NY Real Estate Exam Prep · Free
134 plain-English definitions of every key term on the NY Real Estate Salesperson Exam — with exam tips on exactly how each concept is tested.
A condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property.
A mortgage provision that allows the lender to demand full repayment of the remaining loan balance if the borrower defaults.
A unit of land measurement equal to 43,560 square feet.
A property tax calculated as a percentage of the property's assessed value, literally 'according to value.'
A legal doctrine allowing a person to acquire title to land by openly occupying it for a statutory period without the owner's permission.
The required notification to buyers and sellers explaining who the real estate agent represents in a transaction.
The process of paying off a loan through regular, scheduled payments that cover both principal and interest.
A professional opinion of a property's market value, performed by a licensed or certified appraiser.
The value assigned to a property by a local tax assessor for the purpose of calculating property taxes.
A mortgage with periodic payments that do not fully amortize, leaving a large lump-sum payment due at the end of the loan term.
The illegal practice of inducing homeowners to sell by implying that members of a protected class are moving into the area.
A licensed individual or firm authorized to operate a real estate business and employ salespersons.
Local regulations that set minimum construction standards for buildings to protect public health and safety.
The collection of legal rights associated with property ownership: the right to possess, use, transfer, encumber, and exclude.
The comprehensive application a NY co-op buyer submits to the board for purchase approval.
The ratio of a property's net operating income to its market value, used to estimate the value of income-producing property.
A document issued by local government certifying that a building complies with building codes and is safe for occupancy.
The complete history of all transfers of ownership of a property, from the original grant to the current owner.
The final step in a real estate transaction where ownership is officially transferred from seller to buyer.
Any outstanding claim, lien, or encumbrance that casts doubt on the validity of an owner's title to property.
The illegal mixing of a client's funds with a broker's personal or business funds.
The fee paid to a real estate broker for services in a transaction, typically a percentage of the sale price.
Recently sold properties similar to the subject property, used in the sales comparison approach to estimate market value.
The legal process by which the government exercises eminent domain to take private property for public use.
A form of ownership in which individuals own their individual units in fee simple and share ownership of common areas.
Something of value exchanged between parties to form a valid contract, typically money, but can be any bargained-for promise or act.
A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.
The illegal act of a broker using a client's entrusted funds for personal purposes.
A form of housing ownership where residents buy shares in a corporation that owns the building, rather than owning their individual units.
A NY mortgage device used in refinances and assumptions to reduce mortgage recording tax by paying tax only on 'new money.'
The final, itemized accounting of all costs and credits in a TRID-covered residential mortgage closing.
A NYC hybrid: legally structured as a co-op but operating with condo-like rules — typically minimal board approval and freedom to sublet.
Monthly fees paid by NY condo unit owners covering operating expenses for common elements — but NOT including taxes or unit mortgage.
A written legal document that transfers ownership of real property from a grantor to a grantee.
A private limitation written into a deed that controls how the property may be used by future owners.
A loss in property value due to physical deterioration, functional obsolescence, or external factors.
A situation where a real estate agent or broker represents both the buyer and the seller in the same transaction.
A mortgage provision that requires the borrower to repay the full loan balance when the property is sold or transferred.
Prepaid interest charges paid at closing to reduce the loan's interest rate.
A good-faith deposit made by the buyer when submitting an offer, demonstrating serious intent to purchase.
A legal right to use another person's land for a specific, limited purpose.
The government's power to take private property for public use, with just compensation paid to the owner.
A physical intrusion of a structure or improvement onto an adjacent property or public right-of-way.
Any claim, lien, charge, or liability attached to a property that affects its use or transfer.
The ratio of a municipality's total assessed value to its total market value, used to ensure equitable taxation across jurisdictions.
The difference between a property's current market value and the total amount owed on all mortgages and liens against it.
The government's right to take ownership of property when the owner dies without a will and with no known heirs.
A neutral third-party arrangement where funds or documents are held until conditions of a real estate transaction are met.
The degree, quantity, nature, and extent of a person's interest in real property.
A signed statement from a co-op or condo verifying the seller's account status — what is owed in maintenance, common charges, and assessments.
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on protected characteristics.
The highest and most complete form of real property ownership, with no conditions or limitations.
The highest legal duty of care and loyalty an agent owes to their client in a real estate transaction.
Personal property that has been permanently attached to real property and is therefore considered part of the real estate.
The legal process by which a lender seizes and sells a property to recover unpaid mortgage debt after the borrower defaults.
An estate in real property that lasts for an indefinite duration — either forever (fee simple) or for someone's lifetime (life estate).
A transfer fee charged by a NY co-op corporation when shares are sold, paid to the building (not the government).
A government-INSURED mortgage available through approved lenders, designed for lower down payments and broader credit access.
A lien that attaches to all of a debtor's property. Both real and personal, rather than to a single specific property.
A lease in which the landlord pays all property expenses (taxes, insurance, maintenance) and the tenant pays a flat rental amount.
A quick valuation metric that divides a property's sale price by its gross annual or monthly rent.
A legal protection that shields a portion of a homeowner's equity from certain creditors and reduces property tax liability.
The act of pledging property as collateral for a loan without giving up possession of it.
A NY co-op shareholder who acquired shares directly from the sponsor, inheriting the sponsor's reserved rights including freedom from board approval.
A NYC affordable housing cooperative organized under the Private Housing Finance Law with income limits and often resale restrictions.
An appraisal method that estimates property value based on the income it generates, using capitalization of net operating income.
Dying without a valid will, causing property to be distributed according to state law rather than the deceased's wishes.
A federally required disclosure informing buyers and renters of known lead-based paint hazards in housing built before 1978.
A contract that grants the right to possess and use property for a specified period in exchange for rent.
A legal claim against a property that secures the payment of a debt or obligation.
An ownership interest in real property that lasts only for the lifetime of a specified person.
A recorded notice that a lawsuit involving real property is pending, alerting potential buyers or lenders of the legal dispute.
A contract between a property owner and a real estate broker authorizing the broker to find a buyer.
The ratio of a loan amount to the appraised value (or sale price, whichever is lower) of the financed property.
The early-stage TRID disclosure summarizing estimated loan terms and closing costs, delivered within 3 business days of application.
The most probable price a property would bring in a competitive, open market under fair sale conditions.
An involuntary lien filed by a contractor, subcontractor, or supplier who has not been paid for work performed on a property.
A method of describing land using compass directions, distances, and natural or man-made landmarks to trace the property boundaries.
A property tax rate expressed as the tax per $1,000 of assessed property value, one mill equals one-tenth of one cent.
A loan secured by real property, where the borrower pledges the property as collateral for repayment.
A 1% New York State tax on residential property sales of $1,000,000 or more, paid by the buyer.
A NY tax imposed on the recording of a real property mortgage, paid by the borrower.
A NY State limited-equity affordable housing program providing income-restricted cooperatives and rentals.
A lease in which the tenant pays base rent plus some or all property operating expenses.
A property's gross income minus operating expenses, before mortgage payments and income taxes.
A property use that was legal when established but no longer complies with current zoning regulations.
A NY rental-to-co-op conversion plan requiring only 15% tenant-purchase agreement and protecting non-purchasing tenants as renters indefinitely.
Movable property that is not permanently attached to land — furniture, vehicles, appliances, and other possessions.
The government's authority to regulate private property use to protect public health, safety, and welfare, without paying compensation.
A legal document authorizing one person to act on behalf of another in legal or financial matters.
The two components of a standard mortgage payment — principal reduces the loan balance; interest is the cost of borrowing.
The broker whose continuous, unbroken efforts directly led to a buyer's decision to purchase.
The operation, oversight, and administration of real estate on behalf of the property owner.
The lease agreement between a cooperative corporation and a shareholder-tenant, granting the right to occupy a specific unit.
The division of ongoing property expenses between buyer and seller based on the closing date.
Insurance paid by the borrower that protects the lender when the loan-to-value ratio exceeds 80%.
An acronym for the four components of a typical mortgage payment: Principal, Interest, Taxes, and Insurance.
Land and everything permanently attached to it, including buildings, fixtures, and the rights that come with ownership.
The act of filing a deed or other document in the county clerk's office to provide public notice of a real estate interest.
The illegal practice of denying mortgage loans, insurance, or other services to residents of certain neighborhoods based on demographics.
A New York State law that limits annual rent increases and provides tenants with lease renewal rights in qualifying buildings.
The Real Estate Settlement Procedures Act, a federal law governing disclosures and prohibiting kickbacks in residential mortgage transactions.
The automatic transfer of a deceased co-owner's interest to the surviving co-owners, bypassing probate.
A NY condo board's right to match a buyer's offer and purchase the unit on behalf of the association before it sells to the outside buyer.
The entry-level NY real estate license, allowing the holder to perform brokerage activities under a sponsoring broker's supervision.
Money collected by a landlord from a tenant at the start of a lease to cover potential damages or unpaid rent.
A lien that attaches to one particular property rather than to all of a debtor's assets.
A court order requiring a party who breached a real estate contract to actually complete the transaction.
A law requiring certain contracts, including real estate sales contracts to be in writing to be enforceable.
The illegal practice of guiding buyers or renters toward or away from neighborhoods based on their protected class.
The division of a larger parcel of land into smaller lots for sale or development, subject to local approval.
A precise measurement and mapping of a property's boundaries, area, and physical features by a licensed surveyor.
A loan secured by co-op shares and proprietary lease — personal property, not a real property mortgage.
A NY co-op or condo unit still owned by the original developer (sponsor) — typically sold without board approval.
A form of co-ownership available only to married couples, with the right of survivorship and protection from individual creditors.
A form of co-ownership where two or more people hold separate, divisible shares with no right of survivorship.
Insurance that protects against financial loss from defects in a property's title that existed before the policy was issued.
A tax imposed on the transfer of real property ownership, paid at the time the deed is recorded.
A separate bank account where a broker holds client funds, keeping them segregated from the broker's personal or business money.
A federal rule combining TILA and RESPA disclosures into the Loan Estimate and Closing Disclosure forms.
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