REAL ESTATE SCHOOL TEST

An agent lists a 1.8 acre properly for sale. The owner wants $3.25 per square foot. What is the asking price of the properly?

$254,826.00

Wilma sells her house for $600,000 two months after her husband passed away. They had purchased the house in 1952 for $58,000. Assuming they met the requirement for filing jointly, on what amount will Wilma have to pay income tax?

$42,000

After examining a property, an appraiser made the following notes: Replacement cost= $465,000; Depreciation= $18,000; Site Value= $85,000. Determine the final estimate of value using the cost approach.

$532,000

As a measure of the force that pushes electricity through a wire, residential circuits operate at a minimum of:

110 volts

What are the age and experience requirements to apply for a salesperson license?

18 years old and no experience necessary

A building has 28,000 rentable square feet, 22,160 square feet of which are considered useable. What is this building's loss factor?

20.9%

Taylor has $80,000 to invest and considers buying a strip mall with an asking price of $480,000. The estimated NOI, based on the current owner's operating statement, is $36,000. What would be his expected capitalization rate?

7.5%%

Tony owns the barbershop he built 25 years ago on the same street as his family home. The area was zoned residential 10 years ago. Why is the barbershop allowed to remain open?

It is a nonconforming use

Craig owns a warehouse and his property taxes were recently raised. In turn, Craig charged the tenant currently occupying the building additional operating expenses. This is an example of

a pass-through.

What is the minimum licensing requirement to sell commercial real estate in New York?

a real estate salesperson's license

Fred has missed two mortgage payments. What clause would allow his lender to demand that he pay the entire balance now?

acceleration clause

Which protected class is NOT covered by New York State law but may be covered by a specific municipality?

age or lawful source of income

A valid deed must contain whose signatures?

all granters

A property owner who needs a high limit of liability coverage would likely consider

an umbrella policy

Someone walks into an open house. The listing agent must present an agency disclosure before

any confidential information is exchanged

Ad valorem taxes are based on a property's

assessed value

In an advertisement for a four-bedroom home, which statement might be considered discriminatory?

beautiful home in an exclusive neighborhood

Which type of legal description uses a survey map of a subdivision?

block and lot

A licensee attempts to get listings by telling homeowners in a neighborhood that their property values will decline when a group of immigrants move in. The licensee could be found guilty of

blockbusting

Sally is interested in renting the other half of an owner-occupied duplex. She calls the listing broker about it who tells her that the owner, his client, does not allow children. Who, if anyone, is violating fair housing laws in this situation?

both the broker and the owner

A seller client has vicarious liability for each of these EXCEPT a

broker's agent

Revocation of a license means a license is withdrawn and

can only be reinstated after one year

What is another word for principal?

client

ABC Utility Company has the right to enter a homeowner's property to repair electric lines. What kind of easement does this represent?

easement in gross

A buyer makes an offer, contingent on selling his house first. What clause can be included in the sales contract that would allow the seller to pursue other buyers in the meantime?

escape clause

When someone dies without a will and without heirs or creditors, his properly reverts to the state through the process of

escheat

Which type of listing agreement provides the greatest opportunity for a listing broker to earn a commission?

exclusive right to sell agreement

What is the preferred method of creating an agency relationship?

expressed agency

The fullest interest in property is known as what kind of estate?

fee simple estate

A listing broker must maintain a signed agency disclosure form

for at least three years after the transaction closes

An advantage for businesses to do a sale-and-leaseback is to

free up liquid assets to invest in other product or resources

Which is an example of a general involuntary lien?

judgment lien

A mortgage loan originator can perform each of these activities EXCEPT

lend money

An agent owes all of these duties to a customer EXCEPT

loyalty

The theoretical price real estate should bring in a typical transaction is known as the

market value

An amenity purchaser

occupies or uses the purchased property

A licensed salesperson acting as a subagent can receive commission payments

only from his or her employing broker

Condominium units are considered _____ property and are conveyed by _____.

personal / proprietary lease

What is it called when a lender evaluates a prospective buyer and documents, in writing, that he is willing to loan this buyer up to a certain amount of money?

pre-approval

Sue faces possible foreclosure, and contacts a mortgage lender whose ad promises to save her home for her. At closing, Sue sees that the lender changed the terms of the loan that they had agreed to, but she felt she had no choice but to go ahead with the loan or lose her house. This is an example of

predatory lending

An agent who discusses the commission rates charged by his broker with someone from another agency could be accused of which antitrust violation?

price fixing

A _____ has a fiduciary obligation to a _____.

property manager / property owner

A homeowner facing foreclosure has a number of liens: The original mortgage, a mechanic's lien from six months ago, a judgment lien from two years ago, and a property tax lien that was just filed. When the property is sold, which lien will be paid first from the proceeds?

property tax lien

Which is a characteristic of a pro forma statement that is NOT a characteristic of an operating statement?

provides hypothetical data to assist in making decisions

Which type of deed would most likely be used to remove a cloud on a title?

quitclaim deed

In New York, which cost at closing is most typically paid by the seller?

real property transfer tax

Which pair could be used in a tax-deferred like-kind exchange?

retail strip mall for an office building

In his first week on the job, property manager Tim checks the insurance coverage for the building he manages and indicates potential needs for more coverage. This is an example of Tim's obligation to

risk management

A zoning board of appeals

rules on requests for variances.

The STAR program provides a partial exemption to New York State homeowners for

school district taxes

Each of these is a type of construction framing EXCEPT

slab on grade construction

Which agency issues real estate licenses in the State of New York?

the Department of State

ABC Mortgage Company loaned Judy $180,000 to buy a house. A week later, they sold her mortgage on the secondary market. Who most likely bought Judy's mortgage?

the Federal National Mortgage Association

Homeowner Frank is challenging the assessment of his property. Each of these would be a valid reason to file a grievance EXCEPT

the amount of the tax bill is too high

Title to a specific cooperative apartment is held by

the corporation

Net square footage refers to

usable space

A contract between a minor and an adult is

voidable by the minor

An example of chattel is

wheat that has been harvested