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196 Cards in this Set
- Front
- Back
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Profit realized from the sale of any capital investment is
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Capital Gain
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Income earned through salary or business in which the tax payer materially participate is
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Active Income
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When all part of the consideration of real property is a transfer of like-kind it is
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A 1031 Exchange
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An income producing residential property may be depreciated for how long
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27.5 years
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An income producing commercial property maybe depreciated for how long
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39 years
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The first duty of a property manger is
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To submit a proposal. which is an offer of service
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The Management agreement creates what type of agency relationship
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General agency relationship
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The management report is
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a monthly accounting of funds received and disbursed
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Mortgage principal and interest is known as
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Debt service
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A Pro forma schedule analyzes a property's
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potential or lack of potential to earn a profit
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The return an investor expects to receive is known as
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Capitalization Rate
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The percentage of income per dollar that the investor actually receives back is
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Rate of Return
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The capitaliztion rate is used in which method of estimating the present value of an income-producing property according to appraisal report
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The Income Approach
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What are the 3 methods that maybe used in a appraisal report
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1. Cost approach
2. Sales comparison Approach 3. Income Approach |
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What are the advantages of investing in real estate
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1. cash flow
2. appreciation 3. Tax Shelter |
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A clause in a contract that can increase the cost of rent for various reasons in a lease
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an escalating Clause
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A clause in a contract that increase the cost of rent for operating expense is
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an expense stop clause
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The difference between the rentable and the useable area in commercial property is
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the loss factor
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An operating statement adjusted to show a change in income and expense is
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a pro forma statement or schedule
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A Pro forma statement analyzes
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a properties potential or lack of potential for profit
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Residential property owners who wish to appeal a decision made by the board of assessments review (BAR) will
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request a small claims assessment review a ( SCAR) hearing
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Commercial property owners who wish to appeal a decision made by the board of assessment review (BAR) will
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may only seek a tax certiorari proceeding
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A Legal proceeding against the property and not the individual
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a rem proceeding
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Information on how a property is taxed may be found where
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in the assessment roll
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A cooperative is characterized by
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1. Ownership evidence by share of stock
2. a proprietary lease |
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Lenders collateral for a coop loan
is |
1 Shares of stock
2. Proprietary lease |
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Rules that govern habitation in a cooperative are found in
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the House Rules
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The term for a mortgage that covers the real property in a cooperative building is
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the underlying mortgage
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The IRS Rule that allows the purchaser of a coop the same tax benefit condo is the
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the 80/20 rule
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Prudent investors in large scale projects conduct what type of study
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a feasibly study
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A study of how one factor may affect an investment is known as
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A sensitivity analysis
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A policy that include several types of insurance is
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Package or multiperil
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In NY what is a disclosure requirement by an insurance company
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a mandatory windstorm deductible
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Insurance that covers loss of income if a property can not produce income
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business interruption insurance
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Insurance that covers loss or damage to personal property
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contents on the actual cash value method
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What is the purpose of Taxation
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To fund the municipal budget
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what is the first step in determining the amt of taxes to place on property
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plan or settle on the budget
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What determines the tax rate
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the tax levy
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the term ad valorem means what
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according to value
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What is the tax rate
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the percentage of market value
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What must the tax rate provide for
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It must provide for the municipal budget
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Who determines the assessment
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the assessor determined the loa ( level of Assessment)
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Ny requires that properties be assessed at what value
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Uniform percentage value
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Reassessment may occur under the following circumstances
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a) when improvement are made to the property
B. On a regular basis established by statue C. When Bldg permits are filed and completed |
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What is a special assessment
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A lien against the property
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If a bank refuses to make loans based on race it is guilty of
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redlining
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Block Busting is an acceptable practice
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under no circumstances
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Channeling or directing buyers buy race is illegal this practice is also known as
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Steering
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The Civil Rights Act of 1866 prohibits discrimination based o
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Race NO Exceptions
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What law added Persons W/Disabilities and Familial Status as a protected class?
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the 1988 amendment to the fair housing Act.
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What federal regulatory agency oversee human rts complaints
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HUD ( Housing and urban Development)
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What is the function of the planning board
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to develop and implement a comprehensive master plan for the municipality
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Who can withhold a building permit
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the architectural review board
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How many elected members are their in the city council of NYC
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51 members
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In NYC the main elected govt body is
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The board of trustees.
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Insurance that covers negligence or body injury is
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Liability
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The Cost of replacing or reproducing a structure in the event of a total lost is
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insured value
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A study of how a change in one factor may effect an investment
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Sensitivity Analysis
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A prudent investor must statistically analyze all facets of the project before investing
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Feasibility study
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What is an appraisal
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an impatial estimate or opinion of value
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What federal regulatory agency oversee human rts complaints
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HUD ( Housing and urban Development)
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What is the function of the planning board
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to develop and implement a comprehensive master plan for the municipality
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Who can withhold a building permit
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the architectural review board
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How many elected members are their in the city council of NYC
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51 members
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In NYC the main elected govt body is
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The board of trustees.
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Insurance that covers negligence or body injury is
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Liability
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What federal regulatory agency oversee human rts complaints
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HUD ( Housing and urban Development)
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The Cost of replacing or reproducing a structure in the event of a total lost is
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insured value
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What is the function of the planning board
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to develop and implement a comprehensive master plan for the municipality
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Who can withhold a building permit
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the architectural review board
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A study of how a change in one factor may effect an investment
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Sensitivity Analysis
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How many elected members are their in the city council of NYC
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51 members
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A prudent investor must statistically analyze all facets of the project before investing
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Feasibility study
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In NYC the main elected govt body is
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The board of trustees.
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What is an appraisal
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an impartial estimate or opinion of value
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What federal regulatory agency oversee human rts complaints
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HUD ( Housing and urban Development)
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Insurance that covers negligence or body injury is
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Liability
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What is the function of the planning board
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to develop and implement a comprehensive master plan for the municipality
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The Cost of replacing or reproducing a structure in the event of a total lost is
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insured value
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Who can withhold a building permit
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the architectural review board
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A study of how a change in one factor may effect an investment
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Sensitivity Analysis
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How many elected members are their in the city council of NYC
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51 members
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A prudent investor must statistically analyze all facets of the project before investing
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Feasibility study
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In NYC the main elected govt body is
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The board of trustees.
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What is an appraisal
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an impatial estimate or opinion of value
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Insurance that covers negligence or body injury is
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Liability
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The Cost of replacing or reproducing a structure in the event of a total lost is
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insured value
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A study of how a change in one factor may effect an investment
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Sensitivity Analysis
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A prudent investor must statistically analyze all facets of the project before investing
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Feasibility study
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What is an appraisal
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an impatial estimate or opinion of value
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What must the tax rate provide for
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It must provide for the municipal budget
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Who determines the assessment
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the assessor determined the loa ( level of Assessment)
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Ny requires that properties be assessed at what value
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Uniform percentage value
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Reassessment may occur under the following circumstances
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A. When improvement are made to the property
B. On a regular basis established by statue C. When Bldg permits are filed and completed |
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What is a special assessment
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A lien against the property
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If a bank refuses to make loans based on race it is guilty of
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redlining
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Block Busting is an acceptable practice
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under no circumstances
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Channeling or directing buyers buy race is illegal this practice is also known as
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Steering
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The Civil Rights Act of 1866 prohibits discrimination based on
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Race NO Exceptions
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What law added Persons W/Disabilities and Familial Status as a protected class?
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the 1988 amendment to the fair housing Act.
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What federal regulatory agency oversee human rts complaints
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HUD ( Housing and urban Development)
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What is the function of the planning board
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to develop and implement a comprehensive master plan for the municipality
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Who can withhold a building permit
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the architectural review board
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How many elected members are their in the city council of NYC
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51 members
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In NYC the main elected govt body is
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The board of trustees.
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Insurance that covers negligence or body injury is
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Liability
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The Cost of replacing or reproducing a structure in the event of a total lost is
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insured value
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A study of how a change in one factor may effect an investment
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Sensitivity Analysis
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A prudent investor must statistically analyze all facets of the project before investing
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Feasibility study
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What is an appraisal
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an impartial estimate or opinion of value
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What are the three method or approaches to value use by an appraiser
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1 Sales Comparison Approach
2 cost approach 3 Income approach |
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A marketing too used by brokers and sales persons to gain a listing is called?
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CMA (Comparative Market Analysis) it is not an Appraisal.
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A CMA may include what information
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1. Recently sold property
2. Current property on the market 3. Recently expired listings |
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The Value of a property for tax purposes is it's
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Assessed Value
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The Value of the property based on a lender believes it will sell at foreclosure
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Mortgage Value
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Examples of homestead properties
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1. Residential
2 Mobile homes 3 Vacant lot not more than 10 acres 4. Farms |
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Examples of NON Homestead properties are
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1. Commercial
2. Industrial 3. special franchise 4. Utility property 5. some vacant land |
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A detailed architectural rendering is known as
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A blueprint
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A written narratives that explain the bldg plan is called
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bldg specifications
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Circuit breakers of fuses are located where
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The distribution panel
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A NY Law that requires the preparation of an environmental impact impact statement
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The State Environmental Quality Review Act (SEQRA)
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The regulatory agency that oversees safe drinking water
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the dept of health.
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Mortgage broker are licensed by which department
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The banking dept
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Mortgage brokers that represent the buyer & seller in the same transaction are
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Dual agents
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When the monthly payment does not cover the the accrued interest is said to have caused
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Negative Amoritization
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a form of temporary or short-term financing is known as
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Swing loan, Gap financing, interim financing
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Lender that target borrower with less than good credit are
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Sub prime lender
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NY laws define predatory lending as loans that are at what interest rate
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8 or more percentage points over the yield or comparable treasury notes
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In a residential mortgage misleading advertising of term & conditions are
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Prohibited by TILA ( Truth in Lending Act and regulation Z)
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What is in an area of land set aside by the government for a specific use called
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It is called a zone. For example, residential or commercial.
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Who does bldg codes provide for?
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Safety standards for construction and bldg material
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Which department issues bldg permits and Certificate of occupancy
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The bldg department
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permitted deviation from existing zoning rules are known as
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A variance
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When the present use of a property legally conflicts with present zoning it is
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Non con-forming use or grand fathered in
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a wrongful use of self help is illegal and is called
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Actual eviction
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When the tenant is prevented from quiet enjoyment of the premises
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constructive eviction
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What is a mortgage
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1. loan
2. lien 3. contract 4. financial product |
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Who give a mortgage
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the borrower
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Who is the mortgagor
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the borrower
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Who receives a mortgage
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Lender
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Who is the mortgagee
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lender
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the FHA program does what
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It insures the loan
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The VA programs does what
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It guarantees the loan
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What is a subordinate mortgage
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it is a Jr mortgage 2nd in position
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A blanket mortgage encumbers
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It encumber several parcels of real property
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What is an amortized mortgage
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It is liquidated with periodic payment of interest and principal sufficient to retire the debt
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As it concerns a contract an agreement on terms is called what?
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Offer and acceptance or meeting of the minds
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The legal remedy to remove a tenant for breach of contract is called
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Eviction
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To remove a tenant possessions w/o court intervention is called
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Actual eviction also know as wrongful use of self help
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An Action by a landlord that violates a tenants rights of the use of the premises is a
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Constructive Eviction
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A lease that has a base rent plus an additional % of gross sales rates is
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A percentage lease
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A lease for a fixed period of time
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estate for years
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a lease that automatically renews itself
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periodic estate
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A lease with an unknown period of time
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estate at will
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A tenant does not leave upon expiration of the lease
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Holdover Tenant
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When no one shall interrupt the tenancy or invade the premises w/o the tenants consent even the landlord
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Quiet Enjoyment
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A lawful removal of a tenant is
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Eviction
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The Words "remise" & "release" indicate what type of deed
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Quick claim deed
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What is Consideration
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Something of value
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land set aside for public use by the owner is called what?
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Dedication
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the cost of preparing a deed appears as
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A seller debt
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How are the boundaries of a property determined
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By completion of a survey
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In a residential federally financed property which law addresses the issue of cost
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RESPA (real Estate Settlement Procedure Act)
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In a residential federally financed property which laws addresses the terms & conditions
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TILA ( Trust In Lending Act)
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What is an expressed Contract
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A written or oral agreement
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What is an implied contract
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A contract created by your actions
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What is a bilateral contract
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A promise for a promise
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What is a unilateral contract
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one sided only
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The gradual build up of land in a water course over time by deposits of silt and gravel
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Accretion
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A loss of existing land caused by sudden change in a water course is
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Avulsion
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What is a Deed
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A deed is a conveyance
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What is a lien
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An encumbrance
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What is an easement
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an easement is a right of the way
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A right to take fruit from someone's property is called
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Profit
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Permission to do a particular act on someone's land is called
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license
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When a public utility Co. has the right to run power lines through your property it is called
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An easement in gross
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A property owner who receives a benefit from an easement is called
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The dominant tenement or dominant estate
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A property owner who must accept a burden is called what?
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The servient tenement or servient estate
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A structure or other object that crosses a boundary line is known as an
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an encroachment
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Ownership and control for someone's lifetime is
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A life estate. A life estate is non-inheritable
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What are the forms of Non-Freehold/Leasehold estate
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1. Estate for years: Fixed period of Time.
2. Periodic Estate: Automatically renews itself 3. Estate at Will:Unknown period of time 4. Estate A Sufferance: Hold Over Tenant |
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What is real Property
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Land plus permanent improvements as well as the rights of ownership.
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What is personal property
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Personal property is everything that is not permanently attached to the land. everything that is readily moveable
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What is an estate in land
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1. An Estate land is divided between freehold an non-freehold/leasehold
2. Freehold is ownership 3. Non-freehold is Leasehold (renting) |
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Ownership by 1 party only is?
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Ownership in severalty
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Ownership by 2 or more parties
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1. Joint Tenancy-rt of ownership
2. Tenancy in common- with rt of inheritance 3. Tenancy by the entirety- with automatic rt of survivorship. |
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Ownership by husband and wife is know as
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Tenancy by the entirety
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What are the four unities of ownership requires for joint tenancy
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1. Title
2. time 3. interest 4. possession |
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Dual agency allowable?
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Only with written informed consent & full disclosure. NY permits dual agency disclosure in advance as Jan. 01, 2011
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How is an agency relationship established
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When an agent is hired to act on another behalf
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What is the difference bet Client and customer
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1. Agent works for the Client, wkg with representation
2. agent works with Customer, wkg with assisting |
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Exclusive rt to sell listing a broker earn their commission
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However the property is sold
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A person hired to act on another's behalf is known as?
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An Agent
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An exclusive rt to sell listing creates what type of agency relationship
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Special Agency
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Property owner retains the RT to sell on their own, broker must sell or co-broke to earn commission
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Exclusive agency agreement is listed with one broker
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Broker earns commission however the property is sold
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An Exclusive rt to sell listing is listed with one broker
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