Part 3 Flashcards
What are triggering terms in advertising credit?
Specific credit terms such as down payment, monthly payment, dollar amount of the finance charge, or term of the loan must be accompanied by:
* cash price
* required down payment
* number, amounts, and due dates of all payments
* APR
What is redlining?
Redlining is defined as denying or restricting loans in a certain area by lending institutions.
What is a primary residence?
A primary residence is the residence from which an occupant files income tax.
What are the potential consequences for an offender violating license law?
An offender may be liable for up to four times the amount received in commission, compensation, or profit, in addition to license suspension or revocation.
What is eminent domain?
Eminent domain is the right of government to obtain privately-owned land for public use.
What is debt service?
Debt service is the incremental cost of periodic (usually monthly) principal and interest payments required to pay back the borrowed funds.
What does alienation refer to in real estate?
Alienation describes a transfer of real property from one party to another.
This can occur through sale, gift, or inheritance.
In a dual agency situation, what do both principals give up?
Both principals give up the right to undivided loyalty.
What are CC&Rs in real estate?
CC&Rs are set by the bylaws of a condominium.
What is the responsibility of brokers in a transaction?
Brokers are responsible for making their relationships clear to all parties in a transaction.
What is required to obtain a New York real estate salesperson’s license?
Candidates must successfully complete a 77-hour prelicensing course approved by the Department of State.
What is the first step a taxing district takes to set a real estate taxing rate?
The first step is to adopt a budget.
How is a residential transaction defined?
A residential transaction involves the sale or rental of a building that contains four or fewer units intended for dwelling purposes.
What takes priority over all other liens?
Real estate taxes and special assessments (tax liens) generally take priority over all other liens.
What does public liability insurance cover?
Public liability insurance covers risks an owner assumes when the public enters the building, such as medical expenses for injuries due to landlord negligence.
What is an assessment roll?
An assessment roll contains assessments for all lands and buildings within the area.
What is a deed?
A deed is a written instrument by which an owner of real estate intentionally conveys a right, title, or interest in a parcel of real estate.
What does the tax world involve?
The tax world involves the tax consequences resulting from a property’s income operations, which establish a property’s book value.
What is commingling in real estate?
Commingling is the illegal act of mixing the broker’s operating funds with that of funds belonging to others in the same account.
What is the first substantive contact in real estate?
The first substantive contact is when a licensee exchanges or expresses information regarding a property or when a party begins to discuss personal financial information.
What can brokers do regarding preprinted contracts?
Brokers are allowed to fill in the blanks of preprinted contracts.
What should a property manager forecast in an operating budget?
A property manager should forecast anticipated revenues and expenses.
What is necessary for a licensee to legally accept a commission?
An individual licensee must maintain a valid real estate license from the start of the transaction up to the point that all compensation is received.
What is an adjustable-rate mortgage?
An adjustable-rate mortgage has an interest rate that may be higher or lower over the term of the loan.
