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NY Real Estate Exam > Final Exam # 2 > Flashcards

Final Exam # 2 Flashcards

1
Q

Which department is responsible for issuing real estate licenses?

DMV
Attorney General
NY Department of State
State Governor

A

NY Department of State

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2
Q

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
Principal only
Broker only
NY Department of State

A

Principal/Client and the Broker

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3
Q

The individual who hires the Agency is also known as who?

Sponsor
Principal or Client
Sub-agent
Attorney

A

Principal or Client

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4
Q

An agent can NOT do which of the following?

Collect money directly from the client or customer
Negotiate on the client’s behalf
Rent of the client’s behalf
Sell property on the client’s behalf

A

Collect money directly from the client or customer

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5
Q

As independent contractors, what can sales agents be provided by their sponsoring broker?

A salary
Office phone
Free transportation
Free advertising

A

Office phone

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6
Q

What type of estate is created when only one person holds title to real property?

Estate for Years
Ownership in Severalty
Tenancy in Common
Joint Tenancy

A

Ownership in Severalty

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7
Q

The right to access water from a river or stream is known as?

Riparian rights
Littoral rights
Air rights
Property rights

A

Riparian rights

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8
Q

The right to use another’s land that falls short of ownership is known as?

Lien
Joint tenancy
Tenancy in Common
Easement

A

Easement

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9
Q

Marcus was not paid for the supplies and labor he provided to homeowner Sam during a recent renovation of Sam’s house. What kind of lien will be filed against Sam?

Specific Lien
Mechanic’s Lien
Tax Lien
General Lien

A

Mechanic’s Lien

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10
Q

Unless determined to be a lesser estate, the transfer of title to real property in NYS creates what type of interest?

Fee Simple
Qualified Fee
Fee on Condition
Life Estate

A

Fee Simple

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11
Q

The transfer of title to real property is also known as?

Conveyance
Devise
Testate
Title by Descent

A

Conveyance

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12
Q

What clause in the deed describes the property?

Closing Statement
Habendum Clause
Exemptions
Legal Description

A

Legal Description

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13
Q

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 size of the property
The name of the geographical area where the property is actually located
The owner’s name
The type of property

A

The name of the geographical area where the property is actually located

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14
Q

Covenants in a deed provide what?

That the grantee will own the property and has a right to convey it or right of quiet enjoyment
The location of the property
The seller’s name
The outstanding liens on the property

A

That the grantee will own the property and has a right to convey it or right of quiet enjoyment

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15
Q

What is the summary of the chronological history of title and related documents to that called?

Chain of Title
Abstract of Title
Title Search
Certificate of Occupancy

A

Abstract of Title

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16
Q

What may happen if one of the parties to a contract is a minor?

The contract is voidable
The contract will be enforced
The contract amount may be reduced
The contract will need to be notarized

A

The contract is voidable

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17
Q

What capabilities must a party possess in order to enter into a valid contract?

High School diploma
Background check
Mental and emotional capability
Must be fluent in English

A

Mental and emotional capability

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18
Q

Who signs the contract first?

Seller
Purchaser
Seller’s Attorney
Purchaser’s Attorney

A

Purchaser

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19
Q

What is a loft lease?

An apartment lease
A lease for space that is not divided into rooms
A lease for warehouse space
A retail space lease

A

A lease for space that is not divided into rooms

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20
Q

Which types of commercial properties use percentage leases?

Office
Self Storage
Retail stores / shopping malls
Multi-family

A

Retail stores / shopping malls

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21
Q

Who is responsible for the terms in the lease if the unit has been subleased?

Landlord
Sub-lessee
Property Manager
Lessee

A

Lessee

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22
Q

Which clause in the lease allows landlords to raise rents during the term of the lease?

Assignment clause
Escalation clause
Renewal clause
Termination clause

A

Escalation clause

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23
Q

A seller tells the listing agent he filed for bankruptcy the previous year. The seller ends up not listing the property with the agent. Still, what fiduciary duty does the agent owe the seller?

Accountability
Confidentiality
Obedience
Reasonable Care

A

Confidentiality

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24
Q

A land lease may also be referred to as what?

Ground lease
Triple Net lease
Percentage lease
Term lease

A

Ground lease

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25
Q

What type of financing is used to purchase a new property when the old property hasn’t been sold yet?

Wraparound mortgage
Swing loan
Conventional loan
Balloon loan

A

Swing loan

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26
Q

Who is the borrower of a mortgage loan?

Mortgagor
Mortgagee
Lender
Bank

A

Mortgagor

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27
Q

What does the Real Estate Settlement Procedures Act (RESPA) require?

Pre-determined interest rates
Background checks of all lenders
Pre-determined commissions
Good faith estimate of the closing costs for federally funded loans

A

Good faith estimate of the closing costs for federally funded loans

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28
Q

A new mortgage that is higher in amount wraps around an existing first mortgage that’s smaller in amount is known as what?

Bridge loan
Conventional mortgage
Interest Only mortgage
Wraparound mortgage

A

Wraparound mortgage

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29
Q

What does the secondary mortgage market do?

Issue loans
Buys and sells mortgages
Approve loans
Buydown loans

A

Buys and sells mortgages

30
Q

In addition to the disclosure of interest rates, what else does Regulation Z (TILA) require?

Background checks
Disclosure of commissions
Fixed interest rates
Total monthly mortgage payment amount

A

Total monthly mortgage payment amount

31
Q

Who oversees the licensing and registration of mortgage bankers and broker?

ANYS Attorney General
BNYS Department of Financial Services
CNYS Department of State
DNYS Department of Buildings

A

BNYS Department of Financial Services

32
Q

What is it called when the government dictates how a property can be used?

Building codes
Eminent Domain
Bulk Restrictions
Zoning

A

Zoning

33
Q

The zoning board of appeals is responsible for doing which of the following?

Granting variances
Issuing permits
Approving construction documents
Determining City Planning policies

A

Granting variances

34
Q

Where should someone look to find a description of the agency relationship (who he or she represents) of the salesperson?

Agency Disclosure Form
Exclusive Contract Agreement
Dual Agency Agreement
Seller Agent Agreement

A

Agency Disclosure Form

35
Q

Which of the following regulates construction standards in NYS?

Zoning resolution
City Masterplan
Building Codes
NYS Department of Finance

A

Building Codes

36
Q

The taking of private property by the government for public use is known as what?

Eminent domain
Easement
Grant
Lis Pendens

A

Eminent domain

37
Q

What’s another name for the slope of the roof?

Grade
Run
Pitch
Topography

A

Pitch

38
Q

What serves the same function as a circuit breaker?

Panel
Fuse
Conduit
Grounding

A

Fuse

39
Q

What carcinogenic component was used as insulation in electric transformers that contaminated soil and groundwater?

Asbestos
Lead
PCBs (Polychlorinated bihpenyls)
Radon

A

PCBs (Polychlorinated bihpenyls)

40
Q

What is market value?

What the property will sell for in a competitive marketplace

What the property will sell for in a down market

What the property will sell for in a distressed marketplace

What the property will sell for if it were new

A

What the property will sell for in a competitive marketplace

41
Q 
What is a CMA (Comparative Market Analysis) NOT?
An estimate
A theoretical value
An appraisal
An opinion
A

An appraisal

42
Q

What is it called when a building loses its desirability because of an outdated design feature?

Obsolescence
Deterioration
Modification
Drawback

A

Deterioration

43
Q

What did the Civil Rights Act of 1866 protect, without exception?

Gender
Race
Religion
Familial status

A

Race

44
Q

What did the 1988 amendment to the civil rights act protect?

Religion
Race
Disability and familial status
Occupation

A

Disability and familial status

45
Q

When should the Agency Disclosure Form be submitted?

At the closing
At the signing of the contract
When the first offer is presented to the seller
At the first substantive contact

A

At the first substantive contact

46
Q

What is convincing owners to sell/lease property by telling them a particular group of people are moving into the area called?

Red-lining
Testing
Steering
Blockbusting

A

Blockbusting

47
Q

What is it called when lenders/insurance agents refuse to do business in a certain area based on the characteristics of the people living there?

Steering
Blockbusting
Testing
Redlining

A

Redlining

48
Q

The municipal engineer’s office is responsible for doing what?

Approve construction documents
Issue permits
Approve variances
Oversees planning and construction of major highways, sewer systems, and water connections

A

Oversees planning and construction of major highways, sewer systems, and water connections

49
Q

Which department oversees drinking water safety?

NYS Department of Buildings
NYS Department of State
NYS Department of Health
NYS Department of City Planning

A

CNYS Department of Health

50
Q

The name of the policy that provides additional liability coverage beyond the primary policy is known as what?

Monoline policy
Package policy
Homeowners policy
Umbrella policy

A

Umbrella policy

51
Q 
What covers fully for personal property lost in a fire?
Deductible
Replacement cost
Market value
Actual cash value
A

Replacement cost

52
Q

Property taxes are based on what?

Fair market value
Assessed value
Actual cash value
Appraised value

A

Assessed value

53
Q

What are homestead properties?

Commercial
Office
Multi-family
Residential condos, 1-4 family homes, mobile homes & farm dwellings

A

Residential condos, 1-4 family homes, mobile homes & farm dwellings

54
Q

This document provides detailed information on a condo or coop development?

By-laws
Board Package
House Rules
Offering Plan

A

Offering Plan

55
Q

f the seller refuses to provide a property condition disclosure statement to the buyer, how much should the seller reimburse the buyer?

$5,000
$100
$500
$250

A

$500

56
Q

This document governs issues such as noise, pets, etc., in a condo or coop?

House rules
By-laws
Offering Plan
Board Package

A

House rules

57
Q

A Coop is what type of ownership?

Fee simple
Real property
Leasehold
Deed

A

Leasehold

58
Q

This right is reserved for the condo association, which gives them the first opportunity to buy or lease a unit when it becomes available?

Right of first refusal
Declaration
Recognition
Sponsor

A

Right of first refusal

59
Q

The process that calculates the value of an asset in the past, present, and future is known as what?

Time value of money
Rate of return
Leverage
Internal rate of return

A

Time value of money

60
Q

What type of investment properties are warehouses?

Commercial
Industrial / Manufacturing
Residential
Land

A

Industrial / Manufacturing

61
Q

The area the tenant actually occupies and uses is known as?

Actual square footage
Buildable square footage
Gross square footage
Usable square footage (or net square footage)

A

Usable square footage (or net square footage)

62
Q 
How much profit can a single person claim from the sale of a personal residence that’s tax free?
A$25,000
B$100,000
C$200,000
D$250,000
A

$250,000

63
Q

Who is usually exempt from property taxes?

First time home buyers
Students
Immigrants
Disabled, veterans, farmers, elderly, gold star parents (whose kids died in war), and Star program homeowners.

A

Disabled, veterans, farmers, elderly, gold star parents (whose kids died in war), and Star program homeowners.

64
Q

Who is not usually exempt from property taxes?

Second home owners
Disabled
Veterans
Farmers

A

Second home owners

65
Q

What occurs when the agent represents the seller but also works in the best interests of the buyer?

Dual Agency
Undisclosed Dual Agency
Breach of loyalty
Buyer/Seller Agency

A

Undisclosed Dual Agency

66
Q

Tax strategies on investment properties are known as what?

Tax shelters
Boot
Tax Depreciation
Tax-deferred exchange

A

Tax shelters

67
Q

How many years is a residential investment property depreciable for?

18 years
27.5 years
29 years
33 years

A

27.5 years

68
Q

Income earned from investing in a rental property is designated as what type of income?

Active
Passive
Portfolio
Tax free

A

Passive

69
Q

Fixing a leaking faucet is known as what type of maintenance?

Preventative maintenance
Planned maintenance
Corrective maintenance
Capital maintenance

A

Corrective maintenance

70
Q

What is the budget that is set aside for repairs and large improvements?

Capital reserve budget
Maintenance budget
Operations budget
Repair budget

A

Capital reserve budget

71
Q

A real estate agent serves as what type of agent?

Special Agent
General Agent
Both Special and General Agent
Neither Special or General Agent

A

Special Agent

72
Q

What type of listing agreement is it where the listing broker earns a commission for the sale of the property, even if the owners themselves sell the property?

Exclusive Right to Sell
Exclusive Right to Rent
Seller Agency Agreement
Dual Agency Agreement

A

Exclusive Right to Sell

NY Real Estate Exam (6 decks)

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