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491 Cards in this Set
- Front
- Back
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Question
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Answer
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1. From a management point of view, apartment building occupancy that reaches as high as 98 percent would tend to indicate that:
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rents should be raised.
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1. A house was purchased in 1950 for $4,500. The seller knows properties have appreciated and asks the broker to try to sell it for $100,000. The broker knows the value could be more than $200,000. The broker should
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tell the seller that the house is worth much more.
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1. A lender's willingness to fund a loan is known as a
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mortgage commitment.
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1. A listing contract may be ended as the result of performance of the object , which means the
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property has been sold.
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1. An add-on factor is sometimes used to represent each tenant's proportionate share of
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common area maintenance charges.
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1. Bob Broker was excited to hear that super salesperson Sally is moving to town. In attempting to recruit Sally to work for him as an independent contractor, what can Bob legally say?
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"My salespeople have earned above market for six months."
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1. CERCLA and SARA are federal laws establishing
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liability for past environmental contamination.
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1. Consideration in a deed refers to
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something of value given by each party.
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1. Eliminating radon from a house is generally
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a fairly simple matter.
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1. Last summer Douglas Maloof sold his home in Schenectady to the Auerbachs for $160,000. The Auerbachs assumed his existing mortgage in the amount of $76,578. State transfer tax on the sale came to approximately
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$334.00.
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1. Negative amortization refers to a situation in which the
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debt grows larger instead of smaller each month.
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1. Salesperson Davis was listing the Johnsons' house. Mr. Johnson informed Davis that he would not sell to a member of a particular religious sect. Davis should
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refuse the listing and discuss the situation with his broker.
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1. Subdivision laws for cities and towns in New York MUST conform to
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Article 9-A of New York's Real Property Law.
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1. The buyer of a $96,000 property is offered a mortgage with 10 percent down and a loan origination fee of 1.5 percent. Disregarding other possible closing costs, how much cash must the buyer produce to complete the transaction?
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$10,896
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1. The members of the board of directors can control who occupies the cooperative because
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the board approves or disapproves prospective purchasers of the leases.
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1. The purchaser of real estate under an installment contract
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is called a vendee.
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1. The right to run a power line across the back of someone's property is an example of an easemen
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in gross.
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1. Unless otherwise indicated in the lease, if a tenant dies, the lease
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remains in effect.
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1. What is the annual school tax on a property that is valued at $135,000 and assessed for tax purposes at $47,250 with an equalization factor of 125 percent when the tax rate is 25 mills?
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$1,476.56
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1. Which feature of a property is an example of functional obsolescence?
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Inadequate electrical current to run an air conditioner
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1. Which is a type of foundation?
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Pier-and-beam
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1. Why should I pay more when I can buy almost the same house new for less?" is an example of the principle of
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substitution.
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1.A lot measuring 120' x 200' is selling for $300 a front foot. What is its price?
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$36,000
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1.An apartment information vendor's license is available to individuals who are able to
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maintain a $5,000 interest-bearing escrow account.
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1.What would typically be the minimum insurance coverage required on an apartment building loan of $600,000?
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$600,000 or greater
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1.When Maria Morgan purchased her cooperative apartment, she received financing from ABC bank, which required the co-op board to sign a form acknowledging the bank's lien interest in Mary's interest in the co-op shares. This form is called the:
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recognition agreement.
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10. A break-even point is likely to be included in a
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percentage lease.
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10. A homeowner who is dissatisfied with assessed valuation can take a complaint to
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Any of the above
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10. A lending institution may not refuse to make a residential real estate loan simply because of the
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location of the property.
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10. A lending institution may require that the buyer send in an extra monthly payment to cover future bills for
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property taxes and insurance premiums.
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10. A residential transaction is defined as any transaction involving the sale or lease of four or fewer units
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intended for dwelling.
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10. A specific parcel of real estate has a market value of $180,000 and is assessed for tax purposes at 25 percent of market value. The tax rate for the county in which the property is located is 30 mills. The tax will be:
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$1,350.00
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10. An independent contractor is generally
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paid commissions on sales.
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10. An R-value refers to
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resistance to heat transfer.
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10. Analysis of a mortgage loan application occurs in a process referred to as
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underwriting.
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10. CERCLA established the
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Superfund.
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10. Even if a proposed transaction does not go through, the broker sometimes may collect a commission if the
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seller simply backs out.
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10. In the office, a broker must display
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all brokers' licenses.
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10. New York State's mortgage tax on one- or two-family residences is
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based on the size of the mortgage loan.
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10. The Duffys are buying a house for $120,000 and seek a fixed-rate loan of $90,000 for 25 years. One lender offers them a 10 percent loan with no points, with monthly payments of $817.85. A second lender requires two points for a 9½ percent loan, with monthly payments of $786.35. If the Duffys decide to pay the points and take the lower-interest loan, how long will it take before the savings on their lower payments have made up for that extra cost at closing?
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Four years, nine months
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10. The Goodhues will not drop the asking price on their house because "it's already priced below market value." Their agent needs to explain that
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if nobody comes forward to offer that sum, by definition it can't be market value.
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10. The grantee receives greatest protection with what type of deed?
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Warranty
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10. The sales contract says Timothy Jones will purchase only if his wife flies up to New York and approves the sale by the following Saturday. Mrs. Jones's approval is a
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contingency.
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10. The six basic categories of real property are residential, commercial, industrial, agricultural, special purpose, and
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mixed use.
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10. What is the maximum percentage of their income that participants in the FHA's Section 8 program may pay in rent?
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30%
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10. When the Cratchetts failed to pay for Tim's orthopedic surgery, Dr. Welby obtained a money judgment, which, upon docketing, becomes a lien against the Cratchetts'
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real property, including all of the above.
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10. Which form of income on an investment property is considered passive income?
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Rents paid by commercial tenants
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10. Which is a qualification for mortgage banker licensing?
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Net worth of not less than $250,000
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10. Which municipal agency is responsible for approving applications for signage and facades on nonresidential property?
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Architectural review board
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10. With a triple-net lease, the tenant pays
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everything but the mortgage.
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10.Proof to a lender that a property is covered by insurance is provided through a(n)
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insurance certificate.
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10.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:
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board package.
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11. A contract for the sale of real estate that does not state the consideration to be paid for the property would be
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void.
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11. A developer obtains one mortgage for a whole subdivision. As he sells each lot, he obtains a release of one parcel from the
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blanket mortgage.
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11. Bert Evans is a fully qualified appraiser. As such, he
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estimates value.
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11. Broker Susan represents Murphy as a buyer's agent. She wants to show Murphy property a seller has listed with her. If broker Susan shows Murphy the property, she
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should first get the informed, written consent of both buyer and seller to act as a dual agent.
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11. Earnest money left on deposit with the broker or lawyer is a
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credit to the buyer.
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11. n a frame or wooden skeleton, studs rest on
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sole plates.
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11. Private land-use controls include
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deed restrictions.
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11. Sick building syndrome (SBS)
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subsides when the occupant leaves the building.
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11. The amount of an ad valorem tax is:
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determined by the property’s value.
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11. The DHCR's special unit for helping owners with registration, bookkeeping, and record keeping is aimed at apartment buildings with fewer than:
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50 units.
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11. The landlord MUST furnish a lead paint information booklet to tenants
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in any building constructed before 1978.
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11. The LEAST acceptable legal method for identifying property is
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the street address.
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11. The Salvatinis' residence has proved difficult to sell. Salesperson Martha Kelley suggests it might sell faster if they enclose a portion of the backyard with a privacy fence. If the area to be enclosed is as illustrated, how much would the fence cost at $6.95 per linear foot?
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$1,615.88
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11. The tax world for investment property establishes the tax consequences resulting from a property's income operations, which establish a property's
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book value.
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11. To successfully sue a broker for misrepresentation, the buyer must be able to prove that
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the buyer was damaged from relying on the truth of the statement.
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11. What is the cost recovery period for commercial investment property?
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39 years
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11. When Miriam Enton sells her farm, which of the following will NOT be a part of the real estate?
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Farm equipment
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11. Which act is permitted under the federal Fair Housing Act?
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Refusing to make a mortgage loan to an individual with a poor credit history
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11. Which is NOT a characteristic of mortgage bankers?
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Offer checking accounts
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11. Which meets a requirement for a broker's license in New York State?
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Two years' experience as a licensed salesperson
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11.Contractor Hammond was hired to build a room addition to the Elkins' home. Hammond completed the work several weeks ago but still has not been paid. In this situation, Hammond is entitled to a mechanic's lien, which will be a
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specific lien.
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11.The organizing party in the formation of a cooperative is referred to as the:
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sponsor.
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11.The two methods used to determine the amount of a commercial claim are depreciated cash value of the damaged property and
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replacement cost.
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12. A community needs to build a new fire station to protect one neighborhood. To raise adequate funds, it is going to raise funds through taxation referred to as a(n)
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special assessment.
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12. A party wall
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straddles a boundary line.
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12. A property manager may be reimbursed with:
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a percentage of rentals.
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12. A savings and loan institution offers a mortgage plan with an 80 percent LTV ratio. On the purchase of a property appraised at $150,000, how much down payment will be required?
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$30,000
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12. A seller who wishes to cancel a listing agreement in New York
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may be held liable for money and time expended by the broker.
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12. Asbestos has been widely used for
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insulation.
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12. Ben Roberts failed to make payments on his mortgage, and the borrower asked the court to hold a public sale. If Ben wants to retain the property, how long does he have to redeem it by paying all the moneys that are due?
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Until the moment of the sale
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12. Fixed expenses are expenses that do not vary as a result of a property's
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occupancy rate.
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12. It is essential that every deed be signed by the
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grantor.
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12. Long-term gains are gains that result from a sale in which the property was held for
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one year or more.
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12. Real property is often referred to as a bundle of legal rights. Among these is the right of
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exclusion.
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12. Susan Johnson, a Manhattan resident, purchases farmland in Clinton County as an investment. The deed she receives should
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be recorded in Clinton County.
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12. The agency disclosure form must be presented, explained, and signed
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at the first substantive contact.
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12. The buyer is assuming the seller's mortgage. The unpaid balance after the most recent payment (the first of the month) was $61,550. Interest is paid in arrears each month at 13 percent per annum. The sale is to be closed on September 22; what is the amount of mortgage interest proration to be credited to the buyer at the closing?
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$488.97
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12. The Foxes offer in writing to purchase a house for $140,000, drapes included, with the offer to expire Saturday at noon. The Wolfs reply in writing on Thursday, accepting $140,000 but excluding the drapes. On Friday while the Foxes are considering this counteroffer, the Wolfs decide to accept the original offer, drapes included, and state that in writing. At this point, the Foxes
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are not bound to buy and can forget the whole thing.
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12. The legal process to remove a tenant who remains in possession of leased premises after expiration of the lease is known as a(n)
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holdover proceeding.
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12. The Mortensens are worried about possible problems with the Victorian home they have fallen in love with. Before their purchase contract becomes firm, they may want to consult a
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licensed home inspector.
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12. The single most important factor in estimating the value of real property is its
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location.
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12. What are transitional tax assessments used for?
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To close the gap between a tax assessment in the year of sale and the target assessment
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12. What size cash deposit must a real estate broker report to the IRS?
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$10,000
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12. Which would NOT be permitted under the federal Fair Housing Act?
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A no-pets policy, evenly applied, refuses rental to the owner of a guide dog.
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12.Fire and hazard insurance policies can be extended to cover
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damage from windstorms.
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12.In a cooperative, each apartment purchaser receives:
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stock in a corporation.
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13. A buyer's broker is told by the buyer that he had filed for bankruptcy the year before. The buyer's broker
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must discuss the buyer's finances with the seller honestly.
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13. A ground lease is usually
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long term.
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13. A new-home buyer receives a warranty of six years' protection against
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structural defects.
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13. Cooperating brokers MUST inform the listing agent if they are acting as agents or subagents of other parties, because these relationships impact the listing agent's
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disclosure of information.
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13. If a real estate sales contract does not state that time is of the essence and the stipulated date of transfer comes and goes without a closing, the contract is then
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still valid.
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13. In a sale of residential property, real estate taxes for the current calendar year amounted to $975 and have already been paid by the seller. The sale is to be closed on October 26; what is the amount of real estate proration to be credited the seller?
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$173.33
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13. Man-made, permanent additions to land are called
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improvements.
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13. Owners of older homes MUST advise prospective buyers or tenants about possible hazards of
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lead paint.
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13. Property manager Frieda Jacobs hires Albert Weston as the full-time janitor for one of the buildings she manages. While repairing a faucet in one of the apartments, Weston steals a television. Jacobs could protect the owner against liability for this type of loss by purchasing
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a surety bond.
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13. The Fly-by-Night Mortgage Company makes it a practice not to lend money on any inner-city property. This practice is known as
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redlining.
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13. The issuance of a building permit is likely to trigger
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reassessment of the subject property.
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13. The lien with first claim against real estate is
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the property tax.
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13. The RESPA Uniform Settlement Statement must be used for
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residential transactions financed by federally related loans.
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13. The Unler family is paying 3 points on a $350,000 mortgage loan. What is their dollar cost for this charge?
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$10,500
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13. The Williamses are purchasing a lakefront summer home in a new resort development. The house is completely equipped and furnished, and the Williamses have obtained a loan that covers all the personal as well as the real property. This kind of financing is called a(n)
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package mortgage.
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13. Title to property transfers at the moment a deed is
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delivered and accepted.
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13. Tom Swift, a New York resident, needs a real estate license to
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accept a TV from a grateful neighbor for whom he arranged a home equity loan.
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13. Tom Wills is asked to estimate the market value of a church. He will give most emphasis to which appraisal approach?
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Cost
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13. What is meant by the term friendly foreclosure ?
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Lender accepts a deed from the borrower.
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13. Which item is subtracted from net operating income when calculating income taxes on investment property?
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Annual depreciation
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13.Bob Brown heard that developer Sam is creating a condominium project in which he would like to live. Bob can express interest and make an offer for purchasing a unit in the project by using a(n):
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letter of intent.
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14. "I hear they're moving in; there goes the neighborhood. Better sell to me today!" is an example of
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blockbusting.
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14. A broker hired by an owner to sell a parcel of real estate MUST comply with
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the law of agency.
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14. A declaration before a notary or other official providing evidence that a signature is genuine is an
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acknowledgment.
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14. A percolation test
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is used before a septic tank is installed.
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14. An estimation and projection of how much net operating income will be available through a property's income and expenses activities in any future periods is the investor's
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pro forma statement
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14. An example of an arm's-length transaction is one between
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two strangers.
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14. Fred and Celia Tomkins are building a deck off their kitchen. A dealer has just unloaded a truckload of lumber onto their driveway. At this point, the lumber is considered
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14. Happy Morgan receives a monthly salary of $500 plus 3 percent commission on all of his listings that sell and 2½ percent on all his sales. None of the listings that Morgan took sold last month, but he received $3,675 in salary and commission. What was the value of the property Morgan sold?
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$127,000
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14. If a tenant falls three months behind in rent payments, a landlord may
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start a court suit for possession.
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14. In a dual agency relationship, the parties give up their right to
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undivided loyalty.
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14. 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?
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80%
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14. In the absence of rent regulations, the amount of rent charged is determined by the:
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principle of supply and demand.
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14. The consumer has the right to change his or her mind and rescind the transaction within three days after a
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refinance mortgage.
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14. The primary mortgage loan market includes institutions that
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make loans to borrowers.
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14. The terms index, margin , and cap are used in evaluating what type of mortgage?
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Adjustable-rate
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14. What is the educational course requirement for a real estate salesperson's license?
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75 hours
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14. Which characteristic is considered when grading lumber?
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Moisture content
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14. Which is considered a lien on real estate?
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An unpaid mortgage loan
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14. Which item is NOT one of the primary conditions that must be met for the government to exercise eminent domain?
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The proposed use must be approved by referendum of local voters.
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14. With regard to income-producing property, cost recovery is another term for
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depreciation.
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14.The habitation rules that govern all shareholders in a cooperative are called:
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house rules.
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15. A gross lease is MOST LIKELY to be used for rental of
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an apartment.
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15. According to the plat map in the following figure, on the plat, how many lots have easements?
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Four
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15. April wants to buy a home from June, but April must sell her own home. June has not received any other offers, so she is willing to accept April's offer but wants the contract to include a clause that lets her out of the agreement if another seller comes forward. The contingency June needs is referred to as a(an)
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escape clause.
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15. Borrowers allow mortgage loan lenders to place liens against their property in a process referred to as
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hypothecation.
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15. If a principal broker loses her license, her associated salespersons must immediately
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stop listing and selling.
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15. immunity , the owner must not have had either actual or constructive knowledge of the damage and, at the time of purchasing the property, must have
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shown due care to determine that the property was not damaged.
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15. In New York, a deed conveying property to a married couple, such as to "Frank Peters and Marcia Peters, husband and wife," creates a
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tenancy by the entirety.
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15. Jim Chard was not paid for roofing the Hills' ranch home. How long does he have to file a mechanic's lien?
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Four months
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15. Leah 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?
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Interest and points paid during the year
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15. 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
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debt service.
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15. The appraiser who works for a number of different clients is known as a(n)
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fee appraiser.
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15. The Department of Housing and Urban Development insures mortgage loans made through
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the FHA.
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15. The Ithaca housewife who refuses to rent rooms to any students is in violation of
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no law.
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15. The purpose of a building permit is to
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provide evidence of compliance with municipal regulations.
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15. The requirement to have flood insurance is related to the property's location and
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federal participation in the mortgage loan.
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15. The salesperson who sincerely tries to represent both buyer and seller is practicing
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dual agency.
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15. What is the minimum lease term that must be offered to tenants in mobile home parks?
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One year
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15. Which is described as a 1-1/2 story house?
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Cape Cod
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15.What is the major objective of condominium conversion restrictions?
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Safeguarding the rights of tenants
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16. A borrower obtains a 30-year mortgage loan for $176,000 at 7½ percent interest. If monthly payments of $1,230.62 are credited first to interest and then to principal, what will be his principal balance after the first payment is made?
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$175,869.38
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16. A contractor must give the customer a written contract in advance of any work when home improvement goods and services will cost more than
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$500.00
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16. A lease is considered to be
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a nonfreehold estate.
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16. An abstractor inspects the county records for documents affecting title and then
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writes a brief history of the title.
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16. Diana Fairhaven buys a new ranch house for $178,000 and borrows $150,000 on a mortgage loan. The state's mortgage tax is $0.50 per $100 for the first $10,000 borrowed on a one- or two-family residence, and $0.75 per $100 on the remainder. How much will Diana owe in mortgage tax at closing?
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$1,100
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16. Fannie Mae is
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the leading purchaser of mortgages on the secondary market.
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16. From the reproduction or replacement cost of the building, an appraiser deducts depreciation, which represents
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loss of value due to any cause.
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16. In New York, real estate licenses are issued by the
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Department of State.
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16. In some parts of New York, brokers record the essential terms of a real estate sales contract in a document called a(n)
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memorandum of sale.
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16. 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 property's:
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effective gross income.
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16. Office rentals usually are figured by the:
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square foot.
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16. Ownership of real property by one person is called ownership in
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severalty.
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16. Rayburn's neighbor, Jones, regularly uses Rayburn's driveway to reach his garage on his property. Jones has an easement over Rayburn's driveway. Rayburn's property is properly called
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the servient estate.
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16. than zoning laws allow on his street. To receive a permit for a nonconforming use, Blake must prove that the
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house has been used that way every year since before the zoning ordinance was adopted.
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16. The developer of Spring Lake subdivision turned property over to the local government for road and sidewalks through the process called
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dedication.
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16. The only defense against an accusation of illegal discrimination is proof that it
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didn't occur.
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16. When retained by the buyer, the broker owes a prospective seller
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honest, straightforward treatment.
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17. Broker Bob does not think the seller will seriously consider an offer he received for 20 percent less than the listing price. Bob should
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submit the offer to the seller.
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|
|
17. Failure to meet obligations of a mortgage results in
|
default.
|
|
|
17. Land and beaches washed away due to a four-day nor’easter with its gale- and hurricane-force winds are examples of land lost through
|
avulsion.
|
|
|
17. Sally Sellright works on a 50/50 commission split with her broker. If she lists a house at $156,000 for 6 percent commission and sells it for $154,000, how much will Sally receive?
|
$4,620
|
|
|
17. The Duncan and Hill decision recommended that New York State brokers and salespersons protect themselves against
|
charges of unauthorized practice of law.
|
|
|
17. The fine for a first violation of the federal Fair Housing Act could be as much as
|
$10,000.00
|
|
|
17. The grantor of real estate may place effective deed restrictions forbidding
|
division of the parcel into small building lots.
|
|
|
17. The initials CPM stand for:
|
Certified Property Manager.
|
|
|
17. The term reconciliation refers to which of the following?
|
Analyzing the results obtained by the three approaches to value to determine a final estimate of value
|
|
|
17. The vertical parts of a house frame are called
|
studs.
|
|
|
17. To obtain a broker's license, you must reach the age of
|
20 years
|
|
|
17. Unlike a C corporation, an S corporation has
|
only a limited number of shareholders.
|
|
|
17. Which is NOT acceptable proof of title?
|
Deed signed by the last seller
|
|
|
17. Which lien usually would be given highest priority?
|
The current real estate tax
|
|
|
17. Why is a wraparound mortgage ALWAYS in the second-lien position?
|
The first mortgage is retained.
|
|
|
17. Willie James agrees to rent his upstairs apartment to Dana Gibson from month to month. To end the arrangement, Willie MUST
|
give at least one month's notice from a day before the rent is due.
|
|
|
18 inches.
|
|
|
|
18. A deed restriction requires 250 feet of road frontage per lot. The town building code requires only 100 feet, and a builder constructs two houses on his 250-foot lot. The neighbors may
|
ask the court to order one house torn down.
|
|
|
18. A house was purchased by Howard Evers and Tinker Chance. Evers paid one-third of the cost, and Chance paid the balance. The seller's deed conveyed the property "to Howard Evers and Tinker Chance" without further explanation. Evers and Chance are
|
tenants in common, with equal shares.
|
|
|
18. A meeting of the minds occurs when the
|
buyer and seller agree on the price and terms of the sale.
|
|
|
18. A nonresident broker seeking a New York license must
|
file a consent form allowing himself or herself to be sued in New York State.
|
|
|
18. In New York, a tenant usually may sublet an apartment if the
|
lease does not prohibit it.
|
|
|
18. In what way does the IRS become involved in purchase-money mortgages?
|
The IRS monitors the interest rate charged by the seller.
|
|
|
18. Laura Secord told her buyers, when they first looked at her house, that she intended to remove her grandmother's antique chandelier. It was not mentioned in the contract. Now they are suing her. A judge is likely to say that
|
the chandelier should remain because of the rule of parol evidence.
|
|
|
18. Nick and Olga Stravinski bought their home on Sabre Lane a year ago for $98,500. Property in their neighborhood is said to be increasing in value at a rate of 5 percent annually. If this is true, what is the current market value of the Stravinskis' real estate?
|
$103,425
|
|
|
18. The expression arm's-length transaction is defined as a transaction between
|
relative strangers.
|
|
|
18. three acres in the Catskills, where she keeps a boat; and a house in North Carolina. If one of her creditors sues her in Manhattan and obtains a judgment, that judgment may be recorded as a lien against the
|
condo and cabin.
|
|
|
18. Under federal law, no exceptions apply when rental discrimination is based on
|
race.
|
|
|
18. When someone dies leaving no will and no natural heirs, his or her property goes to
|
the state of New York.
|
|
|
18. Which is NOT among a lender's main interests at closing?
|
That property value will keep pace with inflation
|
|
|
18. While her tenants are at work, Laura Landlady may enter their apartment:
|
in case of fire.
|
|
|
18. With some exceptions, a homeowner may take as an income tax deduction any cost for
|
interest on a mortgage.
|
|
|
19. A court found Debbie Barnes 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.
|
|
|
19. A mortgage broker generally
|
brings borrower and lender together.
|
|
|
19. An acronym to help remember the fiduciary duties of a broker is
|
CC-LOAD.
|
|
|
19. Borrowers often use open-end mortgages to
|
finance home improvements.
|
|
|
19. Last year Maureen O'Brien gave a house in Watertown, valued at $110,000, to her son Richard. Richard assumed an existing $30,000 mortgage on the property. Transfer tax due on the gift w
|
$0.00
|
|
|
19. Rhonda buys a summer cottage that has a mechanic's lien against it, placed by the workman who was not paid by the former owner, Jim, for constructing a dock. The lien now
|
remains as a claim against the property.
|
|
|
19. The Department of State has revoked Ted Toller's license for fraud. Which is TRUE?
|
Toller may appeal the revocation.
|
|
|
19. The income approach to appraisal is most appropriate for a(n)
|
apartment house.
|
|
|
19. The Mortensons bought a 1,300-square-foot cooperative apartment on the Upper West Side of Manhattan for $425,000, which was $15,000 less than the listed price. How much did the apartment cost per square foot?
|
$327
|
|
|
19. The New York State Navigation Law is concerned with
|
environmental cleanups.
|
|
|
19. Under the statute of frauds, any contract for the sale of real estate must be
|
in writing.
|
|
|
19. When a building is to be constructed above land owned by another, the builder purchases the landowner's
|
air rights.
|
|
|
2. A broker may require a salesperson who is an independent contractor to
|
comply with Article 12-A of Real Property Law.
|
|
|
2. A seller's broker must disclose to a prospective buyer that the
|
heating system works well.
|
|
|
2. An option to purchase binds
|
the seller only.
|
|
|
2. Ben Jones, owner of a farm in Steuben County, may find that an oil company wants to lease his
|
subsurface rights.
|
|
|
2. Dan Hill asks 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 ten-foot setback. He is asking for a
|
use variance.
|
|
|
2. Harold Barlow is curious to know how much money his son and daughter-in-law still owe on their predatory mortgage loan. Barlow knows that the interest portion of their last monthly payment was $391.42. If the Barlows are paying interest at the rate of 11½ percent, what was the outstanding balance of their loan before that last payment was made?
|
$40,843.83
|
|
|
2. he difference between the usable area and the rentable area of commercial property is referred to as the
|
loss factor.
|
|
|
2. Historic areas and landmarks preservation districts primarily restrict owners' rights to alter a building's
|
exterior.
|
|
|
2. If a property's annual net income is $37,500 and it is valued at $300,000, what is its capitalization rate?
|
12.50%
|
|
|
2. In which situation would a payoff statement be requested before a closing?
|
The buyer is not assuming the seller's mortgage, and the seller's mortgage will be paid off at closing.
|
|
|
2. Jane Miller's apartment lease agreement states that it will expire on April 30, 2008. When must her landlord give notice that her tenancy is to terminate?
|
No notice is required.
|
|
|
2. Outside New York City, rent stabilization applies in those communities that have adopted the:
|
ETPA.
|
|
|
2. Sidewalk repairs in one area of the town of Brighton will be paid for through a(n):
|
special assessment.
|
|
|
2. Sloping roof supports are called
|
rafters.
|
|
|
2. The farmer who allowed promoters to run the Woodstock rock festival on his land granted them a(n)
|
license.
|
|
|
2. The federal government regulates farm and residential fuel storage tanks when capacity reaches
|
1,100 gallons.
|
|
|
2. The mathematical formula that lenders use to consider an applicant's potential monthly payment compared to the applicant's income is called a(n)
|
qualifying ratio.
|
|
|
2. The Scotts' new home cost $150,000, and they borrowed $135,000 on a mortgage loan, paying $15,000 in cash as a down payment. That $15,000 now represents their
|
equity.
|
|
|
2. 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
|
|
|
2. Unlike a mortgage broker , a mortgage banker
|
originates loans.
|
|
|
2. 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.
|
|
|
2. Which cost to a property owner is considered a capital improvement?
|
Addition of an attached garage
|
|
|
2. Which element of a real estate transaction is seldom included in the deed?
|
Full dollar amount
|
|
|
2.Excess liability coverage that provides coverage for those areas that would "fall between the cracks" with other policies is referred to as:
|
umbrella coverage.
|
|
|
2.Generally, real estate licenses are good for a period of
|
two years.
|
|
|
2.Unlike a cooperative, a condominium typically does NOT
|
have an underlying loan on the land and common elements.
|
|
|
20. A five-acre lot has front footage of 300 feet. How deep is it?
|
726 feet
|
|
|
20. A homeowner's neighbor plans to file a suit against the homeowner because of a boundary dispute. When the neighbor learns that the property is for sale, which will she and her attorney use to protect her interest?
|
Lis pendens
|
|
|
20. A real estate broker must keep all documents for the DOS pertaining to a real estate transaction on file for how long?
|
Three years
|
|
|
20. Failure to fulfill one's obligations under a contract is called a
|
default.
|
|
|
20. In the spirit of cooperation, broker Bob approached two other community brokers and recommended that they set standard fee schedules and commission rates. Bob's recommendation is
|
illegal under any circumstances.
|
|
|
20. Regulation Z protects the consumer from
|
misleading advertising.
|
|
|
20. Special-purpose real estate includes
|
churches.
|
|
|
20. The broker who suggests only predominantly white areas to a white couple when there are others in their price range is guilty of
|
steering.
|
|
|
20. 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.
|
|
|
20. The seller collected June rent of $800 from the tenant in the upstairs apartment. At the closing on June 15
|
credit buyer $400; debit seller $400.
|
|
|
20. The term laches refers to
|
loss of a right if it isn't exercised in time.
|
|
|
21. A broker must have completed how many hours of prescribed study?
|
120
|
|
|
21. A syndicate formed to carry out a single business project for a limited time is commonly known as a
|
joint venture.
|
|
|
21. Riley's commission on a sale was $14,100, which was 6 percent of the sales price. What was the sales price?
|
$235,000.00
|
|
|
21. The federal Fair Housing Amendments of 1988 added which of the following as new protected classes?
|
Handicap and familial status
|
|
|
21. The term external obsolescence refers to
|
problems beyond the property line.
|
|
|
21. Tim has changed his mind and will not be purchasing Bob’s house. Bob’s only compensation for Tim’s failure to live up to the contract is retaining the earnest money deposit. The earnest money is known as
|
liquidated damages.
|
|
|
21. When the Cratchetts pay off their doctor's judgment, they should
|
record a satisfaction certificate.
|
|
|
21. Which item is usually NOT adjusted between buyer and seller?
|
Recording charges
|
|
|
22. A buyer signed an offer to purchase a property for $10,000 less than the asking price and deposited $5,000 with the broker. The owner cannot be reached to tell him of the signed document. At this point, the document is a(n)
|
offer.
|
|
|
22. Any two parcels of real estate
|
can never be the same.
|
|
|
22. John Walton received a net amount of $74,000 from the sale of his house after paying $1,200 in legal and other fees and 6 percent sales commission. What was the selling price of the house?
|
$80,000
|
|
|
22. Real estate license laws were instituted to
|
protect the public and maintain high standards.
|
|
|
22. RESPA expressly prohibits the payment of kickbacks, which are
|
unearned fees.
|
|
|
22. Which statement applies equally to joint tenants and tenants by the entireties?
|
The survivor becomes complete owner.
|
|
|
23. A lending institution will allow its borrowers to spend 28 percent of their income for housing expense. What will be the maximum monthly payment allowed for a family with annual income of $57,000 and no other debts?
|
$1,330
|
|
|
23. An artificial person created by legal means is known as a
|
corporation.
|
|
|
23. Any business name used by a New York real estate broker must
|
be approved by the DOS.
|
|
|
23. Markus Barnes drives into a filling station and tops off his gas tank. He is obligated to pay for the fuel through what kind of contract?
|
Implied
|
|
|
23. Real estate markets tend to be
|
local in character.
|
|
|
23. Which phrase BEST describes the role of the closing statement?
|
Reconciliation of each party's financial obligations
|
|
|
24. A real estate license is temporarily suspended or permanently cancelled if a licensee is found to be untrustworthy or
|
incompetent.
|
|
|
24. An example of external obsolescence might be a
|
used-car lot next door.
|
|
|
24. 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.
|
|
|
24. The DeHavilands' home on Dove Street is valued at $95,000. Property in their area is assessed at 60 percent of its value, and the local tax rate is $28.50 per thousand. What is the amount of the DeHavilands' monthly taxes?
|
$135.38
|
|
|
24. The principle of caveat emptor states that if the purchaser buys a faulty title, responsibility for the problem lies with the
|
buyer.
|
|
|
24. When Sally opened her hair salon, she installed three shampoo basins, four large plate-glass mirrors, and custom workstation counters. Just before the expiration of the lease, she has the right to remove
|
all of the items mentioned above.
|
|
|
25. Joan, who has no real estate license, canvasses homeowners by phone to see if they are interested in selling their homes. Shanice, who is licensed, gives Joan $25 for every lead she turns up. Does this violate license law?
|
Yes, because Shanice is paying compensation for services that require licensure.
|
|
|
25. John and Mary Alessi owned a small apartment house by the entirety. Mary had a will leaving half her estate to John and half to her daughter Susan. After Mary was killed in an automobile accident, Susan owned how much of the apartment house?
|
None
|
|
|
25. The calendar year's taxes amount to $1,800 and were paid ahead on January 1. If closing is set for June 15, which is TRUE ?
|
Credit seller $975; debit buyer $975
|
|
|
25. The Sterns receive two offers for their property at the same time. The Avilas offer $95,000 in cash. The Browns offer $100,000 subject to obtaining a conventional mortgage loan with 20 percent down payment and ask the Sterns to pay three points to their lending institution. The Sterns decide to accept the all-cash offer. If they had accepted the Browns' offer instead, they would have received
|
$2,600 more at closing.
|
|
|
25. When a purchaser plans to use an FHA or VA loan, a rider on the sales contract states that the contract may be voided if the property
|
is not appraised for at least the sales price.
|
|
|
26. A 100-acre farm is divided into house lots. The streets require one-eighth of the whole farm, and there are 140 lots. How many square feet are there in each lot?
|
27,225
|
|
|
26. If the broker holds the buyer's earnest money in a separate trust account, when does the seller usually receive it?
|
When the property is actually transferred
|
|
|
26. Julia inherited her cousin's 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 cousin's son. The cousin's son is a
|
Remainderman.
|
|
|
27. A buyer is applying for an FHA mortgage on a house priced at $108,000. The maximum loan-to-value ratio is 97.75. What is the minimum down payment?
|
$2,430
|
|
|
27. A title insurance policy is in force for the whole period of ownership and is paid for
|
once.
|
|
|
27. The condop form of property ownership developed from the
|
developers' interest in retaining commercial spaces.
|
|
|
27.5 years
|
|
|
|
28. Susan Silber signed an agreement to purchase a condominium apartment from Perry and Marie Morris. The contract stipulated that the Morrises replace the damaged bedroom carpet. The carpet Silber has chosen costs $16.95 per square yard plus $2.50 per square yard for installation. If the bedroom dimensions are as illustrated, how much will the Morrises have to pay for the job?
|
$277.16
|
|
|
28. The definition of land includes
|
the airspace above the surface.
|
|
|
28. The terms basic , broad , and comprehensive describe types of
|
homeowners' insurance.
|
|
|
29 years
|
|
|
|
29. A 30-year fixed-rate amortized mortgage for $100,000 at 11 percent interest requires monthly payments of $952.34 for principal and interest. What is the total amount of interest paid on this loan during the life of the mortgage?
|
$242,842.40
|
|
|
29. The booklet " Settlement Costs and You " must be distributed by
|
mortgage lenders.
|
|
|
29.The most complete ownership recognized by law is a(n)
|
fee simple estate.
|
|
|
3 units.
|
|
|
|
3. invested in a property equally with his brother. Ebenezer claimed that he should be entitled to 80 percent of the profits when the property was sold because he was the older brother. How is 80 percent expressed as a reduced fraction?
|
4/5
|
|
|
3. A bargain and sale deed with covenant against grantor's acts is commonly used
|
by executors.
|
|
|
3. A duly licensed salesperson may accept a bonus from
|
None of the above
|
|
|
3. A mortgage reduction certificate is issued by a(n)
|
lending institution.
|
|
|
3. A seller reserves the right to conduct his or her own sale without compensating the exclusive agent in an
|
exclusive-agency listing.
|
|
|
3. A suit for specific performance of a real estate contract asks for
|
a forced sale or purchase.
|
|
|
3. An employee is legally required to receive
|
unemployment insurance.
|
|
|
3. Before demolishing an engineer's equipment shed on its property, Acme Manufacturing MUST obtain a demolition permit from the local
|
buildings department.
|
|
|
3. Chuck Richie owns a vacation home on a lake. How many days can Chuck lease this home to friends before the IRS views it as income-producing property?
|
14 days
|
|
|
3. Doctor Spock 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.
|
|
|
3. Documents indicating past uses of the subject property are examined in which phase of an environmental audit?
|
Phase I
|
|
|
3. For a real estate investor, the use of borrowed funds is referred to as
|
leverage.
|
|
|
3. Heat from outside air is utilized through a
|
heat pump.
|
|
|
3. In New York districts where assessments are used at full-value, the state:
|
uses no equalization factor.
|
|
|
3. Jim's mechanic's lien will remain against the property for at least
|
one year.
|
|
|
3. Market value and cost are often equal when property
|
was recently constructed.
|
|
|
3. People who purchase stock in order to live in cooperatives
|
receive proprietary leases for their apartments.
|
|
|
3. Rent regulations in New York State are administered by the:
|
New York Department of Housing and Community Renewal (DHCR).
|
|
|
3. The Civil Rights Act of 1866 prohibits discrimination on the basis of
|
race or color.
|
|
|
3. The relationship between broker and seller is generally a(n)
|
special agency.
|
|
|
3. Unlike FHA loans, VA loans
|
can provide 100 percent financing.
|
|
|
3. What are the two categories of mortgage loan financing?
|
Debt financing and equity financing
|
|
|
3. When property is mortgaged, the property owner must sign both a mortgage and a(n)
|
note.
|
|
|
3.A loss run schedule shows the history of a subject's
|
previous claims.
|
|
|
3.In a condop, the residential portion of the property is structured as
|
a co-op.
|
|
|
3.Mary Withers sells her six-unit apartment building in Queens to George Brown. Now
|
Mary must turn over security deposits to George.
|
|
|
30. A specific tract of land is known as a
|
parcel.
|
|
|
30. Daryl is purchasing a home from Jamie 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 required the survey?
|
Daryl's lender
|
|
|
30. Hal, Olive, Ron, and Marvin pooled their savings and purchased a vacation home for $125,000. If Hal invested $30,000 and Olive and Ron each contributed $35,000, what percentage of ownership was left for Marvin?
|
20%
|
|
|
31. Dudley Donnelly's monthly mortgage payment for principal and interest is $628.12. His property taxes are $1,800 a year, and his annual insurance premium is $365. What is his total monthly payment for PITI (principal, interest, taxes, and insurance)?
|
$808.54
|
|
|
4. A broker is entitled to collect a commission from both the seller and the buyer when
|
both parties know about and agree to such a transaction.
|
|
|
4. A broker who lists a property on the broker's Web site should remove the listing from the for-sale section of the site
|
when a sale occurs.
|
|
|
4. A house is valued at $198,000. It is to be insured for 80 percent of its cost. Insurance will cost $6 per $1,000. What is the annual insurance premium?
|
$950.40
|
|
|
4. A monthly PITI payment is composed of money for
|
principal, interest, property taxes, and insurance.
|
|
|
4. A Phase I environmental assessment is common before purchasing a
|
commercial property.
|
|
|
4. A salesperson need NOT be
|
already experienced in real estate.
|
|
|
4. Barbara, Mary, and Veronica own a farm as tenants in common. Barbara needs cash for a start-up business, but Mary and Veronica refuse to sell the farm. Can Barbara find legal remedy for liquidating her portion of the land?
|
Yes, Barbara can file a suit to partition the land to end the co-ownership.
|
|
|
4. Cap insulation, which has the greatest payback in lowered fuel bills, is found
|
under the attic floor.
|
|
|
4. During the statutory period of redemption, New York property sold for delinquent taxes may be redeemed by:
|
paying back taxes, penalties, and interest.
|
|
|
4. Equity financing is the use of borrowed funds to help the borrower
|
fulfill down payment requirements.
|
|
|
4. Eric buys a vacation cottage whose previous owner had an easement appurtenant for access to the lake across a neighbor's land. If Eric wants to reach the lake, he must
|
simply go ahead and use the crossing.
|
|
|
4. First-time homebuyers who participate in Sonny Mae (SONYMA) loans receive loans made through
|
local lending institutions.
|
|
|
4. If Tom Flock buys a new home in the Buffalo subdivision known as Vista Ridge, his land probably bears a legal description based on
|
the recorded plat of subdivision.
|
|
|
4. In New York State, the most effective way to protest a high property tax assessment is to
|
show that neighboring similar property is assessed at lower figures.
|
|
|
4. Long-term ground leases are used when the land for a project
|
cannot be purchased.
|
|
|
4. Martin Tones buys a local factory from a company that intends to remain and rent it from him. Martin has put together a
|
sale-and-leaseback.
|
|
|
4. Refusing an apartment to a couple because they are unmarried violates
|
the New York Executive Law.
|
|
|
4. The landlord has failed to make necessary repairs to the heating system when it failed New Years Eve. Under these circumstances, the tenant may terminate the lease through
|
constructive eviction.
|
|
|
4. The principle of value that states that two adjacent parcels of land combined into one larger parcel may have a greater value than the two parcels' value separately is called
|
plottage.
|
|
|
4. 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
|
boards of trustees.
|
|
|
4. 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
|
|
|
4. Whether a licensee is an independent contractor or an employee, the broker must
|
obtain the individual's Social Security number.
|
|
|
4.A primary residence is the location where, prior to the sale, the taxpayer has resided for at least
|
two of the previous five years.
|
|
|
4.Rent control regulations are found mainly around the:
|
New York City area.
|
|
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4.Residents of a building who learn that the building they live in might be converted to condominiums have the opportunity to read about the conversion in the
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red herring.
|
|
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4.The most comprehensive homeowners' insurance package is
|
HO-3.
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|
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5. A fully qualified broker who chooses to act as a salesperson under another broker's sponsorship is licensed as a(n)
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associate broker.
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|
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5. A rectangular lot measures 60 feet wide and has an area of 1,200 square yards. What is the depth of the lot?
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180 feet
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5. A registered mortgage broker in New York is able to place, negotiate, solicit, and
|
process mortgage loans.
|
|
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5. A shared driveway agreement will probably take the form of a(n)
|
easement appurtenant.
|
|
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5. An in rem foreclosure proceeds against the:
|
property.
|
|
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5. An instrument affecting title to a parcel of real estate gives constructive notice to the world when filed with the
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county clerk.
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5. Arthur signs a deed to Michelle as grantee, has it acknowledged, and receives payment from her. Arthur arranges to meet Michelle the next morning at the courthouse to give the deed to her. Michelle will own the property
|
the next morning when she receives the deed.
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|
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5. Bill and Maria want to buy a home together. A mortgage application is likely to be denied, though, if they
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have low credit scores due to late credit card payments.
|
|
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5. Celeste 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 the additional 10 percent early withdrawal penalty?
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$10,000
|
|
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5. Drywall is also known as
|
plasterboard.
|
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5. George signed a 120-day listing with Bay Realty. After 60 days, George decided not to sell. He told Bay Realty he no longer wanted them to market his house. When is the agency of Bay Realty terminated?
|
On the 61st day
|
|
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5. Highest and best use of real estate is defined as the use that produces the most
|
money.
|
|
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5. In New York, the dollar per square foot base rent charged on a property is expressed as a(n)
|
annual basis.
|
|
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5. In order for the Friendly Foods Café to be built in a fast-growing industrial park zoned for industrial use, it must obtain a
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special-use permit.
|
|
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5. Mold grows in environments that are
|
moist.
|
|
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5. New York's usury limits do NOT apply to interest on mortgage loans made by
|
sellers.
|
|
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5. Property that is part of the commercial market includes
|
office buildings for lease.
|
|
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5. Salesperson Sally agreed to meet buyer Bill at a home listed by Sally's broker. Sally must provide Bill with an agency disclosure
|
prior to entering the property.
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|
|
5. Selling a home "as is" does NOT relieve a seller from defects to the property that affect the value when
|
known to the seller.
|
|
|
5. The right of escheat allows New York State to acquire land
|
when someone dies without leaving a will or natural heirs.
|
|
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5. The salesperson who joins a real estate company as an independent contractor will probably have to pay for his own
|
hospitalization insurance.
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|
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5. The seller who requests prohibited discrimination in the showing of a home should be told,
|
All of the above
|
|
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5. Tracy Peters agrees to rent her upstairs apartment to Beverly Ashton for the next six months. Beverly has a(n)
|
estate for years.
|
|
|
5. Which should NOT be a consideration in selecting a tenant?
|
The racial and ethnic backgrounds of the tenant
|
|
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5.Which act is not allowed for the holder of unsold shares of a cooperative?
|
Residing in the unit
|
|
|
5.Which event is an example of static risk?
|
A vandal causes extensive damage by breaking windows and spraying graffiti.
|
|
|
550 gallons.
|
|
|
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6. A good precaution against even unconscious discrimination is
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All of the above
|
|
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6. A mortgage broker determines a prospective borrower's creditworthiness and ability to repay a loan in a process called
|
preapproval.
|
|
|
6. A notary's acknowledgment of the signature on a deed is necessary
|
for the deed to be recorded.
|
|
|
6. An example of a latent defect would be a
|
malfunctioning septic tank.
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|
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6. Andrew McTavish leases the 12 apartments in the Overton Arms for a total monthly rental of $4,500. If this figure represents an 8 percent annual return on McTavish's investment, what was the original cost of the property?
|
$675,000
|
|
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6. Barbara Barnes 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.
|
|
|
6. Deed restrictions are created by a
|
seller.
|
|
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6. expenses, variable expenses, and
|
reserves for replacements.
|
|
|
6. Many building codes required that center spacing for studs on a one-story house not exceed
|
24 inches.
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|
|
6. Market value is BEST defined as the
|
most likely price obtainable on the open market.
|
|
|
6. Michael Page is using a $150,000 inheritance to purchase a home valued at $600,000, borrowing the remaining funds from a local thrift. What is the loan-to-value ratio on Michael's loan?
|
75%
|
|
|
6. Miles Frederick is building an addition on his home to accommodate his elderly parents. The architect's plans require the external wall to be built one foot closer to the public sidewalk than allowed in zoning rules. In order to build according to these plans, Frederick must obtain a
|
variance.
|
|
|
6. Salesperson Jackson told the telephone company to print the following ad under Real Estate in the Yellow Pages: Alissia Jackson, Licensed Salesperson, Residential Property a Specialty, 473-4973. She should have included her
|
broker's name.
|
|
|
6. Terrence says to Jim, "I'll let you rent my attic apartment for $500 a month until the first of the year." Jim agrees. The agreement
|
constitutes a binding lease.
|
|
|
6. The building inspector who is satisfied that construction is satisfactory may issue a
|
certificate of occupancy.
|
|
|
6. The elderly homeowner who wants a large STaR property tax reduction must:
|
reapply every year.
|
|
|
6. The IRS 80/20 rule concerns
|
acceptable limits on the passive income of cooperatives.
|
|
|
6. Unlike nonconventional loans, conventional loans are
|
arranged entirely between the borrower and lending institution.
|
|
|
6. Unlike salespersons who are employees, independent contractors
|
take self-employment income tax deductions.
|
|
|
6. What is the name for the cash deposit offered when making an offer to purchase real estate?
|
Earnest money deposit
|
|
|
6. When a broker takes a listing, all salespeople who work for the broker are:
|
agents for the broker and subagents for the seller.
|
|
|
6. Which insurance insures the property owner against the claims of employees injured on the job?
|
Workers' compensation
|
|
|
6. Which is a hazardous gas?
|
Radon
|
|
|
6. Which phrase is used when describing the property that is exchanged in a 1031 exchange?
|
Like-kind
|
|
|
6.Business interruption insurance covers
|
the loss of income.
|
|
|
6.The income tax treatment for an owner of a cooperative apartment:
|
is about the same as for the owner of a single home.
|
|
|
7. A listing may be terminated when either broker or principal
|
goes bankrupt.
|
|
|
7. A Utica landlord refused to rent to anyone on public assistance and thereby violated
|
no law.
|
|
|
7. According to the plat map in the following map, which lot has the most frontage on Manassas Lane?
|
Lot 7, Block A
|
|
|
7. After a real estate contract has been signed, the buyer might withdraw legally and transfer his or her contractual rights to a third party through
|
assignment.
|
|
|
7. Beverly has owned her New York home for two years. She just came into a windfall and wants to prepay her mortgage. Will Beverly have to pay a prepayment penalty?
|
No, because no penalty may be charged if the loan is older than one year
|
|
|
7. Dana Fox owns land along the Mohawk River and, as the owner, has certain
|
riparian rights.
|
|
|
7. Don Houseknecht lists his house with Bob Broker. Don offers a bonus commission of $500 to the agent who brings a good buyer before December. Sally Salesperson, who is associated with the cooperating firm of Orville Otherbroker, effects the sale on November 1. Sally may collect that bonus from
|
Orville.
|
|
|
7. Donna Majors sold David Berel a parcel of real estate; title has passed, but to date Berel has not paid the purchase price in full as originally agreed. If Majors does not receive payment, which could she use to enforce the payment?
|
Vendor's lien
|
|
|
7. Fannie Mae's purpose is to
|
buy loans.
|
|
|
7. If a salesperson is an independent contractor, he or she is entitled to
|
supervision and guidance.
|
|
|
7. In the final analysis, selling price for real estate is set by the
|
buying public.
|
|
|
7. Ms. Doran manufactures knitwear in 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.
|
|
|
7. New York State charges a transfer tax of $2 per $500 sales price or fraction thereof when real property is sold. The Currens listed their home for $200,000 and accepted an offer for $198,600 from Mr. and Mrs. Darcy, who obtained a mortgage loan for $160,000. How much did the Currens pay in transfer tax?
|
$794.40
|
|
|
7. Porter's wage is a form of
|
lease escalation
|
|
|
7. Sheathing is found on the outside
|
walls.
|
|
|
7. The broker has the most incentive to market the property with a(n)
|
exclusive-right-to-sell listing.
|
|
|
7. The buyers are assuming an old mortgage loan that had a principal balance of $27,496 as of June 1. Interest is at 12 percent, payable in arrears. The June payment has not been made, and closing is on June 15. Which is TRUE as to the interest adjustment?
|
Credit buyer $412.44; debit seller $412.44
|
|
|
7. The three primary events in investment property ownership are acquisition, holding period, and
|
reversion.
|
|
|
7. The true tax on a property is the:
|
tax before exemptions are subtracted.
|
|
|
7. When the original tenant dies or moves out, a rent-controlled apartment may become eligible for
|
rent stabilization.
|
|
|
7. When the Thruway was constructed, the route ran through the Adams' farm. Mr. Adams refused to sell the necessary land. The state then used its right of eminent domain through a court proceeding known as
|
condemnation.
|
|
|
7. Which is a potential polluter of drinking water?
|
Pesticides
|
|
|
7. Which property would be taxed at a nonhomestead rate in New York?
|
Lewis Wellhausen's foreign auto repair garage
|
|
|
7. Which property would most likely involve mezzanine financing?
|
Regional shopping center
|
|
|
7.Casualty insurance policies are usually written
|
on specific risks.
|
|
|
7.What government unit is responsible for approving public offerings of condominiums in New York?
|
Attorney General
|
|
|
8. 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
|
|
|
8. A tenant's lease has expired. The tenant has neither left nor negotiated a renewal lease, and the landlord has said she does not want the tenant to remain. The tenancy is called a(n)
|
tenancy at sufferance.
|
|
|
8. Asbestos should be removed by a
|
certified professional
|
|
|
8. Broker Sally Smith of Happy Valley Realty recently sold Jack and Jill Hawkins' home for $79,500. Smith charged the Hawkins' 6½ percent commission and will pay 30 percent of that amount to the listing salesperson and 25 percent to the selling salesperson. What amount of commission will the listing salesperson receive from the sale?
|
$1,550.25
|
|
|
8. City council members in both New York City and Syracuse are
|
subject to term limits.
|
|
|
8. Commissions usually are earned when
|
the seller accepts the buyer's offer without conditions.
|
|
|
8. Derrick Smith, who is 17 years old, signs a contract to buy a home for himself. The contract is
|
voidable.
|
|
|
8. house they bought from a builder in 1954. She finds tax stamps on their old deed totaling $22.55. She can conclude that they paid roughly
|
$20,500.00
|
|
|
8. How many years of previous tax returns do lenders require of loan applicants when underwriting loans?
|
Two
|
|
|
8. How often should the contract between the broker and the independent contractor salesperson be renewed?
|
Every 15 months
|
|
|
8. If property is held by two or more owners as tenants in common, on the death of one owner, the ownership of his or her share will pass to the
|
heirs or whoever is designated under the deceased owner's will.
|
|
|
8. In a single agency agreement in which a broker represents a seller, the
|
seller is the client.
|
|
|
8. John Reilly sells his home for $200,000 and agrees to pay three points to his buyer's lending institution. The buyer is putting 20 percent down on the property. How much will the points cost John?
|
$4,800
|
|
|
8. Miss Muffet's Greek Revival home is located in a historic preservation district. She probably cannot change
|
the exterior of the building.
|
|
|
8. Mrs. Townsend is advertising for a tenant for the other half of her home. Which of these ads would violate human rights law?
|
No children
|
|
|
8. New York does NOT allow special tax exemptions to:
|
recipients of public aid.
|
|
|
8. Someone who dies without leaving a will is said to have died
|
intestate.
|
|
|
8. The amount of money that the Taxpayer Relief Act allows taxpayers to exclude from the gain realized on the sale of a primary residence is based on whether the taxpayer files as single or as married filing jointly. This rule is commonly referred to as the
|
$250,000/$500,000 rule.
|
|
|
8. The term commingling pertains to
|
mixing the broker's funds with escrow deposits.
|
|
|
8. To establish an easement by prescription in New York, a person must use another's property for an uninterrupted period of
|
10 years.
|
|
|
8. Which event demonstrates capital risk in the ownership of an apartment building?
|
Rising interest rates make it impossible for an owner to secure an affordable loan.
|
|
|
8. With which mortgage could negative amortization occur?
|
Adjustable-rate interest-only
|
|
|
8. Written directions that tell the builder what materials to use or what construction technique to follow are known as
|
specifications.
|
|
|
8. You are appraising the house at 23 Oak. The house recently sold at 54 Oak is similar but has a fireplace. What use do you make of the value of the fireplace?
|
Subtract it
|
|
|
8.An insurance policy that provides only one area of coverage is known as a(n)
|
monoline policy
|
|
|
8.When a building is being converted to a condominium for public offering, the sponsor MUST file a proposal called a:
|
declaration.
|
|
|
9. A contract is said to be bilateral if
|
all parties to the contract are bound to act.
|
|
|
9. A landlord will only accept a rent payment from the party that is named in the lease section called
|
attornment.
|
|
|
9. A piece of stone, steel, or wood used to span a door opening and support the wall above is called the
|
lintel.
|
|
|
9. A telephone company runs its poles and wires with the rights granted by an easement
|
in gross.
|
|
|
9. After December 2008, the continuing education requirement for license renewal of home inspectors in New York will
|
require more hours.
|
|
|
9. An automatic renewal clause in a lease
|
requires notice from the landlord calling the tenants' attention to the clause.
|
|
|
9. If a real estate salesperson wanted to know the tax assessment for a specific property in a town, he or she would consult the town's
|
assessment roll.
|
|
|
9. In New York, zoning powers are given to
|
municipal governments.
|
|
|
9. In traditional residential mortgage lending, what percent of the purchase price must be provided as a down payment?
|
20%
|
|
|
9. Joe Brown sold his old 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
|
|
|
9. Must a manager allow modifications of the premises to accommodate a handicapped tenant who offers to pay for the work?
|
Yes, but the tenant must return the premises to its original condition on leaving
|
|
|
9. Private mortgage insurance (PMI) is usually required whenever the
|
conventional LTV ratio exceeds 80 percent
|
|
|
9. Seller Ed's willingness to accept buyer Betty's offer for a lot on Hill Street only if Betty will purchase homeowners' insurance from Ed's insurance brokerage is an example of
|
a tie-in arrangement.
|
|
|
9. The broker whose associates are independent contractors may still insist that they
|
sign a written contract for services.
|
|
|
9. The Fitzpatricks are planning to construct a patio in their backyard. An illustration of the surface area to be paved appears here. If the cement is to be poured as a six-inch slab, how many cubic feet of cement will be poured into this patio?
|
195 cubic feet
|
|
|
9. The sales comparison approach to appraisal utilizes
|
recent sales prices of similar parcels.
|
|
|
9. Undercover investigations to see whether fair housing practices are being followed are sometimes made by
|
testers.
|
|
|
9. Vicarious liability means being responsible for
|
the acts of another.
|
|
|
9. When Norm and his wife bought a farm from her parents, they received only a quitclaim deed. This was most likely because
|
that's the type often used for in-family transactions.
|
|
|
9. When real estate is assessed for tax purposes:
|
the homeowner may appeal to a local board of review.
|
|
|
9. When recording a deed in New York City, an affidavit must be provided to show that the house has
|
a working smoke alarm.
|
|
|
9. When the Tomkins' deck is completed, the lumber will be considered
|
real estate.
|
|
|
9. When Tiny Tim buys his house, Old Scrooge allows affordable monthly mortgage payments of interest only over ten years' basis so that Tim can handle them. At the end of the tenth year, however, Scrooge wants the whole remaining debt paid off in a
|
balloon payment.
|
|
|
9. Which precaution is aimed at preventing termites?
|
Keep untreated wood from touching soil
|
|
|
9.An insurance reserve is usually required on an acquired property when
|
financing is arranged.
|
|
|
9.The 80/20 rule that applies to co-ops restricts the level of:
|
passive income.
|
