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NY Real Estate Exam > Final Exam # 1 > Flashcards

Final Exam # 1 Flashcards

1
Q

What happens to real estate prices when demand is greater than supply?

Prices will increase
Prices will decrease
Prices will stay the same
Real estate prices are not effected by supply and demand

A

Prices will increase

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2
Q

A homeowner recently hired a broker to sell their house. If the property is destroyed by fire, what happens to the agency relationship between the owner and their listing broker?

The agency relationship is terminated.
The agency relationship is suspended for 6 months.
The agent must still serve as a fiduciary to the seller.
The agency relationship will not terminate until the listing agreement expires.

A

The agency relationship is terminated.

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3
Q

In which of the following loan types does the seller become the mortgagee?

Blanket mortgage
Graduated payment mortgage
Term loan
Purchase money mortgage

A

Purchase money mortgage

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4
Q

Loans created by commercial banks are bought and sold in the ……….. mortgage market.

Primary
Secondary
Institutional
Real estate

A

Secondary

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5
Q

A couple owns a property as a tenancy by the entirety. When one of the spouses passes away, the other spouse gains full ownership of the property. When the remaining spouse passes away, the children inherit the property. This is known as what type of interest in real property?

Life estate
Leasehold estate
Joint tenancy
Tenancy in common

A

Life Estate

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6
Q

Which of the following is a basic insurance policy what will cover the home and its contents in the event of a fire?

HO-1
HO-4
HO-6
HO-8

A

HO-1

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7
Q

Which of the following building systems can provide both heating and cooling through the same ducts?

Steam system
Radiant panels
Electric heating system
Forced warm air system

A

Forced warm air system

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8
Q

If a property owner needs to obtain a variance on their property, which of the following should they apply to…?

Zoning Board of Appeals
Department of Buildings
Department of Finance
Architectural Planning Board

A

Zoning Board of Appeals

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9
Q

This occurs when a landlord takes matters into their own hands and removes a tenant from the property?

Actual eviction
Constructive eviction
Legal eviction
Abandonment by tenant

A

Actual eviction

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10
Q

Which of the following loans is considered interest-only?

Fixed-rate mortgage
Balloon loan
Straight-term loan
Partially amortized loan

A

Straight-term loan

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11
Q

Real estate agents must carry what type of insurance?

Liability insurance
Worker’s compensation
Car insurance
Homeowners insurance

A

Liability insurance

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12
Q

Disclosures about lead-based paint must be provided for the sale of any home built prior to what year?

1968
1978
1988
1992

A

1978

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13
Q

How many hours of continuing education is a real estate salesperson required to complete every two years?

16 hours
20 hours
22.5 hours
26 hours

A

22.5 hours

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14
Q

If a real estate salesperson violates Article 12-A of the Real Property Law, they shall be guilty of a/an…?

Misdemeanor
Felony
Criminal crime
Civil crime

A

Misdemeanor

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15
Q

The lowest part of a roof, which projects beyond the wall of the structure is known as a/an…?

Soffit
Flashing
Eave
Fascia

A

Eave

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16
Q

If a property owner has been using their property as a manufacturing facility for the past 40 years, but the current zoning laws only allow residential use in the neighborhood, the manufacturing facility will be considered as a/an…?

Variance
Non-conforming use
As-of-right use
Special use

A

Non-conforming use

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17
Q

What type of income is earned through salaries or in a business in which the taxpayer actively participates?

Active income
Portfolio income
Passive activity income
Capital income

A

Active income

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18
Q

Who typically signs the sales contract first?

The seller
The buyer
The listing broker
The buyer’s broker

A

The buyer

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19
Q

Which of the following individuals is required to file a Schedule C of the federal income tax Form 1040?

A real estate salesperson working under a sponsoring broker
A real estate assistant who earns a salary
A real estate office manager who earns a salary
Everyone working in a broker’s office must file a Schedule C

A

A real estate salesperson working under a sponsoring broker

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20
Q

What type of easement is commonly used by utility companies?

Easement by necessity
Easement by condemnation
Easement in gross
Easement by prescription

A

Easement in gross

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21
Q

What should an agent do if a prospective buyer refuses to sign the New York State Disclosure Form for Buyer and Seller at the first substantive contact?

Refuse to show the property.
Sign the disclosure form on behalf of the prospective buyer.
Complete a declaration form that states the facts of the meeting and keep for their records.
Do nothing and ignore the situation.

A

Complete a declaration form that states the facts of the meeting and keep for their records.

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22
Q

The Civil Rights Act of 1866 made ……… only a protected class.

Race
Religion
Disability
Nationality

A

Race

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23
Q

A percentage lease is most commonly used by which of the following?

Office tenants
Residential tenants
Retail tenants
Real estate developers

A

Retail tenants

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24
Q

A building that includes condominium and cooperative ownership in the same structure is known as a/an…?

Condop
Office building
Special-use building
Special-purpose building

A

Condop

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25
Q

If a real estate salesperson closes a deal with a client, whom should the salesperson go to receive their commission?

The seller
The buyer
The seller’s attorney
Their sponsoring broker

A

Their sponsoring broker

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26
Q

Which of the following is a budget that forecasts income and expenses as may be reasonably projected over a short term?

Operating budget
Variable budget
Stabilized budget
Capital reserve budget

A

Stabilized budget

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27
Q

Which of the following is an example of a non-homestead property?

Single family home
Vacant land of 5 acres
Farm land
Industrial warehouse

A

Industrial warehouse

28
Q

Brokers must maintain records of all real estate transactions for at least…?

1 year
2 years
3 years
4 years

A

3 years

29
Q

Under which section of a deed will the property’s address be listed?

Legal description of the property
Habendum clause
Granting clause
Subject-to clause

A

Legal description of the property

30
Q

If the seller’s broker in a transaction also serves as the mortgage broker to the buyer, what form must be signed by both the seller and buyer?

Mortgage Broker Disclosure Form
HUD-1
GFE
Buyer Representation Agreement

A

Mortgage Broker Disclosure Form

31
Q

If a broker and seller enter into an Exclusive Agency Agreement, who is entitled to a commission if the seller finds the buyer themselves?

A commission is not paid to anyone since the seller found the buyer.
The seller’s broker is still entitled to their full commission.
The seller’s broker is only entitled to a pre-determined flat fee.
Only the buyer’s broker is entitled to a commission.

A

A commission is not paid to anyone since the seller found the buyer.

32
Q

Which of the following construction elements sits on top of the foundation of a wood-framed house?

Sill plate
Base plate
Header plate
Column

A

Sill plate

33
Q

In a sub-lease, who is responsible for paying rent to the landlord?

The new tenant
The original tenant
Both tenants
Neither tenants

A

The original tenant

34
Q

Which of the following allows a borrower to obtain a lower interest rate by paying additional points upfront to the lender?

Buydown
Prepayment
Accelerated payment
Interest payment

A

Buydown

35
Q

This type of insurance protects against claims alleging that one’s negligence or inappropriate action resulted in bodily injury or property damage?

Worker’s compensation
Liability insurance
Life insurance
Health insurance

A

Liability insurance

36
Q

This type of agency is created when a principal does not stop an individual from representing his or her interests?

Agency by estoppel
General agency
Universal agency
Express agency

A

Agency by estoppel

37
Q

Which of the following is performed by an agent to determine how to market a residential listing within a given marketplace?

Appraisal
Highest and best use analysis
Pro forma analysis
Residential market analysis

A

Residential market analysis

38
Q

Which of the following describes the rights and obligations of owners for a condominium?

By-laws
House rules
CPS-1
Declaration

A

By-laws

39
Q

Which of the following does not qualify as like-kind property for a tax-deferred exchange?

An office building for a shopping mall
An apartment house for a tract of land
An office building for an apartment building
A residence for a residence

A

A residence for a residence

40
Q

Someone in a position of great trust serves as a/an…?

Customer
Fiduciary
Cooperating agent
Sub-agent

A

Fiduciary

41
Q

Which of the following insurance policies may be purchased by landlords for their rental properties?

Commercial general liability
HO-4
Worker’s compensation
HO-6

A

Commercial general liability

42
Q

The Fair Housing Act was enacted as part of what federal legislation?

Civil Rights Act of 1866
Civil Rights Act of 1964
Civil Rights Act of 1968
Housing and Community Development Act of 1974

A

Civil Rights Act of 1968

43
Q

Which of the following interests in real property offer the most complete form of ownership?

Life estates
Leasehold estates
Fee simple absolute estates
Cooperative estates

A

Fee simple absolute estates

44
Q

Which of the following individuals is NOT required to have a real estate license?

A real estate salesperson
A real estate broker
An associate real estate broker
An attorney admitted to the NY State Bar

A

An attorney admitted to the NY State Bar

45
Q

Upon selling their home, married couples are exempt from paying taxes on capital gains up to…?

250,000 Dollars ($)
300,000 Dollars ($)
500,000 Dollars ($)
1,000,000 Dollars ($)

A

500,000 Dollars ($)

46
Q

Which of the following federal agencies helps homeowners obtain flood insurance?

FEMA
FDIC
HUD
FNMA

A

FEMA

47
Q

Which of the following types of leases will most likely be used when leasing an unoccupied office building?

Gross lease
Net lease
Ground lease
Percentage lease

A

Net lease

48
Q

If a property owner builds a fence that partially crosses the neighbor’s property line, what has been created?

Easement
Encroachment
Lien
Party wall

A

Encroachment

49
Q

This form of co-ownership does NOT include the ‘right of survivorship’?

Joint tenancy
Life estate
Tenancy in common
Estate for years

A

Tenancy in common

50
Q

What type of lease is typically used for an open, unfinished commercial space?

Gross lease
Net lease
Land lease
Loft lease

A

Loft lease

51
Q

Which of the following leasehold estates automatically renews for another fixed period of time?

Estate at will
Estate for years
Periodic estate
Estate at sufferance

A

Periodic estate

52
Q

According to this fiduciary duty, the agent must put the interests of the client above their own interests?

Confidentiality
Obedience
Accountability
Loyalty

A

Loyalty

53
Q

The cash flow from a commercial property (before paying any debt service) is known as…?

Effective gross income
Gross income
Net operating income
After tax cash flow

A

Net operating income

54
Q

A licensee is guilty of what if they conceal a material fact from the prospective buyer?

Misrepresentation
Material misstatement
Commingling
Misappropriation

A

Misrepresentation

55
Q

Which of the following fiduciary duties is most at risk when a broker operates as a dual agent?

Confidentiality
Loyalty
Reasonable skill
Obedience

A

Loyalty

56
Q

Residential properties are appraised using which method?

Income approach
Cost approach
Sales comparison approach
Comparative market approach

A

Sales comparison approach

57
Q

Which of the following municipal agencies is responsible for enforcing the Building Code?

Department of Buildings
Landmark Commission
Architectural Review Board
Planning Board

A

Department of Buildings

58
Q

Sheathing on the exterior of a building is typically what material?

Gypsum board
Plywood
Aluminum
Vinyl

A

Plywood

59
Q

For tax purposes, commercial properties depreciate over how many years using the straight-line depreciation method?

22 years
27.5 years
32 years
39 years

A

39 years

60
Q

The division of expenses and income between a buyer and seller at closing is known as…?

Accrual
Debit
Dedication
Proration

A

Proration

61
Q

The difference between the rentable and usable area in a commercial space is known as the…?

Net usable area
Loss factor
Common areas
Gross area

A

Loss factor

62
Q

Who is responsible for prosecuting criminal actions for violations of the Real Property Law?

Attorney General
State Governor
Real Estate Commission
NAR

A

Attorney General

63
Q

Which of the following documents shows the list of owners to a property, from the original owner to the present owner?

Certificate of Occupancy
Title insurance
Deed
Chain of title

A

Chain of title

64
Q

The slope of a roof is also referred to as the…?

Eave
Soffit
Pitch
Fascia

A

Pitch

65
Q

The person appointed by a court to distribute the intestate decedent’s property is known as a/an…?

Administrator
Executor
Dower
Curtsey

A

Administrator

66
Q

Which of the following loans has a monthly payment that is lower in the early years but increases over the term of the loan?

Term loan
Fixed-rate mortgage
Swing loan
Graduated payment mortgage

A

Graduated payment mortgage

NY Real Estate Exam (6 decks)

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