Final Exam # 3 Flashcards by Taylor Zipp

Which of the following is NOT exempt from obtaining a license?

A license attorney admitted to the NYS Bar
Public officers
A court ordered official
A licensed attorney acting as a sponsor to a real estate salesperson

A licensed attorney acting as a sponsor to a real estate salesperson

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A real estate salespersons license must be renewed every ………years.

1
2
3
4

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A real estate salesperson operates as what type of agent to their client?

Special agent
General agent
Universal agent
Dual agent

Special agent

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According to this, a broker may be held responsible for the unlawful actions of his/her salespersons?

Self-dealing
Implied agency
Unintentional misrepresentation
Vicarious liability

Vicarious liability

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This Act made price fixing, group boycotts, market allocation, and tie-in arrangements illegal?

RESPA
TILA
Sherman Anti-Trust Act
Fair Housing Act

Sherman Anti-Trust Act

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Which of the following is required in order for a broker to act as a dual agent?

Consent from the seller only
Consent from the buyer only
Advanced informed consent from both the buyer and seller
Nothing is required to act as a dual agent

Advanced informed consent from both the buyer and seller

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Personal property is also known as…?

Chattel
Real property
Fixtures
Improvements

Chattel

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Mark owns a single family home. He decides to transfer ownership of the property to his daughter, Nancy; however, the ownership of the property will revert back to Mark upon the death of Nancy’s aunt, Martha. Which of the following was created?

Life estate
Leasehold estate
Joint tenancy
Tenancy in common

Life estate

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Which of the following leasehold estates is open-ended, as it does not have a termination date?

Estate for years
Estate at will
Periodic estate
Estate at sufferance

Estate at will

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Which of the following is an example of a fixture…?

Custom book shelves
Dining room table
Hallway rug
Pictures hung on a wall

Custom book shelves

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Which of the following would be considered a trade fixture by a commercial tenant?

Recessed lights
Wall-to-wall carpeting
Display case
Bathroom plumbing fixtures

Display case

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Which of the following types of easements is obtained by a squatter who uses another’s property without the owner’s permission?

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

Easement by prescription

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Which of the following must a real estate salesperson carry on them at all times when doing business and show it on demand?

Their real estate license
A valid government issued ID
Their pocket card
A valid social security card

Their pocket card

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A claim or charge against the property of another is known as a/an…?

Lien
Easement
Judgement
Tax

Lien

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In order to obtain an easement by prescription, for how many years must the property by used by the dominant tenement?

3 years
5 years
7 years
10 years

10 years

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Which of the following parties in required to sign a valid deed?

Grantor only
Grantee only
Both the Grantor and Grantee
Neither party is required to sign the Deed

Grantor only

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If a homeowners association does not allow houses in a sub-divided community to have brick on the exterior of the house, where will this restriction be documented?

It will appear as a restrictive covenant in the deed.
It will appear as a condition in the title.
It will appear as a covenant in the Certificate of Occupancy.
It will appear on the building permit.

It will appear as a restrictive covenant in the deed.

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Which of the following is used as evidence that an individual owns a particular piece of real property?

Deed
Title
Promissory note
Mortgage

Title

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In a residential transaction, who typically holds on to the buyer’s down payment/earnest money?

The seller themselves
The seller’s attorney
The lender’s attorney
The seller’s real estate salesperson

The seller’s attorney

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Which of the following items may be prorated between the buyer and seller at closing?

Appraisal fees
Property taxes
Loan origination fees
Attorney fees

Property taxes

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Replacing an obligation to perform with a new obligation in a contract is known as…?

Assignment
Novation
Rescission
Reformation

Novation

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Which of the following may be added to a contract, which awards the non-breaching party a specified sum of money for certain breaches listed in the contract?

Compensatory damages
Liquidated damages
Reformation
Specific performance

Liquidated damages

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Which of the following is NOT considered a bi-lateral agreement?

Exclusive Right to Sell Agreement
Buyer Representation Agreement
Independent Contractor Agreement
Open Listing Contract

Open Listing Contract

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Which of the following types of ads are illegal in New York State?

Blind ads
Ads for the lease of property
Ads for the sale of property
Ads that market a commercial property

Blind ads

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A straight-term loan is also known as a/an…? Interest-only loan Partially amortized loan Fixed-rate mortgage Reverse loan

Interest-only loan

Which of the following is typically used as a short-term loan? Bridge loan Wraparound mortgage Term loan ARM

Bridge loan

Which of the following is a form of interim, or temporary, short-term financing for creating improvements or buildings on a property? Construction mortgage Wraparound mortgage Term loan Fixed-rate mortgage

Construction mortgage

According to TILA, which of the following items may be specified in an advertisement without making a full disclosure? Origination fees Time to closing on the loan Annual percentage rate Buydowns

Annual percentage rate

The lender in a transaction is known as the…? Mortgagor Grantor Mortgagee Grantee

Mortgagee

Which of the following governs the amount of interest that can be charged on a loan? Credit laws Department of Finance Department of State Usury laws

Usury laws

The right of the government to acquire private property for public use is known as…? Condemnation Foreclosure Gifting Eminent domain

Eminent domain

If a property owner wants to enlarge the building on their property to be larger than is permitted by the local zoning code, they fist must obtain a/an…? Special permit Moratorium Spot zoning approval Variance

Variance

The movement of water through soil is known as…? Pitch Sump Percolation Septic

Percolation

Which of the following construction elements is the lowest horizontal wood beam in the frame of a house? Sill plate Base plate Header plate Column

Sill plate

What is the maximum fine the Department of State may impose on a licensee for violations of the Real Property Law? 500 650 750 1000

1000

Which of the following framing members are horizontal beams that support the floor in a house? Studs Headers Joists Rafters

Joists

Which of the following building components is primarily used to prevent water from entering a structure at a joint, corner, or bend? Soffit Flashing Eave Sheathing

Flashing

Which of the following structural members is set in the soil and supports the building’s foundation wall? Sill plate Footing Girder Beam

Footing

Building contractors use which of the following detailed building plans to build a house? Specifications Survey Blueprints Plot plan

Blueprints

Which of the following is a chemical compound used in refrigerants? CFCs EMFs Freon Radon

CFCs

Which of the following building materials is a type of foamed in-place insulation that releases formaldehyde gas? PCBs Asbestos CFCs UFFI

UFFI

Which of the following uses properties currently on the market, recently sold properties, and expired listings to determine the value of a property? Pro forma Comparative Market Analysis P&L Statement Income Approach

Comparative Market Analysis

Which of the following is considered a direct cost? Architectural fees Attorney fees Labor fees Appraisal fees

Labor fees

``` The actual selling price of a property is known as the…? Market value Market price Assessed value Tax value ```

Market price

Familial status was added as a protected class to the Fair Housing Act in what year? 1968 1974 1980 1988

1988

According to the …………., real estate salespersons are considered independent contractors. Internal Revenue Service (IRS) National Association of Realtors Real Estate Commission Department of Real Estate

Internal Revenue Service (IRS)

Gender was added as a protected class to the Fair Housing Act in what year? 1866 1968 1974 1988

1974

Which of the following are volunteers who pose as prospective homebuyers to see if race influences information and services offered by a real estate broker or salesperson? Testers Agents Attorneys Advocates

Testers

If a seller nets $310,200 from the sale of their property, what was the final sales price if the broker was paid a 6% commission? 285,000 Dollars ($) 300,000 Dollars ($) 330,000 Dollars ($) 350,000 Dollars ($

330,000 Dollars ($)

Which of the following must be obtained by a property owner before construction or renovation can begin on their property? Variance Building permit Certificate of Occupancy Property inspection

Building permit

When an individual is renting an apartment or house, what type of insurance is typically obtained? HO-2 HO-3 HO-4 HO-5

HO-4

Which of the following agencies administers the National Flood Insurance Program (NFIP)? FEMA FDIC HUD FNMA

FEMA

This refers to a pool of insurance companies in New York State that writes fire insurance policies for homeowners, as well as coverage for vandalism and malicious theft? NYPIUA FEMA NAR FNMA

NYPIUA

What is the role of an assessor? Determine assessed values of properties Appraise a property for a prospective buyer Determine market values of properties Determine the capitalization rate of a neighborhood

Determine assessed values of properties

Which of the following properties does not have to be assessed? Church Single family home Office building Multi-family building

Church

Ad valorem means…? According to value Tax rate Equalization rate Tax levy

According to value

Which of the following is illegal in New York State? Exclusive Right to Sell Agreement Buyer Representation Agreement Open Listing Net Listing

Net Listing

Which of the following is NOT considered real property? Single family house Cooperative Condominium Office building

Cooperative

Which of the of following is used by real estate developers to test the market before building a new condominium or cooperative building? CPS-1 C/O Offering plan Letter of intent

CPS-1

Which of the following financial documents is used by the Board of Mangers to help determine if a prospective buyer’s application to purchase a cooperative is approved or not? Board package Declaration Pro forma Letter of intent

Board package

Which of the following clauses may be included in a condominium contract, which allows the condominium association the first opportunity to purchase the condominium when it goes up for sale? Buy-back clause Estoppel clause Use clause Right of first refusal clause

Right of first refusal clause

Which of the following leases is most commonly used by a long-term commercial tenant? Gross lease Net lease Ground lease Percentage lease

Net lease

A land lease is also known as a…? Gross lease Percentage lease Adjustable lease Ground lease

Ground lease

Which of the following commercial leases increases in a stair-stepped fashion? Loft lease Gross lease Graduated lease Percentage lease

Graduated lease

Which of the following statements are used by real estate investors to estimate the return on investment for a particular investment property? Pro forma Operating statement Executive summary P&L statement

Pro forma

If a property sold for $2,200,000, and the net operating income is $132,000, what is the capitalization rate for the property? ``` 5 Percent (%) 6 Percent (%) 7 Percent (%) 8 Percent (%) ```

6 Percent (%)

According to this concept, real estate is considered an illiquid asset because it cannot quickly or easily be sold? Liquidity Passive Capitalized Leveraged

Liquidity

If a broker is hired by a buyer to represent them in a transaction, the broker is considered what type of agent? Seller’s agent Buyer’s agent Dual agent Associate agent

Buyer’s agent

Money earned from interest, annuities, dividends, and royalties is known as…? Active income Portfolio income Passive activity income Capital income

Portfolio income

For tax purposes, residential properties depreciate over how many years using the straight-line depreciation method? 22 years 27.5 years 32 years 39 years

27.5 years

The original cost plus certain additions and minus certain deductions is equal to the…? Adjusted basis Assessed value Capital gains Net value

Adjusted basis

If a married couple sold their property for a $435,000 profit, how much in capital gains taxes will the couple be responsible for? 0 Dollars ($) 4,350 Dollars ($) 5,000 Dollars ($) 43,500 Dollars ($)

0 Dollars ($)

Which of the following is used by property managers to project the net operating income for a property? Pro-forma Yield statement Operating statement Budget statement

Operating statement

If a broker commingles their client’s funds, which of the following fiduciary duties are violated? Confidentiality Obedience Accountability Full disclosure

Accountability

If an agent’s client has a financial loss because of the agent’s negligence, which fiduciary duty has been violated? Confidentiality Obedience Accountability Reasonable skill and care

Reasonable skill and care