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100 Cards in this Set
- Front
- Back
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Which of the following statements about license laws is INCORRECT?
A. License laws are an exercise of the police power of the state. B. The purpose of the license laws is to protect the general public. C. Obtaining a license is a privelege, not an automatic right. D. The federal government establishes the license laws. |
D. The federal government establishes the license laws. |
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In New York, an individual may obtain a salesperson license at age:
A. 17 B. 18 C. 19 D. 21 |
B. 18 |
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A salesperson licensee may receive commissions from the:
A. cooperating broker B. buyer C. employing broker D. seller |
C. Employing broker |
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Which of the following does NOT apply to a salesperson's license? It:
A. is maintained in the custody of the broker with whom the salesperson is associated B. need not be prominently displayed ny the broker C. authorizes the salesperson to work under a broker, not to work independentely D. authorizes the salesperson to work in a reciprocal state without broker sponsership |
Authorizes the salesperson to work in a reciprocal state without broker sponsership. |
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Which of the following listing contracts gives the broker commission entitlement if anyone sells the property during the listing term?
A. Exclusive right to sell B. Open C. Exclusive agency D. Net |
A. Exclusive right to sell |
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A real estate salesperson advises a prospective buyer that the property the buyer is considering will be annexed into the city limits. This disclosure constitutes:
A. disloyalty to principal B. misrepresentation C. required disclosure to buyer D. violation of disclosure of information by agent |
C. Required disclosure to buyer |
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Knowing that his client, the owner, is eager to sell, the salesperson suggests that the prospective buyer make an offer of $210,000. Which of the follwoing statements is CORRECT?
A. The salesperson is violating his obligation as a special agent. B. Because the salesperson knows the owner is eager to sell, he is acting correctly. C. The salesperson is violating his obligations as a universal agent. D. The prospective buyer can be found guilty of conversation. |
A. The salesperson is violating his obligation as a special agent. |
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Within a ten-minute period, a salesperson receives two offers for a listed property. One is 2 percent less than the listed price, and the other offer is 6 percent less than the listed price. The salesperson should present to the seller:
A. neither offer B. both offers C. the highest offer D. the lowest offer |
B. both offers |
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In an independent contractor relationship, the salesperson is entitled to:
A. compensation related directly to sales output B. health benefits C. compensation based on hours worked D. paid vacations |
A. compensation related directly to sales output |
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According to the Real Property Law, a broker may:
A. not accept compensation from more than one party to a transaction B. accept compensation directly from a principal only C. not split commissions with brokers from other states D. accept compensation from more than one party to a transaction only with the full knowledge and consent of all parties to the transaction |
D. accept compensation from more than one party to a transaction only with the full knowledge and consent of all parties to the transaction |
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An agent is a:
A. client B. principal C. fiduciary D. contractor |
C. fiduciary |
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An owner lists his property with three brokerage firms. In each case, he retains the right to sell the property himself without being obligated to pay commission. The type of listing contract is called:
A. exclusive right to sell B. open C. multiple D. net |
B. open |
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A listing contract creates an agency relationship in which the:
A. broker is a general agent B. seller is the principal C. seller is the general agent D. broker is the principal |
B. seller is the principal |
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The type of listing that ensures the real estate agent a commission if the agent sells the property and no commission if the seller sells the property is called a(n):
A. net listing B. exclusive right to sell listing C. exclusive agency D. multiple listing |
C. exclusive agency |
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A real estate agent or a seller concealing a known defect is an example of:
A. positive misrepresentaion B. unintentional misrepresentation C. mutual mistake D. mistake of law |
A. positive misrepresention |
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When a real estate firm attempts to represent the buyer and the seller in the same transaction, what type of agency has arisen?
A. Single agency B. Dual agency C. Broker agency D. Seller agency |
B. Dual agency |
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According to the New York Real Property Law, listing agreements for one- to four- unit residential property must be accompanied by a(n):
A. agency disclosure form B.exclusive right to sell agreement C. payment of a partial fee or commission to the listing agent D. informed consent to dual agency form. |
A. agency disclosure form |
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the owner of a real property may NOT hold title as a(n):
A. tenant in common B. lessee C. owner in severalty D. joint tenant |
B. lessee |
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An estate created for the life of a person other than the life tenant is called a life estate:
A. in remainder B. pur autre vie C. by dower D. in reversion |
B. pur autre vie |
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Ursula owns property with dick and Judy. If Ursula dies, she plans to leave her ownership interest to her husband kyle. Ursula is a(n):
A. joint tenant B. tenant by the entirety C. tenant in common D. owner in severalty |
C. tenant in common |
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A piece of personal property that has become real property by permanent attachment is called a(n):
A. fixture B. trade fixture C. chattel D. encumbrance |
A. fixture |
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Which of the following statements is CORRECT? An:
A. easement and a lien are one and the same B. easement in gross has no servient tenement C. easement is a fixture to real estate D. appurtenant easement can be obtained by necessity |
D. appurtenant easement can be obtained by necessity |
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Of the following, liens that have the highest priority are:
A. real property tax liens B. judgement liens C. income tax liens D. mortgage liens |
A. real property tax liens |
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Which of the following provides the grantee with the greatest assurance of title?
A. Bargain and sale deed B. Deed or gift C. Full covenant and warranty deed D. Grant deed |
C. Full covenant and warranty deed |
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Which of the following is a benefit of recording a deed? It:
A. prevents any liens from being filed against the property B. protects the grantee against the grantee's creditors C. protects the grantee against future conveyances by the grantor D. makes a mortgage lien subordinate |
C. protects the grantee against future conveyances by the grantor
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Of the following types of deeds, which provides the grantee with the least assurance of title?
A. Bargain and sale B. Quitclaim C. Grant D. Full covenant and warranty |
B. Quitclaim |
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A buyer purchased a rental property and closed the transaction on July 20. On July 1, the tenant had paid $540 rent for the month of July. The rent should be shown as a:
A. debit to buyer of $180 B. debit to seller of $180 C. debit to seller of $360 D. credit to buyer of $360 |
$540 / 30 = $18 per day 10 days x $18 = $180; debit tp seller of $180 or B. |
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The amount of the earnest money deposit appears on closing statement as a:
A. credit to buyer B. debit to seller C. credit to seller D. debit to buyer |
A. credit to buyer |
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Which of the following is NOT provided by a lease?
A. Legal title to the property B. Equitable title to the property for the duration of the lease C. Exclusive right to possession and control of the property D. Quiet enjoyment of the property during the term of the lease |
A. Legal title to the property |
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Which clause in an offer to purchase protects buyers from losing their eanest money if financing is not obtained?
A. Habendum B. Contigency C. Defeasance D. Subordination |
B. Contingency |
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Sara seller is satisfied with all of the terms of an offer from Bill buyer to purchase her property except the date of possession, which she changes from April 9 to April 10. Which of the following is CORRECT?
A. Sara's acceptance creates a valid contract B. Sara cannot make a counteroffer C. the contract is void D. Sara has counteroffered Bill's offer |
D. Sara has counteroffered Bill's offer |
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A real estate salesperson who prepares a fill-in-the-blanks contract of sale can avoid the unlawful practice of law:
A. if he makes disclosure and obtains informed consent from all parties B. if he is a notary public C. by including in the contract a condition making the contract subject to approval by each party's attorney D. if he allows his broker to review the contract before the parties sign it |
C. by including in the contract a condition making the contract subject to approval by each party's attorney |
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Which of the following most accurately describes the main purpose of a mortgage? To:
A. secure the payment of a note B. convey a title to the trustee C. provide for quity of redemption D. prevent assumption |
A. secure the payment of a note |
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The acceleration clause in a mortgage provides for which of the following?
A. Equity of redemption B. Prepayment penalty C. Right of lender to require immediate payment of principal balance when the borrowe is in default D. Alienation by borrower |
C. |
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Which of the following liens has priority over mortgage foreclosure sale proceeds?
A. Mortgage lien B. Income tax lien C. Real property tax lien D. Mechanic's lien |
C. Real property tax lien |
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All About Mortgage Company encouraged Tim and Harriet to finance a $200,000 mortgage based on their acquisition of some valuable antiques. Neither of them has a job, and they have very limited savings. The lender's activity is an example of:
A. Good lending practices B. predatory lending C. chattel financing D. participation mortgaging |
B. predatory lending |
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The mortgagee is the:
A. lender B. borrower C. escrow agent D. purchaser |
A. lender |
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A mortgage that is subordinate to another mortgage is a:
A. first mortgage B. junior mortgage C. mortgage satisfaction D. negative amortization |
B. junior mortgage |
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A blanket mortgage usually contains which of the following?
A. Closed-end clause B. Release clauses C. Good faith estimate D. Due-on-sale clause |
B. Release clauses |
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Which of the following regulates the advertisement of credit terms available for a house offered for sale?
A. RESPA B. Fannie Mae C. Equal Credit Opportunity Act D. Regulation Z |
D. Regulation Z |
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Which of the following statements about zoning is correct?
A. Spot zoning is illegal in New York. B. If a nonconforming structure is destroyed, it may be replaced by another nonconforming structure. C. All nonconforming uses are illegal. D. A preexisting nonconforming use requires variance. |
A. Spot zoning is illegal in New York. |
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*Deed restrictions enforced by a suit for damages or by an injunction are:
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C. covenants
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*A property owner in a recently zoned are is permitted to continue to use his property in a way that does not comply with the zoning requirements. The use is described as: |
C. non conforming use
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The state takes part of an owners property for construction of a building. Which of he following statements about this event is CORRECT? The:
A. property owner must be compensated for the difference in market value of the property before and after the partial condemnation B. building to be constructed may be used for the sole use and benefit of a private corporation. C. property owner has no recourse to challenge the state's taking his property D. Value established is the average of the owner's desired value, the state's desired purchase price, and an independent appraisal. |
A. property owner must be compensated for the difference in market value of the property before and after the partial condemnation |
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*Guidelines for safe and sanitary well water are provided in New York by the: |
C. Department of Health |
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*The most important foundation building block is the: |
C. Footing
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*The most common type of framing in residential construction is: |
A. Platform framing
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*The amount of current or electricity that flows through a wire is: |
D. amperage |
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*Which of the following substances contain fibrous particles that can irritate the lungs? |
D. Asbestos |
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*The importance of the NYS Environmental Quality Review Act is that it provides: |
D. Environmental impact statements |
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The Residential Lead-Based Paint Hazard Reduction Act sets procedures in disclosing the presence of lead in: |
A. residential properties built before 1978 |
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A colorless, odorless gas that enters the home through surrounding soil and may cause lung cancer is: |
C. radon |
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Comparative market analyses are based on the premise that: |
C. many properties are similar in quality, location, and utility.
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An arm's length transaction implies: |
A. buyers and sellers who are not related to each other |
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The value of a property based on its utility to the owner or investor is: |
A. Value in use |
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Which appraisal approach to value is most similar to a comparative market analysis? |
D. Sales comparison approach |
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Inducing an owner to list property by telling the owner that people of a certain national origin are moving into the neighborhood is called: |
C. blockbusting |
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Which of the following does NOT cause exemptions to the Fair Housing Act of 1968 to be lost? Use of:
A. discriminatory advertising B. a broker C. a sign that says room for rent D. a REALTOR* |
C. A sign that says room for rent |
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Which of the following is NOT exempt under the NYS Human Rights Law? the:
A. sale of a single-family house by the owner B. rental of a duplex by an owner who resides in the other unit C. rental of rooms in a single-family house when the rental is made by an owner D. rental of apartments in a building exclusively to people 55 years and older |
A. sale of a single-family house by the owner |
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Redlining applies to which of the following:
A. Brokers B. Lenders C. Developers D. Landlords |
B. Lenders |
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Which of the following is NOT covered under NYS Human rights law?
A. Discrimination in the sale or rental of commercial space B. Age as protected class C. Military status as a protected class D. Citizenship status as a protected class |
D. Citizenship status as a protected class |
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*The Supreme Court case "Brown v. The Board of Education" was important because it: |
A. found that separate but equal facilities are unequal. |
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Miranda realized $70,000 for the sale of her house after paying off a $93,000 mortgage, a 10% commission, and $4000 in closing costs. What was the selling price of her home? |
B. $185,555.55 |
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Marcie wants to purchase a strip of beachfront property that measures 300 feet by 5,280 feet. How many acres is she considering? |
A. 36.36 |
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Katherine is proposing a 100-unit town house subdivision in the village of Colonie, New York. Who should Katherine consult first? |
C. Village board of trustees |
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The zoning board of appeals: |
B. grants variances |
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Architectural review boards CANNOT:
A. review building plans and specifications B. withhold approval of building permits C. approve new construction and remodeling following local zoning ordinances D. Approve new construction and remodeling following local zoning ordinances |
D. Approve new construction and remodeling following local zoning ordinances |
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Monica files a claim against Jesse because she tripped and fell on Jesse's property while visiting him. Which type of insurance should Jesse have to cover thing claim? |
C. Liability Insurance |
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A type of insurance policy that includes different types of coverage in one policy is a(n): |
B. package policy |
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New York insurers must provide a disclosure notice in homeowners policies for which deductible? |
D. Windstorm |
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Which of the following groups is NOT eligible for a real property tax exemption?
A. Senior citizens B. People with disabilities C. veterans D. students |
D. Students
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A tax bill is computed by multiplying the |
B. Assessed value by the tax rate |
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If a taxpayer is delinquent in paying property taxes, the taxing jurisdiction initiates a: |
C. Tax lien |
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Angelina's tax bill is $15,700, and her tax rate is 0.03578. What is the assessed value of her property (rounded)? |
A. $438,793 |
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An agreement that outlines the responsibilities between the cooperative corporation and a lender is a(n): |
D. recognition agreement |
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The only real property interest that shareholders have in a cooperative is a: |
B. leashold |
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In a new condominium development, the obligations of the sponsor are stated in the: |
D. offering plan |
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Lola lives in a cooperative, and often wars shorts when she waits for her friends in the lobby. The cooperative does not permit residents to wear shorts while sitting in the lobby. The prohibition is an example of: |
A. house rules |
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Alexander wants to tear down a wall between two of his bedrooms and make one larger bedroom in his cooperative apartment. What type of agreement must Alexander enter into with the cooperative? |
C. Alteration |
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A board package consists mostly of: |
B. Financial information |
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If the annual net income for a property $670,000 and the capitalization rate is 9%, which of the following is the estimate of property value (rounded)? |
D. $7,444,444 |
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A clause in a commercial lease that states that the landlord's lender and future owners of the building cannot terminate the lease as long as the tenant fulfills lease obligations is a(n): |
A. nondisturbance |
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A natural break-even point defines: |
C. When an investment in generate a positive return. |
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Lynne purchases a $2,500,000 multifamily apartment complex with a $600,000 down payment. Each month the cash flow from rentals, less expenses, is $20,000. Over a year's time, the cash-on-cash return would be: |
B. 40 percent |
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Patrick owns a six-unit building with a gross income of $175,000 per year. His expenses total $45,000. What is his net return or cash flow? |
D. $130,000 |
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A disadvantage of investment in land is that: |
C. Since there are no improvement on the land, the property cannot be depreciated for tax purposes. |
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The profit from income-producing property, less income taxes, is the property's: |
A. after-tax cash flow |
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Which of the following is TRUE?
A. The usable square footage is equal to the rentable square footage. B. The rentable square footage equals the entire space including the usable square footage. C. All of the rentable square footage in a space is generally usable. D. The property owner always charges rent only for the usable square footage.
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B. The rentable square footage equals the entire space including the usable square footage. |
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Retta, the property owner, pays a predetermined amount for property expenses. The tenant, Herbert, pays expenses above that amount. This is an example of a(n): |
D. Expense stop lease |
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When a leased space is sublet, who is responsible for the lease payment? |
A. Lesee |
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A lease states that if property taxes go up, the tenant is charged a proportionate share of the increase. This is an example of an: |
C. Subordination agreement |
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Which of the following is FALSE regarding tax depreciation?
A. It is a deductible allowance from the net income of a property for tax purposes. B. The property being depreciated actually may appreciate in value. C. It results from physical deterioration caused by normal use of property. D. It is an accounting concept.
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C. It results from physical deterioration caused by normal use of property. |
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Lanni and Mike are married and are in the 33 percent tax bracket. They sell their primary residence for a profit of $325,000. Which of the following is TRUE regarding the sale? They: |
D. Pay no capital gains tax |
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Abby wants to exchange her personal residence for a two-family income property and qualify the exchange for a tax-deferred 1031 exchange. Under what circumstances does this transaction qualify under IRS rules? It: |
A. Does not qualify |
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According to IRS rules, which of the following is not a deductible expense in connection with home purchase and improvement? |
D. Home improvement loan interest |
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Joseph is a mortgage broker who represents the buyers and also a real estate broker who represents the sellers in the same residential real estate transaction. Joseph is a |
B. Dual agent |
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A mortgage broker's license is issued by the New York: |
C. NYS department of financial services |
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Joyce is employed as a property manager for Lifetime Properties to manage one residential building. She receives a weekly salary. What kind of license does she require? |
A. No license |
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Expenses for week-to-week operations in a building are included in which type of budget? |
C. Operating |
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The accounting of all funds received and disbursed is included in the property manager's: |
D. Report |
