Finance, Closing & Math·Mortgage Tax

New York Real Estate Salesperson — Full Curriculum

> Authority: New York Real Property Law Article 12-A, DOS Division of Licensing Services, NY Human Rights Law (Executive Law Article 15), NYC Administrative Code. All weights reflect the NY state exam content distribution.

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Exam Overview

  • Questions: 75 national + 75 state = 150 total
  • Time: ~1.5 hours per section
  • Passing: 70% — 105 of 150 correct
  • Vendor: eAccessNY / PSI (in-person)
  • Pre-license: 77-hour DOS-approved course
  • Licensing body: New York Department of State (DOS), Division of Licensing Services

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Chapter 0: Introduction and DOS Licensing

0.1 — Exam Format and NY DOS Licensing Authority

Weight: Foundational | Study time: 45 min

DOS (not a commission) as sole licensing authority; Article 12-A (NY Real Property Law) governing statute; 77-hour pre-license course; 2-year application window; 2-year license term; 22.5-hour CE per cycle (mandatory: 3 hr legal, 3 hr ethics, 1 hr implicit bias, 2.5 hr fair housing); salesperson vs. broker (2 yrs FT + 45 hr course); broker upgrade; DOS discipline types; complaint process.

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Chapter 1: Real Property Characteristics and Legal Descriptions (~7%)

1.1 — Real Property and NY Legal Descriptions

Weight: ~7% | Study time: 60 min

Real vs. personal property (co-op shares = personal property — key NY distinction); fixture analysis (method, adaptation, intent); metes and bounds (dominant in NY); lot and block (subdivisions); tax map SBL; water rights (riparian, ordinary high water mark on tidal shores); encumbrances (landmark designations, air rights/TDRs, co-op board approval restrictions); appurtenances; bill of sale vs. deed.

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Chapter 2: Forms of Ownership and Title (~7%)

2.1 — Ownership Types and Deeds in New York

Weight: ~7% | Study time: 75 min

Fee simple absolute/defeasible; life estates; tenancy in common (default); joint tenancy (four unities + JTWROS); tenancy by the entirety (married couples); co-op (stock + proprietary lease = personal property; share loan; UCC; board approval; flip tax goes to reserve fund); condo (fee simple unit + undivided common interest; standard mortgage); NY deed types (bargain and sale = most common; full covenant and warranty; quitclaim; referee's deed; executor's deed); recording with County Clerk; race-notice statute; title insurance (owner's + lender's); NYS transfer tax (0.4%); NYC additional tax (1%/<$500K; 1.425%/≥$500K); mansion tax (1% residential ≥$1M — BUYER pays); mortgage recording tax (~1.8% in NYC — borrower).

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Chapter 3: Property Value and Appraisal (~8%)

3.1 — Appraisal and Value in New York

Weight: ~8% | Study time: 90 min

Value principles (highest and best use; substitution; conformity; contribution; anticipation); market value vs. market price; three approaches: sales comparison (CBS adjustments), cost (land + improvements − depreciation; physical/functional/external obsolescence; 27.5/39 yr IRS depreciation), income (NOI, cap rate, GRM — especially for NY rental market; rent-stabilized units affect NOI); reconciliation; NYC property tax classification (Class 1 = 1–3 family at 6%; Class 2 = apartments at 45%); STAR exemption (Basic and Enhanced for seniors); transfer tax math as tested calculations.

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Chapter 4: Real Estate Contracts and Agency (~20%)

4.1 — New York Agency Law and Buyer Agreements

Weight: ~12% | Study time: 90 min

Agency relationship types: seller agency (listing agreement), buyer agency (written buyer agreement), dual agency (written consent both parties; limited advisory capacity), designated agency (one agent per party within same firm), subagency; OLD CAR fiduciary duties; confidentiality survives termination; DOS Agency Disclosure Form — signature = RECEIPT ONLY (not consent, not representation agreement); mandatory buyer agency agreement (effective August 17, 2024 — required BEFORE showing any property, must state compensation terms); net listing = ILLEGAL in NY; referral fees only to licensed professionals; antitrust (price fixing = per se violation); commission and procuring cause.

4.2 — Contracts

Weight: ~8% | Study time: 75 min

Five essential elements; void/voidable/valid; Statute of Frauds; listing agreement types (exclusive right to sell, exclusive agency, open; net = ILLEGAL in NY); buyer representation agreements; earnest money held in broker escrow; breach remedies (damages, specific performance, rescission); Martin Act (AG oversight of offering plans for new condo/co-op; right of rescission for buyers); NYC closing sequence (contract → due diligence → board approval → closing).

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Chapter 5: Real Estate Practice and Fair Housing (~12%)

5.1 — New York Brokerage Operations and Fair Housing

Weight: ~12% | Study time: 90 min

Federal Fair Housing Act (7 classes); NY Human Rights Law additions (creed, age 18+, sexual orientation, gender identity, marital status, military status); NYC additional protections (source of income, citizenship, partnership status); prohibited conduct (steering, blockbusting, redlining); rent stabilization (NYC — regulated increases; Rent Guidelines Board; disclosure required); rent control (pre-1947 buildings; very limited); trust account rules (broker holds client funds; no commingling; no conversion); advertising (broker name required; no blind ads; internet = advertising); Certificate of Occupancy (required at closing; illegal conversions = material defect); REBNY (NYC trade organization; not a government body); Truth-in-Renting Act; IDFPR discipline; antitrust.

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Chapter 6: Property Disclosures (~8%)

6.1 — New York Disclosure Requirements

Weight: ~8% | Study time: 60 min

Property Condition Disclosure Statement (PCDS): sellers of 1–4 unit residential must complete OR give $500 credit at closing in lieu of form; provided before buyer makes offer; $500 credit does NOT protect agai