RES Practice test 4

Which is an example of redlining?

Bank refuses mortgage based on geographic location

What happens if owner dies intestate with no known heirs?

Escheat

What does appraiser do when giving an opinion of value?

Estimates

Which one of the following federal laws dramatically curtailed the use of CFCs?

clean air act

Which transactions do not need Agency Disclosure Form?

commercial

If a building has 2 condos for residential and commercial use, what is it called?

condop

What kind of notice is recording with county clerk?

constructive

What is the main difference between employee and independent contractor?

control

Which business has the same legal rights as a person?

corporation

What is a conveyance of title?

deed

Where are quitclaim deeds frequently used?

divorces

Sam can cross Pam's land to reach his landlocked home. What kind of easement does Sam have?

dominant, appurtenant

In real estate, which is not prohibited by Sherman Act?

dual agency

What is the main purpose of Dept. of Buildings?

enforce building code

Unless it is a lesser estate, what kind of estate is it?

fee simple

What is not a possible consequence of violating Article 12A?

felony conviction

Also called a land lease, what is a long-term lease on commercial property?

ground

What is a common violation of license law?

illegal dual agency

How do condo residents take ownership of shared areas like parking garage and lobby?

in common

As independent contractors, real estate salespersons must pay:

income tax

What material are city water mains made of?

iron

Which is not a pollution threat in outdoor urban air?

radon

What does zoning board of appeals do?

review variances

If termites are found in a home inspection, who pays to remediate?

seller

Which is not specifically mentioned as non-material defect under stigmatized property disclosure law?

sex offender in the neighborhood

What kind of lien is a mortgage?

specific, voluntary

Illegally rezoning one parcel to benefit one owner but without following the master plan is:

spot zoning

If broker's license is revoked by Dept. of State, what happens to licenses of salespersons associated with that broker?

suspended

In a tax grievance, who has burden of proof?

taxpayer

A co-broker in a cooperative transaction owes loyalty to everyone except:

buyer

If a home's market value if $300,000 and community's uniform assessment is 60%, what is assessed value?

$180,000

What is the age requirement to be a real estate broker in New York State?

20

How many years is the tax depreciation period for an apartment building on a straight-line basis?

28

How many years is a typical office lease?

3 to 5

A building has 12,800 rentable sf, 10,000 of which are considered usable. What is efficiency factor?

78.10%

Which is illegal

A salesperson making a real estate contract with a brokerage client

An NYC resident feels discriminated against by a landlord because of her gender. To whom can she report?

City, State or Federal authorities

Who holds title to a specific co-op apartment?

Co-op corporation

Which two groups were protected in 1988?

Disability and familial status

When Pam's home mortgage was sold on secondary market, who most likely bought it?

FNMA

What kind of homeowners policy do renters buy?

HO-4

What is the definition of APR?

Interest rate plus points and loan fees

What is not included in the duty of honesty to the customer?

Loyalty

What is PITI?

Mortgage where bank pays property tax & insurance on behalf of borrower

How does a brokerage decide whom to represent?

Most brokerages establish a policy

When property value decreases because of outdated style, it could be the result of:

Obsolescence

Percentage leases are used with what type of commercial properties?

Retail

What did U.S. Supreme Court determine in Plessy v. Ferguson?

Separate but equal is acceptable

What is the most important preparation for an open house?

Tell owner to remove all valuables and personal items

What are things owned as investments, such as real estate, stocks, cars, or cash?

assets

How is property tax rate set?

based on tax levy

When is dual agency legal?

With informed consent by both sides

What loan does a developer use to cover lots in a subdivision?

blanket

If one party in a bilateral contract fails to perform, it is a:

breach

Building classes A, B, and C are:

a matter of opinion

What is a summary of title report?

abstract

Which is never considered a part of the real estate cycle?

alienation

What real estate is not assessed for tax purposes?

all real estate is assessed

What store sells a large number of necessary products, but also generates business for other stores?

anchor

By law, a CMA can never be called:

appraisal

What words are used to describe property in a 1031 tax exchange?

like kind

Hotels are more dependent than other properties on:

location

Who owes fiduciary duties to whom?

manager to owner

What is a flip tax?

move-out fee charged by building

What type of planning document includes income and expenses for a property?

operating budget

Local laws regulating property use are called:

ordinances

What is it called when lease allows landlord to get tenants to help pay unexpected increases in operating costs?

pass-through

Co-op shares are what kind of property, conveyed by what document?

personal, stock certificate

What is another word for slope or angle of roof?

pitch

In a lease, a tenant pays rent in return for:

possession

What is it called when a lender evaluates a prospective buyer and determines type and amount of mortgage they qualify for?

pre-approval

Which statement does an investor use to estimate and project a property's future income potential?

pro forma

Pam's lease does not allow evening promotional parties in the store. Which clause would prohibit this?

use

What is the critical issue for broker's agents?

vicarious liability

What is the status of a contract to do something illegal?

void