NY Real Estate Flashcards
Article 12-A of the NYS Real Property Law
The section of the New York Real Property Law pertaining to real estate salespersons and brokers.
Summary of Your Submission
Obtained after you register for the New York State
1 Hectare
2.47 Acres
1031 Exchange
45 days to identify a new property
1988 Amendment to Civil Rights Act
Added 2 new protected classes:
Abstract of Title
A summary of all of the recorded instruments and proceedings which affect the title to a property, arranged in the order in which they were recorded.
Accountability
One of the more serious fiduciary responsibilities.
Acre
43,560 sq. ft
Adjustable Rate Mortage (ARM)
A mortage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.
Affirmative Easement Appurtenant
Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access.
Agency by Estoppel
Exists when a principal does not stop an individual from representing them thus creating an agency relationship between the two.
Air rights
Rights in real property to use the space above the surface of the land.
Amortization
The process by which a loan principal decreases over the life of a loan.
Appraisal
An estimate of a property’s value by an appraiser who is usually presumed to be expert in his work.
APR
The actual interest rate charged, including loan fees and points.
Architectural Review Board
Oversees and upholds the quality and aesthetics of a neighborhood, town or city.
Architectural Review Board
Oversees and upholds the quality and aesthetics of a neighborhood, town, or city.
Area irregularly shaped lot
Break down lot into shapes, and add the areas of each together!
Area of a rectangle
width x depth
Area of a square
1 side x 1 side
Area of a triangle [triangle
1/2 of rectangle]
Article 12-A
Article in IRS Code section 3508
Asbestos
A naturally occurring mineral fiber sometimes found in older homes. It is hazardous to health when a possibility exists of exposure to inhalable fibers. Homeowners should be alert for friable asbestos and always seek professional advice in dealing with it.
Asbestosis
A chronic lung disease caused by inhaling asbestos fibers.
Assessed value
A valuation placed upon property by a public officer or a board, as a basis for taxation.
Attorney Review Clause
Clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason.
Beam
Horizontal structural member that supports a floor. Beams are typically wood, cold formed metal framing or steel.
Bearing walls
Structural walls that transfer building loads down to the foundations. Joists, beams, and roofs are typically supported by bearing walls.
Blockbusting
Practice of inducing homeowners in particular neighborhood to sell their homes quickly, often at below market prices, by creating the fear that the entry of a minority group or groups into the neighborhood will cause precipitous decline in property values.
Blockbusting
The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market rates, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values.
Board package
A series of documents submitted for review by a cooperative board.
Bond beam
Concrete set in soil.
Boot
Cash received in a tax-deferred exchange.
Bridge Loan/Swing Loan
Type of SHORT-TERM loan, typically taken out for period 2 weeks to 3 years.
Brown vs. Board of Education
Determined Separate is NOT Equal.
Building Codes
Primary purpose is to ensure a safe, properly functioning environment for the occupants. NY Code provides minimum standards for all buildings in NY. If Federal or City building code is more stringent on particular issue, the more stringent Code will supersede the State code.
Building Codes
Regulates construction standards in NYS.
Building Codes
Regulations established by state or local governments stating fully that structural requirements for building.
Building Department
A town or city that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances.
Bundle of Rights
The premise that the ownership of real estate consists of the ownership of the various rights associated with it. These rights include the right to use and/or copy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.
By-laws
The owner’s rights and obligations for a condominium.
Cap Rate
NOI/Purchase Price
Capital Gain
A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price.
Certificate of Occupancy (CO)
A document issued by a governmental authority that a building is ready and fit for occupancy.
Chain of Title
The sequence of historical transfers of title to a property. It runs from the present owner back to the original owner of the property.
Circuit breaker
The safety valves for electrical systems.
Civil Rights Act of 1866
Has no exemptions and contains the blanket statements that ‘citizens have the same rights to inherit, buy, sell, or lease real and personal property.’ *Primarily interpreted to prohibit racial discrimination.
Clean Air Act (CAA)
Federal law designed to control air pollution on a national level.
Closing Statement
A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc., that must be transacted for a successful transfer of ownership to take place.
Common charges
Monthly payment by owner of a condominium.
Comparative Market Analysis (CMA)
Property evaluation that determines property value by comparing similar properties sold within the last year. I.E. Analysis of the competition in the marketplace that a property will face upon attempts. CMA is NOT an appraisal. Instead, it is an opinion of value.
Condemnation
Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain.
Condominium
Considered real property, which is conveyed by a deed.
Confidentiality
All confidential information as described by the client must remain so unless given permission in writing.
Construction Drawings
Drawings produced by Architects that describe the QUANTITIES of a building.
Contract Requirements NYS
Must be 18 years old, if younger it is voidable.
Conveyance
The transfer of the title from one to another. The means or medium by which title of real estate is transferred.
Cost Approach
A method of estimating the value of real property by calculating a current construction cost, subtracting accrued depreciation and adding a land value obtained from the market.
Debt-to-Income ratio
Percentage of a consumer’s monthly gross income that goes towards paying debts. Formula: Recurring monthly debt/Gross Monthly Income
Deductible
The amount of expenses that must be paid out of pocket before an insurer will pay any expenses.
Delivery and Acceptance
Legal policy mandates that a deed to real property be a matter of public record; therefore, subsequent to delivery and acceptance, a deed must be property recorded.
Disclosure of Information
Agent must communicate with client/must present all offers.
Disclosure Regarding Real Estate Agency Relationships Form
A written explanation, to
Down Payment
Anyone who holds down payment must place it in separate escrow account.
Earnest money deposit
Deposit that a buyer makes at the time of submitting an offer to demonstrate the true intent of the purchase, also referred to as a binder, good faith deposit, and escrow deposit.
Easement in Gross
Ex: Utility Company
Easement
A right to cross or otherwise use someone else’s property for a specified person.
Eminent domain
Right of the gov’t to acquire property for necessary public use by condemnation; the owner must be fairly compensated.
Encumbrance
Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation.
Encumbrance
Anything that lessens the bundle of rights. i.e. a lien or a mortgage.
Escalation Clause
A clause that allows landlord to raise rents during the term of the lease. Call for the increased costs to the tenant for different reasons at specified times during the lease term. Clauses protect the property owner against increases during the lease term.
Essential Elements of a Contract
1) Consideration
Estate for Years
A leasehold estate for any specific period of time. An estate for years is not automatically renewed.
Eviction
Legal proceeding by a lessor landlord to recover possession of leased property after the expiration of the lease term.
Exclusive Agency
An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding
Exclusive Right to Sell
An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell if nevertheless ENTITLED TO COMPENSATION.
Execution and Foreclosure of a Lien
Lien
Exemptions to Licensure
Building superintendents or maintenance workers who perform tasks such as rent collecting for one owner, entity or company.
Express Contract
A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration)
Fair Housing Act of 1968
Federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability.
Fee Simple Estates
Absolute ownership of a real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.
Fiduciary
A person who on behalf of or for the benefit of another transacts business or
Fixed Rate Mortgage
Accounts for the majority of mortgages.
Full Covenant and Warranty Deed
A type of deed where the grantor guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee. This type of deed contains the strongest guarantee of title.
Full Covenant and Warranty Deed
Deed contains the broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee.
Fuse
Device used in electrical systems to protect against excessive current. Fuse melts and opens the circuit, causing electrical power to stop when overheating occurs. Circuit breakers perform a similar function but are more convenient and safer than fuses.
General Agent
Someone authorized to transact every kind of business for the principal. Ex: Property Manager
General Agent
Specific range of tasks, but multiple, not same as special agent who has narrow authorization like a real estate agent
Granting Variances
Responsibility of the Zoning Board of Appeals
Gross Income
The total amount collected from rents and other income producing opportunities.
Ground lease
Agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner. This long -term lease (also referred to as land lease) is commonly used for commercial property.
Habendum Clause
A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Also known as the “to have and to hold” clause.
Historic Preservation/Landmark Commissions
Established to review proposed projects within historic districts for compliance with standards established for new development or alteration or improvement of historic buildings and landmarks.
House rules
Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution.
If one has a possessory interest in property, that individual cannot own…?
Easement
Income Approach
An appraisal technique whereby the value of an income producing property is estimated by capitalizing its net operating income using an appropriate capitalization rate. Value
Independent Contractor Relationship
- A person that provides services to another under
Independent Contractor
Sales agents can be provided with Office Phones by their sponsoring broker.
Laws of Intestacy
When person dies and leaves no valid will, determines the order in which the property is distributed to the heirs.
Lead
A material used in pipes and paint of many older homes.
Legal Description
The deed must contain an adequate formal legal description. The legal description describes where the property is located and the size of the lot. There are 3 acceptable types of property descriptions:
Leverage
The use of borrowed capital (mortgage) to increase the potential return of an investment.
Levy
An assessment of tax.
Liquid
The ability to have cash readily available to support the demands of running and maintaining real property.
Lis Pendens
Filing that gives legal notice that a lawsuit has been filed concerning the specific property.
Listing Agreement
An employment contract between principal and agent, authorizing the
Littoral Rights
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.
Loft lease
Lease for the rental of floor space that is not generally divided into rooms.
Loyalty
Agent must work in the best interest of the client.
LTV (Loan-to-Value)
Financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased.
Maintenance
Monthly payments by a shareholder to a cooperative corporation.
Management Agreement
A contract between the owner of a property and someone who agrees to manage it.
Mandated warranty for a new constructions according to NYS General Business Law 36-B:
1) 1 year of workmanship
Market Allocation
An agreement between members of a trade conspiring to refrain from competition in specific market areas.
Market Value
Most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both buyer and seller aware of current market conditions, neither being under duress.
Mechanic and Materialmen’s
Specific liens which if for residential property must be filed with the county clerk, within 4 months of when labor or materials was furnished.
Mechanic’s Lien
Security interest in the title to property for the benefit of those who have supplied labor or materials to improve the property.
Metes and Bounds
Metes: distances from point to point. Bounds: directions from one point to another.
Misdemeanor
- A crime punishable by up to a year in prison and/or a $1,000 fine.
Mortgage Banker
A company, individual or institution that originates mortgages. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages.
Mortgage Broker
An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages.
Mortgage Contingency Clause
A clause in a contract that states a mortgage must be obtained in order for the contract to be binding.
Mortgage Lien
Example of a specific lien.
Mortgage
Legal Agreement by which a bank lends money in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon payment of the debt.
Mortgagor
Borrower
Municipal Engineer’s Office
Perform basic functions:
Negative Amortization
Occurs when the monthly payment is less than full interest and does not pay any principal. The interest that is unpaid accrues and the principal balance owed increases.
Non-conforming use
When pre-existing use of property in a zoned area is different from that specified zoning. The existing use is not as-of-right.
NYS Department of Financial Services
Registers and licenses all companies and individuals who conduct mortgage related services in New York.
NYS Department of Health
Performs:
Obedience
Agent must act in accordance to clients demands/instructions.
Obsolescence
One cause of depreciation. Loss of desirability and usefulness caused by new inventions, changes in design, and improved processes for production, or from the influence of external factors. Obsolescence may be either economic or functional. Functional obsolescence can be outdated design or floor plan.
OLD CAR
- Obedience - Loyalty - Disclosure - Confidentiality - Accountability - Reasonable Care
Operating Budget
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively.
Ownership in Severalty
Title to real estate is in the name of only ONE person or entity, it is an estate ownership in severalty… i.e. single individual owns real estate, therefore is ‘severed’ from all others.
PCB’s (Polychlorinated biphenyls)
PCBs widely used as dielectric and coolant fluids, in transformers, capacitors, and electric motors. PCBs known to leak into the ground from electrical transformers. Appear in groundwater and soil.
Percentage Lease
Lease of property in which rental is based upon percentage of the volume of sales made upon the leased premises, usually provides for minimal rent.
Planning Board
Local elected or appointed gov’t board charged with recommending to the local town or city council the boundaries of the various zoning districts and appropriate regulations to be enforced therein.
Planning Board
Responsible for developing and controlling a municipality’s comprehensive strategy for growth and development.
Pocket Card
A card issued by the Department of State to each licensee which contains the
Police Power
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public.
Prepayment Penalty Clause
States that the borrower can pay off the loan at any time before expiration of the full mortgage term without a financial penalty for early payoff.
Price Fixing
Conspiring to establish fixed fees or prices for services or products.
Secondary Mortgage Market
Primary mortgage market is lending institution where mortgage originates.
Principal
The employer of an agent or broker; the broker’s or agent’s client.
Pro-forma Statement
An accounting statement that forecasts income and expenses for a period of a time, typically five or more years.
Property Condition Disclosure Statement
The Property Condition Disclosure Statement Act requires the seller to submit to the buyer, a “PCDStatement” prior to signing the contract of sale. If statement is not signed the seller owes the buyers $500 credit against the purchase price of the property.
Property Management Report
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period.
Proration
The division of certain settlement costs between buyer and seller.
Quitclaim Deed
A deed which conveys simply the grantor’s rights or interest in real estate, without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title.
Quitclaim Deed
Contains no warranties whatsoever, its just a deed of release.
Radon
A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country.
Reasonable Care
Agent may be liable for costly mistakes.
