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
