Final Exam # 2 Flashcards
Which department is responsible for issuing real estate licenses?
DMV
Attorney General
NY Department of State
State Governor
NY Department of State
Mark (the broker), is selling Maria’s house (the client). Who determines the amount of commission paid in a transaction?
Principal/Client and the Broker
Principal only
Broker only
NY Department of State
Principal/Client and the Broker
The individual who hires the Agency is also known as who?
Sponsor
Principal or Client
Sub-agent
Attorney
Principal or Client
An agent can NOT do which of the following?
Collect money directly from the client or customer
Negotiate on the client’s behalf
Rent of the client’s behalf
Sell property on the client’s behalf
Collect money directly from the client or customer
As independent contractors, what can sales agents be provided by their sponsoring broker?
A salary
Office phone
Free transportation
Free advertising
Office phone
What type of estate is created when only one person holds title to real property?
Estate for Years
Ownership in Severalty
Tenancy in Common
Joint Tenancy
Ownership in Severalty
The right to access water from a river or stream is known as?
Riparian rights
Littoral rights
Air rights
Property rights
Riparian rights
The right to use another’s land that falls short of ownership is known as?
Lien
Joint tenancy
Tenancy in Common
Easement
Easement
Marcus was not paid for the supplies and labor he provided to homeowner Sam during a recent renovation of Sam’s house. What kind of lien will be filed against Sam?
Specific Lien
Mechanic’s Lien
Tax Lien
General Lien
Mechanic’s Lien
Unless determined to be a lesser estate, the transfer of title to real property in NYS creates what type of interest?
Fee Simple
Qualified Fee
Fee on Condition
Life Estate
Fee Simple
The transfer of title to real property is also known as?
Conveyance
Devise
Testate
Title by Descent
Conveyance
What clause in the deed describes the property?
Closing Statement
Habendum Clause
Exemptions
Legal Description
Legal Description
If an ad for a property states that the property is near the vicinity of a geographical area, what else must the ad include?
The size of the property
The name of the geographical area where the property is actually located
The owner’s name
The type of property
The name of the geographical area where the property is actually located
Covenants in a deed provide what?
That the grantee will own the property and has a right to convey it or right of quiet enjoyment
The location of the property
The seller’s name
The outstanding liens on the property
That the grantee will own the property and has a right to convey it or right of quiet enjoyment
What is the summary of the chronological history of title and related documents to that called?
Chain of Title
Abstract of Title
Title Search
Certificate of Occupancy
Abstract of Title
What may happen if one of the parties to a contract is a minor?
The contract is voidable
The contract will be enforced
The contract amount may be reduced
The contract will need to be notarized
The contract is voidable
What capabilities must a party possess in order to enter into a valid contract?
High School diploma
Background check
Mental and emotional capability
Must be fluent in English
Mental and emotional capability
Who signs the contract first?
Seller
Purchaser
Seller’s Attorney
Purchaser’s Attorney
Purchaser
What is a loft lease?
An apartment lease
A lease for space that is not divided into rooms
A lease for warehouse space
A retail space lease
A lease for space that is not divided into rooms
Which types of commercial properties use percentage leases?
Office
Self Storage
Retail stores / shopping malls
Multi-family
Retail stores / shopping malls
Who is responsible for the terms in the lease if the unit has been subleased?
Landlord
Sub-lessee
Property Manager
Lessee
Lessee
Which clause in the lease allows landlords to raise rents during the term of the lease?
Assignment clause
Escalation clause
Renewal clause
Termination clause
Escalation clause
A seller tells the listing agent he filed for bankruptcy the previous year. The seller ends up not listing the property with the agent. Still, what fiduciary duty does the agent owe the seller?
Accountability
Confidentiality
Obedience
Reasonable Care
Confidentiality
A land lease may also be referred to as what?
Ground lease
Triple Net lease
Percentage lease
Term lease
Ground lease
What type of financing is used to purchase a new property when the old property hasn’t been sold yet?
Wraparound mortgage
Swing loan
Conventional loan
Balloon loan
Swing loan
Who is the borrower of a mortgage loan?
Mortgagor
Mortgagee
Lender
Bank
Mortgagor
What does the Real Estate Settlement Procedures Act (RESPA) require?
Pre-determined interest rates
Background checks of all lenders
Pre-determined commissions
Good faith estimate of the closing costs for federally funded loans
Good faith estimate of the closing costs for federally funded loans
A new mortgage that is higher in amount wraps around an existing first mortgage that’s smaller in amount is known as what?
Bridge loan
Conventional mortgage
Interest Only mortgage
Wraparound mortgage
Wraparound mortgage
What does the secondary mortgage market do?
Issue loans
Buys and sells mortgages
Approve loans
Buydown loans
Buys and sells mortgages
In addition to the disclosure of interest rates, what else does Regulation Z (TILA) require?
Background checks
Disclosure of commissions
Fixed interest rates
Total monthly mortgage payment amount
Total monthly mortgage payment amount
Who oversees the licensing and registration of mortgage bankers and broker?
ANYS Attorney General
BNYS Department of Financial Services
CNYS Department of State
DNYS Department of Buildings
BNYS Department of Financial Services
What is it called when the government dictates how a property can be used?
Building codes
Eminent Domain
Bulk Restrictions
Zoning
Zoning
The zoning board of appeals is responsible for doing which of the following?
Granting variances
Issuing permits
Approving construction documents
Determining City Planning policies
Granting variances
Where should someone look to find a description of the agency relationship (who he or she represents) of the salesperson?
Agency Disclosure Form
Exclusive Contract Agreement
Dual Agency Agreement
Seller Agent Agreement
Agency Disclosure Form
Which of the following regulates construction standards in NYS?
Zoning resolution
City Masterplan
Building Codes
NYS Department of Finance
Building Codes
The taking of private property by the government for public use is known as what?
Eminent domain
Easement
Grant
Lis Pendens
Eminent domain
What’s another name for the slope of the roof?
Grade
Run
Pitch
Topography
Pitch
What serves the same function as a circuit breaker?
Panel
Fuse
Conduit
Grounding
Fuse
What carcinogenic component was used as insulation in electric transformers that contaminated soil and groundwater?
Asbestos
Lead
PCBs (Polychlorinated bihpenyls)
Radon
PCBs (Polychlorinated bihpenyls)
What is market value?
What the property will sell for in a competitive marketplace
What the property will sell for in a down market
What the property will sell for in a distressed marketplace
What the property will sell for if it were new
What the property will sell for in a competitive marketplace
What is a CMA (Comparative Market Analysis) NOT? An estimate A theoretical value An appraisal An opinion
An appraisal
What is it called when a building loses its desirability because of an outdated design feature?
Obsolescence
Deterioration
Modification
Drawback
Deterioration
What did the Civil Rights Act of 1866 protect, without exception?
Gender
Race
Religion
Familial status
Race
What did the 1988 amendment to the civil rights act protect?
Religion
Race
Disability and familial status
Occupation
Disability and familial status
When should the Agency Disclosure Form be submitted?
At the closing
At the signing of the contract
When the first offer is presented to the seller
At the first substantive contact
At the first substantive contact
What is convincing owners to sell/lease property by telling them a particular group of people are moving into the area called?
Red-lining
Testing
Steering
Blockbusting
Blockbusting
What is it called when lenders/insurance agents refuse to do business in a certain area based on the characteristics of the people living there?
Steering
Blockbusting
Testing
Redlining
Redlining
The municipal engineer’s office is responsible for doing what?
Approve construction documents
Issue permits
Approve variances
Oversees planning and construction of major highways, sewer systems, and water connections
Oversees planning and construction of major highways, sewer systems, and water connections
Which department oversees drinking water safety?
NYS Department of Buildings
NYS Department of State
NYS Department of Health
NYS Department of City Planning
CNYS Department of Health
The name of the policy that provides additional liability coverage beyond the primary policy is known as what?
Monoline policy
Package policy
Homeowners policy
Umbrella policy
Umbrella policy
What covers fully for personal property lost in a fire? Deductible Replacement cost Market value Actual cash value
Replacement cost
Property taxes are based on what?
Fair market value
Assessed value
Actual cash value
Appraised value
Assessed value
What are homestead properties?
Commercial
Office
Multi-family
Residential condos, 1-4 family homes, mobile homes & farm dwellings
Residential condos, 1-4 family homes, mobile homes & farm dwellings
This document provides detailed information on a condo or coop development?
By-laws
Board Package
House Rules
Offering Plan
Offering Plan
f the seller refuses to provide a property condition disclosure statement to the buyer, how much should the seller reimburse the buyer?
$5,000
$100
$500
$250
$500
This document governs issues such as noise, pets, etc., in a condo or coop?
House rules
By-laws
Offering Plan
Board Package
House rules
A Coop is what type of ownership?
Fee simple
Real property
Leasehold
Deed
Leasehold
This right is reserved for the condo association, which gives them the first opportunity to buy or lease a unit when it becomes available?
Right of first refusal
Declaration
Recognition
Sponsor
Right of first refusal
The process that calculates the value of an asset in the past, present, and future is known as what?
Time value of money
Rate of return
Leverage
Internal rate of return
Time value of money
What type of investment properties are warehouses?
Commercial
Industrial / Manufacturing
Residential
Land
Industrial / Manufacturing
The area the tenant actually occupies and uses is known as?
Actual square footage
Buildable square footage
Gross square footage
Usable square footage (or net square footage)
Usable square footage (or net square footage)
How much profit can a single person claim from the sale of a personal residence that’s tax free? A$25,000 B$100,000 C$200,000 D$250,000
$250,000
Who is usually exempt from property taxes?
First time home buyers
Students
Immigrants
Disabled, veterans, farmers, elderly, gold star parents (whose kids died in war), and Star program homeowners.
Disabled, veterans, farmers, elderly, gold star parents (whose kids died in war), and Star program homeowners.
Who is not usually exempt from property taxes?
Second home owners
Disabled
Veterans
Farmers
Second home owners
What occurs when the agent represents the seller but also works in the best interests of the buyer?
Dual Agency
Undisclosed Dual Agency
Breach of loyalty
Buyer/Seller Agency
Undisclosed Dual Agency
Tax strategies on investment properties are known as what?
Tax shelters
Boot
Tax Depreciation
Tax-deferred exchange
Tax shelters
How many years is a residential investment property depreciable for?
18 years
27.5 years
29 years
33 years
27.5 years
Income earned from investing in a rental property is designated as what type of income?
Active
Passive
Portfolio
Tax free
Passive
Fixing a leaking faucet is known as what type of maintenance?
Preventative maintenance
Planned maintenance
Corrective maintenance
Capital maintenance
Corrective maintenance
What is the budget that is set aside for repairs and large improvements?
Capital reserve budget
Maintenance budget
Operations budget
Repair budget
Capital reserve budget
A real estate agent serves as what type of agent?
Special Agent
General Agent
Both Special and General Agent
Neither Special or General Agent
Special Agent
What type of listing agreement is it where the listing broker earns a commission for the sale of the property, even if the owners themselves sell the property?
Exclusive Right to Sell
Exclusive Right to Rent
Seller Agency Agreement
Dual Agency Agreement
Exclusive Right to Sell
