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NY Real Estate Exam > Final Exam # 4 > Flashcards

Final Exam # 4 Flashcards

1
Q

What happens to the salesperson’s license if the license of their sponsoring broker is suspended?

The license of the salesperson will also be suspended.

The license of the salesperson will be revoked and the salesperson will be required to pay a fine.

The license of the salesperson will automatically be moved under another sponsoring broker in the firm.

The license of the salesperson will remain active.

A

The license of the salesperson will also be suspended.

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2
Q

How many years of experience does an individual need as a NYS real estate salesperson in order to quality to obtain their broker’s license?

1 year
2 years
3 years
4 years

A

2 years

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3
Q

A broker represents a seller in a transaction. If the seller tells the broker they must sell the property quickly due to financial hardship, the broker cannot reveal this information to a prospective buyer. Otherwise, the broker will violate which of the following fiduciary duties?

Confidentiality
Obedience
Accountability
Full disclosure

A

Confidentiality

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4
Q

The real estate agent serves as a/an ……..to their client.

Fiduciary
Attorney
Consultant
General agent

A

Fiduciary

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5
Q

What type of agency gives complete authority over any activity of the principal?

Special agency
General agency
Universal agency
Express agency

A

Universal agency

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6
Q

A property manager is an example of a/an …….agent.

Special
General
Universal
Dual

A

General

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7
Q

Which of the following is NOT considered real property?

Living room furniture
Oil or natural gas located beneath the property
Vacant land
Small garage

A

Living room furniture

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8
Q

Which of the following interests in real property includes the full bundle of rights?

Estate for years
Leasehold estates
Fee simple absolute estates
Cooperatives

A

Fee simple absolute estates

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9
Q

Which of the following is NOT one of the four units of concurrent ownership?

Dedication
Time
Title
Possession

A

Dedication

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10
Q

Which of the following forms of ownership is limited to married couples?

Joint tenancy
Tenancy in common
Ownership in severalty
Tenancy by the entirety

A

Tenancy by the entirety

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11
Q

Which of the following estates provides the right of possession and control, but not title?

Fee simple absolute
Life estate
Fee simple determinable estate
Leasehold estate

A

Leasehold estate

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12
Q

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on is known as…?

Riparian rights
Sub-surface rights
Littoral rights
Air rights

A

Littoral rights

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13
Q

If a real estate salespersons license expires, what must they do to get their license re-activated?

Retake the State exam only
Re-apply for their license only
Retake the State exam and submit a new license application
A real estate salespersons license does not expire

A

Retake the State exam and submit a new license application

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14
Q

A common term for an easement is a…?

Right of way
As of right
Possessory interest
Voluntary alienation

A

Right of way

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15
Q

Which of the following liens takes the highest priority?

Mortgage lien
Mechanic’s lien
Judgement lien
Tax lien

A

Tax lien

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16
Q

Which of the following written instruments is used to convey a grantor’s interest in real property?

Promissory note
Plot plan
Deed
Mortgage

A

Deed

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17
Q

Where should a homeowner look to find the exact dimensions of their property?

Block and lot map
Survey
Promissory note
Property inspection report

A

Survey

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18
Q

Which of the following is a condensed history of title to a property?

Abstract of title
Title insurance
Deed
Chain of title

A

Abstract of title

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19
Q

Why is the old deed needed to help prepare for the closing?

The old deed is used to prepare the new need.
The old deed is used to determine the amount of insurance on the property.
The old deed is used to prepare the promissory note.
The old deed is not needed for the closing.

A

The old deed is used to prepare the new need.

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20
Q

Where does a buyer’s earnest money deposit get placed prior to closing on the transaction?

A separate escrow account
The listing broker’s personal bank account
The seller’s attorney’s personal bank account
Any bank account within the U.S.

A

A separate escrow account

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21
Q

Which of the following allows a commercial tenant the option to match an offer from another prospective tenant?

Right of first refusal
Lease option
Claim
Rescission

A

Right of first refusal

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22
Q

If a clause in a contract is illegal, the contract will be considered…?

Void
Voidable
Valid
Suspended

A

Void

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23
Q

Which of the following is a payment made by a purchaser of real estate as evidence of good faith?

Earnest money deposit
Buydown
Contingency payment
Rider payment

A

Earnest money deposit

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24
Q

What is the highest court in New York State?

New York Court of Appeals
New York District Court
Judiciary of New York
New York Civil Court

A

New York Court of Appeals

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25
Q

If a tenant wants to throw late night parties in their apartment, what clause in the lease may prevent them from doing so?

Renewal clause
Use provisions
Statute of limitations
Term of the lease

A

Use provisions

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26
Q

Which of the following is an example of a uni-lateral contract?

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

A

Open Listing Contract

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27
Q

Which of the following loan types typically includes more than one property as collateral?

Blanket mortgage
ARM
Fixed-rate mortgage
Term loan

A

Blanket mortgage

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28
Q

Which of the following loans is associated with monthly payments which fluctuate based on a standard index?

ARM
Fixed-rate mortgage
Term loan
Blanket mortgage

A

ARM

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29
Q

Which of the following is an example of a conventional loan?

AAn FHA-insured loan
BA VA-guaranteed loan
CA loan offered by a commercial bank without any participation by a government agency
DA loan backed by FNMA

A

A loan offered by a commercial bank without any participation by a government agency

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30
Q

If a property is purchased for $350,000 and the buyer needs to obtain a $280,000 mortgage, what is the loan to value ratio of the mortgage?

70 Percent (70%)
75 Percent (75%)
80 Percent (80%)
85 Percent (85%)
A

80 Percent (80%)

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31
Q

The borrower in a transaction is known as the…?

Mortgagor
Grantor
Mortgagee
Lessee

A

Mortgagor

32
Q

What will happen if the government increases the money supply in the economy, but the production of goods and services does not increase at the same pace?

A higher demand for housing
Inflation
Increased job growth
Deflation

A

Inflation

33
Q

The actual act of taking private property for public use by the government is known as…?

Condemnation
Foreclosure
Gifting
Eminent domain

A

Condemnation

34
Q

A property owner passes away without any heirs to transfer his/her property. Under the State’s power of ……….., the property will revert back to the State.

Escheat
Condemnation
Eminent domain
Foreclosure

A

Escheat

35
Q

Which of the following does NOT have to be disclosed by a seller or seller’s agent when selling a residential property?

A death that previously occurred on the property.
Cracks in the foundation.
Uncapped natural gas wells on the property.
Termite damage which have compromised the floor structure.

A

A death that previously occurred on the property.

36
Q

Which of the following is a vertical wood member used to construct walls?

Beam
Stud
Joist
Sill plate

A

Stud

37
Q

Which of the following is illegal in New York State?

Balloon framing
Platform framing
Post-and-beam framing
Steel framing

A

Balloon framing

38
Q

Which of the following building materials is a panel that spans between wall studs and covers exterior walls?

Flashing
Fascia
Siding
Sheathing

A

Sheathing

39
Q

Which structural member is located at the bottom of the building’s foundation?

Sill plate
Footing
Girder
Beam

A

Footing

40
Q

A device that melts and opens the circuit, causing electric power to stop when overheating occurs is known as a/an…?

Circuit breaker
Amperage
GFCI
Fuse

A

Fuse

41
Q

Which of the following is a naturally occurring radioactive gas, which typically enters a house through the basement?

Radon
CFCs
Cardon monoxide
EMFs

A

Radon

42
Q

Which of the following is a measurement of the ability of insulation to slow the transfer of heat or cold?

BTU rating
Amperage
Flashing
R-value

A

R-value

43
Q

The amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit is known…?

BTU
R-value
Amperage
Conduit

A

BTU

44
Q

Which of the following values refers to the most probably price a property will get in an arm’s length transaction?

Mortgage value
Investment value
Market value
Assessed value

A

Market value

45
Q

Which of the following is considered an indirect cost?

Architectural fees
Cost of labor
Cost of structural wood members
Cost of concrete for the building’s foundations

A

Architectural fees

46
Q

If a broker enters into a listing contract, who is considered the client?

The seller
The buyer
The salesperson
The customer

A

The seller

47
Q

Disability was added as a protected class to the Fair Housing Act in what year?

1968
1974
1980
1988

A

1988

48
Q

If a lender refuses to make a loan on a property based on the demographics of the neighborhood of the property, they are most likely guilty of…?

Steering
Blockbusting
Redlining
Testing

A

Redlining

49
Q 
If an investor purchased a property for $1,600,000 with a down payment of 30%, what is the cash-on-cash return if the property produces a monthly cash flow of $4,000?
A8 Percent (%)
B10 Percent (%)
C12 Percent (%)
D20 Percent (%)
A

10 Percent (%)

50
Q

A borrower has a $180,000 loan with an interest rate of 6%. What is the amount paid in interest each month?

900 Dollars ($)
980 Dollars ($)
4,650 Dollars ($)
10,800 Dollars ($)

A

900 Dollars ($)

51
Q

Which of the following recommends zoning changes?

Planning Board
Department of Buildings
Municipal Engineer’s Office
Zoning Board of Appeals

A

Planning Board

52
Q

Which of the following types of insurance is also known as ‘renter’s insurance’?

HO-2
HO-3
HO-4
HO-5

A

HO-4

53
Q

Which of the following allows an insured homeowner to be reimbursed for the actual cost of replacing damaged property?

Actual cash value
Assessed value
Market value
Replacement cost

A

Replacement cost

54
Q

An umbrella insurance policy is also known as…?

Basic insurance
Dual insurance
Excess insurance
Flood insurance

A

Excess insurance

55
Q

When protesting a property assessment, the burden of proof falls on the ……….to prove the assessor was incorrect.

Property owner
Attorney General
Real estate broker
Real estate attorney

A

Property owner

56
Q

Which of the following is NOT considered a homestead property?

Single family home
Vacant land of 5 acres
Agricultural land
Commercial property

A

Commercial property

57
Q

A broker and seller entered into an Exclusive Right to Sell Agreement. Who is entitled to a commission if the seller finds a 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

The seller’s broker is still entitled to their full commission.

58
Q

Which of the following is used to help pay for local streets or sidewalks?

Capital gains
Recovery funds
Special assessments
Appropriation

A

Special assessments

59
Q

Which of the following is considered a leasehold estate?

Single family house
Cooperative
Condominium
Multi-family building

A

Cooperative

60
Q

Which of the following manages a cooperative?

Building Association
Property manager
Board of Directors
Office manager

A

Board of Directors

61
Q

A …………. is for the rental of floor space this is not generally divided into rooms.

Gross lease
Net lease
Land lease
Loft lease

A

Loft lease

62
Q

Which of the following clauses in a commercial lease defines how the tenant can and cannot use the space?

Lease duration
Subordination clause
Estoppel certificate
Use clause

A

Use clause

63
Q

When a real estate investor uses other people’s money to increase his/her potential return on investment, they are using…?

Time value of money
Leverage
Liquidity
Managed risk

A

Leverage

64
Q

This process calculates the value of an asset in the past, present, or future?

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

A

Time value of money

65
Q

Income earned from a rental property is classified as what?

Active income
Portfolio income
Passive income
Capital income

A

Passive income

66
Q

Which of the following is used to account for general wear, tear, and obsolescence of an investment property?

Appreciation
Capital gains
Depreciation
Points

A

Depreciation

67
Q

Which of the following refers to the profit realized from the sale of real property?

Capital gain
Credit
Capital loss
Debit

A

Capital gain

68
Q

Which of the following creates express agency?

Sales contract
Lease
Listing contract
Deed

A

Listing contract

69
Q

If a woman earns $300,000 in capital gains from the sale of her home, on what amount will she have to pay capital gain taxes?

0 Dollars ($)
50,000 Dollars ($)
250,000 Dollars ($)
300,000 Dollars ($)

A

50,000 Dollars ($)

70
Q

Which of the following is NOT permitted as a deduction on a homeowner’s income tax return?

Appraisal fees
Mortgage interest
Property taxes for a primary residence
Property taxes for a second home/vacation home

A

Appraisal fees

71
Q

If the seller’s broker in a transaction also serves as the mortgage broker to the buyer, what type of agency is created?

Implied agency
Dual agency
General agency
Undisclosed agency

A

Dual agency

72
Q

Which of the following contracts creates a general agency relationship between a property owner and a property manager?

Listing agreement
Sales contract
Management agreement
Management proposal

A

Management agreement

73
Q

When is a real estate salespersons license required by a property manager?

When a property manager works exclusively for one owner.

When a property manager is an employee of the owner.

When a property manager earns a salary from an owner.

When the property manager works for more than one owner.

A

When the property manager works for more than one owner.

74
Q

Who determines the commission that a broker will receive in a transaction?

The broker and seller
The buyer and seller
The broker and buyer’s attorney
The seller’s attorney and the buyer’s attorney

A

The broker and seller

75
Q

The Agency Disclosure Form is NOT required for the sale of which of the following properties…?

1-4 family properties
Condominiums
Cooperatives
Vacant land

A

Vacant land

NY Real Estate Exam (6 decks)

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