3.5.22

Question 1

A project that is for renovation rather than new construction is permitted by which municipal agency?

Answer 1

Building department. (The building department is responsible for issuing renovation permits.)

Question 2

What happens when a municipality completes an “in rem” foreclosure?

Answer 2

The municipality obtains title to the property. (An in rem foreclosure is quite common and allows the municipality to obtain title and sell the property.)

Question 3

Clay and Mira just bought a home. Based on where they are in the property ownership lifecycle, which one of the following tax related items is likely to be of the most interest to them?

Answer 3

Points deduction. (In the acquisition stage of property ownership, owners are typically most concerned with the deductibility of points they paid.)

Question 4

The assessed value is a percentage of____.

Answer 4

Market value. (Assessed value is a percentage of the probable sales price (market value).

Question 5

How long does confidentiality survive?

Answer 5

Forever

Question 6

What is an IOLA account?

Answer 6

IOLA is a state agency that uses interest on attorney trust funds to fund nonprofit agencies and to reimburse wrong parties for attorney misconduct.

Question 7

How much is one square mile?

Answer 7

640 acres.

Question 8

Which estate is a life estate?

Answer 8

Homestead estate

Question 9

What’s an appropriate strategy when working with a new buyer who hasn’t been prequalified and isn’t working with a lender?

Answer 9

Provide the buyer with contact information for three qualified lenders.

Question 10

Following all of the clients lawful instructions describes which fiduciary duty?

Answer 10

Obedience

Question 11

Which governmental department guarantees VA loans?

Answer 11

VA

The VA guarantees loans; the FHA insures loans.

Question 12

Several brokerages in a certain area agree to stop running advertisements in a local publication. What type of antitrust violation is this?

Answer 12

Group boycotting. (This is group boycotting because it involves a group of brokerages agreeing to not do business with another business.)

Question 13

If this annual tax isn’t paid, foreclosure can occur.

Answer 13

Corporate franchise tax.

Question 14

What’s the definition of “before tax cash flow”?

Answer 14

Cash flow before taking income taxes into account.

Question 15

Which of these is a recommended place for a real estate professional to search for properties when working with an investor client?

Answer 15

“Subject to court approval” listings in the MLS

Question 16

What is a life estate in a property held by a widower?

Answer 16

Curtesy

Question 17

With a well system, the typical household requires a minimum flow of how many gallons per minute to meet daily needs?

Answer 17

3 to 5 gallons per minute.

Question 18

Which of the following would property managers be expected to personally do as part of their assigned duties?

Answer 18

Budget preparation and oversight

Question 19

Your clients are first time home buyers. They can access up to how much of their Roth IRA accounts, penalty free, for their down payment?

Answer 19

10,000

Question 20

The fair and accurate credit transactions act of 2003 requires the credit bureaus to __________.

Answer 20

Provide consumers with a free copy of their credit report annually.

Question 21

Under New York fair housing law, which of the following protected classes were added to the list of federal protected classes?

Answer 21

Age, marital status, sexual orientation, military status

Question 22

What type of risk is a static risk?

Answer 22

Static risks are those were the effects can be lesson with insurance. This includes vandalism, theft, fire and accident liability.

Question 23

As a real estate licensee, you should _________.

Answer 23

Understand what helps your buyer qualify for a mortgage

Question 24

A property manager who _______ must have a license.

Answer 24

Collects rent. (When a property manager collects rent or works for more than one owner, a real estate license is required. Owners who manage their own properties don’t need a license.)

Question 25

Most licenses been a lot of time in their car. Which of these is not recommended action for maintaining safety on the road?

Answer 25

Keep your vehicle information confidential. (It’s a good practice to give your firm a description of your vehicle, including the make, year, model, color, and license plate number. If you go missing, the authorities will want a description of your vehicle.)

Question 26

Which term would you most likely see associated with a lake?

Answer 26

Littoral. (Littoral rights relate to lakes and oceans. Riparian rights relate to rivers and streams.)

Question 27

Which IRS form or forms are independent contractors required to complete?

Answer 27

W9 form

Question 28

What’s the primary purpose of a New York towns planning board?

Answer 28

To offer professional advice regarding land-use matters to all agencies and boards within the town.

Question 29

Which of the following is an example of an agent exercising the duties owed to customers and other parties?

Answer 29

Francine disclose information about the flooding basement to the buyer and buyers agent. (The duties licensees all the customers and other parties include disclosure of material facts, honesty, and fairness.)

Question 30

An older house is built before 1950, which type of electrical system would frequently be found?

Answer 30

BX. (A BX wiring system includes bundles of insulated wire sheathed in a sturdy metallic “armor” and is one of the earliest types of electrical cable developed for both residential and commercial use.

Question 31

Total assessed value divided by total market value equals equalization rate. Therefore, which of the following is correct?

Answer 31

An equalization rate that is higher than 100 demonstrates that the total assess value for that jurisdiction is greater than its total market value.

Question 32

Which of the following is true regarding value?

Answer 32

The principle of substitution means that people won’t pay more for a property than they have to.

(The principle of substitution says that buyers won’t pay more for a property than it’s worth, and if there’s a similar property nearby that they can substitute for it that is priced less, it will bring down the value of the original property in the buyers eyes.)

Question 33

Which of the following is a framing member?

Answer 33

Rafters. (Studs, joists, and rafters are all framing members.)