nys real estate licensing study guide part 2
Which of the following is NOT exempt from obtaining a license?
A licensed attorney acting as a sponsor to a real estate salesperson
Which of the following is an example of a conventional loan?
A loan offered by a commercial bank without any participation by a government agency
Which of the following loans is associated with monthly payments which fluctuate based on a standard index?
ARM
The amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit is known...?
BTU
Which of the following would be considered a trade fixture by a commercial tenant?
Display case
Which of the following leasehold estates is open-ended, as it does not have a termination date?
Estate at Will
Which of the following parties in required to sign a valid deed?
Grantor only
Which of the following types of insurance is also known as 'renter's insurance'?
HO-4
What is the highest court in New York State?
New York Court Of Appeals
Which of the following is an example of a uni-lateral contract?
Open listing contract
Which of the following is a measurement of the ability of insulation to slow the transfer of heat or cold?
R value
This Act made price fixing, group boycotts, market allocation, and tie-in arrangements illegal?
Sherman Anti-Trust Act
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?
The seller's broker is still entitled to their full commission.
Which of the following does NOT have to be disclosed by a seller or seller's agent when selling a residential property?
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 separate escrow account
Which of the following is a condensed history of title to a property?
abstract of title
Which of the following is required in order for a broker to act as a dual agent?
advanced informed consent from both the buyer and the seller
Which of the following is NOT permitted as a deduction on a homeowner's income tax return?
appraisal fees
Which of the following is considered an indirect cost?
architectural fees
Which of the following is illegal in New York State?
balloon framing
Which of the following loan types typically includes more than one property as collateral?
blanket mortgage
Which of the following types of ads are illegal in New York State?
blind ads
Which of the following manages a cooperative?
board of directors
Which of the following refers to the profit realized from the sale of real property?
capital gain
Personal property is also known as...?
chattel
Which of the following is NOT considered a homestead property?
commercial property
The actual act of taking private property for public use and practicing eminent domain by the government is known as...?
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?
confidentiality
Which of the following is considered a leasehold estate?
cooperative
Which of the following is an example of a fixture...?
custom book shelves
Which of the following is NOT one of the four units of concurrent ownership?
dedication
Which of the following is used as evidence that an individual owns a particular piece of real property?
deed
Which of the following written instruments is used to convey a grantor's interest in real property?
deed
Which of the following is used to account for general wear, tear, and obsolescence of an investment property?
depreciation
If the seller's broker in a transaction also serves as the mortgage broker to the buyer, what type of agency is created?
dual agency
Which of the following is a payment made by a purchaser of real estate as evidence of good faith?
earnest money deposit
Which of the following types of easements is obtained by a squatter who uses another's property without the owner's permission?
easement by prescription
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.
escheat
An umbrella insurance policy is also known as...?
excess insurance
Which of the following interests in real property includes the full bundle of rights?
fee simple absolute estates
The real estate agent serves as a/an ........to their client.
fiducuary
Which structural member is located at the bottom of the building's foundation?
footing
A device that melts and opens the circuit, causing electric power to stop when overheating occurs is known as a/an...?
fuse
A property manager is an example of a/an .......agent.
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?
inflation
A straight-term loan is also known as a/an...?
interest only loan
If a homeowners association does not allow houses in a sub-divided community to have brick on the exterior of the house, where will this restriction be documented?
it will appear as a restrictive covenant in the deed
Which of the following estates provides the right of possession and control, but not title?
leasehold estate
When a real estate investor uses other people's money to increase his/her potential return on investment, they are using...?
leverage
A claim or charge against the property of another is known as a/an...?
lien
Mark owns a single family home. He decides to transfer ownership of the property to his daughter, Nancy; however, the ownership of the property will revert back to Mark upon the death of Nancy's aunt, Martha. Which of the following was created?
life estate
Which of the following may be added to a contract, which awards the non-breaching party a specified sum of money for certain breaches listed in the contract?
liquidated damages
Which of the following creates express agency?
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...?
littoral rights
Which of the following is NOT considered real property?
living room furniture
A ............. is for the rental of floor space this is not generally divided into rooms.
loft lease
Which of the following contracts creates a general agency relationship between a property owner and a property manager?
management agreement
Which of the following values refers to the most probably price a property will get in an arm's length transaction?
market value
The borrower in a transaction is known as the...?
mortgagor
Replacing an obligation to perform with a new obligation in a contract is known as...?
novation
Which of the following is NOT considered a bi-lateral agreement?
open listing contract
Income earned from a rental property is classified as what?
passive income
Which of the following recommends zoning changes?
planning board
When protesting a property assessment, the burden of proof falls on the ..........to prove the assessor was incorrect.
property owner
Which of the following items may be prorated between the buyer and seller at closing?
property taxes
Which of the following is a naturally occurring radioactive gas, which typically enters a house through the basement?
radon
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...?
redlining
Which of the following allows an insured homeowner to be reimbursed for the actual cost of replacing damaged property?
replacement cost
If a real estate salespersons license expires, what must they do to get their license re-activated?
retake the license exam and submit a new license application
Which of the following allows a commercial tenant the option to match an offer from another prospective tenant?
right of first refusal
A common term for an easement is a...?
right of way
Which of the following building materials is a panel that spans between wall studs and covers exterior walls?
sheathing
A real estate salesperson operates as what type of agent to their client?
special agent
Which of the following is used to help pay for local streets or sidewalks?
special assessments
Which of the following is a vertical wood member used to construct walls?
stud
Where should a homeowner look to find the exact dimensions of their property?
survey
Which of the following liens takes the highest priority?
tax lien
Which of the following forms of ownership is limited to married couples?
tenancy by the entirety
Who determines the commission that a broker will receive in a transaction?
the broker and seller
What happens to the salesperson's license if the license of their sponsoring broker is suspended?
the license of the salesperson will also be suspended
Why is the old deed needed to help prepare for the closing?
the old deed is used to prepare for the new deed
If a broker enters into a listing contract, who is considered the client?
the seller
In a residential transaction, who typically holds on to the buyer's down payment/earnest money?
the seller's attorney
Which of the following must a real estate salesperson carry on them at all times when doing business and show it on demand?
their pocket card
This process calculates the value of an asset in the past, present, or future?
time value of money
What type of agency gives complete authority over any activity of the principal?
universal agency
Which of the following clauses in a commercial lease defines how the tenant can and cannot use the space?
use clause
If a tenant wants to throw late night parties in their apartment, what clause in the lease may prevent them from doing so?
use provisions
The Agency Disclosure Form is NOT required for the sale of which of the following properties...?
vacant land
According to this, a broker may be held responsible for the unlawful actions of his/her salespersons?
vicarious liability
If a clause in a contract is illegal, the contract will be considered...?
void
When is a real estate salespersons license required by a property manager?
when the property manager works for more than one owner
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?
$50,000
A borrower has a $180,000 loan with an interest rate of 6%. What is the amount paid in interest each month?
$900
In order to obtain an easement by prescription, for how many years must the property by used by the dominant tenement?
10 years
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?
10%
Disability was added as a protected class to the Fair Housing Act in what year?
1988
A real estate salespersons license must be renewed every .........years.
2
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?
2 years
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?
80%