Flashcards in Questions Deck (89):
Sam's house is worth $300,000. Assessment is 48%. Tax is 5%. What is annual tax?
$Value x %assessment x percent tax= $annual tax
300k x 48%= 40k
40k x 5%= 7200
What is an assessment?
Adjustment to lower tax for high market values
Sam's house is worth $200,000. Assessment is 50%. Tax is $5 per $100 of value. What is semi annual tax?
$5 per $100= 5%.
$200k x 50% = $100k
100k x 5%= $5000
What is the reason for a 1031 exchange?
A tax break or tax shelter
What is another name for a tax break?
What is boot?
personal property or money
What property is like-kind to a hotel?
ALL real estate
What does a qualified intermediary do?
Holds money in a RE exchange
Does a RE exchange have to be in the US?
What are the bundle of rights?
What rights are freehold?
What rights are leasehold?
What right do you have in a leasehold?
encroachment= trespass by a thing
escheat= die, no will, no heirs = NYS takes RE
easement= someone can legally use your RE (can't drive or walk on RE)
Unless it is a lesser estate, what kind of freehold is it?
a) Fee Simple Absolute
b) Life Estate
c) Estate for Years
d) Estate at Will
A) Fee Simple
life estate= lesser estate
estate for years= leasehold
estate at will= leasehold
What is a primary example of a full estate with full bundle of rights?
fee simple absolute
What is an example of a lesser freehold where you only own RE for your lifetime and then it goes on to someone else? And what 2 bundles of rights are lacking?
Life Estate: Have Deed but lack Control + Disposition
What are two acronyms for the bundle of rights?
Please Quit Eating Candy Daily
Which department licenses mortgage professionals?
Department of Financial Services (DFS)
Which department licenses REA?
Department of State
What was the former name for the Department of Financial Services and who do they often license?
Dept of Banking
What state dept is in charge of drinking water and sewage?
Dept of Health
What fed govt protects wetlands?
Army Corps of Engineers
What do the Army Corps of Engineers protect?
What are 2 things the dept of health is in charge of?
drinking water & sewage
What is it called when you take a number and divide it up into smaller pieces?
Sam sells his house April 30. He already paid this year's RE tax of $2400 in full. Under proration, who owes what to whom?
$1600; debit to buyer
Buyer owes Sam for 8 months
Debit to buyer; Credit to Sam
$2400 / 12 months = $200
$200 x 8 months= $1600
What is the difference between debit and credit?
debit= you owe
credit= get paid
When calculating proration how many days are in a month?
A seller wants to net $180,000 on sale of his house after 10% commission's paid. What does sale price have to be?
$ Net price / % to seller = $ Sale price
100%-10% commission= 90%
Think 8= 2 o's= 200k
10% of 18= $2 tip = 200k
How do you calculate sale price?
Net price** / percent to seller* = sale price
*usually given percent to REA and need to determine percent to seller
**sometimes need to add closing costs + mortgage before dividing percent to seller
Sam wants to end up with $140,000 when he sells his house, but he has to pay $12,600 closing costs and $44,500 mortgage. Commission is 6%. What does sale price have to be?
140k + 12,6k closing + 44,5k mortg = 197,100 net
197,100 / 94%= 209,680.85
Sam turns 140 into 209681. 140. 209681. 140-2096 ext 81
What is the slope of a roof called?
d- rise & run
What is a measurement of heat energy?
C- BTU: British Thermal Units. 1 lb H2O by 1 degree temperature
b- determines insulation
d- air pressure
What is a vertical piece that is part of a house frame?
b- wall stud
B- Wall Stud
a- roof beams (diagonal)
c- floor beams (horizontal)
d- beam that carries other beams
What system delivers hot & cold air through the same ducts?
forced warm air
What does the the forced warm air system do?
delivers hot & cold air through the same ducts
What do you call a piece of wood that connects wooden house frame to concrete foundation?
What is a sill plate?
A piece of wood that connects wooden house frame to concrete foundation?
What is minimum electric service for a house?
100 amps; 110 volts
What is the difference between amps + volts and what is their minimum service req. for a house?
amps= elec charge
volts = elec pressur
What construction doc is not a drawing?
b- another word for blueprint
d- drawing of front of building
What do you call plywood sheets nailed to wall studs or rafters?
What is a piece of metal bent over a crack to block rain?
What is slab on grade?
Concrete on ground
What is the most common foundation?
What is the most common house frame?
What test should you do when selling land in a place that doesn't have sewer lines?
What is the percolation test?
A test you should do when selling land in a place that doesn't have sewer lines
What is NOT covered by NYS General Business Law 36B?
a- 1 year workmanship
b- 2 years trade
c- 3 years build out
d- 6 years material defects
C- 3 years building out
36B = B 3 & 6. 1+2 & 6.
What do you do if you give an agency disclosure form and they don't sign it?
Keep record (Time, Date, Names & Reason).
Happy RE sells a house for $178,000 and gets $11,570 commission. Happy must pay 3% to co broker & then pay half the remainder to their sales person. How much does Happy keep?
co-brkr gets 3% of sale price.
178k x 3%= 5340 co-brkr
11570 gross - 5340 co-brkr= $6230 remainder
$6230/ 2= $3115
3% & $115(70) commission = $3115
What is the difference between:
agent= represents someone
client= who you work for
customer= who you bring to deal
If you represent the tenant, who is the customer?
How is your client determined?
via agency agreement
What is the agency disclosure form express?
tells who you work for/ represent
If you work for Bond, and KB calls to say she wants to sell your house, what is the current law of agency?
You= sales person
What 2 forms do you bring when someone wants to sell their house?
Once the listing contract + agency disclosure forms are signed, what is the new law of agency?
Who are sales contracts always between?
Broker + Client
If a broker wants to enlist other brokers to help, this is called what?
If a brokerage signs a co-broker invitation they become what?
a subagent of the seller (even if they bring in a buyer)
When is a co-broker considered a subagent of the seller?
when they sign the cobroke invitation
What does it mean to be a co-broker?
When 2 RE firms do a deal together & share commission (usually 50/50- but on state test they are unequal).
Most (90%) of deals are cobroke.
On the test, do co-brokers work for buyer or seller?
A co-broker represents everyone except:
a- who you work for
b- who they work for
c- who they work with
What is vicarious liability?
Responsibility for someone else. In RE brokers have specific responsibility to supervise according to 12A.
What is it called when in RE, brokers have specific responsibility to supervise and take responsibility for their sales people (according to 12A)?
If you break license law, what are you breaking?
art 12 a
When is dual agency okay?
when both sides agree in writing; informed consent
What is it called when the broker- not the seller- takes vicarious liability for all subagents?
What is broker's agent?
when the broker- not the seller- takes vicarious liability for all subagents
Who usually takes vicarious liability in a RE sale?
(A hired dog walker would not take responsibility for someone else's dog's actions if the dog bit someone.)
How would a lawyer try to sneak in broker's agent?
by changing one word: seller's agent is now broker's agent who now possesses vicarious liability (very rare)
If someone wants to fight RE tax, who do they go to?
Board of Assessment Review
What is another name for tax?
Who signs contract first?
If a loan to value ratio is high, does that mean the owner's equity is:
a- doesn't change
The higher LTV, the lower the equity.
If a loan to value ratio is low, does that mean the owner's equity is:
a- doesn't change
The lower LTV, the higher the equity
If someone buys a house and a boat on the same mortgage, this is called what?
A package mortgage
If money supply goes up, what do interest rates do?
c- stay the same
Money supply UP
What is money supply?
Amount avail for ppl to borrow
How do you determine efficiency factor?
useable sq ft / rentable sq ft
What does the following equation determine:
(useable sq ft / rentable sq ft)?
If 2 competing brokers discuss commission rates, this violates which law and why?
Sherman Anti-trust as Price Fixing
What is the rule of reason state?
That 2+ brokers discussing the RE Market are only violation Sherman act if there's a "Restraint of Trade"
What is restraint of trade?
When consumers don't have a choice
What is it called when 2+ brokers discussing the RE Market are only violation Sherman act if there's a "Restraint of Trade"?
Rule of Reason
What is it called when consumers don't have a choice?
restraint of trade