New York Real Estate 3

What is the highest court in New York State? A New York Court of Appeals B New York District Court C Judiciary of New York D New York Civil Court

A New York Court of Appeals

Which of the following recommends zoning changes? A Planning Board B Department of Buildings C Municipal Engineer's Office D Zoning Board of Appeals

A Planning Board

When protesting a property assessment, the burden of proof falls on the ..........to prove the assessor was incorrect. A Property owner B Attorney General C Real estate broker D Real estate attorney

A Property owner

Which of the following is a naturally occurring radioactive gas, which typically enters a house through the basement? A Radon B CFCs C Cardon monoxide D EMFs

A Radon

Which of the following allows a commercial tenant the option to match an offer from another prospective tenant? A Right of first refusal B Lease option C Claim D Rescission

A Right of first refusal

A common term for an easement is a...? A Right of way B As of right C Possessory interest D Voluntary alienation

A Right of way

Who determines the commission that a broker will receive in a transaction? A The broker and seller B The buyer and seller C The broker and buyer's attorney D The seller's attorney and the buyer's attorney

A The broker and seller

What happens to the salesperson's license if the license of their sponsoring broker is suspended? A The license of the salesperson will also be suspended. B The license of the salesperson will be revoked and the salesperson will be required to pay a fine. C The license of the salesperson will automatically be moved under another sponsoring broker in the firm. D The license of the salesperson will remain active.

A The license of the salesperson will also be suspended

Why is the old deed needed to help prepare for the closing? A The old deed is used to prepare the new need. B The old deed is used to determine the amount of insurance on the property. C The old deed is used to prepare the promissory note. D The old deed is not needed for the closing

A The old deed is used to prepare the new need.

If a broker enters into a listing contract, who is considered the client? A The seller B The buyer C The salesperson D The customer

A The seller

This process calculates the value of an asset in the past, present, or future? A Time value of money B Rate of return C Capitalization rate D Internal rate of return

A Time value of money

If a clause in a contract is illegal, the contract will be considered...? A Void B Voidable C Valid D Suspended

A Void

If an investor purchased a property for $1,600,000 with a down payment of 30%, what is the cash-on-cash return if the property produces a monthly cash flow of $4,000? A 8 Percent (%) B 10 Percent (%) C 12 Percent (%) D 20 Percent (%)

B 10 Percent (%)

How many years of experience does an individual need as a NYS real estate salesperson in order to quality to obtain their broker's license? A 1 year B 2 years C 3 years D 4 years

B 2 years

If a woman earns $300,000 in capital gains from the sale of her home, on what amount will she have to pay capital gain taxes? A 0 Dollars ($) B 50,000 Dollars ($) C 250,000 Dollars ($) D 300,000 Dollars ($)

B 50,000 Dollars ($)

Which of the following is considered a leasehold estate? A Single family house B Cooperative C Condominium D Multi-family building

B Cooperative

If the seller's broker in a transaction also serves as the mortgage broker to the buyer, what type of agency is created? A Implied agency B Dual agency C General agency D Undisclosed agency

B Dual agency

Which structural member is located at the bottom of the building's foundation? A Sill plate B Footing C Girder D Beam

B Footing

A property manager is an example of a/an .......agent. A Special B General C Universal D Dual

B General

What will happen if the government increases the money supply in the economy, but the production of goods and services does not increase at the same pace? A A higher demand for housing B Inflation C Increased job growth D Deflation

B Inflation

When a real estate investor uses other people's money to increase his/her potential return on investment, they are using...? A Time value of money B Leverage C Liquidity D Managed risk

B Leverage

Which of the following is an example of a uni-lateral contract? A Exclusive Right to Sell Agreement B Open Listing Contract C Buyer Representation Agreement D Independent Contractor Agreement

B Open Listing Contract

Which of the following is a vertical wood member used to construct walls? A Beam B Stud C Joist D Sill plate

B Stud

Where should a homeowner look to find the exact dimensions of their property? A Block and lot map B Survey C Promissory note D Property inspection report

B Survey

A broker and seller entered into an Exclusive Right to Sell Agreement. Who is entitled to a commission if the seller finds a buyer themselves? A A commission is not paid to anyone since the seller found the buyer. B The seller's broker is still entitled to their full commission. C The seller's broker is only entitled to a pre-determined flat fee. D Only the buyer's broker is entitled to a commission.

B The seller's broker is still entitled to their full commission.

If a tenant wants to throw late night parties in their apartment, what clause in the lease may prevent them from doing so? A Renewal clause B Use provisions C Statute of limitations D Term of the lease

B Use provisions

If a property is purchased for $350,000 and the buyer needs to obtain a $280,000 mortgage, what is the loan to value ratio of the mortgage? A 70 Percent (70%) B 75 Percent (75%) C 80 Percent (80%) D 85 Percent (85%)

C 80 Percent (80%)

Which of the following is an example of a conventional loan? A An FHA-insured loan B A VA-guaranteed loan C A loan offered by a commercial bank without any participation by a government agency D A loan backed by FNMA

C A loan offered by a commercial bank without any participation by a government agency

Which of the following manages a cooperative? A Building Association B Property manager C Board of Directors D Office manager

C Board of Directors

Which of the following written instruments is used to convey a grantor's interest in real property? A Promissory note B Plot plan C Deed D Mortgage

C Deed

Which of the following is used to account for general wear, tear, and obsolescence of an investment property? A Appreciation B Capital gains C Depreciation D Points

C Depreciation

An umbrella insurance policy is also known as...? A Basic insurance B Dual insurance C Excess insurance D Flood insurance

C Excess insurance

Which of the following interests in real property includes the full bundle of rights? A Estate for years B Leasehold estates C Fee simple absolute estates D Cooperatives

C Fee simple absolute estates

Which of the following types of insurance is also known as 'renter's insurance'? A HO-2 B HO-3 C HO-4 D HO-5

C HO-4

Which of the following creates express agency? A Sales contract B Lease C Listing contract D Deed

C Listing contract

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on is known as...? A Riparian rights B Sub-surface rights C Littoral rights D Air rights

C Littoral rights

Which of the following contracts creates a general agency relationship between a property owner and a property manager? A Listing agreement B Sales contract C Management agreement D Management proposal

C Management agreement

Which of the following values refers to the most probably price a property will get in an arm's length transaction? A Mortgage value B Investment value C Market value D Assessed value

C Market value

Income earned from a rental property is classified as what? A Active income B Portfolio income C Passive income D Capital income

C Passive income

If a lender refuses to make a loan on a property based on the demographics of the neighborhood of the property, they are most likely guilty of...? A Steering B Blockbusting C Redlining D Testing

C Redlining

If a real estate salespersons license expires, what must they do to get their license re-activated? A Retake the State exam only B Re-apply for their license only C Retake the State exam and submit a new license application D A real estate salespersons license does not expire

C Retake the State exam and submit a new license application

Which of the following is used to help pay for local streets or sidewalks? A Capital gains B Recovery funds C Special assessments D Appropriation

C Special assessments

What type of agency gives complete authority over any activity of the principal? A Special agency B General agency C Universal agency D Express agency

C Universal agency

Disability was added as a protected class to the Fair Housing Act in what year? A 1968 B 1974 C 1980 D 1988

D 1988

Which of the following is NOT considered a homestead property? A Single family home B Vacant land of 5 acres C Agricultural land D Commercial property

D Commercial property

A device that melts and opens the circuit, causing electric power to stop when overheating occurs is known as a/an...? A Circuit breaker B Amperage C GFCI D Fuse

D Fuse

Which of the following estates provides the right of possession and control, but not title? A Fee simple absolute B Life estate C Fee simple determinable estate D Leasehold estate

D Leasehold estate

A ............. is for the rental of floor space this is not generally divided into rooms. A Gross lease B Net lease C Land lease D Loft lease

D Loft lease

Which of the following is a measurement of the ability of insulation to slow the transfer of heat or cold? A BTU rating B Amperage C Flashing D R-value

D R-value

Which of the following allows an insured homeowner to be reimbursed for the actual cost of replacing damaged property? A Actual cash value B Assessed value C Market value D Replacement cost

D Replacement cost

Which of the following building materials is a panel that spans between wall studs and covers exterior walls? A Flashing B Fascia C Siding D Sheathing

D Sheathing

Which of the following liens takes the highest priority? A Mortgage lien B Mechanic's lien C Judgement lien D Tax lien

D Tax lien

Which of the following forms of ownership is limited to married couples? A Joint tenancy B Tenancy in common C Ownership in severalty D Tenancy by the entirety

D Tenancy by the entirety

Which of the following clauses in a commercial lease defines how the tenant can and cannot use the space? A Lease duration B Subordination clause C Estoppel certificate D Use clause

D Use clause

The Agency Disclosure Form is NOT required for the sale of which of the following properties...? A 1-4 family properties B Condominiums C Cooperatives D Vacant land

D Vacant land

When is a real estate salespersons license required by a property manager? A When a property manager works exclusively for one owner. B When a property manager is an employee of the owner. C When a property manager earns a salary from an owner. D When the property manager works for more than one owner.

D When the property manager works for more than one owner.

A borrower has a $180,000 loan with an interest rate of 6%. What is the amount paid in interest each month? A 900 Dollars ($) B 980 Dollars ($) C 4,650 Dollars ($) D 10,800 Dollars ($)

A 900 Dollars ($)

Which of the following does NOT have to be disclosed by a seller or seller's agent when selling a residential property? A A death that previously occurred on the property. B Cracks in the foundation. C Uncapped natural gas wells on the property. D Termite damage which have compromised the floor structure.

A A death that previously occurred on the property.

Where does a buyer's earnest money deposit get placed prior to closing on the transaction? A A separate escrow account B The listing broker's personal bank account C The seller's attorney's personal bank account D Any bank account within the U.S.

A A separate escrow account

Which of the following loans is associated with monthly payments which fluctuate based on a standard index? A ARM B Fixed-rate mortgage C Term loan D Blanket mortgage

A ARM

Which of the following is a condensed history of title to a property? A Abstract of title B Title insurance C Deed D Chain of title

A Abstract of title

Which of the following is NOT permitted as a deduction on a homeowner's income tax return? A Appraisal fees B Mortgage interest C Property taxes for a primary residence D Property taxes for a second home/vacation home

A Appraisal fees

Which of the following is considered an indirect cost? A Architectural fees B Cost of labor C Cost of structural wood members D Cost of concrete for the building's foundations

A Architectural fees

The amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit is known...? A BTU B R-value C Amperage D Conduit

A BTU

Which of the following is illegal in New York State? A Balloon framing B Platform framing C Post-and-beam framing D Steel framing

A Balloon framing

Which of the following loan types typically includes more than one property as collateral? A Blanket mortgage B ARM C Fixed-rate mortgage D Term loan

A Blanket mortgage

Which of the following refers to the profit realized from the sale of real property? A Capital gain B Credit C Capital loss D Debit

A Capital gain

The actual act of taking private property for public use by the government is known as...? A Condemnation B Foreclosure C Gifting D Eminent domain

A Condemnation

A broker represents a seller in a transaction. If the seller tells the broker they must sell the property quickly due to financial hardship, the broker cannot reveal this information to a prospective buyer. Otherwise, the broker will violate which of the following fiduciary duties? A Confidentiality B Obedience C Accountability D Full disclosure

A Confidentiality

Which of the following is NOT one of the four units of concurrent ownership? A Dedication B Time C Title D Possession

A Dedication

Which of the following is a payment made by a purchaser of real estate as evidence of good faith? A Earnest money deposit B Buydown C Contingency payment D Rider payment

A Earnest money deposit

A property owner passes away without any heirs to transfer his/her property. Under the State's power of ..........., the property will revert back to the State. A Escheat B Condemnation C Eminent domain D Foreclosure

A Escheat

The real estate agent serves as a/an ........to their client. A Fiduciary B Attorney C Consultant D General agent

A Fiduciary

Which of the following is NOT considered real property? A Living room furniture B Oil or natural gas located beneath the property C Vacant land D Small garage

A Living room furniture

The borrower in a transaction is known as the...? A Mortgagor B Grantor C Mortgagee D Lessee

A Mortgagor