Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate Review > Real Estate Class Review > Flashcards

Real Estate Class Review Flashcards

1
Q

What regulates the type of building that can be built?

A

Zoning laws

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What entity gives exceptions to zoning laws?

A

ZBA Zoning Board of Appeals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are exceptions to Zoning Laws called?

A

Variances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which Agency regulates Water/Sewer

A

Dept of Health (DOH)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is high limits of life insurance?

A

Umbrella insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the lender’s interest in property insurance/title insurance?

A

To protect the mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are ad volurum taxes?

A

Taxes based on assessed value (not market)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the sequence of challenging assessments?

A

— Burden of proof on homeowner
— meet the assessor
— assessment review board
— sue in court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is STAR?

A

School tax relief program

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a 1031 Exhange?

A

It is a like kind tax deferred exchange for investment property only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Over how many years can residential investment property be depreciated?

A

27.5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Over how many years can commercial investment property be depreciated?

A

39 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Depreciation Math:

Market Value $1M; Land Value $300k. What is the per year depreciation value for both a residential and commercial property?

A

Figure this out

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How many years must a owner occupy primary residence?

A

2 out of the last 5.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How much does an individual/married couple get in capital gain tax free?

A

$250k/$500k

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the definition of a limited common area no and examples?

A

Areas owned by all, but used by one person. Balcony, parking spot

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What kind of estate is a Condo?

A

Freehold, conveyed by deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What kind of estate is a Coop?

A

leasehold, conveyed by proprietary lease/stock certificate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Who holds the title of a Coop?

A

The corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the minimum kind of license to sell real estate in NY?

A

Real Estate Agent License

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How old must one be to sell commercial real estate?

A

18

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What does a sale lease back do?

A

Frees up liquid assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is an escalation clause in a lease?

A

It allows the landlord to raise rent at pre-determined times

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a pass-thru clause in a lease?

A

Allows landlord to raise the rents immediately when expenses go up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Who pays taxes in a triple net lease?

A

The tenant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What kind of leases are most residential leases?

A

Gross leases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What kind of leases are most commercial leases?

A

Net leases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is the gross square footage on a commercial lease?

A

Total rentable sf.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the usable sf in commercial called?

A

Usable sf.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is a commercial lease price for sf cost based on?

A

Gross sf

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What makes up an Operating Statement?

A

Current rent, expenses, and profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is a pro-forma?

A

Projection of FUTURE rent, expenses, profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is the CAP rate formula?

A

Net Op Income / Market Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What is the market value formula?

A

Net Operating Income/Cap Rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What does RSF mean?

A

Rentable Square Footage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What does USF mean?

A

Usable square footage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What is the formula for building efficiency?

A

USF/RSF

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What is the formula for finding out Loss Factor?

A

RSF - USB / RSF

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What do property managers owe property owners?

A

Fiduciary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

On 1st week on job, Property manager needs to increase property taxes. What component is he handling?

A

Risk Management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

How old must one be to be a broker in NY? What are other requirements?

A

20/ 2 yrs experience + 3500 points OR 3 yrs experience + alternative credits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What is it called when a broker puts business money into their own accounts?

A

Co mingling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What it is called when funds are put in a special account, such as down payment?

A

Escrow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Name the Fiduciary elements.

A

OLDCAR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What article is the NY Real Estate Law?

A

Article 12A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

What is the penalty for violating the NY Real Estate Article 12A?

A

Misdemeanor, $1k fine/1 year in jail

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Who negotiates commissions?

A

Broker and Client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

How long does fiduciary last?

A

Forever.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

When is a broker’s commissioned earned?

A

Meeting of the minds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

When is a broker’s commission paid?

A

Closing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

What is the first document an agent should give anyone?

A

Agency Disclosure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

When does an agent give disclosure?

A

First substantial contact

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

What is considered first substantial contact?

A

First face-to-face meeting discussing real estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

What must happen if someone refuses to sign disclosure?

A

Agent must fill out an affidavit/declaration. Agent signs and must be notarized and kept on file.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

What does Exclusive Agency Agreement mean?

A

The seller retains right to sell their property on their own.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What is an open listing?

A

Whomever brings the buyer gets the commission.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Who are listing agreements between?

A

Broker and Seller.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

What is a Net Listing in NYS?

A

Illegal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

When can a broker accept both buyer and seller commissions?

A

When they have written permission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

What is dual agency?

A

When 1 brokerage reps both seller and buyer. Legal in NY with written informed consent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

What is it called when a broker represents buyer and seller without written permission?

A

Undisclosed Dual Agency — suspension.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

If a real estate agent has a Mortgage Loan Officer license and both reps the seller and helps buyer get a mortgage, what is this called and is it legal?

A

Dual Agency and yes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

What is it called with a number of brokers get together and decide not to use a certain business?

A

Group Boycotting. Federally illegal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

What kind of deed do 2 unmarried people use for survivorship?

A

Joint Deed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

What deed is used by people who don’t want survivorship?

A

Tenants in common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

What is the term for only one person on the deed?

A

Severalty.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

What kind of deed is used for a married couple, both on deed?

A

Survivor Entirety.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

What is it called when one property gets right to use a portion of another property for their use?

A

Easement appurtenement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

What is it called when a gov’t or utility company uses a portion of one’s land for their purposes?

A

Easement in Gross

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

In an easement, the property using the other property is called?

A

Dominant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

In an easement, what is the property called that gets used?

A

Service to

72
Q

How many years does someone have to use another person’s property to claim a right to it?

A

10 years

73
Q

What elements make a valid contract?

A

All signers 18, it is for a legal purpose, and of sound mind

74
Q

When does a deed go into affect?

A

When it is recorded with the county clerk

75
Q

What is it called when a deed is recorded?

A

Constructive Notice

76
Q

What guarantees to a buyer that you own the property?

A

Covenant of Season

77
Q

What protects lender and buyer against flaws/defects in ownership?

A

Title insurance

78
Q

What is an opinion of value of a property called?

A

Appraisal

79
Q

What is the purpose of a CMA?

A

To provide a range of market values

80
Q

What approach does investment property use to arrive at value?

A

Income Approach

81
Q

What is a promissory note?

A

Evidence of debt and promise to pay

82
Q

What is a mortgage?

A

A security instrument

83
Q

What is APR?

A

Annual Percentage Rate = Note Rate + Finance Charges

84
Q

What kind of mortgage combines real and person property?

A

A package mortgage

85
Q

What is it called when a mortgage lender requires borrowers to buy life insurance?

A

Predatory lending. Illegal.

86
Q

What is an intermediary that brings buyers and lenders together?

A

Mortgage Broker

87
Q

What is the the right of Fed/State to take private property for publish use, paid at fair market value?

A

Eminent Domain

88
Q

What is the action of using eminent domain called?

A

Condemnation

89
Q

What kind of zoning do PUDs use?

A

Planned Unit Developments = Cluster Zoning

90
Q

How are building codes enforced?

A

By permits and inspections

91
Q

What are vertical support beams?

A

Studs

92
Q

What are horizontal support beams?

A

Joists (girders)

93
Q

What is Title X?

A

Lead paint disclosure

94
Q

What year is the building cut off where lead paint requires a disclosure?

A

1978

95
Q

Do sellers have to test for lead paint?

A

No, but must allow buyers to do so at their own expense.

96
Q

What is lender discrimination called?

A

Red Lining

97
Q

If a disabled tenant asks for a modification, what must landlord do?

A

Allow the tenant to make a reasonable modifications at tenant’s expense

98
Q

When was the first Civil Rights Act?

A

1866

99
Q

What was the first protected class of people?

A

Race.

100
Q

Who collects taxes?

A

Office of Receiver of Taxes

101
Q

Who creates a comprehensive plan for a town?

A

Planning Board

102
Q

What is a deductible?

A

Out of pocket loss from an insurance claim

103
Q

What is ACV formula?

A

Actual Cash Value = replacement cost - depreciation

104
Q

What do real estate taxes start by?

A

A tax levy.

105
Q

What two elements can homeowners deduct from their income taxes?

A

Mortgage interest and property taxes

106
Q

How long must an owner occupy a home before it changes tax categories?

A

14 days

107
Q

What is a condop?

A

A building divided into 2 parts - condo and coop

108
Q

What clause in a lease tells tenant how the property can/can’t be used?

A

USE clause

109
Q

What is unoccupied space/vacant space calculated into?

A

Loss Factor

110
Q

What must every apartment unit legally include?

A

Smoke detector and carbon monoxide detector

111
Q

What is it called when a landlord turns off an essential service to remove tenant?

A

Constructive Eviction.

112
Q

What is the only legal method of eviction?

A

Through the courts

113
Q

What is the formula for Gross Potential Income on a residential property?

A

Monthly Rent Roll x 12 without any adjustments

114
Q

What is the formula for Net Operating Income (NOI)?

A

Gross potential income - operating expenses

115
Q

What is the formula to find the value of a building?

A

NOI / Cap Rate

116
Q

What is the formula to find Cash on Cash value?

A

Cash flow before taxes / down payment

Example, cash flow = $10k, down payment = $100k; 10k/100k = 10% cash flow

117
Q

An investor is calculating what if he is using cash flow and down payment?

A

Cash on Cash

118
Q

How old must one be to be a real estate agent in NYS?

A

18

119
Q

How much experience is required for a real estate agent license?

A

None.

120
Q

If your license is revoked, how long before you can reapply?

A

1 year to reapply

121
Q

What agency issues real estate licenses?

A

Dept of State

122
Q

What does a broker/agent owe customers?

A

Fair dealing and honesty

123
Q

What does a broker/agent owe client?

A

Fiduciary

124
Q

What is the preferred message of establishing agency?

A

Express

125
Q

Who pays an agent?

A

Broker only.

126
Q

During an open house, when must you provide a disclosure?

A

Before you start talking real estate.

127
Q

How long must an agent/broker keep paperwork/disclosures, etc.

A

3 years.

128
Q

What is the best listing agreement for a broker to ensure they make money?

A

Exclusive right to sell, where broker gets paid no matter what.

129
Q

What is price fixing?

A

When brokers discuss and fix their commissions together

130
Q

As a sales person, are you an employee?

A

No. You are an independent contractor.

131
Q

As an independent contractor, what are some elements?

A 
Must have a contract
Get paid with a gross check
No set working hours
Pay your own expenses
File scheduled C
132
Q

What is personal property called?

A

Chattel

133
Q

What is the fullest interest in real property called?

A

Fee simple deed

134
Q

What kind of deed is used most by married couples?

A

By Entirety

135
Q

If Big City Electric uses your property to fix power lines, what is this called and what is Big City Electric considered?

A

Easement in gross/Dominant

136
Q

What kind of lien is a mortgage?

A

Voluntary Specific

137
Q

What kind of lien is a Judgement?

A

Involuntary general

138
Q

What kind of lien is a property tax?

A

Involuntary Specific

139
Q

What kind of lien is a mechanics?

A

Involuntary specific

140
Q

Which lien gets paid first at a closing?

A

Property Tax

141
Q

How is a contract between a minor and adult voided?

A

By minor only

142
Q

What clause in a contract allows steers to pursue other buyers until a contract is signed?

A

Escape clause

143
Q

What kind of lease is a 2-month lease?

A

Estate for years

144
Q

What must an Estate for Years lease have?

A

Start and End date

145
Q

What must a periodic estate lease have?

A

A start date only, no end date. (Example is an on-going month-to-month lease)

146
Q

What kind of a lease is a month-to-month lease?

A

A periodic estate lease

147
Q

Who must sign a deed?

A

All grantors

148
Q

Who is a grantee?

A

Buyer

149
Q

Who is a grantor?

A

The seller; or the mortgage loaner

150
Q

What kind of deed removes a cloud on a title?

A

Quitclaim deed

151
Q

What must a survey include?

A

A legal description

152
Q

What kind of survey description has a point of beginning?

A

Mete and Bounds

153
Q

Who pays transfer tax at closing?

A

Seller

154
Q

What is TILA?

A

Truth in lending Act, Reg Z (does not cover commercial lending)

155
Q

What is the theoretical price real estate should sale for based on a buyer’s opinion?

A

Market Value

156
Q

What three elements does a CMA use?

A

Recently Sold
Currently on Market
Expired Listing

157
Q

What is it called when a lender does a look and tells buyer how much they can borrow?

A

Pre-approval

158
Q

What allows a bank to foreclose on missing mortgage payments?

A

Acceleration clause

159
Q

What agency on the secondary mortgage market buys the most mortgages?

A

FANIEMAE

160
Q

When lenders take advantage of distressed buyers by changing terms at the closing, it is called what?

A

Predatory lending

161
Q

Can mortgage loan originators loan money?

A

No

162
Q

Can mortgage brokers lend money?

A

No.

163
Q

Can mortgage bankers lend money?

A

Yes.

164
Q

How many sq is an acre?

A

43,560

165
Q

How do you figure out this equation: A homeowner wants to clear $100k. They owe $50k on their mortgage, and transfer taxes will be $10k. The commission is 5%. What should the sales price be?

A

You subtract 5% from 100%, then divide the total costs + mortgage amount + amount wanting to clear by the commission amount. So:

100k + 50k + 10K = $160k
100% - 5% = 95%

$160k/95% = $168,421

166
Q

If a person dies without a will or heirs, what process does the property go through?

A

Escheat

167
Q

How long do deed restrictions last?

A

Forever unless they violate Fair Housing Laws

168
Q

What is it called if a commercial building is built to code, but 10 years later the zoning codes change to residential only, but the building is allowed to continue its original purpose?

A

Non Conforming Use

169
Q

What are the three types of construction framing?

A

Post and Beam
Balloon
Platform

170
Q

What is the force that pushes electricity through wires?

A

Voltage

171
Q

What is the standard US voltage?

A

100 Volts

172
Q

When is asbestos dangerous?

A

When it is in powder and breathable

173
Q

What agency cleans up toxic waste sites?

A

Superfund CERCLA

174
Q

What is another name for Panic Selling?

A

Blockbustering

175
Q

Can you advertise Exclusive Neighborhood?

A

No

176
Q

Can you advertise “Short walk to subway”

A

No, not everyone can walk

Real Estate Review (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions