Practice Test Mistakes Flashcards
According to this fiduciary duty, the agent must put the interests of the client above their own interests?
Loyalty
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?
Life estate
This form of co-ownership does NOT include the ‘right of survivorship’?
Tenancy in common
What type of easement is commonly used by utility companies?
Easement in gross
Under which section of a deed will the property’s address be listed?
Legal description of the property
The person appointed by a court to distribute the intestate decedent’s property is known as a/an…?
Administrator
Which of the following loans is considered interest-only?
Straight-term loan
Which of the following parties gives a mortgage?
Mortgagor
Which of the following allows a borrower to obtain a lower interest rate by paying additional points upfront to the lender?
Buydown
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…?
Non-conforming use
The Fair Housing Act was enacted as part of what federal legislation?
Civil Rights Act of 1968
Residential properties are appraised using which method?
Sales comparison approach
Which of the following insurance policies may be purchased by landlords for their rental properties?
Commercial general liability
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 commission is not paid to anyone since the seller found the buyer.
What type of lease is typically used for an open, unfinished commercial space?
Loft lease
The cash flow from a commercial property (before paying any debt service) is known as…?
Net operating income
Which of the following does not qualify as like-kind property for a tax-deferred exchange?
A residence for a residence
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?
Mortgage Broker Disclosure Form
Mark (the broker), is selling Maria’s house (the client). Who determines the amount of commission paid in a transaction?
Principal/Client and the Broker
If an ad for a property states that the property is near the vicinity of a geographical area, what else must the ad include?
The name of the geographical area where the property is actually located
What is the summary of the chronological history of title and related documents to that called?
Abstract of Title
What capabilities must a party possess in order to enter into a valid contract?
Mental and emotional capability
What is a loft lease?
A lease for space that is not divided into rooms
In addition to the disclosure of interest rates, what else does Regulation Z (TILA) require?
Total monthly mortgage payment amount
What is it called when the government dictates how a property can be used?
Zoning
What is market value?
What the property will sell for in a competitive marketplace
What is a CMA (Comparative Market Analysis) NOT?
An appraisal
What did the 1988 amendment to the civil rights act protect?
Disability and familial status
How much profit can a single person claim from the sale of a personal residence that’s tax free?
$250,000
What occurs when the agent represents the seller but also works in the best interests of the buyer?
Undisclosed Dual Agency
Tax strategies on investment properties are known as what?
Tax shelters
How many years is a residential investment property depreciable for?
27.5 years
This Act made price fixing, group boycotts, market allocation, and tie-in arrangements illegal?
Sherman Anti-Trust Act
Which of the following would be considered a trade fixture by a commercial tenant?
Display case
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?
It will appear as a restrictive covenant in the deed.
Which of the following is used as evidence that an individual owns a particular piece of real property?
Title
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?
Liquidated damages
A straight-term loan is also known as a/an…?
Interest Only Loan
Which of the following governs the amount of interest that can be charged on a loan?
Usury laws
Which of the following framing members are horizontal beams that support the floor in a house?
Joists
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?
Footing
According to the …………., real estate salespersons are considered independent contractors.
Internal Revenue Service (IRS)
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’?
HO-4
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?
NYPIUA
Which of the following is illegal in New York State?
Net Listing
Which of the following statements are used by real estate investors to estimate the return on investment for a particular investment property?
Pro forma
If a married couple sold their property for a $435,000 profit, how much in capital gains taxes will the couple be responsible for?
$0
Which of the following is used by property managers to project the net operating income for a property?
Operating statement
If an agent’s client has a financial loss because of the agent’s negligence, which fiduciary duty has been violated?
Reasonable skill and care
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.
Which of the following is NOT considered real property?
Living room furniture
Which of the following forms of ownership is limited to married couples?
Tenancy by the entirety
Where should a homeowner look to find the exact dimensions of their property?
Survey
Which of the following is a payment made by a purchaser of real estate as evidence of good faith?
Earnest money deposit
Which of the following is an example of a conventional loan?
A loan offered by a commercial bank without any participation by a government agency
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?
Inflation
Which of the following building materials is a panel that spans between wall studs and covers exterior walls?
Sheathing
If a broker enters into a listing contract, who is considered the client?
The seller
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?
The seller’s broker is still entitled to their full commission.
Which of the following creates express agency?
Listing contract
If a woman earns $300,000 in capital gains from the sale of her home, on what amount will she have to pay capital gain taxes?
50,000 Dollars ($)
Which of the following is NOT permitted as a deduction on a homeowner’s income tax return?
Appraisal fees
