The NY real estate salesperson licensing exam covers seven topic areas. The 75 questions on the exam are drawn from all seven — no single topic dominates, and skipping any of them is a risk.
This guide breaks down each topic area: what it covers, what kinds of questions to expect, and where most candidates lose points.
1. Law of Agency
Agency is consistently one of the most heavily tested topics on the NY real estate exam. It covers the legal relationship between a real estate licensee and the people they represent.
What it covers:
Types of agency: buyer’s agent, seller’s agent, dual agency, designated agency
Fiduciary duties: loyalty, confidentiality, disclosure, obedience, reasonable care, accounting
How agency relationships are created and terminated
Disclosure requirements — when and how an agent must disclose their role
Subagency and its implications
Where candidates lose points:
Dual agency questions are a common trap. Candidates often confuse what a dual agent can and cannot disclose to each party. Know the difference between informed consent and implied consent, and understand exactly what fiduciary duties apply in each agency type.
2. Contracts
The contracts section tests your ability to apply contract law to real-world real estate scenarios — not just define terms.
What it covers:
Elements of a valid contract: offer, acceptance, consideration, legal purpose, competent parties
Purchase contracts: contingencies, closing conditions, default remedies
Listing agreements: exclusive right to sell, exclusive agency, open listing
Leases: types of leases, landlord and tenant obligations, lease termination
Option contracts and right of first refusal
Where candidates lose points:
Questions about what happens when a contract is breached — specifically, who gets to keep the earnest money deposit — are commonly missed. Also study the difference between void, voidable, and unenforceable contracts.
3. Property Ownership
This section covers the legal ways property can be owned and the rights that come with ownership.
What it covers:
Forms of ownership: joint tenancy, tenancy in common, tenancy by the entirety, community property
Rights of survivorship and how they differ between ownership types
Types of deeds: warranty deed, quitclaim deed, bargain and sale deed
Title and how it is transferred
Estates in land: fee simple, life estate, leasehold
Encumbrances: liens, easements, deed restrictions, encroachments
Where candidates lose points:
The difference between joint tenancy (right of survivorship, equal shares) and tenancy in common (no survivorship, unequal shares allowed) is a frequent exam question. Also know the four unities required to create a joint tenancy: time, title, interest, and possession.
4. Real Estate Finance
The finance section covers how real estate transactions are funded and the terms associated with mortgage lending.
What it covers:
Types of mortgages: conventional, FHA, VA, adjustable-rate, fixed-rate
Mortgage terms: principal, interest, amortization, loan-to-value (LTV) ratio
The lending process: pre-approval, appraisal, underwriting, closing
RESPA: what it requires and what disclosures are mandatory
Foreclosure: judicial vs. non-judicial, deficiency judgments, redemption rights
Basic real estate math related to financing: monthly payment calculations, LTV, down payment
Where candidates lose points:
LTV calculations and the distinction between FHA and conventional loan requirements are commonly missed. Also know the difference between a mortgage and a deed of trust — NY uses the mortgage.
5. Fair Housing Laws
Fair housing is a high-priority topic. The NY real estate exam consistently includes questions on both federal and state fair housing law.
What it covers:
Federal Fair Housing Act: seven protected classes (race, color, religion, national origin, sex, disability, familial status)
New York State Human Rights Law: additional protected classes under state law (age, sexual orientation, marital status, source of income, and others)
Prohibited practices: steering, blockbusting, redlining, discriminatory advertising
Exemptions to the Fair Housing Act — and when they apply
ADA requirements for commercial properties
Reasonable accommodation and reasonable modification for persons with disabilities
Where candidates lose points:
Many candidates know the federal protected classes but miss the additional classes protected under NY State law. Also, fair housing exemptions are a trap — know exactly which exemptions exist and when they do not apply.
6. Real Estate Math
Math questions appear throughout the exam, not just in a dedicated math section. Candidates who avoid practicing math are at a significant disadvantage.
What it covers:
Commission calculations: gross commission, split commissions, net to seller
Proration: property taxes, rent, insurance at closing
Area calculations: square footage, acreage, lot dimensions
Loan-to-value and down payment calculations
Appreciation and depreciation
Percentage problems applied to real estate scenarios
Where candidates lose points:
Proration problems are the most commonly missed math questions. Know how to calculate the number of days and apply a per-day rate. Also practice commission splits — a question may give you a sale price, a commission rate, and a broker/agent split, and ask for the agent’s net.
7. NY License Law
The NY license law section covers the rules and regulations that govern real estate practice in New York State specifically.
What it covers:
Licensing requirements: who needs a license, exemptions, license types
Broker vs. salesperson distinctions and supervision requirements
The NY Department of State’s authority and disciplinary procedures
Continuing education requirements for license renewal
Trust account rules: how client funds must be handled
Prohibited conduct: what can result in license suspension or revocation
Advertising rules under NY license law
Where candidates lose points:
Trust account questions are frequently missed. Know that client funds must be kept in a separate escrow/trust account and never commingled with the broker’s personal or operating funds.
How to Use This Breakdown to Study
Take a diagnostic first. Before studying any topic in depth, take our free diagnostic test to see which areas you are already strong in and which need work.
Study weak topics with flashcards. Our free NY Real Estate flashcards are organized by topic area. Work through each category before taking full tests.
Test yourself with full-length practice tests. Our NY Real Estate Practice Tests include three 75-question tests covering all seven topic areas.
For exam format and timing, see: How Many Questions Are on the NY Real Estate Exam.
For a full study plan, see: How to Prepare for the NY Real Estate Exam.
For step-by-step formulas and worked examples, see: NY Real Estate Exam Math: Formulas and Practice Problems
Practice Exam Hub is not affiliated with the New York Department of State, PSI Exams, or any licensing authority. This content is for educational purposes only.
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