NY Real Estate Exam · Free Sample Questions
3 free preview questions from Unlocked's NY exam question bank. Full access unlocks all questions across every topic, with detailed explanations.
Question 1 · Deed Types
A buyer is purchasing a bank-owned (REO) property after foreclosure. The bank transfers title using a document that conveys only whatever interest the bank holds, with no warranties whatsoever. This type of deed is called a:
Correct answer: B — Quitclaim deed
A quitclaim deed conveys only whatever interest the grantor has, with zero warranties. Banks selling foreclosed properties routinely use quitclaim deeds because they cannot make warranties about a property's title history before they acquired it. The buyer takes whatever title the bank has, with no protection if title defects are later discovered.
Question 2 · Title Insurance
A buyer's lender requires title insurance. After closing, the buyer discovers that a prior owner had an unresolved mechanic's lien that was not found in the title search. Which policy will cover the buyer's loss?
Correct answer: C — The buyer's owner's title policy
The lender's title policy protects the lender's mortgage interest, not the buyer. For the buyer to be protected, they must have their own owner's title policy. A mechanic's lien that existed before the policy date is exactly the type of title defect owner's title insurance is designed to cover. The lender's policy only protects up to the loan amount and only benefits the lender.
Question 3 · Recording
Seller conveys Greenacre to Buyer A on January 1 but Buyer A does not record the deed. On February 1, Seller (fraudulently) conveys Greenacre to Buyer B, who pays full value, has no knowledge of the prior sale, and records immediately. Under NY's race-notice recording system, who owns Greenacre?
Correct answer: A — Buyer B. They recorded first and had no notice of the prior conveyance
Under New York's race-notice recording system, a subsequent purchaser who (1) pays valuable consideration, (2) has no actual or constructive notice of the prior unrecorded deed, and (3) records first, prevails over the prior unrecorded grantee. Buyer B meets all three requirements. This outcome, while harsh to Buyer A, is the purpose of the recording system. It punishes those who fail to record.
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Deeds & Title: What the NY Real Estate Exam Tests
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