BP Study Guide Flashcards by MIchelle COntreras

A broker legitimately may pay all or part of real estate commission to a

salesperson

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A salesperson can only accept compensation from who?

Their sponsoring Broker

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The minimum age for a New York real estate broker’s license is:

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What requires a real estate license in New York?

Sale of land by an auctioneer

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An associate broker may:

work as a salesperson for a principal broker

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Violation of the license law is a misdemeanor, punishable by up to a year in jail and a fine of

$1,000

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When does offering a client’s business for sale require a real estate license?

When more than half of the value is real estate

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An apartment information vendor is licensed by:

Department of state

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When a license is revoked, how long must a licensee must wait before applying to have the license reinstated?

1 year

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The form of listing whereby an owner lists property for sale with a number of brokers is known as:

an open listing

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To avoid possible liability for the actions of cooperating members of a multiple-listing system, the owner who lists property for sale may decline to offer:

sub-agency

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An agent who has the authority to represent the principal in specific matters is a:

General agent

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Jan gave Sun Realty an exclusive agency listing on her property. If she sells the property herself without involving Sun Realty, she will owe Sun Realty:

No commission

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When selling a property in New York, the licensee is required to disclose to a potential buyer that:

The property lies in an agricultural district

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The commission to be paid in a written listing:

is the percentage of sales price as negotiated and agreed or a flat rate. It is specified in the listing agreement with the principal. Negotiable.

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The relationship between an agent and his or her principal is:

Fiduciary

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If you are selling a house in NY, it is necessary to disclose that:

there is a utility surcharge

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Seller is legally required to reveal to a buyer anything seller knows about:

lead paint hazards on the property

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To create an agency relationship, it is necessary that:

The parties act as principal and agent

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If you are a salesperson working with a buyer, then the buyer is client if:

You have an agency contract with the buyer

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The type of listing illegal in NY state is a:

Net listing

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A licensed salesperson or broker associate acting as an independent contractor must:

Be paid based upon sales and output, and execute a written independent contractor agreement yearly with the broker

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A salesperson sells another firm’s listing of a commercial building for $462,500. The 7% commission is split 50/50 between the 2 companies. The salesperson received 60% of her office’s share. How much does she receive?

$9712.50

$462500 x 7%=$32375. divided by 2 =$16187.50x60%agent=$9712.50

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A broker may be entitled to a commission in the event that the sale does not close if the problem was caused by the:

seller

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Big apple realty is concerned that its commission on a sale will not be paid. Big Apple realty should:

File an affidavit of entitlement

A real estate sales person's compensation is set by:

Agreement between broker and salesperson

The Duncan and Hill decision cautioned real estate licenses against:

The unauthorized practice of law

When a buyer/client wants to see property listed by his or her agent's company, the possible conflict of interest can be solved by the use of:

Designated agents

Buyers should be careful NOT to reveal the top price they're willing to pay to a:

seller's agent

Ads made by real estate brokers that do not indicate that the advertiser is a broker are known as:

blind ads

If a licensee becomes a partner in a real estate firm, he must have a:

broker's license

Agency relationship in an in-house sale require:

full discussion and disclosure in writing to all parties

In a buyer/agency relationship the broker owes the seller:

Fair & honest dealing

If you are a salesperson working with a buyer, then the buyer is your client if:

You have an agency contract with the buyer

In a real estate transaction, a broker had a written representation agreement with the buyer but was paid 6% of the selling price at the closing by the seller. Under these facts, whose agent was this broker?

The broker was the buyer's agent

A broker signed a listing agreement with the Ghent's to market their luxury downtonw condo. A few days later, the broker signed a buyer representative agreement with the Smiths, who were looking for a suburban single family home. If the buyers decide they're in the market for a luxury downtonw condo instead, and want to see the Ghent's property, what should the broker do?

The broker should disclose the intended dual agency and obtain both parties written consent

The DOS regulation 175.7: "A real estate broker shall make it clear for which party he is acting.." applies to:

All types of transactions, not just residential

skipping a card

to even the numbering

A licensee should use the disclosure form with prospective sellers or buyers at the first substantive contact. What illustrates the first substantive contact?

A prospective purchaser walking into a real estate office, meeting with an agent, and discussing the purchase of a specific property

In which clause in a deed would you find metes and bounds and monuments?

Description

If Mr. Jones owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a:

Fee simple

The Goodman's purchased a cottage bounding on a stream. They have rights to the stream known as:

Riparian

What is not considered chattel? | Tractor, barn, draperies, trade fixture

Barn: because it is real property

The most complete type of ownership in real estate is:

Fee Simple Absolute

Deed restrictions may be established only by the:

Grantor

One future action that may NOT be limited by a deed restriction is:

the illegal covenant against religion

Any right to or interest in the land interfering with its use or transfer is called an:

Encumbrance

A deed is valid when it is:

delivered and accepted (signed by the grantor and delivered to the buyer)

Which type of deed is used to convey title to a Parcel of land through a foreclosure proceeding?

referee's

Title to real property is conveyed by a:

Deed

In a lease that provides for the lessee to pay all or part of the expenses of the property in addition to rent is called a:

net lease

When a lessee transfers the entire remaining interest of his lease to another party who then must pay the owner, it is called an:

assignment

A contract transferring the rights to possession of real property for a specified term is known as a:

Lease

Under the NY general obligations law, security deposits by a tenant:

are held in escrow by the landlord

A tenant learns her building has been sold to a new landlord. The sale of the property:

has no effect on existing leases, and the tenant must make timely rent payments to the new owner

A legally enforceable agreement between competent parties in which each party acquires a right is called a:

contract

The usual listing agreement between a seller and a real estate agent is an:

express contract

When the agreement of the parties is demonstrated by their acts and conduct, this is known as what type of contract?

Implied contract

When a new contract is substituted for an existing agreement, the process is known as:

novation

Except for the amount of mortgage that may be assumed, a sale in New York is subject to a transfer tax of:

$2 per $500 or fraction thereof the consideration paid

In the transfer of what type of property may a flip tax be imposed?

In the transfer of a Cooperative

The Kavin's sold their house to the Bain's and are to close on July 1. The Kavin's paid their annual town taxes in January. At the closing, the Bain's will reimburse the Kavin's for:

The tax for the balance of the year

RESPA explicitly prohibits the payment of:

kickbacks (services not performed)

An instrument in writing that is the security for a debt with a specific property as a pledge is a:

mortgage

A department of Veterans Affairs mortgage is:

Guaranteed (loan program - guarantees the repayment of the top portion of the loan to the lender in the event the borrow defaults)

When a house purchase is financed by a federally related mortgage loan, RESPA requires that loan closing information be prepared on the:

uniform settlement statement (HUD1)

A blanket mortgage usually encumbers:

several parcels of real property

Under a mortgage, the mortgagor is the party who:

is the borrower

Margo and Clarence Stilton have applied for an FHA/insured loan. The mortgage will be:

insured (against financial loss)

If a real estate broker earned a commission of $5,600 at a commission rate of 7%, at what price was the property sold?

$80,000 | $commission divided by percent

What type of mortgage loan has an interest rate that may become higher or lower at specified intervals, keyed to an economic indicator?

ARM (adjustable rate mortgage)

Charging more than the legal interest rate is known as:

Usury (NY fixing a maximum allowable interest rate)

Deed restrictions are provisions that apply to current property owners and:

follow the chain of title in future transfers, and are in the form of covenants or conditions

Variances and special use permits are issued by:

The zoning board of appeals

When the present usage of land is in legal conflict with an enacted zoning ordinance the usage is called:

Noncomforming (it is legally allowed because it was there before new zoning)

The owner whose five unit apartment building would not be allowed by a new zoning law may be entitled to a:

nonconforming use

Among other methods, land use is controlled or regulated by:

subdivision regulations

Examples of private land use controls would not include:

Eminent domain (the power of government or its agencies to acquire private property for public use)

Even though a building permit is issued, new construction will still need:

A certificate of occupancy (property must be deemed fit)

A detailed architectural rendering of a structure is known as a:

blueprint

Electrical systems are routed through a:

circuit box

A lakefront home sold for $385,000. The broker recieved $27,912.50. What rate of commission did this broker charge?

7.25% Commission divided by sale price: $27,912.50 / $385,000

The most commonly used insulation material is:

Fiberglass

The amount a particular purchaser agrees to pay and a seller agrees to accept is known as:

Price

A comparative market analysis resembles which approach to real estate evaluation?

Direct sales comparison

The definition of market value includes:

The most probable price, for which the property should be sold with the buyer and seller acting prudently, neither is under undue stress

It can be dangerous for a real estate broker to:

discuss commission rates with another broker (price fixing)

A protected class under NYC law and not under state or federal law is which of the following?

Lawful occupation

The Civil Rights Act of 1866:

Prohibits any type of dissemination based on race

Redlining is defined as

Denying or restricting loans in a certain area by a lending institution

New York State Law goes beyond federal human rights law when it forbids discrimination based on:

Marital status

PDQ Realty advertises that it specializes in areas suitable for European immigrants. This is a fair housing violation called:

Steering

Using "scare tactics" regarding the possible change in the demographics of a neighborhood when soliciting listings in a violation is called:

Blockbusting

Although a property owner may be exempted sometimes from discrimination laws, a real estate licensee:

may not participate in the transaction in any way.

The Sherman Antitrust Law is intended to promote:

free competition in the open market

The Underground Storage Tank act in New York regulates underground fuel storage tanks that are:

1,100 gallons or larger

Underground storage tanks are utilized by business and industry for all of the following reasons except if they are:

out of sight

A salesperson who is an independent contractor:

is paid commission based on sales results

An asbestos problem is sometimes best treated by:

leaving it alone

The New York Regulatory agency that oversees the safety of drinking water in New York is the department of:

NYS Dept of health

A property manager or property management firm is usually a:

General agent