RE Exam 1
The type of mold that is most toxic is: A. Black mold. B. Viral mold. C. Pristine mold. D. Terrestrial mold.
CORRECT ANSWER IS: A Black mold is the most toxic.
Under what circumstances could a New York real estate broker make a commission payment directly to a salesperson that is associated with a different real estate broker: A. None whatsoever. B. If the payment did not exceed $1,000. C. If the salesperson´s broker is a member of the MLS. D. Without restriction.
CORRECT ANSWER IS: A Brokers may not pay compensation directly to a salesperson that is associated with a different broker. The payment should be made to the other broker, who would then compensate the salesperson.
A property generated net operating income of $500,000. The annual debt service was $425,000 (of which $400,000 was the interest cost of the loan for the year). The down payment on the purchase was $1,250,000. What would be the equity dividend rate for the owner of this property? A. 6%. B. 4%. C. 2.5%. D. 1.7%.
CORRECT ANSWER IS: A First, compute the before tax cash flow. $500,000 less $425,000 leaves a before tax cash flow of $75,000. The equity dividend rate would be this pre-tax cash flow divided by the down payment of $1,250,000. $75,000 divided by $1,250,000 gives a result of 0.06 or 6%.
The use of leverage in an investment relates most closely to: A. The use of borrowed money. B. The use of political influence. C. The receipt of government subsidies. D. Construction techniques.
CORRECT ANSWER IS: A Leverage is the use of borrowed money in an investment.
A borrower would apply for a loan in the: A. Primary mortgage market B. Secondary mortgage market C. Conventional mortgage market D. Private mortgage market.
CORRECT ANSWER IS: A Loans are applied for and made in the primary mortgage market.
Husband and wife own property as tenants by the entireties. The husband dies naming their son as devisee in his will. Which of the following is true? A. The wife owns the property in severalty B. The son is a tenant in common with his mother C. The son will automatically inherit the property when his mother dies D. The son has a life estate, per autre vie
CORRECT ANSWER IS: A Tenancy by the entireties is a form of joint ownership with rights of survivorship. When the husband dies, he CANNOT will his portion to his son. It automatically goes to his wife. The wife may not include the son in her will, so the passing of title cannot be assumed although you may think that it is the right and natural thing to do.
The New York Anti-Predatory Lending Law would apply primarily to: A. Mortgage loans below $300,000 B. Mortgage loans above $300,000 C. Junior mortgages only D. Refinance loans only.
CORRECT ANSWER IS: A The New York Anti-Predatory Lending Law would primarily apply to loans below $300,000 with very high interest rates.
Which type of loan is used to facilitate the use of the sale proceeds of a current residence to finance the purchase of a new residence: A. A bridge loan B. A construction loan C. A reverse mortgage D. A home equity line of credit.
CORRECT ANSWER IS: A The best answer is the bridge loan, which is a temporary loan that will be repaid from the proceeds of the sale of a currently owned property. While a home equity line of credit is sometimes possible, most lenders will not make such a loan if the property is currently listed for sale.
Which of the following statements is the best description of the difference between a project's contract rent and its economic rent? A. Contract rent is the actual rent. economic rent is the market rent. B. Contract rent is the market rent. economic rent is the actual rent. C. Contract rent considers only the rent payment. economic rent considers the rent payment plus the additional fees and income generated by the tenant. D. Contract rent considers the rent payment plus the additional fees and income generated by the tenant. Economic rent considers only the rent payment.
CORRECT ANSWER IS: A The contract rent is the rent actually being paid by the current tenants. Economic rent is the market rate of rent that could be charged.
The proprietary lease would specify each of the following issues, EXCEPT: A. The procedure for electing members of the board of directors of the corporation. B. The maximum number of occupants of the unit. C. The circumstances under which the unit can be sublet. D. A requirement for compliance with house rules.
CORRECT ANSWER IS: A The procedures for electing members of the board of directors would be found in the by-laws, not the proprietary lease.
Under the State Environmental Quality Review Act (SEQRA), when would an Environmental Impact Statement (EIS) be required: A. In all cases. B. Only if there has been a positive declaration. C. Only if there has been a negative declaration. D. Only if required by court order.
CORRECT ANSWER IS: B A positive declaration means that the proposed project WILL present environmental problems and therefore an Environmental Impact Statement (EIS) must be prepared.
A seller appoints a broker to act as only the agent of the seller in a listing. The seller would have vicarious liability for which of the following cooperating brokers: A. One who acts as agent for the buyer. B. One who acts as subagent of the listing broker. C. One who acts as broker´s agent of the listing broker. D. All of these choices.
CORRECT ANSWER IS: B A seller would have vicarious liability only for cooperating brokers who act as subagents of the listing broker.
A buyer makes an offer to purchase a piece of property. The seller changes the date of occupancy by one day, and signs the contract. If the purchaser does not agree with this change, which of the following is true? A. The buyer only has 72 hours to accept a change of this type B. The purchaser has no further liability C. The seller and purchaser could both sue for specific performance D. The seller may keep the deposit as liquidated damages
CORRECT ANSWER IS: B Any change, regardless of how minor, must be approved by both parties. In this instance, the buyer would be relieved of any obligation.
Under the 1031 exchange rules, what is the rule regarding the holding period(s) for properties exchanged under the Section 1031? A. The relinquished property must be held for more than one year. B. Both the relinquished and the replacement property must be held for more than one year. C. The relinquished property must be held for more than two years. D. Both the relinquished and the replacement property must be held for more than two years.
CORRECT ANSWER IS: B Both the relinquished (old) property and the replacement (new) property must be held for more than one year.
An office suite has 6,000 square feet of rentable space which rents for $200 per square foot per year. The loss factor is 30%. What is the effective annual rent per square foot of useable space? A. $253.11 B. $285.71. C. $302.45. D. $331.27.
CORRECT ANSWER IS: B First compute the annual rent: 6,000 sq.ft. X $200 = $1,200,000. Next compute the usable square feet: 6,000 X .30 = 1,800 sq.ft. then 6,000 - 1,800 sq.ft. = 4,200 sq.ft. of useable space. Lastly, divide the annual rent by the useable square feet to find the effective annual rent per square foot of useable space. $1,200,000 ÷ 4,200 = $285.71 effective annual rent per square foot of useable space.
According to the Federal Fair Housing Act of 1968, as amended, which of the following is NOT considered to be handicapped? A. A person confined to a wheel chair B. A person addicted to a controlled substance C. Someone suffering from a mental illness D. A person who, by their actions, is believed to be insane
CORRECT ANSWER IS: B Past drug use is a disability, but current drug use is excluded.
A property sells for $150,000. The buyer will make a 20% down payment and pay the lender three points. How much will the buyer pay for points? A. $900. B. $3,600. C. $4,500. D. None of these choices.
CORRECT ANSWER IS: B Selling price = $150,000 - $30,000 down payment = $120,000 loan. Loan amount $120,000 X 3% = $3,600 for points. Remember, a point is 1% of the loan amount.
There is a homeowner selling a home built in 1972. What special environmental hazard should be investigated and disclosed because of the age of the house? A. Zinc. B. Lead. C. Carbon Monoxide. D. Power lines.
CORRECT ANSWER IS: B Since the home was built prior to 1978, the home should be inspected for lead-based paint risks.
What must a buyer do to qualify for the "innocent purchaser" exemption from CERCLA: A. Nothing, buyers are exempt unless they had actual knowledge of environmental contamination. B. They must conduct a Phase I environmental assessment for due diligence purposes. C. They must conduct a Phase II environmental assessment for due diligence purposes. D. They must obtain a Certificate of Clearance from the EPA.
CORRECT ANSWER IS: B The "innocent purchaser" exemption from CERCLA is only available if the purchaser has done the due diligence indicated by conducting a Phase I environmental assessment.
The New York Environmental Conservation Law gives the State of New York the right to regulate wetlands which are at least: A. 1 hectare. B. 5 hectares. C. 7 hectares. D. 10 hectares.
CORRECT ANSWER IS: B The ECL gives the State of New York the power to regulate wetlands which are at least 5 hectares (about 12.4 acres).
Each of the following statements is correct, EXCEPT: A. A use clause can be very broad or very narrow. B. A narrow use clause will make it easier for the tenant to sublease or assign the lease. C. A use clause is a natural source of conflict between landlords and tenants. D. An exclusive use clause would allow one tenant to be the only tenant in the property to conduct a particular type of business.
CORRECT ANSWER IS: B The FALSE statement is that a narrow use clause will make it easier for the tenant to assign or sublease the lease. In fact, it will make it more difficult to do so.
Under Seawall Associates v. City of New York, an exercise of police power could constitute an illegal "taking" if: A. The property value is reduced. B. The owner is deprived of all economically viable uses of the property and no reasonable rate of return is possible. C. The exercise of police power was done in a discriminatory manner. D. The proper procedures were not used in the exercise of police power.
CORRECT ANSWER IS: B The decision held that regulations could constitute a "taking" of the property if the following two criteria are met: (1) it deprives the property owner of all economically viable uses of the property and (2) the owner can no longer obtain a reasonable rate of return on the property.
Under which of the following circumstances would you most likely use the economic rent when preparing a pro forma operating statement? A. The tenants are leasing the units under long term leases. B. The tenants are renting their units under month-to-month rental agreements. C. The tenants are benefiting from rent control or rent stabilization ordinances. D. Pro forma operating statements should always use the economic rent.
CORRECT ANSWER IS: B The economic (or market) rent would be used in pro forma operating statements if the tenants are on month-to-month rental agreements, where the rent could be raised relatively quickly.
When reviewing an application for a new subdivision, a planning board would likely consider each of the following factors, EXCEPT: A. Whether the project fits into the master plan. B. Whether the project is likely to be profitable. C. Whether there is adequate financing for public improvements. D. Whether the project conforms to zoning and fire and safety codes.
CORRECT ANSWER IS: B The planning board will not concern itself with whether the project will be profitable.
In an agency relationship, the principal is also referred to as the: A. Customer. B. Client. C. Homeowner. D. Home buyer.
CORRECT ANSWER IS: B The principal is the person who hired the agent and is also called the client of the agent. (The choices of "homeowner" and "home buyer" are not correct because the principal can be either one or also could be a landlord or a tenant, but they would all be considered a client.)
Which of the following statements is correct regarding the process of getting approval of a buyer by the board of directors of a cooperative? (Assume the buyer will be financing the purchase.) A. The buyer must be able to show either a signed contract of sale or a commitment lender from a lender before filing the application. B. The buyer must be able to show both a signed contract of sale and a commitment letter from a lender before filing the application. C. Since the board package is submitted prior to final negotiations with the seller, neither a contract of sale nor a commitment letter from a lender will be included in the board package. D. The board of directors is required to give specific, detailed reasoning for any refusal to approve a new buyer as a shareholder.
CORRECT ANSWER IS: B The signed contract of sale and the commitment letter from the lender must both be obtained first, and then submitted with the board package.
To convey possession of property by lease is also referred to as a: A. Devise B. Demise C. Grant D. None of the above
CORRECT ANSWER IS: B To demise is to convey an estate in land chiefly by lease. To convey real property through a will is a devise.
When a clause is included in a 1st mortgage, requiring it to assume a lower lien priority position, it is called: A. An estoppel clause B. An acceleration clause C. A subordination clause D. A participation clause
CORRECT ANSWER IS: C A subordination clause states the rights of the mortgagee shall be secondary (subordinate) to a subsequent mortgage.
Casper is planning to sell his house and desires the broadest possible exposure. He gives Bert an exclusive right-to-sell listing, Gail an exclusive agency listing and Mark an open listing. Mark sells the house. Under these circumstances, which of the following statements is true? A. Mark must split his commission with Bert and Gail. B. Casper owes two commissions, one to Mark and one to Bert and Gail to be split between them. C. Casper owes 3 commissions. D. Mark is the only one who will receive a commission.
CORRECT ANSWER IS: C Bert's listing means that regardless of who sells the property, Bert will get a commission. Gail's listing means that if anyone, other than the owner, sells the property, she will get a commission. Mark's listing means that if he sells the property he gets a commission. Casper therefore, is obligated to pay 3 full commissions.
Which of the following laws would prohibit discrimination on the grounds of national origin in the sale, rental or lease of commercial property: A. The New York State Human Rights Law. B. The New York City Human Rights Law. C. The New York State and New York City Human Rights Laws. D. The New York State and New York City Human Rights Laws and the Fair Housing Act of 1968.
CORRECT ANSWER IS: C Both the New York City and New York State Human Rights Laws apply to commercial properties, while federal laws do not.
Capitalization rates are particularly sensitive to changes in: A. Gross domestic product. B. Unemployment rates. C. Interest rates. D. Income tax rates.
CORRECT ANSWER IS: C Capitalization rates are particularly sensitive to changes in interest rates.
Why is an investment in commercial property often called a tax shelter? A. Rental income is not considered taxable. B. Commercial properties always show a loss for tax purposes. C. Many commercial properties will generate a positive cash flow while showing a loss (or much lower taxable income) for tax purposes. D. No income is reported on commercial property until the property is sold.
CORRECT ANSWER IS: C Commercial properties are often considered a tax shelter because even while they may generate a positive cash flow they may still show a loss, or at least much lower taxable income.
What would be the consequences to the exchanger in a reverse exchange if the sale of the relinquished property did not close within 180 days of the close of the purchase of the replacement property? A. The exchanger would lose all the benefits of the 1031 treatment. B. The exchanger would be required to pay significant financial penalties. C. The exchanger would face a higher risk of audit for not using the "safe harbor" rules. D. None whatsoever.
CORRECT ANSWER IS: C In a reverse exchange, the 180 day rule is not mandatory, but failure to comply will result in a significantly higher risk of audit for failure to comply with the safe harbor rules.
Which of the following factors would tend to indicate the upper limit of value in a residential market analysis: A. Current listings. B. Expired listings. C. Both current and expired listings. D. Neither current nor expired listings.
CORRECT ANSWER IS: C Listings often expire because the listing price was too high, and are therefore taken as an indication of the upper limit of value. Current listings are also an indication of the upper limit of value, since buyers are not likely to pay more for the subject property than what they can pay for similar properties in the same neighborhood.
An investor has a Modified Adjusted Gross Income of $175,000. The investor has net passive losses of $40,000, all from real estate rental activities. How much of these losses will this investor be able to deduct against ordinary income? A. $25,000. B. $40,000. C. None whatsoever. D. $12,500.
CORRECT ANSWER IS: C Since the investor has a Modified Adjusted Gross Income above $150,000, the investor will not be able to deduct any of the passive losses from real estate rental activities.
The decision by a lender to make a mortgage loan is based on the borrower's: A. Peak income B. Average income C. Stable income D. Minimum income.
CORRECT ANSWER IS: C The decision to approve the loan is based on the borrower's stable income, which is the income the borrower is reasonably expected to receive. It would not necessarily be the highest or lowest income the borrower could expect.
Which of the following is required for any contract to be valid? A. In writing B. An earnest money deposit C. Consideration D. Signature and seal of a notary public
CORRECT ANSWER IS: C The essential elements of a contract are competent parties, legality of object, agreement of the parties and consideration. The question does not address a REAL ESTATE contract which would require that it be in writing and property description in addition to the other essentials. Even in a real estate contract, an earnest money deposit is not REQUIRED if all parties agree.
Which of the following values would be based largely on the cost of replacement: A. Value in use. B. Investment value. C. Insurance value. D. Liquidation value.
CORRECT ANSWER IS: C The insurance value is based on the cost to replace the existing structures.
Broker Janet assigns Salesperson Chris to work on a listing that started on January 3. The listing is a 90 day exclusive right-to-sell agreement. On March 1, Chris is killed in an automobile accident. What is the status of the listing agreement? A. The listing becomes an open listing. B. The listing terminates by operation of law. C. The listing remains valid.
CORRECT ANSWER IS: C The listing agreement is a contract between the seller and the BROKER (Janet). Chris's death has no effect on the contract.
New York real estate broker´s license would enable its holder to legally engage in each of the following activities, EXCEPT: A. Negotiate a lease on residential property on behalf of a client. B. Act as a tenant relocator. C. Negotiate the terms of a mortgage loan on a single-family residence. D. Negotiate the sale of a subdivision lot.
CORRECT ANSWER IS: C The negotiation of terms for 1-4 unit residential properties would require a mortgage loan originator license.
One of the functions of the FHA is to: A. Build homes B. Plan homes C. Provide insurance protection to lenders D. Loan money to qualified borrowers
CORRECT ANSWER IS: C The purpose of the FHA, when it was established, was to set standards of construction for houses. Also to provide insurance protection for lenders, thus making possible low down payment, and low interest loans for qualified buyers.
The phrase "the history of conveyances and encumbrances which affect title to a property" is the definition of the term: A. Abstract of title. B. Title certificate. C. Chain of title. D. Title documentation.
CORRECT ANSWER IS: C The question gives the definition of the term "chain of title." The abstract of title is simply a summary of the chain of title, so "chain of title" is the better answer.
A person has a fee simple ownership of one unit of a multi-story building and pays property taxes on this unit. What type of ownership does this situation describe? A. Proprietary lease B. Cooperative ownership C. Condominium ownership D. Joint tenancy in the common area
CORRECT ANSWER IS: C This describes condominium ownership which includes a fee simple interest in the individual condominium unit and a tenancy in common interest in the common areas. The owner pays a mortgage payment, taxes, insurance, etc. on his or her individual condo unit.
Under local zoning regulations, the distance from the street to the front of any improvement on the property is known as the: A. Corridor B. Frontage C. Setback D. Offset
CORRECT ANSWER IS: C This is the definition of a setback. The distance "back" from the property line that any improvement must be.
A "qualifying person" of a registered mortgage broker must have ____ years of relevant experience or education. A. 5. B. 4. C. 3. D. 2.
CORRECT ANSWER IS: D A "qualifying person" of a registered mortgage broker must have 2 years of relevant experience or education.
All of the following will automatically terminate a listing by operation of law, EXCEPT: A. Bankruptcy of the client. B. Destruction of the property. C. Condemnation of the property. D. Client's decision.
CORRECT ANSWER IS: D A listing (agency agreement) is terminated by law (automatically) by bankruptcy or death of either party (client or agent) or destruction or disposition of the property (including condemnation). A decision by the client to terminate the listing would be an act of one of the parties, rather than by law.
A contractor was hired to paint the interior and exterior of Harry's rental property. Harry did not pay and the contractor filed a mechanic's lien. Which of the following is true regarding the lien? A. The lien can only be for the cost of the materials used B. The lien applies to all of Harry's real property C. The lien applies to all Harry's real and rental property D. The lien applies only to Harry's rental property
CORRECT ANSWER IS: D A mechanic's lien applies only to real property and only to the property improved (in this instance, painted). The lien can apply to the cost of both materials and labor.
Which of the following are tests used by the IRS to determine if an individual qualifies for independent contractor status: A. The employer must not have the power to control the details of the contractor's performance. B. The person's work hours cannot be set by the employer. C. The person cannot be compensated based on the number of hours spent working. D. All of these choices.
CORRECT ANSWER IS: D All of the choices listed are tests of whether or not an individual qualifies as an independent contractor.
The need for a dual agency relationship is most often associated with: A. Cooperating brokers. B. Seller´s listings. C. Buyer´s listings. D. In-house sales.
CORRECT ANSWER IS: D Dual agency relationships most often arise in the case of in-house sales, where the same firm represents both the seller and the buyer.
If a person is alleged to have violated the Civil Rights Act of 1866, the complainant would file suit in which of the following? A. District Court of Appeals B. Superior Court C. Civil Court D. Federal Court
CORRECT ANSWER IS: D If a person is alleged to have violated the Civil Rights Act of 1866, it is a Federal law, so the complainant would file suit in Federal Court.
What is the defining feature of a net listing: A. The compensation is a percentage of the profit on the sale of the property. B. There is no compensation offered to cooperating brokers. C. There is a partial rebate of the commission to the seller of the property. D. The compensation to the agent is the sale price which is in excess of some specified amount.
CORRECT ANSWER IS: D In a net listing, the compensation is the sale price which is in excess of a specified amount. For instance, it might be any price received in excess of $200,000.
The formula Net Operating Income divided by Sale Price is used to determine the: A. Appraised value. B. Annual depreciation rate. C. Equity dividend rate. D. Capitalization rate.
CORRECT ANSWER IS: D Net Operating Income divided by Sale Price = Capitalization Rate.
Which of the following would be a protected class only in the City of New York, not at the State or Federal levels: A. Sexual orientation. B. Marital status. C. National origin. D. Partnership status.
CORRECT ANSWER IS: D Partnership status (whether registered as a domestic partner) is a protected class under the New York City Human Rights Law, but not under New York State law or federal law.
Tom, Dick and Harry are co-owners of a piece of property. Dick died and in his will he named his nephew to inherit his interest in the property. The probate court allowed the devise. What type of ownership did Tom, Dick and Harry have? A. Tenants by the entireties B. Joint tenancy C. Tenants in severalty D. Tenants in common
CORRECT ANSWER IS: D Tenants by the entireties is reserved for husband and wife. Tenancy in severalty is for only one person. If joint tenancy existed, Dick's interest would pass to Tom and Harry under the rights of survivorship. Tenancy in common allows one owner to convey his interest to whomever he chooses.
If the ORPTS issues a report that says the Residential Assessment Ratio for Anytown, New York is 0.75, what can you conclude from that information? A. Anytown has only assessed 75% of the residences in its jurisdiction. B. The typical market value of residential properties in Anytown is only 75% of the assessed value. C. Only 75% of the residences in Anytown are assessed for their full market value. D. Anytown's assessed values are likely to be about 75% of market value.
CORRECT ANSWER IS: D The RAR of 0.75 indicates that assessed values are running about 75% of market value.
The agency relationship between the property manager and the owner of the property is created by the: A. Listing agreement. B. Management proposal. C. Power of attorney. D. Management agreement.
CORRECT ANSWER IS: D The agency relationship in property management is created by the management agreement.
The attornment portion of the SNDA clause states: A. The lessees´ interest in the property is secondary to the lender´s interest, regardless of the sequence of recording. B. The landlord´s ability to restrict an assignment of the lease. C. The lessee´s rights to occupy the unit would not be lost due to a foreclosure. D. The lessee´s rights to occupy the unit would not be lost due to a sale of the property.
CORRECT ANSWER IS: D The attornment portion of the SNDA clause states the lessee´s rights to occupy the unit would not be lost due to a sale of the property.
The New York Mansion Tax would apply to the purchase of any condominium unit where the price exceeds: A. $250,000. B. $500,000. C. $750,000. D. $1,000,000.
CORRECT ANSWER IS: D The mansion tax applies to the purchase of a home for $1,000,000 or more.
Under New York law, if the owner of an underground storage tank discovers a leak in the tank, the owner must call the NYSDEC´s spill hotline within: A. 48 hours. B. 24 hours. C. 12 hours. D. 2 hours.
CORRECT ANSWER IS: D The owner must place the call to the NYSDEC spill hotline within 2 hours of discovering the leak.
A cylindrical steel column, often filled with concrete, that is used to support a vertical load is called a: A. Girder. B. Beam. C. Post. D. Lally column.
CORRECT ANSWER IS: D The question describes a Lally column.
The best approach for appraising a 20-year old single-family residence is: A. Amortization B. Capitalization C. Cost approach D. Sales comparison approach.
CORRECT ANSWER IS: D The sales comparison approach is almost always the preferred approach to appraising single-family residences. The age of the house would ordinarily not be a factor in whether or not to use the comparison approach.
Under New York real estate law and practice, which of the following statements is NOT correct regarding bargain and sale deeds: A. Bargain and sale deeds can be used with or without covenants. B. Banks generally only make mortgage loans against homes acquired through a bargain and sale deed without covenants. C. A bargain and sale deed with covenants usually includes a promise that the property was not further encumbered during the grantor's period of ownership. D. What is called a "bargain and sale deed with covenants" in New York State is often called a "special warranty deed" in other states.
CORRECT ANSWER IS: B The FALSE statement is that banks only loan against bargain and sale deeds done without covenants. Actually banks normally loan money against properties acquired through a bargain and sale deed if it was made WITH covenants, and then only if title insurance is obtained for the property.
The acquisition of additional land by natural causes, such as silt being deposited on a riverbank, is referred to as: A. Alluvion B. Accretion C. Erosion D. Disintermediation
CORRECT ANSWER IS: B The question describes the process of accretion.
A water flow test is especially important for properties which: A. Have a septic tank rather than a sewer system. B. Use irrigation systems. C. Are not connected to municipal water systems. D. Are commercial properties.
CORRECT ANSWER IS: C A water flow test is primarily used when the property is not connected to a municipal water system.
Which type of property insurance policy is most commonly selected by homeowners in New York: A. (HO)-1. B. (HO)-2. C. (HO)-3. D. (HO)-4.
CORRECT ANSWER IS: C Most homeowners purchase an (HO)-3 Special Form Policy.
An agency relationship which is created by conduct, rather than words, is an example of: A. Estoppel. B. Ratification. C. Implied agreement. D. Express agreement.
CORRECT ANSWER IS: C The question describes an implied agreement.
The process of setting aside money in the budget for a specific expenditure is called: A. Allocation. B. Attribution. C. Appropriation. D. Disintermediation.
CORRECT ANSWER IS: C The question describes the appropriation process.
A written listing agreement between a buyer and a licensee would be an example of: A. Estoppel. B. Ratification. C. Implied agreement. D. Express agreement.
CORRECT ANSWER IS: D A written listing contract is a type of express agreement.
Who may file a mechanic's lien? A. Carpet company B. Plumber C. Building supply company D. Any of the above
CORRECT ANSWER IS: D Anyone who works to improve real property or supplies materials for improvements to real property and is not paid, may file a mechanics lien.
The "Application to Test the Market" which is filed with the Attorney General is initially valid for a period of: A. 30 days. B. 60 days. C. 90 days. D. 120 days.
CORRECT ANSWER IS: D The "Application to Test the Market" is initially valid for a period of 120 days after its acceptance by the Attorney General. It may be renewed for a period of 60 additional days.
Which of the following classes of broker´s licenses would be issued to an associate broker: A. Class 30. B. Class 33. C. Class 35. D. Class 37.
CORRECT ANSWER IS: A An associate broker´s license is a class 30 license.
The enhanced STAR property tax exemption is available to those who are eligible for the basic STAR exemption and who: A. Are 65 years old or more. B. Are veterans. C. Are disabled. D. Receive income assistance from the state or county.
CORRECT ANSWER IS: A The enhanced STAR property tax exemption is available to those who are eligible for the basic STAR exemption and who are 65 year old or more.
Which of the following listings is the most advantageous to the broker? A. Exclusive right-to-sell. B. Exclusive agency. C. MLS. D. Implied.
CORRECT ANSWER IS: A The exclusive right-to-sell is most advantageous to a broker because, regardless of who sells the property, the broker receives a commission.
A "build-out" allowance is most likely to be found in the lease of which type of property? A. Residential property. B. Office space. C. Condominium and cooperatives. D. 1-4 unit residential properties.
CORRECT ANSWER IS: B Office leases often include a build-out allowance to assist with remodeling expenses.