NYS - Real Estate Express Practice Exam

Question 1

What is the effective rental income for a company that has a gross rent income of $164,100, vacancies worth $12,000, extra income of $8,200 and operating expenses of $28,400?

Answer 1

$152,100

Question 2

Mary’s property has been assessed at a higher percentage of value than all of the other properties on the same assessment roll. What is this an example of?

Answer 2

Unequal assessment.

Question 3

A daycare center is allowed to open in a residentially-zoned area. What is this an example of?

Answer 3

A special use permit.

Question 4

Which of these is a distinguishing feature of a deed condition?

Answer 4

It gives the grantor the right to re-possess the property if the grantee violates the condition.

Question 5

What is an emblement?

Answer 5

A plant or crop that is considered personal property.

Question 6

What does the term “mixed-use development” mean?

Answer 6

More than one use for a single building.

Question 7

Which of the following is considered a fixed operating expense?

Answer 7

Insurance premiums.

Question 8

Sandy rents space in a building for her beauty and tanning salon. She pays rent for occupancy, but the owner of the building pays the taxes, insurance and other operating expenses. What kind of lease does Sandy have?

Answer 8

Gross lease.

Question 9

What is a policy that protects against claims above and beyond the amount covered by primary policies?

Answer 9

Umbrella.

Question 10

What is the employment contract between a property manager and owner called?

Answer 10

Management agreement.

Question 11

What is an emblement?

Answer 11

A plant or crop that is considered personal property.

Question 12

Under federal income tax law, the “sale price” for a personal property is which of the following?

Answer 12

Sales price, minus any sales expenses.

Question 13

Which of the following statements about plumbing venting is false?

Answer 13

Venting is not required for structures taller than 2 stories.

Question 14

Hometown Bank and Trust refuses to lend money to homeowners trying to purchase property in a predominantly Hispanic neighborhood. What is this practice called?

Answer 14

Redlining.

Question 15

Allison is moving into a new condominium. Which of these documents does not apply to her purchase?

Answer 15

Stock certificate.

Question 16

What is the amount of the surety bond that a mortgage broker must furnish when applying for licensure in New York?

Answer 16

$10,000

Question 17

Which of these properties would be considered a nonhomestead property?

Answer 17

Warehouse.

Question 18

Which statement is not true?

Answer 18

Underground storage tanks pose no hazard to residential areas.

Question 19

What is the most common reason a property fails to sell?

Answer 19

Overpricing.

Question 20

Which law extended discrimination to include handicap and familial status?

Answer 20

Fair Housing Amendment Act.

Question 21

What is the employment contract between a property manager and owner called?

Answer 21

Management agreement.

Question 22

What is overage rent?

Answer 22

Rent calculated on a percentage of sales volume.

Question 23

Which of these properties would be considered a nonhomestead property?

Answer 23

Warehouse.

Question 24

Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the IRS would probably classify Patrick as

Answer 24

An employee.

Question 25

A parcel of land 250 feet wide and 150 feet deep sold for $240,000. What was the price per square foot?

Answer 25

$6.40

Question 26

Which of the following statements about plumbing venting is false?

Answer 26

Venting is not required for structures taller than 2 stories.

Question 27

Seller Tom has an agreement with Broker Bill, Broker Jim and Broker Joe. Whoever brings the buyer will get the commission. What kind of agreement is this?

Answer 27

Open listing.

Question 28

What is the minimum period of time over which the owner of an apartment building can depreciate the improvements?

Answer 28

27.5 years.

Question 29

The first fine for a violation of federal fair housing law could be as much as what amount?

Answer 29

$10,000

Question 30

What must a listing agent do before entering into a cooperative agreement creating a subagency?

Answer 30

Obtain the informed consent of the seller.

Question 31

Hometown Bank and Trust refuses to lend money to homeowners trying to purchase property in a predominantly Hispanic neighborhood. What is this practice called?

Answer 31

Redlining.

Question 32

Which property would most probably have the longest lease term?

Answer 32

Industrial property.

Question 33

Under federal income tax law, the “sale price” for a personal property is which of the following?

Answer 33

Sales price, minus any sales expenses.

Question 34

What do we use to show the percent of gross income that is required to meet cash expenditures?

Answer 34

Break-even ratio.

Question 35

A historic preservation commission does not have the power to do which of these?

Answer 35

Require a property owner to restore a historic building.

Question 36

Which law extended discrimination to include handicap and familial status?

Answer 36

Fair Housing Amendment Act.

Question 37

Broker Greg performed all of the following actions. Which one violates license law?

Answer 37

Withheld earnest money that should have been returned to a purchaser.

Question 38

Who are the essential parties involved in an estate in trust?

Answer 38

Trustor, trustee and beneficiary.

Question 39

A section contains how many acres?

Answer 39

640

Question 40

Real estate agents are typically what kind of agent?

Answer 40

Special agent.

Question 41

“Everyone charges the same so you might as well list with me” is an example of what?

Answer 41

Price fixing.

Question 42

What do we use to show the percent of gross income that is required to meet cash expenditures?

Answer 42

Break-even ratio.

Question 43

Seller Tom has an agreement with Broker Bill, Broker Jim and Broker Joe. Whoever brings the buyer will get the commission. What kind of agreement is this?

Answer 43

Open listing.

Question 44

What is the amount of the surety bond that a mortgage broker must furnish when applying for licensure in New York?

Answer 44

$10,000

Question 45

What does the term “mixed-use development” mean?

Answer 45

More than one use for a single building.

Question 46

Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the IRS would probably classify Patrick as

Answer 46

An employee.

Question 47

Which statement is true about investing in commercial property?

Answer 47

A commercial property could have a percentage lease.

Question 48

Which statement is false about Internet advertising?

Answer 48

Any ads placed on the Internet must have a link to the licensee’s email address.

Question 49

Allison is moving into a new condominium. Which of these documents does not apply to her purchase?

Answer 49

Stock certificate.

Question 50

A parcel of land 250 feet wide and 150 feet deep sold for $240,000. What was the price per square foot?

Answer 50

$6.40

Question 51

In which of these cities is the Board not required to hold a public hearing each year?

Answer 51

Rochester.

Question 52

What is the difference between a balloon loan and an amortized loan?

Answer 52

An amortized loan is paid off by the end of the term.

Question 53

Broker Jim signs a listing agreement with seller, Grace and a buyer agency agreement with buyer, Pat. Both Grace and Pat signed written disclosure statements agreeing to this arrangement. What is this relationship called?

Answer 53

Consensual dual agency.

Question 54

A court renders a judgment which authorizes a lien to be placed against the defendant's house, car, and personal belongings. What is this an example of?

Answer 54

General judgment lien.

Question 55

In which of these cities is the Board not required to hold a public hearing each year?

Answer 55

Rochester.

Question 56

According to Truth in Lending, a lender must disclose all of the following except which one?

Answer 56

Broker’s commission.

Question 57

Mary’s property has been assessed at a higher percentage of value than all of the other properties on the same assessment roll. What is this an example of?

Answer 57

Unequal assessment.

Question 58

A section contains how many acres?

Answer 58

640

Question 59

A historic preservation commission does not have the power to do which of these?

Answer 59

Require a property owner to restore a historic building.

Question 60

A daycare center is allowed to open in a residentially-zoned area. What is this an example of?

Answer 60

A special use permit.

Question 61

A court renders a judgment which authorizes a lien to be placed against the defendant's house, car, and personal belongings. What is this an example of?

Answer 61

General judgment lien.

Question 62

Which property would most probably have the longest lease term?

Answer 62

Industrial property.

Question 63

Which statement is not true?

Answer 63

Underground storage tanks pose no hazard to residential areas.

Question 64

What is a policy that protects against claims above and beyond the amount covered by primary policies?

Answer 64

Umbrella.

Question 65

Amanda Green sold her property to Sally Fay. Amanda will retain title to the property until Sally has paid in full. What kind of contract do Amanda and Sally have?

Answer 65

Land contract.

Question 66

John is doing a CMA for his potential sellers. He has collected the data on the seller’s property and collected data on a number of comparables. Now he’s ready to make his price adjustments. Which statement is true?

Answer 66

If a comparable lacks a feature the subject property has, he will add the value of that feature to the comparable.

Question 67

Amanda Green sold her property to Sally Fay. Amanda will retain title to the property until Sally has paid in full. What kind of contract do Amanda and Sally have?

Answer 67

Land contract.

Question 68

What is required for a title to be marketable?

Answer 68

It must be free of undisclosed defects and encumbrances.

Question 69

What must a listing agent do before entering into a cooperative agreement creating a subagency?

Answer 69

Obtain the informed consent of the seller.

Question 70

In which of these places is asbestos not likely to be found?

Answer 70

Adhesives in pressed wood.

Question 71

What is the minimum period of time over which the owner of an apartment building can depreciate the improvements?

Answer 71

27.5 years.

Question 72

Broker Greg performed all of the following actions. Which one violates license law?

Answer 72

Withheld earnest money that should have been returned to a purchaser.

Question 73

“Everyone charges the same so you might as well list with me” is an example of what?

Answer 73

Price fixing.

Question 74

What is the difference between a balloon loan and an amortized loan?

Answer 74

An amortized loan is paid off by the end of the term.

Question 75

Which statement is false about Internet advertising?

Answer 75

Any ads placed on the Internet must have a link to the licensee’s email address.

Question 76

The first fine for a violation of federal fair housing law could be as much as what amount?

Answer 76

$10,000

Question 77

What is the amount a buyer owes at closing equal to?

Answer 77

The excess of the buyer's debits over the buyer's credits.

Question 78

Greta Manes passed the salesperson licensing exam. For how long are her results valid?

Answer 78

24 months.

Question 79

What is required for a title to be marketable?

Answer 79

It must be free of undisclosed defects and encumbrances.

Question 80

Real estate agents are typically what kind of agent?

Answer 80

Special agent.

Question 81

What is overage rent?

Answer 81

Rent calculated on a percentage of sales volume.

Question 82

John is doing a CMA for his potential sellers. He has collected the data on the seller’s property and collected data on a number of comparables. Now he’s ready to make his price adjustments. Which statement is true?

Answer 82

If a comparable lacks a feature the subject property has, he will add the value of that feature to the comparable.

Question 83

Which of the following is an allowed activity for an unlicensed assistant?

Answer 83

Get status reports on the loan progress.

Question 84

Which of the following is an allowed activity for an unlicensed assistant?

Answer 84

Get status reports on the loan progress.

Question 85

Who are the essential parties involved in an estate in trust?

Answer 85

Trustor, trustee and beneficiary.

Question 86

Which statement is true about investing in commercial property?

Answer 86

A commercial property could have a percentage lease.

Question 87

Who pays the real estate taxes for a condominium?

Answer 87

Condominium owner.

Question 88

According to Truth in Lending, a lender must disclose all of the following except which one?

Answer 88

Broker’s commission.

Question 89

Greta Manes passed the salesperson licensing exam. For how long are her results valid?

Answer 89

24 months.

Question 90

A landlord suddenly terminates a tenant's lease in violation of the lease terms. The tenant takes action to compel the landlord to comply with the violated terms. What kind of suit is this?

Answer 90

Specific performance.

Question 91

Sandy rents space in a building for her beauty and tanning salon. She pays rent for occupancy, but the owner of the building pays the taxes, insurance and other operating expenses. What kind of lease does Sandy have?

Answer 91

Gross lease.

Question 92

What is the amount a buyer owes at closing equal to?

Answer 92

The excess of the buyer's debits over the buyer's credits.

Question 93

What is the most common reason a property fails to sell?

Answer 93

Overpricing.

Question 94

Which of the following is considered a fixed operating expense?

Answer 94

Insurance premiums.

Question 95

Broker Jim signs a listing agreement with seller, Grace and a buyer agency agreement with buyer, Pat. Both Grace and Pat signed written disclosure statements agreeing to this arrangement. What is this relationship called?

Answer 95

Consensual dual agency.

Question 96

What is the effective rental income for a company that has a gross rent income of $164,100, vacancies worth $12,000, extra income of $8,200 and operating expenses of $28,400?

Answer 96

$152,100

Question 97

A landlord suddenly terminates a tenant's lease in violation of the lease terms. The tenant takes action to compel the landlord to comply with the violated terms. What kind of suit is this?

Answer 97

Specific performance.

Question 98

Which of these is a distinguishing feature of a deed condition?

Answer 98

It gives the grantor the right to re-possess the property if the grantee violates the condition.

Question 99

In which of these places is asbestos not likely to be found?

Answer 99

Adhesives in pressed wood.

Question 100

Who pays the real estate taxes for a condominium?

Answer 100

Condominium owner.