Final Exam # 4 Flashcards by Taylor Zipp

What happens to the salesperson’s license if the license of their sponsoring broker is suspended?

The license of the salesperson will also be suspended.

The license of the salesperson will be revoked and the salesperson will be required to pay a fine.

The license of the salesperson will automatically be moved under another sponsoring broker in the firm.

The license of the salesperson will remain active.

The license of the salesperson will also be suspended.

How well did you know this?

Not at all

Perfectly

How many years of experience does an individual need as a NYS real estate salesperson in order to quality to obtain their broker’s license?

1 year
2 years
3 years
4 years

2 years

How well did you know this?

Not at all

Perfectly

A broker represents a seller in a transaction. If the seller tells the broker they must sell the property quickly due to financial hardship, the broker cannot reveal this information to a prospective buyer. Otherwise, the broker will violate which of the following fiduciary duties?

Confidentiality
Obedience
Accountability
Full disclosure

Confidentiality

How well did you know this?

Not at all

Perfectly

The real estate agent serves as a/an ……..to their client.

Fiduciary
Attorney
Consultant
General agent

Fiduciary

How well did you know this?

Not at all

Perfectly

What type of agency gives complete authority over any activity of the principal?

Special agency
General agency
Universal agency
Express agency

Universal agency

How well did you know this?

Not at all

Perfectly

A property manager is an example of a/an …….agent.

Special
General
Universal
Dual

General

How well did you know this?

Not at all

Perfectly

Which of the following is NOT considered real property?

Living room furniture
Oil or natural gas located beneath the property
Vacant land
Small garage

Living room furniture

How well did you know this?

Not at all

Perfectly

Which of the following interests in real property includes the full bundle of rights?

Estate for years
Leasehold estates
Fee simple absolute estates
Cooperatives

Fee simple absolute estates

How well did you know this?

Not at all

Perfectly

Which of the following is NOT one of the four units of concurrent ownership?

Dedication
Time
Title
Possession

Dedication

How well did you know this?

Not at all

Perfectly

Which of the following forms of ownership is limited to married couples?

Joint tenancy
Tenancy in common
Ownership in severalty
Tenancy by the entirety

Tenancy by the entirety

How well did you know this?

Not at all

Perfectly

Which of the following estates provides the right of possession and control, but not title?

Fee simple absolute
Life estate
Fee simple determinable estate
Leasehold estate

Leasehold estate

How well did you know this?

Not at all

Perfectly

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on is known as…?

Riparian rights
Sub-surface rights
Littoral rights
Air rights

Littoral rights

How well did you know this?

Not at all

Perfectly

If a real estate salespersons license expires, what must they do to get their license re-activated?

Retake the State exam only
Re-apply for their license only
Retake the State exam and submit a new license application
A real estate salespersons license does not expire

Retake the State exam and submit a new license application

How well did you know this?

Not at all

Perfectly

A common term for an easement is a…?

Right of way
As of right
Possessory interest
Voluntary alienation

Right of way

How well did you know this?

Not at all

Perfectly

Which of the following liens takes the highest priority?

Mortgage lien
Mechanic’s lien
Judgement lien
Tax lien

Tax lien

How well did you know this?

Not at all

Perfectly

Which of the following written instruments is used to convey a grantor’s interest in real property?

Promissory note
Plot plan
Deed
Mortgage

Deed

How well did you know this?

Not at all

Perfectly

Where should a homeowner look to find the exact dimensions of their property?

Block and lot map
Survey
Promissory note
Property inspection report

Survey

How well did you know this?

Not at all

Perfectly

Which of the following is a condensed history of title to a property?

Abstract of title
Title insurance
Deed
Chain of title

Abstract of title

How well did you know this?

Not at all

Perfectly

Why is the old deed needed to help prepare for the closing?

The old deed is used to prepare the new need.
The old deed is used to determine the amount of insurance on the property.
The old deed is used to prepare the promissory note.
The old deed is not needed for the closing.

The old deed is used to prepare the new need.

How well did you know this?

Not at all

Perfectly

Where does a buyer’s earnest money deposit get placed prior to closing on the transaction?

A separate escrow account
The listing broker’s personal bank account
The seller’s attorney’s personal bank account
Any bank account within the U.S.

A separate escrow account

How well did you know this?

Not at all

Perfectly

Which of the following allows a commercial tenant the option to match an offer from another prospective tenant?

Right of first refusal
Lease option
Claim
Rescission

Right of first refusal

How well did you know this?

Not at all

Perfectly

If a clause in a contract is illegal, the contract will be considered…?

Void
Voidable
Valid
Suspended

Void

How well did you know this?

Not at all

Perfectly

Which of the following is a payment made by a purchaser of real estate as evidence of good faith?

Earnest money deposit
Buydown
Contingency payment
Rider payment

Earnest money deposit

How well did you know this?

Not at all

Perfectly

What is the highest court in New York State?

New York Court of Appeals
New York District Court
Judiciary of New York
New York Civil Court

New York Court of Appeals

How well did you know this?

Not at all

Perfectly

If a tenant wants to throw late night parties in their apartment, what clause in the lease may prevent them from doing so? Renewal clause Use provisions Statute of limitations Term of the lease

Use provisions

Which of the following is an example of a uni-lateral contract? Exclusive Right to Sell Agreement Open Listing Contract Buyer Representation Agreement Independent Contractor Agreement

Open Listing Contract

Which of the following loan types typically includes more than one property as collateral? Blanket mortgage ARM Fixed-rate mortgage Term loan

Blanket mortgage

Which of the following loans is associated with monthly payments which fluctuate based on a standard index? ARM Fixed-rate mortgage Term loan Blanket mortgage

ARM

Which of the following is an example of a conventional loan? AAn FHA-insured loan BA VA-guaranteed loan CA loan offered by a commercial bank without any participation by a government agency DA loan backed by FNMA

A loan offered by a commercial bank without any participation by a government agency

If a property is purchased for $350,000 and the buyer needs to obtain a $280,000 mortgage, what is the loan to value ratio of the mortgage? ``` 70 Percent (70%) 75 Percent (75%) 80 Percent (80%) 85 Percent (85%) ```

80 Percent (80%)

The borrower in a transaction is known as the…? Mortgagor Grantor Mortgagee Lessee

Mortgagor

What will happen if the government increases the money supply in the economy, but the production of goods and services does not increase at the same pace? A higher demand for housing Inflation Increased job growth Deflation

Inflation

The actual act of taking private property for public use by the government is known as…? Condemnation Foreclosure Gifting Eminent domain

Condemnation

A property owner passes away without any heirs to transfer his/her property. Under the State’s power of ……….., the property will revert back to the State. Escheat Condemnation Eminent domain Foreclosure

Escheat

Which of the following does NOT have to be disclosed by a seller or seller’s agent when selling a residential property? A death that previously occurred on the property. Cracks in the foundation. Uncapped natural gas wells on the property. Termite damage which have compromised the floor structure.

A death that previously occurred on the property.

Which of the following is a vertical wood member used to construct walls? Beam Stud Joist Sill plate

Stud

Which of the following is illegal in New York State? Balloon framing Platform framing Post-and-beam framing Steel framing

Balloon framing

Which of the following building materials is a panel that spans between wall studs and covers exterior walls? Flashing Fascia Siding Sheathing

Sheathing

Which structural member is located at the bottom of the building’s foundation? Sill plate Footing Girder Beam

Footing

A device that melts and opens the circuit, causing electric power to stop when overheating occurs is known as a/an…? Circuit breaker Amperage GFCI Fuse

Fuse

Which of the following is a naturally occurring radioactive gas, which typically enters a house through the basement? Radon CFCs Cardon monoxide EMFs

Radon

Which of the following is a measurement of the ability of insulation to slow the transfer of heat or cold? BTU rating Amperage Flashing R-value

R-value

The amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit is known…? BTU R-value Amperage Conduit

BTU

Which of the following values refers to the most probably price a property will get in an arm’s length transaction? Mortgage value Investment value Market value Assessed value

Market value

Which of the following is considered an indirect cost? Architectural fees Cost of labor Cost of structural wood members Cost of concrete for the building’s foundations

Architectural fees

If a broker enters into a listing contract, who is considered the client? The seller The buyer The salesperson The customer

The seller

Disability was added as a protected class to the Fair Housing Act in what year? 1968 1974 1980 1988

1988

If a lender refuses to make a loan on a property based on the demographics of the neighborhood of the property, they are most likely guilty of…? Steering Blockbusting Redlining Testing

Redlining

``` If an investor purchased a property for $1,600,000 with a down payment of 30%, what is the cash-on-cash return if the property produces a monthly cash flow of $4,000? A8 Percent (%) B10 Percent (%) C12 Percent (%) D20 Percent (%) ```

10 Percent (%)

A borrower has a $180,000 loan with an interest rate of 6%. What is the amount paid in interest each month? 900 Dollars ($) 980 Dollars ($) 4,650 Dollars ($) 10,800 Dollars ($)

900 Dollars ($)

Which of the following recommends zoning changes? Planning Board Department of Buildings Municipal Engineer’s Office Zoning Board of Appeals

Planning Board

Which of the following types of insurance is also known as ‘renter’s insurance’? HO-2 HO-3 HO-4 HO-5

HO-4

Which of the following allows an insured homeowner to be reimbursed for the actual cost of replacing damaged property? Actual cash value Assessed value Market value Replacement cost

Replacement cost

An umbrella insurance policy is also known as…? Basic insurance Dual insurance Excess insurance Flood insurance

Excess insurance

When protesting a property assessment, the burden of proof falls on the ……….to prove the assessor was incorrect. Property owner Attorney General Real estate broker Real estate attorney

Property owner

Which of the following is NOT considered a homestead property? Single family home Vacant land of 5 acres Agricultural land Commercial property

Commercial property

A broker and seller entered into an Exclusive Right to Sell Agreement. Who is entitled to a commission if the seller finds a buyer themselves? A commission is not paid to anyone since the seller found the buyer. The seller’s broker is still entitled to their full commission. The seller’s broker is only entitled to a pre-determined flat fee. Only the buyer’s broker is entitled to a commission.

The seller’s broker is still entitled to their full commission.

Which of the following is used to help pay for local streets or sidewalks? Capital gains Recovery funds Special assessments Appropriation

Special assessments

Which of the following is considered a leasehold estate? Single family house Cooperative Condominium Multi-family building

Cooperative

Which of the following manages a cooperative? Building Association Property manager Board of Directors Office manager

Board of Directors

A …………. is for the rental of floor space this is not generally divided into rooms. Gross lease Net lease Land lease Loft lease

Loft lease

Which of the following clauses in a commercial lease defines how the tenant can and cannot use the space? Lease duration Subordination clause Estoppel certificate Use clause

Use clause

When a real estate investor uses other people’s money to increase his/her potential return on investment, they are using…? Time value of money Leverage Liquidity Managed risk

Leverage

This process calculates the value of an asset in the past, present, or future? Time value of money Rate of return Capitalization rate Internal rate of return

Time value of money

Income earned from a rental property is classified as what? Active income Portfolio income Passive income Capital income

Passive income

Which of the following is used to account for general wear, tear, and obsolescence of an investment property? Appreciation Capital gains Depreciation Points

Depreciation

Which of the following refers to the profit realized from the sale of real property? Capital gain Credit Capital loss Debit

Capital gain

Which of the following creates express agency? Sales contract Lease Listing contract Deed

Listing contract

If a woman earns $300,000 in capital gains from the sale of her home, on what amount will she have to pay capital gain taxes? 0 Dollars ($) 50,000 Dollars ($) 250,000 Dollars ($) 300,000 Dollars ($)

50,000 Dollars ($)

Which of the following is NOT permitted as a deduction on a homeowner’s income tax return? Appraisal fees Mortgage interest Property taxes for a primary residence Property taxes for a second home/vacation home

Appraisal fees

If the seller’s broker in a transaction also serves as the mortgage broker to the buyer, what type of agency is created? Implied agency Dual agency General agency Undisclosed agency

Dual agency

Which of the following contracts creates a general agency relationship between a property owner and a property manager? Listing agreement Sales contract Management agreement Management proposal

Management agreement

When is a real estate salespersons license required by a property manager? When a property manager works exclusively for one owner. When a property manager is an employee of the owner. When a property manager earns a salary from an owner. When the property manager works for more than one owner.

When the property manager works for more than one owner.

Who determines the commission that a broker will receive in a transaction? The broker and seller The buyer and seller The broker and buyer’s attorney The seller’s attorney and the buyer’s attorney

The broker and seller

The Agency Disclosure Form is NOT required for the sale of which of the following properties…? 1-4 family properties Condominiums Cooperatives Vacant land

Vacant land