Textbook Exams Flashcards
(460 cards)
1
Q
J, who has no real estate license, canvases homeowners by phone to determine whether they are interested in selling their homes. B, who is licensed give J $25 for every lead she turns up. Does this violate license law?
A
Yes, because B is paying compensation for services that require a license
2
Q
Real estate license laws are instituted to
A
Protect the public while maintaining high standards for those issued a license
3
Q
In New York, real estate license are issued by the
A
Department of state
4
Q
When a salesperson or associate broker terminates an association with a broker,
A
The supervising broker must file a termination of association notice
5
Q
In order to satisfy the education requirements for a real estate salesperson’s license, how many hours of education must an applicant take
A
75 hours
6
Q
A duly licensed sales person may except bonus compensation from
A
A. A grateful seller
B. A grateful buyer
C. Another sales person
D. None of these
D
7
Q
A fully qualified broker who chooses to act as a salesperson under the employ of another brokers sponsorship is licensed as a(n)
A
Associate broker
8
Q
To obtain a brokers license you must reach the age of
A
20
9
Q
To satisfy the education requirements for a brokers license, and application must have first completed how many hours of prescribed study?
A
120
10
Q
Failure to provide the buyer with the property disclosure form requires
A
The seller to give the buyer of $500 credit at closing
11
Q
Real estate license in New York State are good for
A
Two years
12
Q
Non-resident broker seeking a New York license must
A
File an irrevocable consent to service form allowing them to be sued in New York State
13
Q
In the office of a broker, which of the following must be displayed
A
All brokers license
14
Q
The sales person told the telephone company to print the following ad under real estate in the Yellow Pages; Alyssa Jackson, license sales person, residential property and specialty, 473-4973. In order to have placed an appropriate as she should have included her
A
Brokers name
15
Q
Performing property management duties such as collecting rents for more than one client requires
A
That at least one person hold a real estate brokers license
16
Q
The department of state has revoked and agents license for fraud. Which is true?
A
The agent has the right to appeal the revocation through an article 78 proceeding
17
Q
If a principal broker loses her license, Her associated salesperson must immediately
A
Stop listing and selling until they have associated with another broker
18
Q
License renewal must be accomplished
A
Only online
19
Q
which of the following activities can and Unlicensed Assistant perform?
A
Gather information for a comparative market analysis (CMA)
20
Q
Loans sold in the secondary market by the mortgage banker
A
Can Generate further fees when the banker also services those loans
21
Q
The term commingling pertains to
A
Mixing the brokers funds with escrow deposit
22
Q
Which of the following cash deposit amounts must a real estate broker report to the IRS?
A
$15,000
23
Q
An apartment information vendors license is available to individuals who are able to
A
Maintain a $5000 interest-bearing escrow account
24
Q
An unlicensed assistant may safely engage in all of the following except
(Answer the phone, forward calls, and take messages. Arrange appointments for the licensee. Assemble documents for closing)
A
Answer questions about a property from an interested buyer
25
Which of the following best describes the relationship between broker and seller under a listing agreement?
Special agency
26
A broker hired by an owner to sell a parcel of real estate must comply with
Any legal and reasonable instruction of the owner
27
A buyers broker is told by the buyer that he filed for bankruptcy The year before. The buyers broker…
Is required to disclose this material fact to the seller
28
A listing may be terminated when either broker or principal
Goes bankrupt
29
When retained by the buyer, the broker owes a prospective seller
Fair and honest dealing
30
Which of the following best describes a licensee representing both parties in the Same transaction
Dual agency
31
A seller who wishes to cancel a listing agreement in New York
May be held liable for damages by the broker
32
Section 175.7 of the RPL states that a broker may only receive compensation from both the seller and buyer in the same transaction when
Both parties have been provided with full disclosure and have given the broker their informed consent
33
A house was purchased in 1950 for $4500. The seller knows that properties have appreciated and ask the broker to try to sell it for $100,000. The broker knows the value could be more than $200,000. The broker should
Tell the seller that the house is worth much more
34
And example of a latent defect would be a
Malfunctioning septic tank
35
Unless a listing agreement states otherwise, commissions usually are earned when
The seller excepts the buyers offer without conditions
36
Even if a proposed transaction does not go through, the broker sometimes may collect a commission if the
Seller commits willful default and backs out
37
A relationship of trust and confidence is best described by which of the following
Law of agency
38
A seller signed 120 day listing with ABC Realty. After 60 days, the seller decided not to sell. He told ABC reality that he no longer wanted to market his house. When is the agency of ABC reality terminated
On the 61st today
39
A sellers broker must disclose to a prospective buyer that the
Heating system does not work well
40
In the spirit of cooperation, a broker approached two other community brokers and recommended that they set standard fee schedules and commission rates. This recommendation is
Illegal under any circumstances
41
To successfully sue a broker from misrepresentation, the buyer must be able to prove that
The buyer was damaged from relying on the truth of the statement
42
A sellers willingness to except a buyers offer for a lot only if the buyer will purchase property insurance from the sellers insurance brokerage is an example of of
Tie in arrangement
43
The broker does not think that the seller will seriously consider an offer received for 20% less than the listing price. The broker
Is required to submit the offer to the seller
44
An acronym to help remember the fiduciary duties of a broker is
CC-LOAD
45
A sales person agreed to meet a buyer at a home listed by a sales person‘s broker. When must the sales person provide a buyer with an agency disclosure
Before entering the property
46
A listing contract will terminate as the result of performance of the object. This means that the
Property has been sold
47
As long as the agency relationship is clear and explicit
It does not matter legally weather the buyer or seller pays the fees
48
When communicating the present property tax information on a listed property, the listing broker should disclose
That the tax amount is valid only for the year of the sale
49
In a single agency agreement in which a broker represents the seller, the
Seller is the client
50
Which listing agreement provides the broker with the greatest incentive to successfully market the property
Exclusive right to sell listing
51
Upon first contract cooperating brokers must inform the listing agent whether they are acting as agents or sub agents of other properties. This will be due to the fact that these relationships impact the listing agents
Disclosure of information
52
When a broker takes a listing, all sales people who work for the broker are generally considered
Agents for the broker and subagents for the seller
53
In which listing agreement would sellers have the ability to reserve the right to conduct their own sale without compensating the exclusive agency
Exclusive agency listing
54
A broker who lists a property on her website should remove the listing from the for sale section of the site
After a sale occurs
55
Which of the following best describes a residential transaction?
A building containing four or fewer units intended for dwelling purposes
56
In a dual agency relationship, the parties give up their right to
Undivided loyalty
57
A broker represents a home buyer as a buyers agent. The broker wants to show the buyer a property that a seller has listed with them. If the broker shows the buyer the property, he
Should first get the informed, written consent of both buyer and seller to act as a dual agent
58
The most complete ownership recognized by law is
A fee simple estate
59
The definition of land includes
The air space above the surface
60
Real property is often referred to as a bundle of legal rights. Among these is the right of
Exclusion
61
An owner of a farm in Steuben County, may find that and oil company wants to lease his
Subsurface rights
62
Which of the following responsibilities would a beneficiary have in an income-producing trust?
No responsibility other than to receive the trust property at a certain point in the future
63
All of the following are categories of business organization types except
A joint venture
64
Which of the following does an owner in a condominium receive?
A deed
65
The ability to hold the property indefinitely can only occur when the holder has
Freehold estate
66
Three individuals on a farm as tenants in common. Owner needs cash for a start up business, but the other owners refuse to sell the farm. Under what circumstances, if any, can owner a liquidate her portion of the land?
Owner a can file a suit to partition the land to and the coownership
67
A trust set up to address the transfer of trust property to a beneficiary after death is called
A testamentary trust
68
And association of two or more people to carry on a business as co-owners and share in the business profits and losses is
A partnership
69
In a cooperative, monthly expenses charge by the co-op are called
Maintenance
70
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The six basic categories of real property are
residential
commercial
industrial
agricultural
special purpose
and…
```
Mixed use
71
Special purpose real estate includes
House of worship
72
Property that is part of the commercial market includes
Office buildings for lease
73
In a state where a tenant occupied property with the permission of the owner is best described as
Estate as will
74
A woman inherited her cousins house, but it is hers only as long as the dog, Buster, is alive and well and living in the house. When Buster dies, the house is to go to her cousins son. The cousins son is a
Remainderman
75
A married couple owned a small apartment house by the entire already. One spouse had a willll leaving have her estate to her spouse and half to her daughter. After she was killed in a car accident, her daughter owned how much of the apartment house?
None
76
Trust can be handled and managed by the appropriate party until which of the following occurs?
Trusts may continue for the beneficiaries lifetimes or until the beneficiaries reach a certain age
77
A syndicate formed to carry out a single business project for a limited time is commonly known as a
Joint venture
78
People who purchased stock in order to live in cooperatives
Receive proprietary lease is for their apartments
79
In New York, a deed conveying property to a married couple, such as to Frank peters and Marissa peters, husband and wife, creates a
Tenancy by entirety
80
Which statement applies equally to joint tenants and tenants by the entireties?
The survivor becomes complete owner
81
An artificial person created by legal means is known as a
Corporation
82
Which of the following best describes a tenancy at sufferance?
The tenant is a holdover
83
Any two parcels of real estate
Can never be the same
84
Man-made, permanent additions to land are called
Improvements
85
An owner of land along the Mohawk River has certain
Riparian rights
86
The condop form of property ownership developed from the
Developers interest in retaining commercial spaces
87
The party that administers the trust before transfer to the appropriate party to the trust is called
The trustee
88
Which is considered a lien on real estate?
An unpaid mortgage loan
89
An instrument that provides for a right of use agreement and is terminable at the will of the issuer is best described by which of the following
A license
90
Which lien usually would be given highest priority
Unpaid real estate tax
91
A contractor remains unpaid for roofing of ranch home. How long does he have an order to file a valid and enforceable mechanics lien?
Four months
92
Unless an action of foreclosure on a contract mechanics lien commences, his mechanics lien will remain against the property for at least
One year
93
A financial claim or charge against the property of another that provide security for a debt or obligation of the property owner is a
Lien
94
When a patient failed to pay for her orthopedic surgery , the doctor obtained a money judgment, which, upon docketing, becomes a lien against the patient’s
Real and personal property, which would include the patient’s vacant land, home, and Tiffany chandelier
95
When a patient failed to pay for her orthopedic surgery, the doctor obtained a money judgment. When the patient pays off the doctors judgment, she should
Record a satisfaction certificate
96
A neighboring property owner why build a permanent structure that crosses over the property line of neighbors Z. After 11 years, neighbors he performs a survey and discovers that the structure is partially build on Z‘s land. Z immediately informs why of this issue and requires that why remove the structure from these land. Which best describes this situation?
Y can file a lawsuit for adverse possession against Z
97
A buyer purchases a summer cottage that has an unpaid mechanics lien recorded against it. The lien was previously placed by the workman who was not paid by the former owner for constructing a dock. The lien now
Remains as a claim against the property
98
Which of the following acts as an encumbrance?
All of the above.
An easement
A lien on a property
A property leased to a tenant
99
The farmer who allowed promoters to run the Woodstock festival on his land most likely granted them
A license
100
To establish an easement by prescription in New York, a person must use anothers property openly and notoriously for an uninterrupted period of
10 years
101
A property owner has just made her last mortgage payment. She is so thrilled about that and then she decides to throw a mortgage burning party. However, which of the following legal acts will release the mortgage lien from the public records?
Recording a satisfaction of lien
102
A shared driveway agreement will probably take the form of a
An easement appurtenant
103
Which of the following best describes that expression use the rights or lose the rights
Laches
104
Encroachments are easily discoverable by
Physical inspection of the property or by performing a survey
105
The lien with first claim against any parcel of real estate in New York State is
Unpaid property tax
106
An owner of a condominium apartment in Manhattan and also owns a cabin on 3 acres in the Catskills, where she keeps a boat and a house in Florida. If one of her creditors sues her in Manhattan and obtains a judgment, that judgment may be recorded as a lien against the
Apartment, cabin, and boat
107
Deed restrictions are created by a
Seller
108
When a couple bought a farm from the wife’s parents, they received only a quitclaim deed. This was most likely because
It is the type often used for in family transactions
109
The land of a gnu homeowner in the Buffalo subdivision known as Vista Ridge probably bears a legal description based on
The recorded plat of subdivision
110
When someone dies leaving now will and no natural heirs, his property goes to
The state of New York
111
Someone who dies without leaving a will is said to have died
Intestate
112
The least acceptable legal method for identifying property is
The street address
113
It is essential that every deed be signed by the
Grantor
114
Title to property transfers at the moment a deed is
Delivered and accepted
115
Consideration in a deed refers to
Something of value given by each party
116
Which of the following accurately describes the term used to describe the act of when government transfers land to a private person?
A grant
117
A notary’s acknowledgment of the signature on a deed is necessary
For the deed to be recorded
118
The evaluations gathered from datums are further supplemented by reference points called
Benchmarks
119
The grantee receives greatest protection with what type of deed?
Warranty
120
A bargain and sale Deed with covenant against grantors act is commonly used
By executors
121
The developer of Spring Lakes subdivision turned property over to the local government for a road and sidewalks through the process called
Dedication
122
Land washed away suddenly in a flood is an example of a land lost through
Avulsion
123
Which element of a real estate transaction is seldom included in the deed?
Full dollar amount
124
A lease is considered
A non-freehold estate
125
A woman agrees to rent her upstairs apartment to a friend for the next six months their friend has a
An estate for years
126
A landlord in upstate New York agrees to rent his upstairs apartment to a tenant from month to month. To end the arrangement, the landlord must
Give at least one months notice from a day before the rent is due
127
A tenant lease has expired. The tenant has neither last nor negotiated a renewal lease, and the landlord has said she does not want the tenant to remain. The tenancy is called a
A tenancy at sufferance
128
A woman sells her six unit apartment building in Queens to a buyer. Now
The woman must turn over security deposit to the buyer
129
A lease provision giving the tenant the right to extend the lease for an additional period of time on set terms is
An option to renew
130
An automatic renewal clause in a lease
Requires notice from the landlord calling the tenants attention to the clause
131
The clause in a lease that restricts the occupancy activities is called
A use clause
132
If a tenant falls three months behind in rent payments, a landlord may
Start a court suit for possession
133
A tenant falls three months behind in rent payment. If the landlord turned the heat down to 50° in retaliation, the tenant might move out and argue that she is free from any further rent obligations because the landlord has terminated the lease through
Constructive eviction
134
Under the New York general obligations law, which of the following is correct?
Security deposits must always be held in trust or escrow accounts
135
A ground lease is usually
Long term
136
The landlord must finish a lead paint information booklet to tenants
Of any residential property constructed before 1978
137
A woman manufactures knitwear a small rented building. In addition to monthly rent, she pays heat, electric, and property taxes on the building. She probably has a
Net lease
138
In New York, a tenant usually may sublet an apartment if the
Lease does not prohibit it
139
A homeowner says to his friend, I’ll let you rent my attic apartment for $500 a month until the first of the year. The friend agrees. The agreement
Constitutes a binding lease
140
A gross lease is most likely to be used for rental of
An apartment
141
To be enforceable, an apartment lease for a period longer than one year
Must be in writing
142
Which of the following prohibits the licensee from the unauthorized practice of law?
Duncan and hill
143
If a man drives into a gas station and topped off his gas tank, he is obligated to pay for the fuel through what kind of contract?
Implied
144
A contract is said to be bilateral If
All parties to the contract are bound to act
145
A contract for the sale of real estate that does not state the consideration to be paid for the property will be
Void
146
During the period of time after a real estate sales contract is signed but before title actually passes, the status of the contract is
Executory
147
A 17-year-old signs a contract to buy a home for himself. This contract is
Voidable
148
A buyer signed an offer to purchase a property for $10,000 less than the asking price and deposited $5000 with the broker. The owner cannot be reached to tell her of the signed document. At this point, the document is
An offer
149
Which of the following written agreement is most commonly used by real estate licensees?
Listing agreements and buyer broker agreement
150
Under the statute of frauds, any contract for the sale of real estate must be
In writing
151
Unless otherwise agreed to in the purchase agreement, how many days must a buyer who purchases a home built before 1978 be given to investigate potential lead based paint hazards before the contract becomes binding?
10 days
152
The Duncan and Hill decision recommended that New York State brokers and salesperson protect themselves against
Charges of unauthorized practice of law
153
Pages that are added to the pre-printed form of contract are called
Riders
154
A contract signing, it is customary but not essential for
A buyer to provide a cash deposit
155
A suit for specific performance of real estate contract asks for
A forced sale or purchase
156
A buyer has decided not to purchase the sellers house. The sellers compensation for the buyers failure to live up to the contract is called
Liquidated damages
157
A buyer wants to purchase a home from a seller, But the buyer requires a clause providing that her obligation to buy is contingent on her being able to sell her own home first. The seller has not received any offers, so she is willing to except the buyers offer but wants to contract to include a clause that lets her out of the agreement if another seller comes forward who is ready to buy and does not require such a contingency. The contract provision the seller needs is referred to as a
An escape clause
158
A couple offers, in writing, to purchase a house for $140,000, drapes included, with the offer to expire Saturday at noon. The sellers reply, in writing, on Thursday, excepting $$140,000 but excluding the drapes. On Friday while the buyers are considering this counter offer, the seller decides to except the original offer, drapes included, and state that in writing. At this point, the buyers
Are not bound to buy and can forget the whole thing
159
What is the name for the cash deposit offered when making an offer to purchase real estate?
Earnest money deposit
160
The sales contract says the buyer will purchase only if his wife flies up to New York and approve the sale by the following Saturday. His wife’s approval is a
Contingency
161
Events that excuse performance of either party to the contract are
Contingencies
162
After a real estate contract has been signed, the buyer might withdraw legally and transfer his contractual Rights to a third-party through
Assignment
163
An option to purchase binds
The seller only
164
Failure to fulfill ones obligations under a contract is called a
Default
165
The purchaser of real estate under an installment contract
Is called a vendee
166
The consumer has the right to change her mind and rescind the transaction within three days after a
Refinance mortgage
167
A title insurance policy is in force for the whole period of ownership and is paid for
Once
168
An instrument affecting title to a parcel of real estate is constructive notice to the world when filed with the
County clerk
169
A woman checked the public records. She found that the seller was the grantee in the last recorded deed and that no mortgage was on record against the property. She may assume that
The seller did not mortgage the property
170
And abstractor inspect the county records for documents affecting title and then
Writes a brief history of title
171
If the broker holds the buyers earnest money in a separate trust account, when does the seller usually receive it
When the property is actually transferred
172
Last year a woman gave a house in Watertown, Valued at $110,000 to her son. Her son assumed an existing $30,000 mortgage on the property. Transfer tax due on the gift was
Zero dollars
173
A woman needs to know how much her parents paid for the Elmira house they bought from a builder in 1954. She finds tax stamps on there all the totaling $22.55. She can conclude that they paid roughly
$20,500
174
To know the exact amount required to pay the existing mortgage, the seller
Secures a current payoff statement from the mortgagee
175
A Manhattan resident purchases farmland in Clinton County as an investment. The deed she receives should
Be recorded in Clinton County
176
The principle of caveat emptor states that if the purchaser buys a faulty title, responsibility for the problem lies with the
Buyer
177
Which is not acceptable proof of title
Deed signed by the last seller
178
On the closing statement, you would find the buyers earnest money deposit as
A credit to the buyer
179
When recording a deed in New York City, an affidavit must be provided to show that the house has
A working smoke alarm
180
Which is not among a lenders main interests at closing?
That property value will keep pace with inflation
181
The title closing occurs
On the contract closing date transferring ownership from the seller to the buyer
182
In order to make a claim for the cost of repair or replacement of the damaged property without deduction, what percent of the replacement cost of a home should be covered by fire insurance?
80%
183
As it relates to methods of prorating, when all months have 30 days, including February, this is the
360/30 day rule
184
The loan estimate must be used for
Residential transactions financed by federally related loans
185
A mortgage reduction certificate is used by a
A lending institution
186
Earnest money left on deposit with the broker or a lawyer is a
Credit to the buyer
187
The buyers are assuming an old mortgage loan that had a principal balance of $27,496 as of June 1. Interest is at 12%, payable in arrears. The June payment has been made, and closing is on June 15. Which is true as to the interest adjustment?
Credit buyer $412.44; debit seller $412.44
188
At the closing, the title company will ask the
Seller to sign an affidavit of title
189
Which term is usually not adjusted between buyer and seller
Recording charges
190
Which of the following describes how many methods are used to prorate items?
Three methods
191
Which phrase best describes the role of the closing statement
Reconciliation of each parties financial obligations
192
A buyer is purchasing a home from a seller with a $300,000 mortgage from a federally insured deposit institution. A survey must be completed as part of the transaction. What party most likely require the survey?
The buyers lender
193
RESPA expressly prohibits the payment of kickbacks, which are
Unearned fees
194
A monthly PITI payment is composed of money for
Principal, interest, property taxes, and insurance
195
New York states mortgage tax on one or two family residence is
Based on the size of the mortgage loan
196
In which situation with the payoff statement be requested before a closing?
The buyer is not assuming sellers mortgage, and the sellers mortgage will be paid off at closing
197
A new home cost $150,000, and the New owners borrowed $135,000 on a mortgage loan, paying $15,000 in cash as a down payment. That $15,000 now represents their
Equity
198
A mortgage broker is generally
Brings borrower and lender together
199
Married joint-filer taxpayers me deduct from their income tax returns the amount of interest paid on acquisitions loans
On mortgage loans up to a total of $1 million
200
When a young man buys his house, the seller allows affordable monthly mortgage payments of interest only over 10 years basis so that the new homeowner can handle the payments. At the end of the 10th year, however, the seller wants the whole remaining debt paid off in a
Balloon payment
201
With some exceptions, a home owner may take as an income tax deduction any cost for
Interest on a mortgage
202
New York‘s Usury limits do not apply to interest on mortgage loans made by
Sellers
203
A seller sold a home for $200,000 and agrees to pay three points to the buyers lending institution. The buyer is putting 20% down on the property. How much will the points cost the seller?
$4800
204
A lending institution may require that the buyers send in an extra monthly payment to cover future bills for
Property taxes and insurance premiums
205
The buyer of a $96,000 property is offered a mortgage with 10% down and a loan origination fee of 1.5%. Disregarding other possible closing cost, how much cash must the buyer produce to complete the transaction?
$10,896
206
The primary mortgage loan market includes institutions that
Make loans to borrowers
207
The mortgage document is normally recorded in
The county in which the real estate is located
208
First time homebuyers to participate in SonnyMae (SONYMA) Loans receive loans made through
Local lending institutions
209
A buyer is using a $150,000 inheritance to purchase a home value at $600,000, borrowing the remaining funds from a local thrift. What is the loan to loan ratio on the buyers loan?
75%
210
Mortgages and deeds of trust both give lenders possible future rights to the property without the Borrowers now giving up possession in a process referred to as
Hypothecation
211
Someone who purchases real estate and takes over the existing mortgage does so by
Assuming the mortgage
212
Failure to me obligations of a mortgage results in
Default
213
A homeowner failed to make payments on his mortgage, and the borrower asked the court to hold a public sale. If the homeowner wants to retain the property, how long does he have to redeem it by paying all the money that are due?
Until the moment of sale
214
What is meant by the phrase friendly foreclosure?
The lender excepts a deed from the borrower
215
An owner of a New York home for two years just came into a windfall and wants to re-pay her mortgage. Will she have to pay a pre-payment penalty?
No, because no penalty may be charged if the loan is older than one year
216
The divorcing spouse who signs of ownership of a house that has a mortgage on it is
Still personally responsible for the mortgage, regardless of no longer being a part owner
217
Private mortgage insurance (PMI) Is usually required whenever the
Conventional LTV ratio exceeds 80%
218
The department of housing and urban development (HUD) ensures mortgage loans made through
The FHA
219
A couple wants to buy a home together. A mortgage application is likely to be denied, though, if they
Have low credit scores due to late credit card payments
220
On a FHA loan, in addition to paying interest, the borrower is charged a lump sum of 1.5% of the loan as
A mortgage insurance premium (MIP)
221
In the case of most consumer credit transactions covered by regulation Z, the borrower has
Three days in which to rescind The transaction merely by notifying the lender
222
A couple is purchasing a lakefront summer home in a new resort development. The house is completely equipped and furnished, and they have obtained a loan that covers all the personal as well as the real property. This kind of financing is called
A package mortgage
223
A developer obtains one mortgage for a whole subdivision. As he sells each lot, he obtained a release of one parcel from the
Blanket mortgage
224
A company has sold a local factory but intends to remain and rent it from the new owner. The new owner has put together a
Sale and lease back
225
A savings and loan institution offers a mortgage plan with an 80% LTV ratio. On the purchase of a property appraised at $150,000, how much down payment will be required?
$30,000
226
Fannie Mae‘s purpose is to
By loans
227
Regulation Z protects the consumer from
Misleading advertising of credit terms
228
Fannie Mae is
The lending purchase of mortgages on the secondary market
229
Borrowers often use open ended mortgages to
Finance home improvements
230
For each day of misleading advertising used by the advertiser, regulations you will find the advertiser
$10,000-$15,000
231
In what way does the IRS become involved and purchase money mortgage is?
The IRS monitors the interest rate charged by the seller
232
With which mortgage could negative amortization occur?
Interest only
233
Unlike unconventional loans conventional loans are
Arranged entirely between the borrower and lending institutions
234
Unlike FH a loans, VA loans
Can provide 100% financing
235
Analysis of a mortgage loan application occurs in a process referred to as
Underwriting
236
The mathematical formula that lenders used to consider and applicants potential monthly payment compared to the applicants income is called
A qualifying ratio
237
A registered mortgage broker in New York is able to place, negotiate, solicit, and
Process mortgage loans
238
Equity financing is the use of borrowed funds to help the borrower
Fulfill down payment requirements
239
Unlike a mortgage broker, a mortgage banker
Originates loans
240
Which is a qualification for mortgage banker licensing
Net worth of no less than $250,000
241
A lenders willingness to find a loan is known as a
Mortgage commitment
242
How many years of previous tax return do lenders require of loan applicants when underwriting loans?
Two
243
Which property would most likely involve mezzanine financing?
Regional shopping center
244
A mortgage broker determines a prospective barbers creditworthiness and ability to repay a loan in a process called
Preapproval
245
A public official known as an assessor assesses the value of land and improvements
To charge ad valorem taxes against the parcel
246
In New York, neighboring owners have which of the following time periods to enforce deed restrictions?
A two year period
247
When thruway was Constructed, the route ran through a family’s farm. The family refused to sell the necessary land. The state then use it’s the right of eminent domain through a court proceeding known as
Condemnation
248
The right of escheat allows New York State aquire land
When someone dies without leaving a will or natural heirs
249
Oh man’s house contains eight studio apartments, four more than zoning laws allow on his street. To receive a permit for a non-conforming use, he must prove that the
House has been used that way every year since before the zoning ordinance was adopted
250
A doctor goes before her local zoning board asking for permission to open an office in her residential neighborhood because the area has no medical facilities. She is asking for a
Special use permit
251
A man ask the zoning board to allow him to build a fence to keep his children safe on a busy corner, though he does not have room for the required 10 foot setback. He is asking for a
Variance
252
Private land use controls include
Deed restrictions
253
The building inspector who is satisfied that construction is satisfactory may issue a
Certificate of occupancy
254
The purpose of a building permit is to
Provide evidence of compliance with municipal regulations
255
The New York State navigation law is concerned with
Environmental cleanup‘s
256
CERCLA and SARA are federal laws establishing
Liability for past environmental contamination
257
A Greek Revival Home is located in a historic preservation district. The owner probably cannot change
The exterior of the building
258
The doctrine of latches refers to
Loss of a right if it isn’t exercised in time
259
The grantor of real estate may place effective deed restrictions forbidding
Division of the parcel into small building lots
260
A deed restriction requires to 250 feet of road frontage per lot. The town building code requires only 100 feet, in a builder constructs two houses on his 250 foot lot. The neighbors may
Ask the court to order one house torn down
261
Which item is not one of the primary conditions that must be met for the government to exercise eminent domain?
The proposed use must be approved by referendum of local voters
262
A community needs to build a new fire station to protect one neighborhood. The community decides to raise adequate funds through taxation referred to as
A special assessment
263
In New York, zoning powers are given to
Municipal government
264
City council members in both New York City and Syracuse are
Subject to term limits
265
The responsibility for adopting new laws to protect the health, safety, and general welfare of constituents in New York’s villages is held by village
Board of trustees
266
Which property would be taxed at a non-Homestead rate in New York?
Lewis Wellhausen’s foreign auto repair garage
267
All of the following are responsibilities and functions that fall under the planning department of a city in New York except
Collection of property taxes
268
Which of the following best describes the architectural review board functions?
The board is involved with the approval of New construction and remodeling
269
Which municipal agency is responsible for approving applications for signage and façades on non-residential property?
Architectural review board
270
Historic areas and landmark preservation districts primarily restrict owners rights to alert a buildings
Exterior
271
A homeowner is building an addition on his house to accommodate his elderly parents. The architect plans require the external wall to be built 1 foot closer to the public sidewalk then allowing in zoning rules. In order to build according to these plans, the homeowner must obtain a
Variance
272
Before demolishing and engineering‘s equipment shed on his property, acme manufacturing must obtain a demolition permit from the local
Building department
273
If a real estate sales person wanted to know the tax assessment for a specific property in a town, he would consult the towns
Assessment roll
274
Do you ensure that construction projects are performed properly and the villages infrastructure (streets, sidewalks, parks, sewer,‘s water mains, and so on) are in good working order, the city, town, or village engineer will always work closely with all of the following except
The county clerk
275
A subdivider may not offer lots within a subdivision for sale unless all of the following occur except
The contract has been approved by the town
276
Another name for the master plan is
General plan
277
The process of arriving at a real estate tax rate begins with
The adoption of a budget
278
A subdivision refers to
The process of dividing a single tract of land into smaller parcels
279
The agency that is responsible for the municipality’s physical and socioeconomic planning is the
Planning department
280
The zoning board of appeals
Hears complaints about the effects of zoning ordinances on specific parcels of property
281
Before a septic tank can be installed, the property owner must
Have the soil tested to determine how much wastewater the soil can process
282
In New York City, council members have term limits consisting of
Two consecutive terms in office
283
Written directions that tell the builder what materials to use or what construction techniques to follow are known as
Specifications
284
Which is described as a one and a half story house
Cape cod
285
Many building codes require that certain spacing for studs on a one story house not exceed
24 inches
286
Which is a type of foundation
Pier and beam
287
A piece of stone, steel, or wood used to span a door opening and support the wall above is called the
lintel
288
Site preparation involves
Clearing the land and grading it to provide drainage and a building location
289
The vertical parts of a house frame are called
Studs
290
As it relates to site preparation, landscaping includes
Soil erosion prevention
291
Which characteristic is considered when grading lumber
Moisture content
292
Plans and blue prints are
Scale drawing or renderings of the improvement
293
Cap Insulation, which has the greatest payback in lowered fuel bills, is found
Under the attic floor
294
Sloping roof supports are called
Rafters
295
Drywall is known as
Plasterboard
296
Heat from outside air is utilized through a
Reverse conditioner
297
A contractor must give the customer a written contract in advance of any work when home-improvement goods and services will cost more than
$500
298
The buyer of a new home receives a warranty of six years protection against
Structural defects
299
The sellers will not drop the asking price on their house because, it’s already priced below market value. Their agent needs to explain that
If anybody comes forward to offer that sum, by definition it can’t be market value
300
The amount of goods or services that will be offered in the marketplace in exchange for any given product is
Value
301
The greater the supply
Prices fall
302
Appraisers derive value
By systematic observation of appropriate market data selection and the application of a variety of value methods
303
An appraiser is asked to estimate the market value of a church. He will give you the most emphasis to which appraisal approach?
Cost
304
The income approach to appraisal is most appropriate for a
An apartment house
305
The sales comparison approach to appraisal utilizes
Recent sales prices of similar parcels
306
An example of external obsolescence might be a
Used car lot next-door
307
The most likely price that would be paid by an informed buyer when property is widely exposed on the market is known as the
Market value
308
In the final analysis, selling price for real estate is set by the
Buying public
309
What does an appraiser do
Estimates value
310
The appraiser who works for a number of different clients is known as a
A fee appraiser
311
The expression alarms Laying transaction is defined as a transaction between
Relative strangers
312
The principle of supply and demand is defined by which of the following?
Supply and demand emphasizes pricing direct relationship to the availability and demand for a product
313
When performing a CMA, the real estate agents roll requires a licensee to
Act competently with due diligence
314
All of the following are required to become a certified residential appraiser except
An escrow account that contains the required $10,000 to cover errors and omissions
315
Highest and best use of real estate is defined as the use that produces the most value to
The land
316
The question, why should I pay more when I came by almost the same house you for less? Is an example of the principle of
Substitution
317
The principle of value that states that two adjacent parcels of land combined into one larger parcel may have a greater value then the two parcels value separately is called
Plottage
318
You are appraising a subject property that is the house at 23 Oak. A comparable house recently sold at 54 Oak is similar to the subject property; however, it has a fireplace, and the subject property does not. Why use do you make of the value of the fireplace?
Subtract the value from the comparable
319
From the reproduction or replacement cost of the building, and appraiser detox depreciation, which represents
Loss of value due to any cause
320
The term external Obsolescence refers to
A loss of value attributable to issue resulting from factors be on the property line
321
The owner of a duplex is advertising for a tenant for the other half of her home. Which of these ads would violate human rights law?
No children
322
A sales person was a listing a house. The seller informed the sales person that he would not sell to a member of a particular religious sect. The sales person should
Explain to the seller why he should change his mind, discuss the situation with his broker, and refuse the listing if the seller does not agree to comply with fair housing requirements
323
Which act is permitted under the fair housing act
Refusing to make a mortgage loan to an individual with a poor credit history
324
The statement, I hear they’re moving in, there goes the neighborhood! Better sell to me today! Is an example of
Blockbusting
325
The fair housing amendments of 1988 added which of the following as new protected classes?
Handicap and familial status
326
Which would not be permitted under the fair housing act?
A no pet policy, evenly applied, refuses rental to the owner of a guide dog
327
Under federal law, families with children may be refused rental or purchase in any building where occupancy is reserved exclusively for those aged at least
62
328
A lending institution may not refuse to make a residential real estate loan simply because of the
Location of the property
329
Under federal law, no exceptions apply when rental discrimination is based on
Race
330
Which of the following is an alternative program to nonsolicitation orders?
Cease-and-desist lists
331
An Ithaca woman who refuses to rent rooms to any students is a violation of
No law
332
Refusing in apartment to a couple because they are unmarried violates
The New York executive law
333
The fly-by-night mortgage company makes it a practice not to lend money on any inner-city property. This practice is known as
Redlining
334
A court found a landlord guilty of illegal discrimination and ordered her to rent her next available apartment to the person who was unfairly hurt. The court order is an example of?
An injunction
335
The seller who request prohibited discrimination in the showings of a home should be told,
All of these are correct;
As your agent, I have a duty to warn you that such discrimination could land you in real trouble
I am not allowed to obey such instructions
If you resist, I’ll have to refuse to list your property
336
All of the following are fair housing violations except
Refusing to rent or sell to a member of a protected class because of poor credit history
337
All of the following are fair housing violations
Refusing to sell, rent, or negotiate with any person or otherwise making a dwelling unavailable to any person
Changing terms, conditions, or services for different individuals as a means of discrimination
Practicing discrimination through any statement or advertisement that restricts the sale or rental of residential property
338
In what year was an amendment made adding sex (gender) as another one of the protected classes under federal law?
1974
339
Define for a first violation of the fair housing act could be as much as
$16,000
340
The only defense against an accusation of illegal discrimination is prove that it
Didn’t occur
341
Which is a potential polluter of drinking water?
Pesticides
342
Owners of older homes must advise prospective buyers or tenants about possible hazards of
Lead paint
343
Asbestos Has been widely used for
Insulation
344
Which is a hazardous gas?
Radon
345
Eliminating radon from a house is generally
A fairly simple matter
346
Sick building syndrome (SBS)
Subsides when the occupant leaves the building
347
A precolation test
Is used before a septic tank is installed
348
Asbestos Should be removed by a
Certified professional
349
The federal government regulates farm and residential fuel storage tanks when capacity reaches
1100 gallons
350
A phase 1 environmental assessment is common before purchasing a
Commercial property
351
Documents indicating past uses of the subject property are examined in which phase of an environmental audit?
Phase 1
352
CERCLA establish the
Superfund
353
Which precaution is aimed at preventing termites?
Keep untreated wood from touching soil
354
Mold grows in environments that are
Moist
355
In order for a property owner to qualify for innocent land owner immunity, the land owner must not have had either actual or constructive knowledge of the damage and, at the time of purchasing the property, must have
Shown due care to determine that the property was not damaged
356
Unlike salespersons who are employees, independent contractors
Text self-employment income tax deductions
357
A broker may require a sales person who is an independent contractor to
Comply with article 12 A of the real property law
358
If a sales person is an independent contractor, he is entitled to
Supervision and guidance
359
A broker is excited to hear that a super sales person is moving to town. In attempting to recruit that sales person to work for him as an independent contractor, what can The broker legally say?
My sales people have earned above market for six months
360
An independent contractor is generally
Paid commission on sales
361
Under the New York State law, how often does the contract need to be renewed between the broker and the independent contractor sales person?
Every 15 months
362
An employee is legally required to receive
Unemployment insurance
363
Whether a licensee is an independent contractor or an employee, the broker must
Obtain the individuals Social Security number
364
The sales person who joins a real estate company as an independent contractor will probably have to pay for his own
Hospitalization insurance
365
The broker who is associates are independent contractors may still insist that they
Sign a written contract for services
366
A primary residence is the location where, prior to the sale, the taxpayer has resided for at least
Two of the previous five years
367
A seller sold his home earlier this year and took his tax exclusion. How long does he have to wait before the sale of his current home would qualify for an exclusion?
Two years
368
A woman Would like to purchase a condo, but she does not have the down payment how much money can she withdraw from her IRA without incurring that additional 10% early withdrawal penalty?
$10,000
369
A buyer purchased a condo for $250,000. Which items will she be able to deduct when preparing her income tax for the year in which she purchased the condo?
Interest and points paid during the year
370
A man owns a vacation home on the lake. How many days can he lease this home to friends before the IRS views it as income producing property?
14 days
371
The amount of money that the taxpayer relief act allows taxpayers to exclude from the gain realized on the sale of primary residence is based on whether the taxpayer file a single or as married filing jointly. This rule is commonly referred to as the
$250,000/$500,000 rule
372
Which form of income is an investment property is considered passive income?
Rents paid by commercial tenants
373
Which cost to a property owner is considered a capital improvement?
Addition of an attached garage
374
Which feature of a property is an example of functional obsolescence?
Inadequate electrical current to run an air conditioner
375
The three primary events in investment property ownership are acquisition, holding period, And
reversion
376
What is the cost recovery period For commercial investment property?
39 years
377
Which phrase is used when describing the property that is exchanged in a 1031 exchange?
Like kind
378
A family is paying three points on a $350,000 mortgage loan. What is their dollar cost for this charge?
$10,500
379
Long-term gains are games that result from a sale in which the property was held for
One year or more
380
They gain or loss on an owner occupant residential property is the difference between the purchase price
Plus capital improvements and the sales price minus cost of sale
381
An estimation and projection of how much net operating income will be available through a properties income and expenses activities in any future periods is the investors
Pro forma statement
382
Which event demonstrates capital risk at the ownership of an apartment building?
After investing $400,000 in obtaining financing for the purchase of the building, the property owner is forced to sell at a loss
383
Long term ground leases are used when the land for a project
Cannot be purchased
384
The tax world for investment properties establishes the tax consequences resulting from a properties income operations, which establish a properties
Book value
385
Net operating income can be defined as the cash flow attributable to the property after deducting all operational property related expenses but before deducting any federal income taxes or
Debt service
386
Income attributable to a property after deductions have been made for vacancy and collection losses and after adding in other income derived from the property is called the properties
Effective gross income
387
Operating expenses associated with income property include fixed expenses, variable expenses, and
Reserves for replacements
388
Fixed expenses are expenses that do not vary as a result of a properties
Occupancy rate
389
For a federal estate investor, the use of borrowed funds is referred as
Leverage
390
Which item is subtracted from net operating income when calculating income taxes on investment property?
Annual depreciation
391
In New York, the dollar-per-square-foot base rent charged on a property is expressed as a
An annual basis
392
The difference between the usable area and the rentable area of commercial property is referred to as the
loss factor
393
An add-on factor is sometimes used to represent each tenants proportionate share of
Common area maintenance charges
394
A natural break/break even point is likely to be included in a
Percentage lease
395
A landlord will only except a rent payment from the party that is named in the lease section called
Attornment
396
Porters wage is a form of
Lease escalation
397
To calculate a tenants proportionate share of occupancy in a building, a landlord would most likely
Divide the tenant rentable area by the building grows rentable area
398
Which of the following is the legal form that states that unpaid balance due on a lease, loan, or other agreement to receive monies as of a specified date is in full force in existence while preventing any purchaser of a lease, loan, or other agreement to receive monies from claiming that the payer owes more than the stated amount?
Estoppel certificate
399
All of the following are examples of rent escalation except
Graduated lease
400
All of the following are examples of rent escalation
Porters wage
CPI
Direct operating
401
The clause in a lease that describes what activity may be permitted within the demised premises is best known as
A use clause
402
Most a manager allow modifications of the premises to accommodate a handicap tenant who offers to pay for the work?
Yes, but the tenant must return the premises to the original condition on leaving
403
What is the maximum percentage of their income that participants in the FHA’s section 8 program may pay in rent?
30%
404
Owners of mobile home parks with more than two units must register with
The New York division of housing and community renewal (DHCR)
405
Office rentals usually are figured by the
Square foot
406
Any person or entity that performs property management rent collection services on behalf of another must
Be licensed as a real estate broker
407
Which should not be a consideration in selecting a tenant?
The racial and ethnic backgrounds of the tenant
408
A property manager can be paid a fee in which of the following ways?
A percentage of income derived from rentals
409
For management purposes, property can be divided into
Five major categories
410
While her tenants are at work, a landlord may enter their apartment
In case of a fire
411
Which insurance policy insurers the property owner against the claims of employees injured on the job?
Workers compensation
412
A delivery person slips on a defective stair in an apartment building and is hospitalized. A claim against the building owner for medical expenses will be made under which of the following policies held by the owner?
Liability
413
A property manager hires a full-time janitor for one of the building she manages. While repairing a Fossett in one of the apartments, the janitor steals a television. The property manager could protect the owner against liability for this type of loss by purchasing
A surety bond
414
The initials CMP stand for
Certified property manager
415
Rent regulations in New York State are administered by the
New York department of housing and community renewal (DHCR)
416
When an apartment that is covered by rent regulation law allows for an increase in rent at the end of each lease period., The rent regulation that would apply is
Rent stabilization
417
The property managers job is to
Maximize income while maintaining the value of the property
418
One of the first steps of property manager must take when beginning to manage a new property is to develop a
Marketing proposal
419
All of the following are categories of knowledge and experience that property managers must possess in other areas except
Politics
420
The trend towards absentee ownership by individual investors and investment groups have led to the use of property managers for
Both residential and commercial properties
421
Multi family residence may have
A live in resident manager
422
The amount of an ad Valorem tax is
Determined by the properties value
423
Sidewalk repairs in one area of the town of Bradington will be paid for through
A special assessment
424
When real estate is assessed for tax purposes,
The homeowner may appeal to a local board of review
425
New York allowed special tax exemptions to
All of these
Veterans
Farmers
The elderly
426
A special parcel of real estate has a market value of $180,000 and is assessed for tax purposes at 25% of market value. The tax rate for the county in which the property is located is 30 mills. The tax will be
1350
427
What does an equalization rate of less than 100 mean?
The municipality total market value is greater than it’s assessed value
428
The true tax on a property is the
Tax before exemptions are subtracted
429
An in rem foreclosure proceeds against the
Property
430
During the statutory period of redemption, New York property so for the delinquent taxes may be redeemed by
Paying back taxes, penalties, and interest
431
In New York districts where assessments are used at full value, the state
Uses no equalization factor
432
The elderly homeowner who wants a large STAR property tax reduction must
Reapply every year
433
What are transitional tax assessment used for?
To close the gap between a tax assessment in the year of sale and the target assessment
434
In a cooperative, each apartment purchaser receives
Stock in a corporation
435
The habitation rules that govern all shareholders in a Cooperative are called
House rules
436
The income tax treatment for an owner of a cooperative apartment
Is about the same as for the owner of a single home
437
When an individual wants to purchase a unit in a cooperative, personal and financial information about the individual is submitted to the board of directors in what is called the
Board package
438
The organizing party in the formation of a cooperative is referred to as the
Sponsor
439
Which act is not allowed for the holder of unsold shares of a cooperative?
Residing in the unit
440
Unlike a cooperative a condominium typically does not
Have an underlining loan on the land and common elements
441
When a building is being converted to a condominium for public offering, the sponsor must file a proposal called a
Proclamation
442
Residence of a building who learned that the building they live in might be converted to condominiums have the opportunity to read about the conversion in the
Read hearing
443
Well government unit is responsible for approving public offers of condominiums in New York?
Attorney general
444
What is the major objective of condominium conversion restrictions?
Safeguarding the rights of tenants
445
A man heard that a developer is creating a condominium project in which she would like to live in. The man can express interest and make an offer for purchasing a unit in the project by using
A letter of intent
446
When the buyer purchased her cooperative apartment, she received financing from ABC thanks, which require the co-op board to sign a form acknowledging the banks lien interest in the buyers interest in the co-op shares. This form is called the
Recognition agreement
447
In a condop of the residential portion of the property is structured as
Co-op
448
The 80/20 rule that applies to co-ops restricts the level of
Passive income
449
Which event is an example of static risk?
A vandal causes extensive damage by breaking windows and spraying graffiti
450
Fire and hazard insurance policies can be extended to cover
Damage from wind storms
451
Business interrupition insurance covers
The loss of income
452
Excess liability coverage that provides coverage for those areas that would fall between the cracks with other policies is referred to as
Umbrella coverage
453
Casualty insurance policies are usually written on
On specific risks
454
Generally speaking insurance policies
Are not difficult to arrange
455
Prove to a lender that a property is covered by insurance is provided through
An insurance certificate
456
What would typically be the minimum insurance coverage required to an apartment building loan of $600,000?
$600,000 or greater
457
The two methods used to determine the amount of commercial claim our depreciated cash value of the damaged property and
Replacement cost
458
The most comprehensive homeowners insurance package is
HO-three
459
And insurance reserve is usually required on an acquired property when
Financing is arranged
460
A loss run schedule shows the history of a subjects
Previous claims
