New York Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the New York exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. New York requires a licensed attorney to conduct real estate closings — unlike escrow states — which shapes how these questions are framed on the NY exam. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under New York practice.
New York Exam Study Resources
Everything you need to pass — in one place.
New York Escrow & Title — Practice Questions & Answers
96 questions on Escrow & Title from the New York real estate question bank. First 10 are free — sign up to unlock all 96.
Q1. In New York, which type of deed is most commonly used in arm's-length residential sales?
Explanation
In New York, the bargain and sale deed with covenant against grantor's acts is the most commonly used deed in residential sales. The grantor warrants only against defects created during their ownership.
Q2. A title search in New York examines public records to:
Explanation
A title search examines public records — including deeds, mortgages, liens, judgments, and tax records — to identify any defects in the chain of title before closing.
Q3. A mortgage satisfaction (discharge) should be recorded because:
Explanation
Recording a mortgage satisfaction provides public notice that the debt has been paid and the lien has been released, clearing the title for future transactions.
Q4. In New York, the New York Real Property Transfer Tax is typically paid by:
Explanation
In New York, the Real Property Transfer Tax (RPTT) is generally paid by the seller. The buyer pays the Mansion Tax if the purchase price is $1 million or more.
Q5. An IOLA (Interest on Lawyer Accounts) account is used in New York to:
Explanation
IOLA accounts are used by New York attorneys to hold client funds (such as contract deposits) in escrow. The interest earned on these accounts is remitted to the IOLA Fund to support civil legal services for low-income New Yorkers.
Q6. Title insurance in New York protects against:
Explanation
Title insurance protects the insured against losses resulting from defects in the title that existed prior to the policy being issued, such as undisclosed liens, forgeries, errors in public records, or competing ownership claims.
Q7. In New York, the attorney for the seller typically conducts the closing, which involves:
Explanation
New York is an attorney closing state. The seller's attorney (and often the buyer's attorney) conducts the closing, reviewing documents, coordinating fund transfers, and ensuring the deed and mortgage are recorded.
Q8. A quitclaim deed transfers:
Explanation
A quitclaim deed conveys only whatever interest the grantor holds at the time of the transfer, with no warranties whatsoever. It is often used between family members, to clear title defects, or in divorces.
Q9. Recording a deed in New York provides:
Explanation
Recording a deed provides constructive notice — legal notice to the world — of the grantee's ownership interest. Even if a subsequent buyer didn't have actual notice, recording puts them on constructive notice.
Q10. A lender's title insurance policy in New York protects:
Explanation
A lender's title insurance policy (also called a loan policy) protects the lender's interest in the property up to the outstanding loan balance. A separate owner's policy is needed to protect the buyer's equity.
Q11. In New York foreclosure proceedings, RPAPL Article 13 governs which type of foreclosure?
86 more Escrow & Title questions
Create a free account to unlock all 96 New York Escrow & Title questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all New York topics