water mark. Riparian rights, by contrast, apply to land along flowing watercourses like rivers and streams.

A contractor who is not paid for improvements made to a property may protect the debt by filing a:

• a.Lis pendens that immediately releases every prior claim recorded against the parcel
• b.Mechanic's lien against the property✓
• c.Satisfaction of mortgage discharging the existing encumbrance recorded against the title
• d.Estoppel certificate confirming the current unpaid balance owed on the first mortgage

A mechanic's lien is a specific, statutory lien that secures payment for labor or materials furnished to improve real property. In New York the lien must be filed within statutory time limits, and it attaches only to the improved property.

Which of the following is a general lien rather than a specific lien?

• a.A judgment lien attaching to all of the debtor's property in the county✓
• b.A first mortgage recorded against one particular parcel pledged as loan security
• c.A mechanic's lien for construction work performed on a single named property
• d.A general real estate tax lien assessed against one specific lot for the year

A general lien attaches to all of a debtor's property rather than a single parcel. A money judgment, once docketed, becomes a general lien against real property the debtor owns in that county. Mortgages, mechanic's liens, and property tax liens are specific liens tied to one property.

In a typical priority contest among liens, which usually takes priority regardless of when it was recorded?

• a.The first mortgage recorded against the property by the institutional lender
• b.A general real estate (ad valorem) tax lien✓
• c.A mechanic's lien filed by the contractor who most recently improved the property
• d.A judgment lien that was docketed against the owner before any other claim

Real estate tax and special assessment liens generally take priority over other liens regardless of recording date. Most other liens follow the 'first to record, first in right' rule, so a purchase-money first mortgage typically outranks later liens.

A mortgage is best classified as a:

• a.Involuntary, general lien created automatically by operation of state statute
• b.Voluntary, specific lien✓
• c.Involuntary, specific lien imposed on the property without the owner's consent
• d.Statutory, general lien that attaches to every property the borrower owns

A mortgage is voluntary because the owner willingly pledges the property, and it is specific because it attaches only to the described parcel. Involuntary liens, such as tax or judgment liens, arise by law without the owner's agreement.

A landlocked parcel with no access to a public road may obtain the right to cross a neighboring parcel through an:

• a.Easement by necessity✓
• b.Estate at sufferance held by a holdover tenant remaining after the lease has ended
• c.Encroachment created when a structure is built across the shared boundary line
• d.Easement in gross that benefits a utility company rather than the landlocked parcel

An easement by necessity is created when a parcel would otherwise be landlocked, giving the owner a legal right of access across adjoining land. Courts imply it because land must have a means of ingress and egress to be usable.

An easement acquired through open, continuous, and hostile use of another's land for the statutory period is an:

• a.Easement by prescription✓
• b.Easement created by express reservation retained by the grantor in the conveyance
• c.Easement in gross granted to a pipeline company for a defined utility corridor
• d.Easement appurtenant created by an express written grant recorded in the deed

A prescriptive easement arises when someone uses another's land openly, notoriously, continuously, and without permission for the statutory period, which is ten years in New York. Unlike adverse possession, it grants a use right rather than ownership.

A neighbor's fence built two feet over the boundary onto the adjoining lot is an example of an:

• a.Emblement belonging to whichever party planted the annual crop along the fence line
• b.Easement in gross benefiting the neighbor who constructed the fence in that location
• c.Appurtenance that automatically transfers with the land when it is later conveyed
• d.Encroachment✓

An encroachment is an unauthorized physical intrusion of an improvement onto adjoining property. It is usually revealed by a survey and can cloud title or affect marketability until it is resolved.

A ballgame ticket that grants temporary, revocable permission to enter another's land is best described as a:

• a.Fee simple interest conveying full ownership of the space that the holder occupies
• b.Easement appurtenant that runs with the land and benefits the neighboring parcel
• c.Profit a prendre granting the holder a right to remove resources from the land
• d.License✓

A license is personal permission to use another's land for a specific purpose; it is revocable, does not transfer with the land, and creates no ownership interest. An easement, by contrast, is a more permanent right that usually runs with the land.

A property owner who wants to build in a way that does not meet a zoning setback requirement would typically seek a:

• a.Certificate of occupancy issued after the local building inspector's final approval
• b.Spot rezoning of the single parcel granted directly by the mayor without any hearing
• c.Special warranty deed limiting the grantor's title covenants to their own period of ownership
• d.Variance from the zoning board of appeals✓

A variance is permission to deviate from a specific zoning requirement, such as a setback or height limit, granted by the zoning board of appeals when strict compliance would cause hardship. It does not change the underlying zoning classification.

A lawful commercial building that no longer matches a newly adopted residential zoning classification becomes a:

• a.Legal nonconforming use, often called 'grandfathered'✓
• b.Variance holder that received formal permission to deviate from the ordinance
• c.Spot zone that was singled out for special treatment inconsistent with the area
• d.Parcel subject to escheat because its use conflicts with the new zoning rules

A legal nonconforming use is a use that was lawful before a zoning change but no longer conforms to the new rules. It is typically allowed to continue ('grandfathered'), though expansion or rebuilding after damage may be restricted.

A church or school permitted in a residential zone under specified conditions usually operates under a:

• a.Private deed restriction that the original subdivision developer imposed on the lots
• b.Legal nonconforming use that predated the adoption of the current zoning ordinance
• c.Special use permit✓
• d.Use variance obtained only after the applicant proves genuine unnecessary hardship

A special use permit (conditional use) allows a use that the zoning ordinance expressly permits in a district when specified conditions are met, such as a school or house of worship. It is planned for in the ordinance rather than being an exception to it.

The illegal practice of rezoning a single small parcel in a way inconsistent with the surrounding area is called:

• a.Buffer zoning, which places transitional uses between incompatible zoning districts
• b.Inverse condemnation, in which an owner sues because regulation has taken their property
• c.Downzoning, which reduces the permitted density or intensity of an entire district
• d.Spot zoning✓

Spot zoning is the improper singling out of one parcel for treatment different from the surrounding area, benefiting that owner without regard to the comprehensive plan. Courts often strike it down as arbitrary and inconsistent with sound planning.

Local zoning ordinances are an exercise of which government power?

• a.Police power✓
• b.Escheat, the process by which property passes to the state when an owner dies heirless
• c.Taxation, the levying of assessments against property to fund public services and needs
• d.Eminent domain, the power to take private property for a public use with compensation

Zoning is an exercise of police power, the government's authority to regulate for the health, safety, morals, and general welfare of the community. Unlike eminent domain, police power does not require compensation for reasonable regulation.

Before a newly constructed home may be legally occupied, the municipality generally must issue a:

• a.Satisfaction piece acknowledging that the construction loan has been paid in full
• b.Certificate of reasonable value setting the maximum amount for a government-backed loan
• c.Certificate of occupancy✓
• d.Estoppel certificate confirming the outstanding balance and terms of the existing loan

A certificate of occupancy is issued by the local building department after inspections confirm the structure complies with building codes and is safe to occupy. Occupying a building without a required certificate can lead to penalties.

In deciding whether an item is a fixture (real property) or personal property, courts weigh all of the following EXCEPT the:

• a.Original retail price the buyer paid for the item✓
• b.Method of attachment, meaning how permanently the item is annexed to the real estate
• c.Intention of the party who installed it, inferred from the surrounding circumstances
• d.Adaptation of the item, meaning how well it is suited to the specific use of the property

The classic fixture tests are attachment (annexation), adaptation to the real estate, and the intention of the party who installed the item, with an agreement between the parties often controlling. The price originally paid is not part of the legal test.

Shelving and equipment a commercial tenant installs to operate their business are typically:

• a.Emblements that automatically belong to the next tenant who occupies the space
• b.Permanent fixtures that must remain with the landlord after the lease term expires
• c.Real property that transfers to the landlord immediately upon the moment of installation
• d.Trade fixtures the tenant may remove before the lease ends✓

Trade fixtures are items a commercial tenant attaches to run their business, and the tenant generally may remove them before the lease ends, repairing any damage. If the tenant fails to remove them in time, they may become the landlord's property by accession.

Annual crops planted by a tenant farmer, known as emblements, are generally treated as:

• a.Real property that permanently stays with the land when title is later transferred
• b.Fixtures that automatically pass to a buyer of the land at the closing of the sale
• c.The landlord's personal property that passes to the owner at the end of the lease
• d.The tenant's personal property, which the tenant may harvest✓

Under the doctrine of emblements, crops a tenant plants and cultivates are treated as the tenant's personal property, and the tenant retains the right to re-enter and harvest them even after the tenancy ends. Perennial or naturally growing plants are usually treated as real property.

The right to use the space above the surface of a parcel, which can be sold or leased separately, is called:

• a.Prior appropriation rights, allocating scarce water to the earliest beneficial user by permit
• b.Air rights✓
• c.Riparian rights, governing an owner's use of a river or stream that borders the property
• d.Subsurface rights, covering minerals, oil, and gas located beneath the surface of the land

Air rights are the rights to use the space above a parcel, and in dense areas like New York City they can be sold or leased separately, for example transferable development rights over rail yards. Owners may not use air space in a way that unlawfully interferes with aircraft.

The right to extract minerals, oil, or gas from beneath a parcel is part of the owner's:

• a.Police power, the governmental authority to regulate land for the general public welfare
• b.Subsurface (mineral) rights✓
• c.Littoral rights, which apply to land bordering a lake, sea, or other static body of water
• d.Air rights, which cover the usable space located above the surface of the parcel

Subsurface or mineral rights include the right to extract minerals, oil, and gas beneath the land. Like air rights, these rights can be sold or leased separately from the surface, splitting ownership of a single parcel.

A legal description that refers to a lot and block number on a recorded subdivision map uses the:

• a.Metes and bounds system, which relies on measured distances, directions, and monuments
• b.Lot and block (recorded plat) system✓
• c.Monument-only system, which defines the parcel solely by natural and artificial landmarks
• d.Rectangular government survey system, based on principal meridians, townships, and ranges

The lot and block system describes property by referencing a lot and block number on a subdivision plat recorded in the public records. It is the most common method for platted subdivisions, including many in New York.

In a metes and bounds description, a fixed reference point such as an iron pin or a natural landmark is called a:

• a.Range line, one of the north-south grid lines used in the rectangular survey system
• b.Point of beginning multiplier, a factor applied to convert distances into acreage figures
• c.Monument✓
• d.Benchmark datum, a surveyed reference elevation used mainly to establish vertical height

In a metes and bounds description, monuments are fixed physical points of reference, either natural (a tree or stream) or artificial (an iron pin or marker), used to fix boundaries. The description always closes back at the point of beginning.

Which characteristic is NOT one of the seven classes protected under the federal Fair Housing Act?

• a.Marital status✓
• b.National origin, which protects individuals based on their country or region of ancestry
• c.Familial status, which protects households with children under 18 and pregnant persons
• d.Disability, which protects individuals with a physical or mental impairment covered by law

The federal Fair Housing Act protects race, color, religion, national origin, sex, disability, and familial status. Marital status is not a federally protected class, though it is protected under New York State law.

Under fair housing law, 'familial status' protects:

• a.Households with children under 18 and pregnant persons✓
• b.Only couples who are formally and legally married under the laws of their home state
• c.Individuals based on the national origin or ancestry of their extended family members
• d.Groups of unrelated adults who choose to share a single dwelling unit as roommates

Familial status protects families with one or more children under 18, as well as pregnant persons and those securing custody of a child. It bars discrimination against households simply because children live there, subject to limited housing-for-older-persons exemptions.

The familial status protection has a limited exemption for:

• a.Detached single-family homes, which are entirely exempt from every fair housing rule
• b.Owner-occupied duplexes in which the resident owner rents out the other living unit
• c.Any apartment building whose owner simply adopts an internal no-children rental policy
• d.Qualified housing for older persons, such as 55-and-over or 62-and-over communities✓

Housing that qualifies as housing for older persons (generally 62-and-over, or 55-and-over meeting specific criteria) is exempt from the familial status protection. This narrow exemption must meet strict federal requirements to apply.

Which of the following is a protected class under New York's Human Rights Law but NOT under the federal Fair Housing Act?

• a.Religion
• b.Lawful source of income, such as a housing voucher✓
• c.Race
• d.Disability

New York's Human Rights Law adds protected classes beyond the federal list, including lawful source of income, age, marital status, sexual orientation, gender identity, and military status. Refusing a tenant because they will pay with a voucher can violate the source-of-income protection.

In New York, refusing to rent to an otherwise qualified applicant solely because they would pay with a Section 8 housing voucher is:

• a.Required by federal law whenever the applicant presents a valid government-issued voucher
• b.A violation of the state's lawful source-of-income protection✓
• c.Permitted, because participation in the voucher program is entirely optional for landlords
• d.Allowed only for cooperative apartments but prohibited for all condominium rental units

New York protects lawful source of income as a class, so a landlord generally may not reject an otherwise qualified applicant just because they intend to pay rent with a Section 8 voucher or other lawful assistance. Screening must apply neutral, income-source-blind standards.

A lender's refusal to make loans in a particular neighborhood based on its racial composition is called:

• a.Steering, the practice of guiding buyers toward or away from areas by protected class
• b.Puffing, an exaggerated but lawful sales opinion that a reasonable person discounts
• c.Redlining✓
• d.Blockbusting, inducing owners to sell by exploiting fears about changing demographics

Redlining is the illegal practice of denying or restricting loans, insurance, or services in specific areas based on the racial or ethnic makeup of the neighborhood rather than the applicant's qualifications. It violates fair housing and fair lending laws.

Which advertising phrase would most likely violate fair housing law?

• a.Spacious three-bedroom apartment featuring a recently updated eat-in kitchen and new flooring
• b.Conveniently located near public transportation, major highways, shopping, and local parks
• c.Available for immediate occupancy; qualified applicants with pets will be considered on request
• d.Ideal for a mature Christian couple, no children✓

Advertising that expresses a preference or limitation based on a protected class, such as religion or familial status, violates fair housing law. Describing the property's features is fine, but 'Christian' and 'no children' signal prohibited preferences.

Reasonable accommodations and reasonable modifications for persons with disabilities in housing are required primarily by the:

• a.Sherman Antitrust Act, which forbids agreements that unreasonably restrain trade and commerce
• b.Fair Housing Act✓
• c.Truth in Lending Act (Regulation Z), which governs disclosure of consumer credit terms
• d.Statute of Frauds, which requires certain contracts to be in writing to be enforceable

The Fair Housing Act requires housing providers to allow reasonable accommodations in rules and reasonable modifications to the premises so persons with disabilities can use the housing. The Americans with Disabilities Act separately addresses access to public accommodations.

In real estate, the term 'improvement' refers to:

• a.The seller's written disclosure of repairs that were completed before listing the home
• b.Any general increase in a property's market price that occurs over a period of time
• c.A tax abatement or exemption granted by the municipality to reduce the owner's levy
• d.A man-made addition to land, such as a building, fence, or road✓

An improvement is a permanent, man-made addition to land, such as a building, fence, driveway, or utility line. Improvements are part of the real property and generally transfer with the land unless specifically excluded.

'Real property' is best distinguished from 'real estate' because real property also includes:

• a.The bundle of legal rights and interests in the real estate✓
• b.The loose furniture, appliances, and other personal belongings kept inside the building
• c.Only the physical soil, rocks, and minerals located within the boundaries of the parcel
• d.The movable trade fixtures that a commercial tenant installs to operate their business

Real estate refers to the physical land and its permanent improvements, while real property adds the bundle of legal rights and interests that come with owning that real estate, such as possession, control, and disposition.

Covenants, conditions, and restrictions (CC&Rs) in a subdivision are typically enforced by:

• a.The New York Department of State through its Division of Licensing Services enforcement staff
• b.The county tax assessor as part of the annual real property valuation and levy process
• c.The Federal Housing Administration when it insures loans on homes within the subdivision
• d.The homeowners association or other lot owners✓

Private CC&Rs are enforced by the homeowners association or by other owners in the subdivision, typically through injunctions or lawsuits, not by a government agency. Courts will not enforce restrictions that are illegal or discriminatory.

The physical characteristic of land meaning that no two parcels are exactly alike is:

• a.Scarcity, an economic characteristic reflecting the finite overall supply of usable land
• b.Uniqueness (nonhomogeneity)✓
• c.Indestructibility, the physical fact that land endures and is not consumed or worn away
• d.Immobility, the physical fact that a parcel of land cannot be relocated to another place

Uniqueness, also called nonhomogeneity or heterogeneity, means no two parcels are identical because each occupies its own location. Along with immobility and indestructibility, it is one of the three physical characteristics of land.

Which of the following is an economic characteristic of land?

• a.Scarcity✓
• b.Immobility, the physical inability of a parcel of land to be moved to another location
• c.Uniqueness, the physical fact that every individual parcel of land differs from all others
• d.Indestructibility, the physical durability of land, which endures rather than wearing out

The economic characteristics of land are scarcity, improvements (modification), permanence of investment, and situ(area preference). Immobility, indestructibility, and uniqueness are the physical characteristics.

The right in the bundle of rights that allows an owner to sell, gift, or will the property is the right of:

• a.Exclusion, the right to keep others off the property and to control who may enter it
• b.Possession, the right to occupy and hold the property against the claims of others
• c.Disposition✓
• d.Enjoyment, the right to use the property in any lawful manner the owner desires

The right of disposition lets an owner transfer the property by sale, gift, or will. It is one of the core sticks in the bundle of rights, along with possession, control, enjoyment, and exclusion.

Acquiring title by openly and continuously occupying another's land without permission for the statutory period is:

• a.Adverse possession✓
• b.Accretion, the gradual increase of land caused by the natural deposit of soil over time
• c.Novation, the substitution of a new contract or party that discharges the original obligation
• d.Escheat, the transfer of property to the state when an owner dies leaving no heirs or will

Adverse possession lets an occupant gain title by possessing land in a way that is hostile, actual, open and notorious, exclusive, and continuous for the statutory period, which is ten years in New York. The use must be without the true owner's permission.

Recording a deed in the county land records provides:

• a.No legal effect at all until the property is later sold to a subsequent good-faith buyer
• b.A government guarantee of clear and marketable title backed by the county's own funds
• c.Constructive notice to the world of the owner's interest✓
• d.Actual notice, but only to the specific individuals who personally signed the document

Recording gives constructive (legal) notice to the world of the recorded interest, so later purchasers are presumed to know of it. Recording does not itself guarantee title; that protection comes from title insurance.

Compared with riparian rights, the doctrine of prior appropriation allocates water based on:

• a.Who first put the water to beneficial use under a state permit✓
• b.An equal, pro rata sharing of the available water among all of the neighboring owners
• c.The mere physical adjacency of a parcel of land to the watercourse or body of water
• d.The relative size of each parcel, giving larger tracts a proportionally greater water share

Under prior appropriation, water rights are granted by the state to those who first put water to beneficial use ('first in time, first in right'), independent of land location. Riparian rights, by contrast, belong to owners whose land borders the watercourse.

Which encumbrance is a non-money encumbrance that affects use rather than a claim for payment?

• a.A property tax lien imposed by the municipality for unpaid annual real estate taxes
• b.A deed restriction limiting building height✓
• c.A mortgage lien securing repayment of the loan the owner used to purchase the property
• d.A judgment lien docketed against the owner after a court awarded money to a creditor

Encumbrances fall into money encumbrances (liens securing a debt) and non-money encumbrances that affect the use or physical condition of the property, such as easements and deed restrictions. A height restriction limits use rather than securing a debt.

A recorded notice that a lawsuit affecting title to a property is pending is a:

• a.Satisfaction of mortgage, which is recorded to show the mortgage debt has been fully repaid
• b.Lis pendens✓
• c.Estoppel certificate, in which a borrower confirms the remaining balance owed on a loan
• d.Certificate of occupancy, issued by the municipality when a building is safe to occupy

A lis pendens ('litigation pending') is a recorded notice that a lawsuit that could affect title is underway, warning potential buyers and lenders. It clouds the title until the litigation is resolved or the notice is removed.

A single wall that straddles the boundary line of and is shared by two adjoining owners is a:

• a.An encroachment that must be torn down because it crosses the boundary between the lots
• b.A fixture belonging solely to whichever adjoining owner originally paid to build it
• c.A prescriptive easement in gross benefiting a utility that runs services along the wall
• d.Party wall, with an easement for mutual support✓

A party wall is a shared wall on the boundary between two properties, and each owner typically has an easement in the other's half for mutual support. The owners usually share the cost of maintaining the wall.

Which estate is a freehold estate rather than a leasehold estate?

• a.Fee simple absolute✓
• b.Estate for years, a leasehold with a fixed beginning and ending date set in the lease
• c.Periodic tenancy, a leasehold that renews automatically until a party gives proper notice
• d.Tenancy at will, a leasehold that either party may terminate at any time with due notice

Freehold estates involve ownership of indefinite duration and include fee simple and life estates. Estate for years, periodic tenancy, and tenancy at will are leasehold (nonfreehold) estates that give possession without ownership.

In a condominium, the lobby, elevators, roof, and land are typically:

• a.Owned outright by the managing agent who is hired to operate the building day to day
• b.Common elements owned jointly by all unit owners✓
• c.Leased by the association from the municipality under a long-term recorded ground lease
• d.Owned individually by whichever unit happens to be physically closest to each of them

In a condominium, areas outside the individual units, such as the lobby, elevators, roof, hallways, and land, are common elements owned jointly by all unit owners as tenants in common. Owners share responsibility for them through common charges.

The document that legally creates a condominium and defines the units and common elements in New York is the:

• a.Certificate of occupancy, issued once the building is inspected and safe to occupy
• b.Declaration, together with the related bylaws✓
• c.Estoppel certificate, which states the current balance and terms of an existing loan
• d.Proprietary lease, which grants a cooperative shareholder the right to occupy a unit

A condominium is legally created by recording a declaration (and related bylaws) that submits the property to the condominium form of ownership and defines the units and common elements. In New York, the offering plan is also reviewed by the Attorney General.

In New York, the offering plan for a newly created condominium or cooperative must be filed with and accepted by the:

• a.Internal Revenue Service, which administers federal income taxation of real estate gains
• b.Department of State, which issues and regulates the licenses of brokers and salespersons
• c.New York State Attorney General✓
• d.Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac in the market

In New York, sponsors of new condominiums and cooperatives must file an offering plan that is reviewed and accepted by the New York State Attorney General's office before units or shares may be sold. This consumer-protection review is distinct from DOS licensing.

When a life estate ends and title returns to the original grantor rather than passing to a third party, the grantor holds a:

• a.Remainder, the future interest a named third party holds to take title after the life estate
• b.Reverter created only through the doctrine of escheat when an owner dies without any heirs
• c.Leasehold estate, a nonfreehold right to possess the property for a limited stated period
• d.Reversion✓

If a life estate is set to return to the grantor when it ends, the grantor holds a reversion. If instead a named third party will take title, that party holds a remainder.