School Exam Flashcards
Structures and facilities needed for the operation of a society
Schools, roads, bridges
Infrastructure
In New York, who are zoning powers given to.
Municipal governments (towns)
The purpose of a building permit is to
A. Override deed restriction
B. Maintain municipal control over the volume of building
C. Regulate area and bulk building
D. Provide evidence of compliance with municipal regulations
D
Municipal = ?
Towns
The building inspector who is satisfied that construction is satisfactory may issue
A. a certificate of occupancy
B. Conditional use permit
C. Restrictive covenant
D. Subdivision regulation
A
Use your rights or lose your rights
Doctrine of laches
How many years do you have before the doctrine of laches kicks in?
2 years
What are the powers that the government has over land?
Taxation
Police power
Escheat
Eminent domain
Through a condemnation suit, a government may excessive what in order to acquire privately owned real estate for public use?
(Ex: making a deli for workers)
Eminent domain
The right of the government to take the property of a private incidental
Eminent domain
For a condemnation suit to occur, for eminent domain, what must happen?
The property has to be declared by court as public use
Compensation must be paid to owner
Rights of the owner must be protect by due process of law
When an owner of a property dies and he has no natural heirs, and it reverts back to the state
Escheat
What is the only form of involuntary alienation that can occur after death?
Escheat (owner dies and has no natural heir)
Improvement taxes that are additional taxes that run for a few years to enable certain neighborhoods to pay for improvements like sidewalks
Special assessments
Laws of local government authorities that control the use of land and structures within districts
Zoning ordinances
What zoning law is enforced to obtain before property owners build or take down buildings on their land
Building permits
What is a garage an example of, other than real property?
Accessory building/use
Building permits act as property information to the taxing authorities. When a permit is issued through the buildings department of that town, a fair estimate of the improvement or renovation or demolition will lead to what?
Higher taxes
What law deals with appealing a courts decision?
Article 78
If you’re inconvenienced to the point of hardship due to zoning ordinances, what are the 2 things you can you do?
Special use permit may be granted to use property for the public’s interest, or you can get a variance where you could, for ex, bump out a road 50 feet more
Cities and towns have ordinances that specify construction standards called building codes.
You need a building permit to build or alter existing building.
Officials can verify compliance with building codes and zoning ordinances by examining the plans and inspecting the work.
After the new construction is satisfactory, the inspector issues a “blank” , which is a certificate of compliance.
Issues a certificate of occupancy (C of O)
Responsibility for cleanup of environmental disasters of the original offenders and also current and future owners of the property
CERCLA
comprehensive and environmental response cleanup and liability act of 1980
The law that was intended to cover liability for oil spills that includes the environmental lien amendment where the state can hold any property owner accountable for environmental cleanup
The New York State navigation law
Local governments may enact regulations intended to preserve individual buildings and historic or architectural significance. The regulations may restrict which right of certain old buildings?
The right to alter the exteriors of certain old buildings
Heard complaints about the effects of zoning ordinances on specific parcels of property
Zoning board of appeals
The board that approves new construction and remodeling
Architectural review board
Who enforces the safe and lawful use of properties and buildings via endorsement of the municipality’s building code, electrical code, zoning resolution, variances
Building department
A planned combination of diverse land uses like housing, shopping, recreation that are contained in 1 development or subdivision
PUD
Planned unit development
Who issues the certificate or occupancy?
Buildings department
An individual treatment and disposal system that is usually built underground. A households wastewater.
Septic systems
What is attached to the sole plate?
Studs
Who regulates our drinking water?
The department of health
Where does the electric that comes out of our telephone poles go into?
Circuit breaker box
Slant of the roof
Pitch
What is the order of construction from the bottom up?
Footings
Foundation
Sill plate
Subfloor and joints
Sole plate
Studs
How long do fixed expenses remain constant for?
The year
What are the 2 things that fixed expenses consists of?
Property taxes and property insurance
Do not vary as a result of a properties occupancy rate
Fixed expenses
Percentage of profit that the investor receives only on the cash he or she invested in the property
Equity dividends rate or cash on cash return
Cash on cash return (equity dividend rate)
The cash (equity) you’re getting on the cash (equity) you invested into a property
What is another term for cash in cash return?
Equity dividend rate
What is the Income tax analysis formula or how do you find effective gross income?
( Potential gross income (Pgi) x (100%) )
- ( Vacancy and collection loss)
+ Other income like parking, laundry, etc.
= Effective gross income (EGI)
If I have an apartment next to a college, I want to know what I’m making and when. Think about kids going to college, how does that affect my income in my apartment? What formula would I use for this?
Effective gross income
Blank - vacancy and collection loss + other income = ?
Potential gross income (100%) - vacancy and collection loss + other income = effective gross income (EGI)
Who holds on to security deposits?
Tenant
Seller
Buyer
Landlord
The landlord
If a rental building is sold to a new owner, what happens to the existing tenents? And what happens to the security deposits ?
Nothing happens to the tenants
The security deposits get transferred to the new owner
Is real estate liquidity or illiquidity ?
Illiquidity because we can’t sell it fast
The use of borrowed funds depending on the availability of funds
Leverage
Becomes toxic when microscopic fibers are inhaled
Harmless if it’s not disrupted
Must be removed by a professional
Asbestos
Odorless, radioactive gas, comes from rock
Radon
What is hazardous when it’s trapped or unventilated?
Radon
How does radon enter a house?
Through cracks in the foundation
How do you remove radon from water?
Through filtration or aeration system
How do you remove radon from in-door air?
by a ventilation system or exhaust system
1100 gallons or more regulated by federal environmental protection program
And protects nations ground water by identifying underground tanks and preventing or correcting leakage of hazardous materials
Leaking underground storage tanks
How many gallons or more are regulated by the federal environmental protection legroom?
1,100
What do leaking underground storage tanks do?
Protects nations ground water
How do leaking underground storage tanks protect the nations ground water?
By identifying underground tanks and preventing leakage of hazardous materials
Asbestos has been widely used for
A. Solder
B. Encapsulation
C. Insulation
D. Paint
Insulation
Which one is a hazardous gas?
A. Radon
B. Lead
C. Asbestos
D. Radioactive waste
Radon
Eliminating radon from a house is generally
A. A fairly simple manner
B, hazardous
C. An impossibility
S. Done by an EPA trained specialist
A fairly simple matter
How should asbestos be removed?
A certified professional
The federal government regulates farm and residential fuel storage tanks when capacity reaches
A. 550
B. 1100
C. 1750
D. 2000
1,100
Fixed expenses are expenses that do not vary as a result of a property’s
A. Tax status
B. Location
C. Occupancy rate
D. Leverage
Occupancy rate
Operating expenses associated with income property include fixed expenses, variable expenses, and
A. Losses
B. Taxes
C. Unanticipated expenses
D. Reserves for replacements
Reserves for replacements
Prohibits discrimination against race or color
Civil rights act of 1866
What year was the civil rights act made?
1866
What act prohibits discrimination based on race, religion, or national origin when selling or leasing residential property?
Federal fair housing act of 1968
What year was the federal fair housing act?
1968
What did the amendment in 1974 add to the fair housing act of 1968?
no housing discrimination on the basis of sex
What did the amendment in 1988 add to the fair housing act of 1968?
No housing discrimination against disabled persons and families with children (FAMILIAL STATUS)- this is what it’s called on the test
A federal department that administers federal programs with affordable homes
HUD
housing and urban development
The federal housing assistance program. Low to moderate income tenants pay a fixed portion of their income in rent, with HUD paying the remainder
FHA section 8
Is blockbusting illegal?
Yes
Persuading or scaring homeowners to sell their property by making negative representations regarding the neighborhood
Blockbusting (think blockbusters, horror movies, scaring)
Which one is illegal, steering, redlining, or blockbusting?
All of them
Bringing certain buyers to a particular area for discriminatory ends
Steering
Denying loans in a certain area by lending institutions
Redlining
Is redlining legal or illegal?
illegal
Which one is legal, redlining, blockbusting, or steering?
None of these are legal
When we discriminate against people it’s usually due to what?
Nation origin
The division of licensing services operates under New York
Department of state
Most real estate agents will become..
Independent contractors
A wrongfully accused real estate agent can contest the actions through an
Articles 78 proceeding
What does certificate of occupancy mean?
As construction progresses, agencies will inspect the building. If construction progressed in accordance with the approved plans and specifications, the inspector will give approval. The final approval results in the certificate of occupancy, which means the building is in total compliance with local building code requirements and is fit for human habitation.
Ads made by a real estate broker that do not indicate that the advertiser is a broker are known as what?
Blind ads
The relationship between the owner of a property and a real estate agent
Special agent
A property manager is considered a
General agent
What decision states that agents should not give out legal advice ?
Duncan and hill
The 6 fiduciary responsibilities
OLDCAR
obedience, loyalty, disclosure, confidentiality, accounting or accountability, reasonable care
An example of a listing agreement
Express contract or agency
What kind of contract is based on acts and conduct
Implied agency
What is it called when an agent represents the seller and the buyer in the same transaction
Dual agency
What does an agent do when they see themselves entering into a dual agency
Inform both parties
Get informed consent and have them sign the agency disclosure form
In a dual agency, what does the seller and buyer give up ?
Full disclosure and undivided loyalty
In a dual agency, the buyer and seller must agree in specific terms, what must an agent do if they decline?
Call your broker and he will assign a designated agent to the transaction
When must an agency disclosure form be signed ?
First substantive contact
Lead based paint disclosure forms are necessary for houses built prior to
1978
An owners rights to land bordering a river or stream is called
Riparian rights
Anything on a property for sale that is moveable or mobile is considered what?
Personal property or chattels
Anything permanently attached to land is considered
Real estate or real property
What is the most complete type of ownership?
Fee simple
A co-op is considered real or personal property?
Personal property
Market value is when
The buyer and the seller are NOT Under pressure to act
What is it called when one neighbor has the right to go onto the property of another to get to the water behind both of them?
Right of way , easement appurtenant
A program to help low income Americans with rental money
The FHA section 8
Any kind of changing of zoning is the town or the states problem
The town
An agent scares a homeowner into selling their home is called
Blockbusting
An agent brings a buyer to a neighborhood based on the way the buyer looks is
Steering
The civil rights act of blank prohibits discrimination based on race or colors
1866
If I’m selling real estate at an auction do I need a real estate license ?
Yes
Are studs vertical or horizontal?
Vertical
Are sole plates vertical or horizontal?
Horizontal
Name a good insulation
Fiber glass
Name a bad insulation
Asbestos
Which one would not require a professional to have removed?
A. Radon
B. Termites
C. Lead based paint
D. Asbestos
Radon
A mortgage with a final payment that’s larger than the preceding one is called
A balloon payment
Blank is when the borrower makes regularly scheduled payments over the life of the loan to pay off the debt. Each payment consists of part interest and part principal
Amortization
Blank is the gradual building up of a large mortgage debt when payments are not sufficient to cover interest due and reduce the principal
Negative amortization
The equation used to figure out transfer tax
Transfer tax = (sales price/$500) x $2
Blank is the mortgage by which the interest rate is not fixed for the life of the loan. The rate is fixed for a period of time at the beginning, but after that it may changed based on changes in an interest index
Adjustable rate mortgage
What type of easement has a right of way in it
easement appurtenant
Define infrastructure
Bridges, roads, schools, public utilities, etc.
Blank is the right of the government to acquire property for public use through a court action is called blank
Eminent domain
Condemnation
What is the cost recovery period for residential income producing property?
27.5 years
Ownerships of stock in a corporation falls under a
Co op
With a co- op there is a board of
Board of directors
What kind of mortgage will bob get with a co-op?
He doesn’t personally get a mortgage, he gets a Personal loan
There is a mortgage for the whole building which is called underlying mortgage
If Greg is interested in a condo, he can show his interest by sending a
Letter of intent
Does the IRS tax co-ops the same it does condos and single family homes?
Yes
Another name for cost recovery is appreciation. True or false
False, this is depreciation
When is a deed valid ?
When it is delivered and accepted
Who must sign a deed?
The seller (the grantor not the grantee)
Does the buyer receive the deed at the closing ?
No
Who must the deed go to once it is a delivered and accepted?
County clerks office
The legal, physical document that transfers title from one person to another is called and conveys ownership rights to a property
A deed
A man agrees to rent his house to his uncle from June 1,2024 to September 22,2024. What type of tenancy is this?
Tenancy for years
John paid Dan $2000 for the right, if he chooses, to lease a barber shop within. 72 days at a specific annual rental. The agreement is an?
Option agreement
The present worth of future benefits describes
Value
What are considered fixed expenses for an apartment building ?
Property tax and property Insurance
Who brings borrowers and lenders together for a fee?
Who originates loans?
Mortgage brokers (registered)
Mortgage bankers (licensed)
An agreement between 2 competent parties to exchange property for consideration is called
A contract (something of value, consideration, 2 parties)
A tenant who pays rent plus some operating expenses is what kind of lease?
A net lease
Another name for equity dividend rate ?
Cash on cash return
Which loan is insured?
FHA loan
Where will John go to change zoning on his property
Municipal government (the town)
What department regulates drinking water safety
The department of health
Day to day activity is considered what type of income?
Active income
The statement “I hear they’re moving in, there goes the neighborhood! Better sell to me today” is an example of?
Blockbusting
Who dictates commission ?
Both the broker and the seller
Who is required to be licensed to sell real property for a broker?
A real estate agent
What year did the New York property law, article 12A into effect?
1922
If a real estate agent is found at fault, they may be required to pay up to how many times the amount of damages ?
4 times the amount of damages
The legal way of saying you have property ownership. Not a document, but a concept that says you have the rights to use that property is called
Title
Triple net lease
Where the tenant pays everything like taxes, repairs, insurance, EXCEPT for the mortgage
If an appraiser can’t find comps to appraise a property, and used for a unique physical design like a church or school or hospital, he will most likely choose what approach?
Cost approach
