State Exam Review Flashcards
(182 cards)
1
Q
How long is a real estate licensed issued for?
A
2 years, then must renew.
2
Q
What kind of property requires a Property Condition Disclosure?
A
A resale. Not required on new construction or if the property is going through the courts.
3
Q
If a broker’s license is suspended, how long is an agent’s license suspended?
A
Until you find another broker.
4
Q
What should an agent do if a Broker’s license is revoked?
A
Find another broker.
5
Q
Who negotiates and determines a broker’s commission?
A
Broker and Seller-Client
6
Q
What fiduciary is broken if there is a financial loss?
A
Reasonable care and skill
7
Q
What agreement guarantees a broker gets paid commission?
A
Exclusive right to sale
8
Q
What agreement says a buyer doesn’t have to pay commission if they sale their own house?
A
Exclusive Agency Agreement
9
Q
If an agent is running an open house, what are the buyers considered to the agent?
A
Customers
10
Q
What explains to customers who an agent/broker represents?
A
Agency Disclosure document
11
Q
What is first substantial contact?
A
First face-to-face talking real estate
12
Q
What type of real estate agent represents client or customers in one area?
A
Special Agents (most all real estate agents)
13
Q
What kind of agents are Property managers?
A
General Agents
14
Q
What kind of agent has power of attorney?
A
Universal Agent
15
Q
What is another name for a client?
A
Principle
16
Q
What is another name for a principle?
A
Client
17
Q
What is it called when you own a property by a river/stream?
A
Riparian Water Rights
18
Q
What is it called if you own property by an ocean?
A
Littoral Water Rights
19
Q
What kind of deed does a married couple have?
A
Deed by entirety. (Has survivorship)
20
Q
What kind of deed do unmarried individuals have for survivorship rights?
A
Joint Deed
21
Q
What kind of deed do unmarried individuals have with no survivorship rights?
A
Tenants in common
22
Q
What is the term for one owner of property?
A
Severalty
23
Q
What is the fullest ownership estate?
A
Fee Simple Estate
24
Q
What type of deed would prohibit installing a pool?
A
Restrictive Control
25
Which lien always has priority to be paid?
Property Taxes
26
Who has to sign a deed?
All grantors
27
What protects against defects or gaps in a title chain?
Title Insurance
28
What legal description is used to make a survey?
metes and bounds
29
What kind of survey has a point of beginning?
metes and bounds
30
What commercial lease is based on the volume of tenant’s business?
Percentage Lease
31
Who signs Purchase Agreement first?
Buyer
32
What requires a lender to give borrowers a loan estimate within 3 days of application?
TILA RESPA or “Trid”
33
What dictates how financial terms are advertised?
TILA Reg Z
34
What kind of mortgage allows a buyer to get special help from a bank (lower interest rates, etc), then share profit with lender down the road?
Shared Equity Mortgage
35
What is the term for mortgages paid in equal monthly payments to pay off mortgage in full?
Fully amortizing
36
What is amortization?
Repayment of principal
37
What is the name for the bank in a mortgage transaction?
Mortgagee
38
What is the name for the borrower in a mortgage transaction?
Mortgagors
39
What document regulates construction standards?
Building permit and inspection
40
What document states it is safe to move into a building?
Certificate of Occupancy
41
What are the outside walls attached to framing called?
Sheathing
42
What measures the efficiency of insulation’s resistance to heat flow?
R-Factor
43
What is the R-Factor?
Measures the efficiency of insulation to heat flow resistance
44
What is a Title X?
Lead paint disclosure
45
What regulation concerns Lead Paint disclosure?
Title X
46
Buildings built before what year must have notification on lead paint?
1978
47
Does the seller have to test for lead paint?
No, but must allow the buyer to do so at buyer’s expense.
48
What insulation material is dangerous in powdered form?
Asbestos
49
What is the chemical used in freezing units?
Freon/CFC
50
What is an opinion of value called?
Appraisal
51
What is the term when an building is of an “old style” or outdated and is losing value?
Obselescence
52
What three pieces of data make up a comparative market analysis?
Recently sold properties, current listings, expired listings
53
What is the purpose of a CMA?
Purpose - recommended terms and value range
54
When was familial status and disability added to Fair Housing Act?
1988
55
What was added to the Fair Housing Act in 1988?
Familial status and disability
56
What is the term for an agent claiming property values will go down because minorities are moving in the area?
Blockbustering or panic selling
57
What protects against negligence?
Liability insurance
58
What kind of insurance policy do Condo owners get?
HO6
59
What kind of insurance policy do renters get?
H04
60
What do property taxes create against property?
Liens
61
What is a lien?
Evidence of debt
62
What properties must always pay full property taxes?
Vacation/2nd homes, no exceptions
63
What is the formula for Assessed Value?
Market value x level of assessment
Ex: $1M x 30% = $300k
64
Name an exception to the Fair Housing rules?
Renting a room in your own house/apartment - for example, a widow could say “no children or only women.”
65
What is discrimination in mortgage lending called?
Redlining
66
What is the formula for square feet?
Length x width
67
What creates a comprehensive plan for building?
Planning Board
68
Who is responsible for drinking water and sewage?
NYS Dept of Health
69
When must a seller provide the buyer a Property Condition Disclosure Form?
Before signing sales contract or seller gives $500 credit to buyer at closing
70
What kind of employee is a real estate agent?
Statutory non-employee (independent contractor)
71
Name the requirements for being an independent contractor.
Must have written contract with brokerage
Hours cannot be set
Gross check, no deductions
Files a schedule C
72
What fiduciary is broken if a broker commingles funds?
Accountability
73
What is it called when a broker mixes various monies into their account?
Commingling
74
Where is the seller agency disclosed?
Agency Disclosure Form
75
What is the one expense a broker can cover for an agent?
Errors and Omissions insurance
76
Who does a trade fixture belong to in commercial real estate?
The tenant
77
What is an example of trade fixtures in commercial real estate?
Display cabinets, fridges, etc.
78
What easement is used by utility companies?
Easement in gross
79
What easement is used by property owners?
Easement in appurtenances
80
Define the Dominant in easements.
The person who uses another property for their needs
81
Define the serviant in easements.
The person who’s property gets used
82
Who is the grantor?
The Seller
83
Who is the grantee?
The buyer
84
What kind of deed removes a cloud on a title?
Quitclaim deed
85
What kind of deed has no warranties?
Quitclaim deed
86
What is a cloud on a title?
Gaps in chain of ownership
87
What is it called when one records a deed with the county clerk?
Constructive notice
88
What happens to the tenant if leased real estate is sold?
They stay until the end of the lease.
89
When is a contract of sale completed?
At closing
90
What is the purpose of earnest money?
Shows good faith, serves as a down payment
91
What is a wrap-around mortgage?
A new second mortgage that combines with an existing mortgage to create a new mortgage
92
What is the right of government to take private real estate for good of community, paying owner fair market value?
Eminent Domain
93
What is the term for exercising Eminent Domain?
Condemnation
94
What is the term when an individual dies without will or heirs and property goes to government?
Escheat
95
What regulates the use of land?
Zoning Code
96
What is an exception to a zoning code?
Variance
97
Who issues variances?
Zoning Board of Appeals ZBA
98
What is the law nicknamed the Superfund?
CERCLA
99
What is responsible for the clean up of waste site and finding the person(s) responsible?
CERCLA - Superfund
100
What keeps water out of construction/property?
Flashing
101
What overhangs walls on the external part of a building?
Eaves
102
What measures the speed that the ground aborts water/underground water?
Percolation rate
103
What are 3 Appraisal approaches to Value?
Sales Comparison
Income Approach
Coast Approach
104
What is included in the Sales Comparison appraisal approach?
3 similar recent sales
105
What makes up the income appraisal approach?
office building/investors
106
What is the cost appraisal approach used for?
Unique/unusual properties or new construction comps
107
When was the first civil rights act?
1866
108
What was the first protected class in the Civil Rights Act of 1866?
Race
109
Are there any exceptions to the Civil Rights Act of 1866?
None.
110
What is the formula for annual interest and monthly interest amounts?
Loan Amount x interest rate = annual interest
Annual interest / 12 = monthly interest
$100k x 6% = $6000 annual interest
$6000/12 = $500 monthly interest
111
If there is an old structure that residents don’t want torn down, who do they appeal to?
Landmark Preservation
112
What percentage does a property need to be insured for?
80% of building’s value
113
What policy offers extra liability protection or large sums of insurance?
Umbrella
114
What are ad volurum taxes based on?
Assessed Value?
115
What is the term for taxes based on assessed value?
Ad Valorum taxes
116
What kind of property is exempt from real estate assessment?
None.
117
What kind of property is divided into a condo and coop?
Condop
118
What clause allows a renter to purchase condo when it first comes up for sale?
Right of first refusal
119
Who manages coop cooperation?
The Coop Board
120
What is the lease clause that allows landlord to raise rents at specific times/intervals?
Escalation clause
121
What lease clause allows landlords to raise rents immediately based on expenses?
Pass-thru
122
What category is a warehouse distribution center in?
Manufacturing
123
What is another name for a land lease?
Ground lease
124
What is the formula for cash on cash?
Cash flow / down payment = cash on cash percentage
10k / 100k = 10%
125
What lease clause dictates what tenant can and cannot do with the property?
Use Clause
126
What is the difference between grows and net income?
Net is AFTER operating expenses
127
What is the principal that states money today is more valuable than money in the future?
Time Value of Money, because you can use the money today to make more money
128
What is salary bonus and commission considered?
Active Income
129
What is rental income considered?
Passive income
130
What are stocks and bonds income considered?
Portfolio income
131
What can homeowners deduct from taxes?
Real Estate taxes and mortgage interest
132
For the sale of a primary residence, what tax break does a seller get for capital gains tax?
Singles: $250k
| Married couple: $500k
133
How many years must a person live at primary residence to quality for capital gains tax break?
2 out of the last 5 years
134
What is it called when a broker agent also acts as a mortgage broker?
Dual Agency
135
What makes up an operating budget?
CURRENT income, profit, expenses
136
What makes up a proforma?
FUTURE income, profit, expenses
137
What license must one have to mange more than 1 owner’s property?
Broker license
138
What are tax advantages on profits called?
Tax Shelters
139
What is a 1031 Exchange?
Like kind tax deferred exchange of property that allows investors to defer payment of capital gains tax
140
Who lends money?
Mortgage bankers only
141
Who can NOT lend money?
Mortgage brokers, Mortgage loan originators
142
Who approves new Condos/Coops and with what?
Attorney General with a CPS1
143
What must an owner submit to make changes on a Coop
Alteration agreement
144
What kind of estate is a Condo?
Freehold, conveyed by a deed
145
What kind of estate is a Coop?
Leasehold, conveyed by proprietary lease and stock certificate
146
What is put under foundation to prevent sinking?
Footings
147
What states a deal must close by a specific date or there is a penalty?
Time of the essence Contract
148
What measure heating/cooling?
BTUs
149
What real estate law governs real estate?
12-A
150
What is the term for representing both parties in a real estate transaction without consent?
Undisclosed dual agency
151
What kind of lease requires tentant to pay most or all of operating expenses?
Net Lease
152
What is the first deposit money paid in a sell?
earnest money
153
Who holds the deposit money in NYS?
Seller’s attorney
154
What kind of mortgage covers more than one property?
Blanket mortgage
155
What does the 2nd mortgage market purchase?
Buys CLOSED loans from primary mortgage market
156
What is it called when monthly mortgage payments do not cover interest due?
negative amortization
157
What must occur before construction begins?
A building permit and inspection
158
If an existing building was built to code at the time, but now zoning changes but it is allowed to continue doing business - what it is called?
Non-conforming use
159
What document describes materials to be used in building?
Construction Building Specifications
160
What does replacement cost cover?
Full loss of belongings
161
Who has the burden of proof to challenge taxes?
Owner
162
What is inflation?
Increase of money in circulation without increase in goods/services
163
What is used to determine rent of commercial space?
Rentable Square footage (aka Gross Square Footage)
164
What is another name for usable square footage?
Net square footage
165
What is another name of rentable square footage?
Gross square footage
166
What is the formula for Debt ratio?
Loan amount / asset value
| Ex: $500k / $1M = 50%
167
What is it called when you rent your rented space?
A sublease
168
What is the landlord called?
Lessor
169
What is the tenant called?
Lessee
170
If tenant rents their space, what is it called and who is responsible?
Sublease/sublet and the tenant is responsible for the rent
171
What is a dangerous radio active gas?
Radon
172
What are architectural drawings called?
Blueprints
173
What are studs?
Vertical support beams
174
What are joists?
Horizontal support beams
175
What system uses ducts and blower motor?
Forced Warm Air
176
In the mortgage market, what happens when there is plenty of money flowing?
Rates go down
177
In the mortgage market, what happens when there is tightened money flow?
Rates go up
178
What does an agent do if a Broker doesn’t pay commission?
Sue them in court
179
What is a violation of 12-A?
Misdemeasnor; penalty $1000 fine and/or 1 year in jail
180
What is a record of ownership of property called?
Chain of title
181
What are considered homestead properties?
1-4 family homes including condos
182
What are properties that are not 1-4 family homes called?
Non-homestead
