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NY Real Estate > Practice Test Mistakes > Flashcards

Practice Test Mistakes Flashcards

1
Q

According to this fiduciary duty, the agent must put the interests of the client above their own interests?

A

Loyalty

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2
Q

A couple owns a property as a tenancy by the entirety. When one of the spouses passes away, the other spouse gains full ownership of the property. When the remaining spouse passes away, the children inherit the property. This is known as what type of interest in real property?

A

Life estate

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3
Q

This form of co-ownership does NOT include the ‘right of survivorship’?

A

Tenancy in common

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4
Q

What type of easement is commonly used by utility companies?

A

Easement in gross

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5
Q

Under which section of a deed will the property’s address be listed?

A

Legal description of the property

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6
Q

The person appointed by a court to distribute the intestate decedent’s property is known as a/an…?

A

Administrator

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7
Q

Which of the following loans is considered interest-only?

A

Straight-term loan

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8
Q

Which of the following parties gives a mortgage?

A

Mortgagor

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9
Q

Which of the following allows a borrower to obtain a lower interest rate by paying additional points upfront to the lender?

A

Buydown

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10
Q

If a property owner has been using their property as a manufacturing facility for the past 40 years, but the current zoning laws only allow residential use in the neighborhood, the manufacturing facility will be considered as a/an…?

A

Non-conforming use

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11
Q

The Fair Housing Act was enacted as part of what federal legislation?

A

Civil Rights Act of 1968

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12
Q

Residential properties are appraised using which method?

A

Sales comparison approach

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13
Q

Which of the following insurance policies may be purchased by landlords for their rental properties?

A

Commercial general liability

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14
Q

If a broker and seller enter into an Exclusive Agency Agreement, who is entitled to a commission if the seller finds the buyer themselves?

A

A commission is not paid to anyone since the seller found the buyer.

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15
Q

What type of lease is typically used for an open, unfinished commercial space?

A

Loft lease

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16
Q

The cash flow from a commercial property (before paying any debt service) is known as…?

A

Net operating income

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17
Q

Which of the following does not qualify as like-kind property for a tax-deferred exchange?

A

A residence for a residence

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18
Q

If the seller’s broker in a transaction also serves as the mortgage broker to the buyer, what form must be signed by both the seller and buyer?

A

Mortgage Broker Disclosure Form

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19
Q

Mark (the broker), is selling Maria’s house (the client). Who determines the amount of commission paid in a transaction?

A

Principal/Client and the Broker

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20
Q

If an ad for a property states that the property is near the vicinity of a geographical area, what else must the ad include?

A

The name of the geographical area where the property is actually located

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21
Q

What is the summary of the chronological history of title and related documents to that called?

A

Abstract of Title

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22
Q

What capabilities must a party possess in order to enter into a valid contract?

A

Mental and emotional capability

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23
Q

What is a loft lease?

A

A lease for space that is not divided into rooms

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24
Q

In addition to the disclosure of interest rates, what else does Regulation Z (TILA) require?

A

Total monthly mortgage payment amount

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25
Q

What is it called when the government dictates how a property can be used?

A

Zoning

26
Q

What is market value?

A

What the property will sell for in a competitive marketplace

27
Q

What is a CMA (Comparative Market Analysis) NOT?

A

An appraisal

28
Q

What did the 1988 amendment to the civil rights act protect?

A

Disability and familial status

29
Q

How much profit can a single person claim from the sale of a personal residence that’s tax free?

A

$250,000

30
Q

What occurs when the agent represents the seller but also works in the best interests of the buyer?

A

Undisclosed Dual Agency

31
Q

Tax strategies on investment properties are known as what?

A

Tax shelters

32
Q

How many years is a residential investment property depreciable for?

A

27.5 years

33
Q

This Act made price fixing, group boycotts, market allocation, and tie-in arrangements illegal?

A

Sherman Anti-Trust Act

34
Q

Which of the following would be considered a trade fixture by a commercial tenant?

A

Display case

35
Q

If a homeowners association does not allow houses in a sub-divided community to have brick on the exterior of the house, where will this restriction be documented?

A

It will appear as a restrictive covenant in the deed.

36
Q

Which of the following is used as evidence that an individual owns a particular piece of real property?

A

Title

37
Q

Which of the following may be added to a contract, which awards the non-breaching party a specified sum of money for certain breaches listed in the contract?

A

Liquidated damages

38
Q

A straight-term loan is also known as a/an…?

A

Interest Only Loan

39
Q

Which of the following governs the amount of interest that can be charged on a loan?

A

Usury laws

40
Q

Which of the following framing members are horizontal beams that support the floor in a house?

A

Joists

41
Q

Which of the following structural members is set in the soil and supports the building’s foundation wall?

Which structural member is located at the bottom of the building’s foundation?

A

Footing

42
Q

According to the …………., real estate salespersons are considered independent contractors.

A

Internal Revenue Service (IRS)

43
Q

When an individual is renting an apartment or house, what type of insurance is typically obtained?

Which of the following types of insurance is also known as ‘renter’s insurance’?

A

HO-4

44
Q

This refers to a pool of insurance companies in New York State that writes fire insurance policies for homeowners, as well as coverage for vandalism and malicious theft?

A

NYPIUA

45
Q

Which of the following is illegal in New York State?

A

Net Listing

46
Q

Which of the following statements are used by real estate investors to estimate the return on investment for a particular investment property?

A

Pro forma

47
Q

If a married couple sold their property for a $435,000 profit, how much in capital gains taxes will the couple be responsible for?

A

$0

48
Q

Which of the following is used by property managers to project the net operating income for a property?

A

Operating statement

49
Q

If an agent’s client has a financial loss because of the agent’s negligence, which fiduciary duty has been violated?

A

Reasonable skill and care

50
Q

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

A

The license of the salesperson will also be suspended.

51
Q

Which of the following is NOT considered real property?

A

Living room furniture

52
Q

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

A

Tenancy by the entirety

53
Q

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

A

Survey

54
Q

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

A

Earnest money deposit

55
Q

Which of the following is an example of a conventional loan?

A

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

56
Q

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

Inflation

57
Q

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

A

Sheathing

58
Q

If a broker enters into a listing contract, who is considered the client?

A

The seller

59
Q

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

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

60
Q

Which of the following creates express agency?

A

Listing contract

61
Q

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?

A

50,000 Dollars ($)

62
Q

Which of the following is NOT permitted as a deduction on a homeowner’s income tax return?

A

Appraisal fees

NY Real Estate (21 decks)

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