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%