Real estate Flashcards
1
Q
- According to the New York State real property law, a real estate salespersons license is issued for a term of how many years?
A
2 years
2
Q
- What type of residential real property transfer would require a property condition disclosure statement?
A
Lease option to buy
3
Q
- What happens to the licenses of salespersons if their sponsoring broker’s license is revoked or suspended?
A
They are suspended
4
Q
- A listing broker for the seller has a buyer client who asks to see the listing. This request could create which type of agency?
A
Dual agency
5
Q
- A broker’s compensation is determined by an agreement between a broker and the?
A
Principal/client
6
Q
- What fiduciary duty would be violated when a client suffers a financial loss as a result of an agent’s lack of expertise in dealing with a particular type of property?
A
Reasonable Care
7
Q
- If clients who sign an exclusive right-to-sell listing agreement with a broker find a buyer for the property on their own, the broker is
A
Entitled to the originally agreed upon commission
8
Q
- at an open house, Joe discloses to an interested buyer that he has the right to his own representation but the buyer refuses. The buyer’s relationship with Joe is an?
A
customer
9
Q
- The main purpose of an agency disclosure form is to?
A
Inform consumers of the agency relationship of them selfs to a real estate agent and available choices for representation.
10
Q
- What scenario best illustrates the first substantial contact with a prospective buyer?
A
An individual meeting with an agent and discussing the purchase of a specific property
11
Q
- What type of real estate agent is authorized to represent a principal in one specific transaction?
A
Special
12
Q
- The Brokers principal is always the?
A
the client
13
Q
- Susie seller has chosen broker Joe to represent her in the sale of her house broker Joe will advance and protect Susie’s interest during the sale. What word best describes the relationship?
A
fiduciary
14
Q
- Which legal right allows an owner of land bordering a river or stream to use that water for recreational purposes?
A
Riparian
15
Q
- Which form of ownership can only be held by a married couple?
A
Tenancy by the entirety
16
Q
- Which type of estate is recognized by law to be the fullest form of ownership?
A
Fee simple, absolute
17
Q
- What deed provision would prohibit an owner from installing an inground pool?
A
Restrictive covenant
18
Q
- What lien has priority over all recorded liens?
A
Real estate property Tax lien (Not IRS)
19
Q
- Who must sign a deed?
A
all grantors
20
Q
- What do lenders require as protection against title defects?
A
title insurance
21
Q
- A type of legal description that includes a point in place of beginning is?
A
metes and bounds
22
Q
- What is the name for dividing financial responsibility for payment of rent, taxes, and insurance between buyer and seller on a closing statement?
A
proration
23
Q
- Which type of insurance policy would protect the holder from defects in the evidence of real property ownership?
A
Title
24
Q
- Why does a landlord want a percentage lease with a retail tenant?
A
The tenant shares in the tenants business profits
25
Q
- What is the requirement for a real estate contract to be valid?
A
The must be an offer and acceptance
26
Q
- Which party to a real estate contract of sale usually signs at first?
A
Purchaser
27
Q
- The requirement to provide a loan estimate form for all closing cost to the borrower or most Residential Mortgage Loans is the?
A
TILA-RESPA integrated disclosure Rule (TRID)
28
Q
- What regulates real estate advertisements that include financing terms?
A
Federal Regulation Z.
29
Q
- A purchaser receives financial help towards a down payment and interest rate, in return promised to share the profit when the property is later sold. This agreement is known as a?
A
Shared Equity Mortgage
30
Q
- Mortgages that are paid in equal monthly installments in order to pay the principal in full during the term of the loan are known as which type of loan?
A
Fully Amortized loan
31
Q
- The person or entity who lends the money in a mortgage transaction loan?
A
Mortgagee
32
Q
- What is the process by which the government may take private property for public use?
A
Condemnation
33
Q
- Which document regulates construction standards?
A
Building codes
34
Q
- A document which is issued by a government Authority, indicating that a structure complies with building, safety, and health codes and may be utilized, is known as a certificate of?
A
Occupancy
35
Q
- . What type of building material is attached directly to the exterior of the side of the vertical wood framing members of outside walls?
A
Sheathing
36
Q
- What measures insulation resistance to the transfer of heat?
A
R-value
37
Q
- What is not a seller’s obligation to purchasers under the federal lead-based paint Hazard disclosure regulation?
A
To conduct mandated led-based testing
38
Q
- Which material was previously used in insulation, ceiling tiles, and other Home Building Products that when Disturbed released cancer-causing fibers?
A
Asbestos
39
Q
- A manufactured, chemical substance that has been commonly used in refrigerators and air-conditioners and which Threatens the ozone layer of the Earth’s atmosphere is known as?
A
CFC- Freon
(The test does not say Freon, just CFC)
40
Q
- Which best describes what a real estate appraiser does when rendering an opinion as to the values of real property?
A
Estimates value
41
Q
- When a property loses value due to outdated style, the value loss is said to be the result of?
A
Obsolesce
42
Q
- What is the name of a study of recently sold properties, currently competing listings, recently expired listings, buyer appeal, Market position, assets and drawbacks, Ariel market conditions, recommended terms, and market value range?
A
CMA Comparative Market
43
Q
- Under what law did familial status become a protected class?
A
Federal Fair Housing Amendments Act of 1988
44
Q
- What is the term for the solicitation of the sale or lease of a property due to a change in the ethnic structure of a neighborhood?
A
Blockbusting
45
Q
- What type of insurance coverage protects against claims alleging negligence resulting in bodily injury and or property damage?
A
Liability
46
Q
- What type of home insurance policy covers condominium unit owners?
A
HO-6
47
Q
- A real property tax is what type of encumbrance on the property?
A
Lien
48
Q
- Which group is not eligible for a reduction in the exemption in real property taxes?
A
Second home
49
Q
- If a property’s market value is $180,000 and the communities level of assessment Loa is 60%, what is the property’s assessed value?
A
Value) X (LOA) $108,000
50
Q
- What situation would be exempt from most fair housing laws?
A
Homeowners renting rooms in their homes.
51
Q
- What is the illegal practice of refusing to Grant mortgage loans or issue insurance policies based solely on the demographic makeup of a property’s location?
A
Redlining
52
Q
- What is the formula for calculating square feet for a Real Estate situation?
A
wide x length
53
Q
- What is the function of a planning board?
A
Creating a community’s comprehensive plan.
54
Q
- What agency would provide guidelines for the design of a wastewater treatment system for a residential subdivision?
A
Department of Health
55
Q
- A completed and signed copy of the property condition disclosure statement should be delivered by the seller to the buyer prior to the?
A
Buyer signing a binding contract of sale
56
Q
- According to New York State real property law, when a real estate salesperson’s license is revoked by the Department of State, the salesperson is ineligible to be re-licensed until after the expiration of what. Of time?
A
1 year
57
Q
- If a seller fails to deliver a property condition disclosure statement prior to the buyer signing the contract of sale, the buyer shall receive a credit, and what amount upon transfer of title?
A
$500
58
Q
- A real estate salesperson is usually what type of agent?
A
special agent
59
Q
- Under what type of listing will a couple owe a commission to their agent, if they find a buyer on their own?
A
Exclusive right to sell
60
Q
- According to the IRS code, a real estate agent cannot qualify as an independent contractor because of the following?
A
The agent works hours set by the broker.
61
Q
- A licensee as an independent contractor can file Schedule C on her federal income tax return because she is?
A
self-employed
62
Q
- What fiduciary duty is violated when a broker commingles the money of a principal with their own money?
A
Accountability
63
Q
- Commissions earned on the sale of real property are determined by the?
A
Broker and principal
64
Q
- In the sale of a 1-4 unit residential property, dual agency with designated sales agents is disclosed on which document?
A
Agency disclosure form
65
Q
- Broker Candy can pay the errors and omissions insurance for licenses who have independent contractor status because?
A
she is protecting her ultimate responsibility for her licensee’s actions
66
Q
- What is the best example of a trade fixture in a retail store?
A
A display counter
67
Q
- What type of deed gives the right of survivorship to unmarried property owners in New York state?
A
Joint tenants
68
Q
- The owner of parcel A grants to the adjacent owner of parcel B an easement across their property. Which property is the dominant tenant?
A
Parcel B
(Parcel A would be servient tenement)
69
Q
- What is a true statement regarding all liens?
A
All liens relate to debt
70
Q
- What is the name of an individual who requires title to real property by deed?
A
Grantee
71
Q
- What type of deed contains no warranties?
A
Quitclaim
72
Q
- What kind of notice does a seller give to a buyer by recording an easement in the country’s Clerk’s Office?
A
Constructive
(serving a useful purpose; tending to build up. “constructive criticism”)
73
Q
- What is true when real estate under a lease is sold?
A
Remains binding upon the new owner
74
Q
- Contract of sale is fully executed when the?
A
The closing takes place
75
Q
- What is the purpose of the earnest money deposit on a contract of sale?
A
Assures the seller that the buyer is serious
76
Q
- The term amortization refers to the?
A
Gradual repayment of debt on an installment basis over a period of time
77
Q
- What is the term for the person who borrows money in a mortgage loan transaction?
A
Mortgagor
78
Q
- What is the amount paid to the lender at the time of loan origination to account for the difference between the market interest rate and the lower contract rate of the note?
A
Discount points
79
Q
- A wraparound mortgage is best described as?
A
A loan that allows the seller to maintain their existing mortgage while the buyer’s mortgage “wraps” around the existing amount owed.
80
Q
- What is the right of government to acquire private property for necessary public use?
A
Eminent Domain
81
Q
- If a deceased has no will or heirs, his or her property May revert to New York State because of the state’s right of?
A
Escheat
82
Q
- What would a resident apply for in order to be given permission to deviate from the use prescribed by an existing zoning ordinance?
A
variance
83
Q
- The comprehensive environmental response, compensation and liability act CERCLA, also known as the Superfund, covers?
A
potentially responsible party
84
Q
- What is used in buildings roof, side walls, and chimneys to prevent water entry?
A
Flashing
85
Q
- What state agency regulates the safety of drinking water and septic sewer in New York?
A
Department of Health
86
Q
- What is the name of the part of a roof that extends beyond the exterior walls of a building?
A
Eave
87
Q
- What does the percolation rate measure?
A
Movement of water through the soil
88
Q
- What is the component of the definition of market value?
A
Arm’s length transaction
89
Q
- The appraiser meets the value of a particular property by studying its similarity to properties that were recently sold is using which approach value?
A
Sales comparison
90
Q
- The comparable sold for $100,000 the licensee estimated that the location is worth 6% more than the subject property. What was the adjusted sales price of the comparable round to the nearest 1000. ?
A
6,000
91
Q
- What law was the first attempt by Congress to guarantee Equal Housing opportunities to all United States citizens?
A
Civil rights act of 1866.
92
Q
- There are no exemptions From fair housing laws based on?
A
Race.
93
Q
- What would the monthly interest payment be on a $150,000 mortgage at 6% interest?
A
(loan amount) x (interest)/ 12 = $750
94
Q
- A lovely old theater, which local residents want to remain in its present state, is being sold. Which agency should the resident appeal to preserve the theater?
A
Landmark preservation commission
95
Q
- What percentage of market value should a homeowner’s building be insured for?
A
80%
96
Q
- What is the name of the insurance policy that provides for excess coverage beyond the primary policy provisions?
A
Umbrella
97
Q
- And what value are “ad valorem” taxes based on?
A
Assessed Value
98
Q
- What property type is exempt from real property assessment?
A
None.
99
Q
- What is the term given for a building that includes cooperative and condominium ownership in one?
A
Cond-op
100
Q
- What clause in a contract of sale would allow Condominium Association the right to purchase a unit when it goes up for sale?
A
Right of first refusal.
101
Q
- What group oversees the management of a Cooperative Corporation?
A
Board of directors
102
Q
- Clauses in a lease that calls for increased cost to tenant over of specific time during a lease term are known as?
A
Escalation clauses
103
Q
- A warehouse and distribution center would be classified under which type of investment property?
A
Manufacturing
104
Q
- What type of lease provides for rent amounts based on retail tenant’s anticipated sales?
A
Percentage lease
105
Q
- Also referred to as a land lease, what is one type of long-term lease of commercial property?
A
Ground lease
106
Q
- The property has 40 Apartments Each of which rents for 475 a month. If the property has an 8.87% cap rate, what is the property’s value?
A
(40) x (475) x (12)/ 8.87% = 2,570,462
107
Q
- What return, expressed as a percentage, is derived by dividing the before-tax cash flow by the down payment or amount invested?
A
Cash-on-Cash return
108
Q
- In what lease Clause Can a tenant find the type of occupancy allowed and any restrictions?
A
Use clause
109
Q
- The difference between the gross income and the net income of an investment property is that gross income?
A
Is income received without deducting expenses.
110
Q
- What is a financial principle based on the assumption that money received today is more valuable than money received in the future?
A
Time value of money
111
Q
- What type of income is derived from stocks bonds dividends?
A
Portfolio income.
112
Q
- What yearly paid homeowner expenses can a taxpayer deduct from their taxable income on their federal income tax return?
A
Mortgage interests, and property taxes
113
Q
- Gout and Ari have lived in their primary residence for the previous three years how much capital gains tax will they have to pay if they sell it for $350,000 profit?
A
$0
114
Q
- A listing broker also acts as a mortgage broker for the buyer in the same transaction is what type of agent?
A
Dual agent
115
Q
- What type of property managers budget includes income and expenses for property analysis?
A
Operating budget
116
Q
- What type of credentials must Dapenga have if she owns a property management company that manages properties for several different owners?
A
Real Estate broker’s license
117
Q
- Which statement is used by an investor to estimate and project a properties future profit?
A
Pro Forma
118
Q
- The name for income tax advantages given to homeowners and investors is?
A
Tax shelters
119
Q
- What type of transaction allows individuals to postpone the payment of capital gains tax for certain classifications of property?
A
1031 like kind and deferred exchange
120
Q
- How are Mortgage Bankers different from mortgage brokers?
A
Mortgage brokers do not loan money and mortgage bankers do loan money.
121
Q
- What service May mortgage loan originators not provide?
A
lending money
122
Q
- What property management activity requires a real estate license?
A
Marketing/selling property
123
Q
- What document sets forth the Attorney General’s approval of a new co-op or condominium
A
CPS-1
124
Q
- What document must be submitted to The Cooperative board before any Renovations or modifications can be made to a Cooperative unit?
A
Alteration
125
Q
- What documents validates the conveyance of a property lease?
A
Shares of stock in the corporation
126
Q
126.According to the New York State real property law, who is required to hold a real estate broker or salesperson license?
A
Attorneys if they hire sales persons
127
Q
- If a licensed real estate broker is selling a 6-unit apartment building and does not disclose to the buyers that he represents the sellers, the broker would be violating which one of the following Acts or laws?
A
New York States Real property law
128
Q
- When an agent is representing one party in a transaction, but also acts in the best interest of another party in the same transaction without approval, the agents action is known as an?
A
Undisclosed Dual agency
129
Q
- What type of lease requires the tenant to pay some or all of the expenses of their property, such as taxes or maintenance, in addition to the rent?
A
Net.
130
Q
- What is the deposit money paid to the seller upon the signing of an agreement to purchase property known as?
A
Earnest money
131
Q
131.What individual generally holds the down payment earnest money deposit?
A
Sellers attorney
132
Q
- What type of loans/mortgages would be used to cover a number of lots in a subdivision?
A
Blanket mortgage
133
Q
What is the purpose of the secondary mortgage Market?
A
To lend funds to financial institutions for mortgage loans
134
Q
What of the following occurs when the monthly mortgage payments do not cover the interest that is due?
A
Negative amortization
135
Q
- What is the purpose of the secondary mortgage Market?
A
To lend funds to financial institutions for mortgage loans
136
Q
Before any construction can begin, a governmental Authority must issue a?
A
Building permit
137
Q
- An existing Improvement, that was lawfully established, would not be allowed on the current zoning regulations is referred to as?
A
Non- conforming
138
Q
- Local government laws which regulate the use of land and structures in a specific area for the benefit of the community are known as?
A
Zoning ordinance
139
Q
- What written document describes the types of materials to be used and other features of a building to be constructed?
A
Specifications
140
Q
- What federal laws expanse the definition of a person’s liable for environmental cleanup cost?
A
Superfund
141
Q
- What type of insurance policy would be purchased by renters?
A
HO-4
142
Q
- What type of insurance policy would ensure that the full amount needed to cover the loss of belongings from fire is paid?
A
Replacement cost
143
Q
- When a property owner appeals an assessment, on who was the burden of proof?
A
The property owner
144
Q
- What would the purchaser receive to convey ownership of a co-op?
A
A lease
145
Q
- Rent for commercial space is calculated based on which of the following?
A
Rentable square footage
146
Q
- What is the debt ratio of a business property that has an asset value of a million dollars with a loan amount of $750,000 ?
A
75 percent
147
Q
- John Leases retail space in the building and later finds out that the his lease does not allow him to utilize the space to host cocktail parties after hours. This prohibition would have been stated in what lease clauses?
A
Use clause
148
Q
- Tenants enter into what type of arrangement when they release all of their leasehold interest?
A
Assignment
149
Q
- Over how many years is commercial investment property depreciable on a straight-line depreciation basis?
A
39
150
Q
- For how many years is a residential investment property depreciable on a straight-line depreciation basis?
A
27.5
151
Q
- What type of maintenance plan would a property manager create to schedule replacement of air conditioning filters in office building?
A
Preventative
152
Q
- What individual would a real property owner hire to administer, Market, merchandise, and maintain a number of rental properties?
A
Property manager
153
Q
- The record of ownership of property from the original owner to the present owner is known as?
A
Chain of title
154
Q
- Residential Condominiums would be considered what type of property?
A
Homestead
155
Q
- What type of property is categorized as a non-homestead?
A
Commercial/ industrial property
156
Q
- Mortgagor with a 30-year mortgage who makes lower payments early in the loan and larger payments later in the loan, has what type of mortgage?
A
GPM graduated payment mortgage
157
Q
- A salesperson pocket card must be?
A
Shown on demand
158
Q
- Violations of New York property Law fall under which category?
A
Misdemeanor, 1 year in jail $1000 fine
159
Q
- When a commission is earned and not paid the salesperson’s remedy is?
A
Seek recovery from the broker
160
Q
- When money is plentiful, interest rates generally tend to?
A
Go down.
161
Q
- What type of heating system uses ducts and Central blower?
A
Forced Warm air
162
Q
- Vertical support beams in a wall are known as?
A
Studs
163
Q
162.Architectural drafting that shows details of a building?
A
Blueprint
163
Q
163.A dangerous, colorless, and odorless radioactive gas that enters the home through surrounding soil?
A
Radon
