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Real Estate Exam > NY State Exam Study > Flashcards

NY State Exam Study Flashcards

1
Q

1988 Amendment to Civil Rights Act

A

An amendment that added two new protected classes: personal with mental or physical disabilities and familiar status.

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2
Q

Abstract of title

A

A summary of all of the recorded instruments and proceedings which the title to property, arranged in order in which they were recorded

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3
Q

Agency Disclosure Form

A

A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction

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4
Q

Appraisal

A

An estimate of a property’s value by an appraiser who is usually presumed to be expert in his work.

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5
Q

Assessed Value

A

A valuation placed upon property by a public officer or a board, as a basis for taxation.

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6
Q

Blockbusting

A

The practice of including homeowners in a 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 a precipitous decline in property values.

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7
Q

Bridge Loan

A

A type of short-term loan, typically taken out for a period of 2 weeks to 3 years.

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8
Q

Building Code

A

Regulations established by state or local governments stating fully that structural requirements for building.

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9
Q

Cash on Cash Return

A

A percentage return on money invested in a property by an investor.
Formula: Cash Flow/Down Payment

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10
Q

Comparative Market Analysis

A

A property evaluation that determines property value by comparing similar properties sold within the last year.

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11
Q

Confidentiality

A

An agent is obligated to safeguard his/her principal’s lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal’s bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property. The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold know material facts about the condition of the seller’s property from the buyer, or to misrepresent the property’s condition. To do so constitutes misrepresentation and may impose liability on both the broker and/or the seller.

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12
Q

Conveyance

A

The transfer of the title of land from one to another. The means or medium by which title of real estate is transferred.

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13
Q

Cooperative

A

A dwelling unit owned by a corporation in which an owner owns stock commensurate with the value of his or her apartment compared to the value of the building as a whole. The stockholder has a proprietary lease to the apartment.

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14
Q

Corrective maintenance

A

A maintenance task performed to identify, isolate, and rectify a problem with a property so that the property can be restored to an acceptable condition.

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15
Q

Civil Rights Act of 1866

A

A law with no exemptions and contains the blanket statement that citizens have the same rights to inherit, buy, sell, or lease real and personal property. The law intended to prohibit racial discrimination.

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16
Q

Easement

A

A right that may be exercised by the public or individuals on, over or through the lands of others.

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17
Q

Eminent Domain

A

A right of government to acquire property for necessary public use by condemnation;the owner must be fairly compensated.

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18
Q

Escalation clause

A

A clause that allows landlords to raise rents during the term of the lease.

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19
Q

Exclusive Right to Sell

A

An agreement of employment by a broker under which the executive right to sell for a specified period Is granted to the broker; if 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 is nevertheless entitled to compensation.

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20
Q

Fee Simple Estate

A

Absolute ownership of 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 distributes.

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21
Q

Full Covenant and Warranty Deed

A

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

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22
Q

Fuse

A

A device used in electrical systems to protect against excessive current

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23
Q

Ground Lease

A

An 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

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24
Q

House Rules

A

Rules in cooperative that cover common issues including garbage disposal, maintenance, noise, and conflict resolution.

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25
Q

Homestead Properties

A

Residential properties that include 1-3 family properties, condominiums, mixed-use parcels that are mostly residential, mobile homes, vacant lots less than 10 acres, farm land/dwellings.

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26
Q

Legal Description (Deeds)

A

The deed must contain an adequate formal legal description, which describes where the property is located and the size of the lot. The three acceptable types of legal descriptions include, metes and bounds, description by reference, lot and block, and monuments.

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27
Q

Leasehold Estate

A

The interest or estate which a lessee of real estate has therein by virtue of the lessee’s lease.

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28
Q

Loft Lease

A

A lease for the rental of floor space that is not generally divided into rooms.

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29
Q

Market Value

A

The most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both the buyer and seller aware of current market conditions, neither being under duress.

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30
Q

Mechanic’s Lien

A

A security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

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31
Q

Mortgagor

A

The borrower, typically a home owner

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32
Q

Obsolescence

A

One of the causes of depreciation. It is the 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.

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33
Q

Offering Statement

A

A document prepared by the attorneys representing the builders of a newly constructed condominium building. The statement includes information about the number and type of units in the building, the Homeowners Association Rights and duties to owners, and a list of any easements or liens affecting the title of the building. In most cases, buyers looking to purchase a new construction condo get the Offering Statement from their agent before they make an offer on a unit.

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34
Q

Ownership in Severalty

A

When title to real property is in the name of the only one person or entity.

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35
Q

Percentage Lease

A

A lease of property in which the rental is based upon the percentage of the volume of sales made upon the leased premises, usually provides for minimal rental.

36
Q

Pitch

A

Also known as the slope. Typically used in describing the slope of a roof, driveway, sidewalk, etc.

37
Q

Poly-chlorinated Byphenols (PCBs)

A

A synthetic, odorless, liquid organic compound and carcinogen appearing in groundwater and soil.

38
Q

Portfolio Income

A

Income from investments. Portfolio income is NOT considered passive income.

39
Q

Real Estate Settlement Procedures Acts (RESPA)

A

A consumer protection statute, first passed in 1974. The purpose of RESPA are:

1) To help consumers become better shoppers for settlement services and
2) To eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.

40
Q

Red-Lining

A

The refusal to lend money within a specific area for various reasons. This practice is illegal.

41
Q

Regulation Z

A

The Truth in Lending Act of 1968 is United States federal law designated to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.

42
Q

Replacement Cost

A

The insured is covered and reimbursed for the actual cost of replacing the damaged property.

43
Q

Riparian Rights

A

The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means “riverbank”.

44
Q

Secondary Mortgage Market

A

The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizes) and investors. The secondary mortgage market is extremely large and liquid.

45
Q

Special Agent

A

An agent with limited authority to act on behalf of the principal, such as created by a listing.

46
Q

Tax Shelter

A

Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments.

47
Q

Time Value of Money (TVM)

A

The idea that money available at the present time is worth more than the same amount in the future due to its potential earnings capacity.

48
Q

Umbrella Policy

A

Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Also called excess insurance.

49
Q

Undisclosed Dual Agency

A

A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties. Undisclosed Dual Agency is illegal in all states.

50
Q

Useable Square Footages

A

Space that can be used or occupied by a tenant. Typically does not include elevators, stairs, mechanical spaces, etc.

51
Q

Variance

A

The authorization to improve or develop a particular property in manner not authorized by zoning.

52
Q

Wrap-around Mortgage

A

A form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around the exits in addition to any superior mortgages already secured by the property.

53
Q

Zoning

A

Allows the government to dictate how a property is used and the size of the structure that can be built upon the property.

54
Q

Zoning Board of Appeals

A

A local appointed board that has the power to review administrative rulings made by the planning board or another legislative body.

55
Q

Misdemeanor

A

A crime punishable by up to a year in prison and/or a $1000 fine.

56
Q

Listing Agreement

A

An employment contract between principle and agent, authorizing the agent to perform services for the principal involving the latter’s property.

57
Q

Fiduciary

A 
A person who on behalf of or for the benefit of another transacts business or handles money or property not the person’s own; such relationship implies great confidence and trust. 
OLD CAR
         -  Obedience
         -  Loyalty 
         -  Disclosure 
         -  Confidentiality
         -  Accountability
         -  Reasonable Care
58
Q

Quitclaim Deed

A

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.

59
Q

Exclusive Agency

A

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 agency is entitled to commissions in addition to the commissions payable to the broker who effected the transaction
- made between a broker and a seller.

60
Q

Market Allocation

A

An agreement between members of trade to refrain from competition in specific market areas.

61
Q

Price Fixing

A

Conspiring to establish fixed fees or prices for services or products.

62
Q

Specific Lien

A

A lien that only binds to a specific asset or property (example: mortgage)

63
Q

Voluntary Lien

A

A contractual or consensual lien that is created by an action taken by the debtor, such as mortgage loan to buy real estate (Example: mortgage)

64
Q

Tax Lien

A

A lien imposed by law upon a property to secure the payment of taxes.

65
Q

Encumbrance

A

Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation.

66
Q

Habendum Clause

A

A clause in 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.

67
Q

Chain of Title

A

The sequence of historical transfers of Title to a property. It runs from the present owner back to the original owner of the property.

68
Q

Estate for Years

A

A leasehold Estate for any specific period of time. An estate for years is not automatically renewed.

69
Q

Express Contact

A

A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration)

70
Q

Attorney Review Clause

A

A clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason.

71
Q

Eviction

A

A legal proceeding by lessor landlord to recover possession of real property

72
Q

Loan to Value (LTV)

A

A financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased.
- Determined by using the Purchase Price or the Apprised Value, whichever is less.

73
Q

Essential Element of a Contract

A

1) Consideration
2) Must be in writing
3) Must have competent parties

74
Q

Amortization

A

The process by which a loan principal decreases over the life of a loan

75
Q

Condemnation

A

Taking private property for public use, with fair compensation to the owner;exercising the right of eminent domain

76
Q

Title X

A

A Federal law that makes real estate licensees liable for the disclosure of lead paint

77
Q

Asbestos

A

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

78
Q

Homeowners Policies

A

HO-3: Special Form Policy - the most widely used and recommended homeowners policy. It covers the home for all risks or physical loss except damage caused by flood, earthquakes, war, or nuclear accident.
HO-4: Tenants or Cooperative Owners Policies - Commonly referred to as renters insurance, regardless if you are renting a home, condo, or apartment. This policy also covers cooperative owners since they hold a proprietary lease (not real property)
HO-6: Condominium Unit Owners Policies - Insure against damage to the contents of apartment, cooperative, or condominium

79
Q

Escheat

A

The reversion to the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributes to whom the property may pass by lawful descent.

80
Q

Lis Pendens

A

A legal document, filed in the office of the county clerk giving notice that an auction or proceeding is pending in the courts affecting the title to the property. (Not applicable in commission disputes)

81
Q

Possessory

A

The intent and right of a person to occupy and/or exercise control over a particular plot of land

82
Q

Non-Possessory

A

A term of the law of property to describe any of a category of rights held by one person to use land that is in the possession of another

83
Q

Appurtenances

A

Something which is outside property itself but belongs to the land and adds to its greater enjoyment such as a right-of-way or a barn or a dwelling

84
Q

Accession

A

A mode of acquiring property that involves the addition of value to property through labor or the addition of new materials

85
Q

Accretion

A

The addition of land through processes of nature, as by water or wind

86
Q

Metes and Bounds

A

A term used in describing the boundary lines of land, seeing forth all the boundary lines together with their terminal points and angles

87
Q

Lot and Block

A

Method of identifying legal description of property

Real Estate Exam (1 decks)

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