NY Practice Exam

How long does a claimant have to file a complaint based on Title VIII with the HUD Office of Equal Opportunity?

1 year

A salesperson found guilty of a violation of the license law may be punishable by which?

1 year in jail and a fine of up to $1,000

In New York, a mortgage broker must disclose a business relationship with a lender unless he submits loan applications to more than ____ lenders?

3

For VA loans, how much of the borrower's income can be debt?

41%

1 acre is equal to how many square feet...?

43,560

1 mile is how many feet?

5280 feet

A section of land contains which of the following?

640 acres

Ben and his mother owned her property. When his mother dies, the property would automatically revert back to Ben. What type of life estate was this?

A conventional life estate lasts as long as a specified person lives. There is no such thing as a family life estate. Dower and curtesy do not exist in New York State.

A borrower pays off his loan. However, the lender refuses to cancel the mortgage. Which of the following clauses of a mortgage has the lender violated?

A defeasance clause states that when the loan is paid, the mortgage is void.

What rights go with the sale of property?

Appurtenances are rights that go with the property, such as easements, littoral, or riparian rights.

What law creates an automatic lien on a commercial property, subject to the listing agreement?

Broker lien law: an automatic lien attaches to the commercial property to secure the payment of the broker's commission.

What law was enacted because of the Love Canal disaster of 1978?

Comprehensive Environmental Review, Compensation and Liability Act occurred after the Love Canal Disaster of 1978, where several property owners suffered from the dumping of contaminated waste by factory owners and other businesses, near the Love Canal in western New York. The Federal Government created CERCLA to hold responsible parties accountable for their acts.

Article 9B of New York State's Real Property Law is also known as the

Condominium Act, governing the establishment of condominiums.

When the appraiser looks at the home Sandy has just purchased, he notices it has a fireplace and the comparable homes do not. He makes a $3,000 upward adjustment on his sales comparison approach worksheet. The $3,000 adjustment is based on what appraisal principle?

Contribution: This is the amount the fireplace contributes to the value.

Which of the following is NOT part of the secondary market?

Federal Universal Mortgage Association

All of the following are examples of specific liens EXCEPT

Judgment liens are general; they can attach to any property a debtor owns.

Which statement about square footage is FALSE?

Net square feet is typically used to calculate base rent. (Rentable square feet, also called gross square feet, is the number typically used for calculating base rent.)

Requiring lenders to limit their escrow funds falls under what federal law?

RESPA has a specific section of the law for lenders who take too much escrow money from borrowers to earn interest for themselves, not the borrower.

requires mortgage issuers, credit card companies and other lenders to provide written disclosure of important credit terms, such as interest rate and other financing charges, abstain from certain unfair practices and to respond to borrower complaints about errors in periodic billings.

Regulation Z

Under New York State Department of State law regarding independent contractor relationships, which one deals with how the broker must keep his business records?

Section 175.23

What are the ownership criteria for IRS Code: Section 121 regarding capital gains?

Taxpayers must owner occupy the property for two of the last five years prior to sale.

Which government body oversees the percolation rate test and grants the permit for its construction?

The County Board of Health

What type of policy would a tenant living in an apartment purchase?

The HO-4 form provides coverage for a tenant's personal property, but not on the structure.

Who regulates the offering plan for condominiums and cooperatives?

The State Attorney General's office regulates and reviews all plans for the development of a condominium association or cooperative.

Which secondary mortgage market funds the SONYMA loan?

The State of New York Mortgage Agency (SONYMA) is funded by the sale of tax-exempt bonds.

Which of the following closing fees would be specific to the purchase of a co-op?

The UCC-3 filing fee refers to co-op transfers only. The fee is paid by the seller. "UCC" stands for the Uniform Commercial Code, the laws written for chattel transactions.

The mortgagor is who?

The borrower

designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.

Truth-in-lending

What is the body of law that governs negotiable instruments?

UCC: Uniform Commercial Code

Septic Tank requirements are based on the number of bedrooms in a house and

a soil percolation test.

Who would most likely enter into a gross lease?

apartment tenant: the tenant would pay the rent and none of the landlord's costs.

Jay's proposed building was eight feet shy of the set-back requirement. Jay went to the town to ask for a(n)

area variance

Happy Haircutters decided to move its beauty salon across town. Its lease had not yet expired, so it found a new tenant to occupy the space and the landlord allowed the new tenant to take over all responsibilities of the former tenant. This was done through

assignment.

From an investment standpoint it is usually the best idea, based on the theory of progression and recession, to buy the

cheapest house on the block.

For a condominium development, CC&Rs dictate

covenants, conditions, and restrictions, usually recorded by the developer, to create a general plan of private restrictions for a subdivision. They dictate the rules unit owners and their guests are required to follow.

Home improvement laws apply when the

goods and services exceed $500.

A legal description of property based on lines of longitude and latitude, townships, and sections is described as

government rectangular

The IRS has strict guidelines regarding a 1031 exchange. These guidelines are that properties must be

investment or business and the exchange of like kind.

The Small Business Administration (SBA) may get involved in a commercial transaction playing the role of

lender.

What type of life estate involves three parties?

life estate pur autre vie involves the party living at the property, the party who co-owns that same property, and the party who will become owner, when one party dies.

What is the most common lease for retail property?

percentage lease

After the closing, the real property transfer report is

recorded, then forwarded to the county and town.

New York's Enhanced STAR Program provides property tax relief for

school district taxes.

What is required to be included on a tentative assessment roll?

the percentage at which properties are assessed relative to market value

Net square footage refers to

the space between the walls, the useable space.

What would help ensure that two tenants in the same strip mall aren't competing against each other with the same merchandise?

use clause

A court order instructing an official (i.e., a sheriff) to sell property in order to pay a judgment is called

writ of execution.