Free practice
Condominiums: definition, by-laws, the sponsor, and the offering plan
Finish →Question 1 of 40
Which ownership arrangement describes a condominium?
Reveal answer
Correct answer: Ownership of a unit paired with an undivided interest in common elements
Condominium ownership combines individual unit ownership with a common interest. Shares and a proprietary lease describe a cooperative.
Question 2 of 40
Under New York's Condominium Act, a unit together with its common interest is classified as what?
Reveal answer
Correct answer: Real property
Real Property Law § 339-g classifies each unit together with its common interest as real property for all purposes.
Question 3 of 40
Which instrument submits property to New York's Condominium Act?
Reveal answer
Correct answer: The declaration
The declaration is the instrument by which property is submitted to the Condominium Act, as defined in § 339-e(7).
Question 4 of 40
A condominium owner wants to learn the procedures for electing the governing board and conducting owners' meetings. Which document most directly addresses those procedures?
Reveal answer
Correct answer: The by-laws
By-laws address the condominium's internal administration, including board and meeting procedures.
Question 5 of 40
In a condominium project, what does the term sponsor ordinarily identify?
Reveal answer
Correct answer: The person or entity organizing and offering the project
The sponsor organizes and offers the project, often as a developer or a converting property owner.
Question 6 of 40
A buyer says, 'The New York Attorney General accepted this offering plan for filing, so the state has approved the sale.' Which response is accurate?
Reveal answer
Correct answer: Acceptance for filing does not constitute approval of the issue or sale.
General Business Law § 352-e(4) expressly separates filing from approval of the issue or sale by the Department of Law or Attorney General.
Question 7 of 40
When must the building's floor plans be filed under New York Real Property Law § 339-p?
Reveal answer
Correct answer: Simultaneously with recording the declaration
Section 339-p ties filing the floor plans to recording the declaration, not to an offering, financing, or governance event.
Question 8 of 40
An owner reads that a New York condominium decision requires a majority. What must be checked before deciding whether the vote passed?
Reveal answer
Correct answer: Whether the applicable measure uses common interest, number of units, or both
Section 339-e(8) allows the specified majority measure to use common interest, unit numbers, or both. A head count cannot be assumed.
Question 9 of 40
A New York condominium offering plan describes the building but omits the nature of the interest offered and how title will be held. Which assessment is correct?
Reveal answer
Correct answer: The plan lacks required transaction disclosures.
General Business Law § 352-e(1)(b) requires disclosure of the nature of the interest and how title will be held, in addition to describing the property.
Question 10 of 40
For a covered New York public condominium offering under the ordinary filing procedure, a sponsor has submitted the plan but has not received the Attorney General's filing letter. May the sponsor begin public advertising?
Reveal answer
Correct answer: No, the filing letter must precede the advertising.
Under § 352-e(2), the ordinary procedure bars offers, advertisements, and sales until the Attorney General issues the letter stating that the offering has been filed.
Question 11 of 40
A New York condominium advertisement promises a service that conflicts with the filed offering disclosures. The sponsor calls it 'marketing language.' What is the governing principle?
Reveal answer
Correct answer: Advertising must be consistent with the required offering representations and information.
Section 352-e(1)(c) requires all advertising in connection with the offering to be consistent with the required offering representations and information.
Question 12 of 40
An owner converts a rental building and organizes its initial condominium offering. A separate firm will manage maintenance. Who is acting as the sponsor?
Reveal answer
Correct answer: The owner organizing and offering the conversion
The converting owner is acting as sponsor by organizing and offering the project. Maintenance management is a different role.
Question 13 of 40
A buyer says two identical apartment buildings must have the same ownership form. Which fact would best distinguish a condominium from a cooperative?
Reveal answer
Correct answer: Whether the purchaser acquires a unit and common interest or shares and a proprietary lease
The legal interest acquired distinguishes the ownership forms. Similar buildings, shared expenses, and governance arrangements can exist in both.
Question 14 of 40
A purchaser is reviewing a New York offering plan to understand how the purchase transaction is structured. Which information is expressly within the required disclosures?
Reveal answer
Correct answer: Detailed transaction terms and the nature of the interest offered
Section 352-e(1)(b) calls for detailed transaction terms and disclosure of the nature of the interest. It does not provide a government recommendation or investment assurance.
Question 15 of 40
A New York salesperson uses additional written representations to sell units in a covered offering. What does § 352-e require concerning information used in the offering or sale?
Reveal answer
Correct answer: It must first be filed, and prospective purchasers must be furnished true copies.
Section 352-e(5) requires information and representations used in the offering or sale to be filed first and true copies furnished to prospective purchasers.
Question 16 of 40
Which pairing correctly matches the distinct functions of a New York condominium declaration and an offering plan?
Reveal answer
Correct answer: Declaration: submission of property to the Condominium Act; offering plan: transaction disclosure
The declaration submits the property to the Condominium Act, while the offering plan discloses the proposed transaction. Neither provides government endorsement.
Question 17 of 40
A New York condominium committee reports that more than half the units supported a proposal. The applicable rule requires a majority both in common interest and in number of units. What additional fact is needed?
Reveal answer
Correct answer: Whether the supporting owners hold more than half the aggregate common interest
A rule requiring both measures is not satisfied by unit count alone. Support must also exceed half of the aggregate common interest.
Question 18 of 40
Where are the floor plans required by New York Real Property Law § 339-p filed?
Reveal answer
Correct answer: In the office of the recording officer
Section 339-p directs filing of the plans in the recording officer's office, simultaneously with recording the declaration.
Question 19 of 40
A buyer of a covered New York condominium offering receives an accurate oral summary of filed selling information but no true copy. Which conclusion follows?
Reveal answer
Correct answer: The oral summary does not satisfy the requirement to furnish true copies.
Section 352-e(5) requires furnishing true copies of the filed information used in the offering or sale; an oral summary is not that delivery.
Question 20 of 40
Which statement must appear in literature and advertising for an offering covered by New York General Business Law § 352-e(4)?
Reveal answer
Correct answer: Filing does not constitute approval of the issue or sale by the Department of Law or Attorney General.
The required statement expressly denies that filing constitutes approval of the issue or sale by the Department of Law or Attorney General.
Question 21 of 40
A buyer assumes the sponsor will continue to decide all condominium matters because the sponsor created the project. What is the best way to evaluate that assumption?
Reveal answer
Correct answer: Examine the project's governance documents and provisions describing retained sponsor control.
Sponsor status and governing authority are different questions. Retained control must be evaluated through the project's documents rather than inferred from a label or isolated event.
Question 22 of 40
Two New York condominium proposals receive support from the same number of units. One is governed by common-interest voting and the other by unit-count voting. Can the vote results be assumed identical?
Reveal answer
Correct answer: No, because the applicable measures can produce different results.
Common-interest and unit-count measures are distinct. The same number of supporting units may represent different proportions of common interest.
Question 23 of 40
A New York sponsor plans to record the declaration now and file the initial building floor plans after the first owners' meeting. What change is needed?
Reveal answer
Correct answer: File the floor plans simultaneously with recording the declaration.
The proposed delay conflicts with § 339-p, which requires filing the building floor plans simultaneously with recording the declaration.
Question 24 of 40
A purchaser assumes every common hallway becomes the exclusive property of the nearest condominium unit owner. Which explanation best corrects that assumption?
Reveal answer
Correct answer: Unit ownership is paired with an undivided interest in common elements, rather than exclusive ownership based on proximity.
Condominium ownership includes an undivided common interest; proximity to a shared area does not make that area the nearest owner's exclusive property.
Question 25 of 40
Who can provide the professional certification required for New York condominium floor plans under § 339-p?
Reveal answer
Correct answer: A registered architect or licensed professional engineer
Section 339-p requires a verified statement of a registered architect or licensed professional engineer; ownership or management status alone does not provide that qualification.
Question 26 of 40
A sponsor's sales team calls the by-laws 'the document that submits the property to New York's Condominium Act.' Which correction is accurate?
Reveal answer
Correct answer: That legal function belongs to the declaration.
The declaration, not the by-laws or sales materials, is the instrument submitting property to the Condominium Act.
Question 27 of 40
A New York sponsor proposes a brochure that accurately describes the plan but says, 'Filing confirms state approval of this sale.' How should the brochure be assessed?
Reveal answer
Correct answer: The approval claim is improper even if the other plan descriptions are accurate.
Accurate descriptions do not cure a false approval claim. Section 352-e(4) requires a statement that filing does not constitute approval of the issue or sale.
Question 28 of 40
A buyer asks whether a condominium's board or its sponsor is responsible for offering the project to initial purchasers. Which distinction is most accurate?
Reveal answer
Correct answer: The sponsor organizes and offers the project; the board has a governance role in common affairs.
The sponsor's offering role and the board's governance role should be distinguished, even where the project's documents provide for sponsor involvement in governance.
Question 29 of 40
For a New York condominium decision, the applicable rule requires more than 50% of aggregate common interest, without a separate unit-count test. Supporters hold interests of 18%, 17%, and 14%. All other owners oppose. Did the proposal satisfy the requirement?
Reveal answer
Correct answer: No, because the supporting interests total 49%.
Add the supporting common interests: 18% + 17% = 35%; 35% + 14% = 49%. Because 49% does not exceed 50%, the proposal fails the stated test.
Question 30 of 40
Under the ordinary procedure for a covered New York public offering, which sequence respects the filing requirement?
Reveal answer
Correct answer: Submission of the plan, receipt of the filing letter, public advertising
Section 352-e(2) requires the Attorney General's letter stating that the offering has been filed before the covered offer, advertisement, or sale.
Question 31 of 40
Which information is the primary physical subject of the floor plans filed under New York Real Property Law § 339-p?
Reveal answer
Correct answer: Unit layouts, locations, and approximate dimensions
Section 339-p describes plans showing the layout, locations, and approximate dimensions of the units.
Question 32 of 40
A townhouse development and a high-rise development both convey individually owned units with undivided interests in common elements. Which conclusion is best supported?
Reveal answer
Correct answer: Both can use condominium ownership despite their different building styles.
Condominium is an ownership form. Building height or style does not determine whether that legal ownership structure is used.
Question 33 of 40
A New York offering plan contains extensive building photographs and sales descriptions but leaves the transaction terms to a future conversation. Which review finding is correct?
Reveal answer
Correct answer: The offering disclosure must include the detailed terms of the transaction.
Section 352-e(1)(b) includes detailed transaction terms among the required offering disclosures. Photographs and later discussions do not substitute for them.
Question 34 of 40
A New York buyer correctly identifies the condominium unit as real property but calls its associated common interest personal property. Which correction applies?
Reveal answer
Correct answer: The unit together with its common interest constitutes real property.
Section 339-g classifies the unit together with its common interest as real property; it does not make the common interest a separate personal-property component.
Question 35 of 40
A New York offering advertisement contains no explicit claim of government approval but omits the required no-approval statement. The sponsor argues that avoiding an approval claim is enough. What is correct?
Reveal answer
Correct answer: The advertisement must affirmatively include the required statement that filing is not approval.
Section 352-e(4) affirmatively requires the no-approval statement in offering and sales literature and advertising. Silence about approval does not satisfy it.
Question 36 of 40
Before purchasing, a buyer wants to understand how owners participate in board selection and how common affairs are administered. Which review is most directly useful?
Reveal answer
Correct answer: Review the by-laws for the governance and administrative procedures.
By-laws address the condominium's administrative and governance procedures. A buyer should examine them rather than infer those procedures from marketing, floor plans, or a filing letter.
Question 37 of 40
A New York sponsor says, 'Because filing is not government approval, we do not need a filing letter before advertising our covered public offering under the ordinary procedure.' What is wrong with that reasoning?
Reveal answer
Correct answer: Lack of government approval does not eliminate the filing-letter prerequisite.
Section 352-e(2) requires the filing letter before advertising under the ordinary procedure, while subdivision (4) explains that filing is not approval. Both rules apply.
Question 38 of 40
A limited liability company owns a building and organizes its condominium offering through employees. Which statement best identifies the sponsor role?
Reveal answer
Correct answer: The company can be the sponsor as the entity organizing and offering the project.
A sponsor can be a person or an entity. The company described organizes and offers the project, so acting through employees does not change its role.
Question 39 of 40
A buyer assumes a sponsor's obligations and retained control will match another condominium the buyer previously visited. What is the most sound response?
Reveal answer
Correct answer: Review this project's documents for the sponsor's commitments and retained control.
The sponsor's commitments and retained control must be evaluated in this project's documents. Another project's terms and continued ownership of one unit do not establish this project's governance arrangement.
Question 40 of 40
A New York sponsor has recorded the declaration and filed the floor plans, but has not received the Attorney General's filing letter for a covered public offering under the ordinary procedure. What follows?
Reveal answer
Correct answer: Completing condominium recording requirements does not replace the offering-letter prerequisite.
The condominium recording framework and the offering filing procedure have different functions. Declaration recording and floor-plan filing do not satisfy the separate requirement for the Attorney General's filing letter before covered public advertising, offers, or sales.
Ready when you are
This free set is 40 questions from one objective. A plan opens 3240 questions across the whole New York exam, plus mock exams, spoken rationales, and audio you can study while driving.