Real E
Borrowers in New York who wish to refinance are subject to which regulation?
Lenders cannot refinance a home unless the new loan provides a real benefit to the borrower.
Which document allows a prospective buyer the right to reserve a specific unit, which may or may not be under construction?
Letter of Intent
Which of the following is not an encumbrance, but a temporary right to enter the land or use property belonging to another for a specific purpose?
License
What are types of legal descriptions>
Metes and bounds, plot of subdivision or lot and block, monuments, and rectangular government survey
Who provides borrowers with the money for the loan?
Mortgage banker- get that BANK
What mortgage officer closes a loan?
Mortgage banker- they're giving you that bank!
If you are representing a buyer and prepare a binder to forward to the seller's attorney (who will prepare the actual sales contract), what part of New York do you likely live in?
NYC
In which of the following situations would an agent be representing a customer in a real estate purchase?
Never
Although federal law provides significant protection against discrimination in housing, which law goes even further in protecting such discrimination in New York?
New York's Human Rights Law
Are property addresses sufficient as a legal description?
No
______ is when an owner can continue to use their property as originally zoned even though that use does not meet current zoning regulations.
Nonconforming Use
Long-term capital gains are capital assets owned for how long?
One year plus one day
Subject to clause
Outlines deed restrictions
Which of the following financing types involves the sale of personal property with the real property?
Package- it is including two different types
Which of the following items is something a lender is prohibited from doing if the lender wants to write qualified mortgages?
Payback terms longer than 30 years
Which type of loan has more flexible underwriting standards?
Portfolio
Which mortgage market comprises lending institutions that lend directly to the consumer?
Primary Market
Warranty Deed
Provides some warranties
Which of these is a colorless, odorless, radioactive gas that is released when uranium decays?
Radon
Which of the following would have first priority in the event of a foreclosure?
Real Property Tax lien
Which legal description is not used in New York?
Rectangular government survey
Question 31 The Consumer Credit Protection Act, which includes the Truth in Lending Act, is often referred to as _________________.
Regulation Z
Janice's life tenant, Jacob, is currently living on her property. Once Jacob dies, Janice has made arrangements that the property will go to the School for the Gifted. What interest does the School for the Gifted currently have?
Remainder- what remains is being gifted.
Landlords will generally quote commercial space in terms of this type of square footage, which is of most importance to tenants.
Rentable
In housing discrimination, punitive damages may be awarded to the complainant and New York may require ______.
Repayment of any profits realized from the discriminatory behavior
Let's say you are a real estate broker and also a mortgage broker. Under what circumstance would dual agency apply?
Representing a buyer in a transaction for which you are the listing agent
Which Act regulates the public drinking water supply?
Safe Drinking Water Act
Which approach to value used by appraisers relies on the sales price of comparable properties to help determine the adjusted market price?
Sales comparison approach
What is a capital gain?
Sales price minus the adjusted basis
What is the importance of deed recording?
Serves as constructive notice of ownership, Protects rightful owner from other claims on property
Question 43 If Mega Corporation owns real property, chances are it owns it in ______.
Severalty
Which of the following is an example of "first substantive contact"?
Showing a buyer a property
Which of the following is the first wooden member of the structure from the ground up that is used as the nailing surface for the floor system?
Sill plate
Which of the following property managers must have a license?
Silvia works for more than one owner for a fee.
Question 42 Liz listed her property with an agreement end date of May 31. The property went under contract on May 12 and closed on June 2. When did the listing agreement officially terminate?
Since it went under a new contract prior to the listing agreement expiring, it terminates on the day of closing, or June 2nd.
What type of agency relationship exists if an agent from ABC Realty represents a buyer and the seller is affiliated with Net Realty?
Single
Full covenant and warranty deed
Strongest and broadest form of title guarantee
You demonstrate the fiduciary duty of accounting by ____________.
Taking care of your client's funds and paperwork.
In a lien theory state, who are what retains the title to the property?
The Borrower
Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh, a local organic farmer. Josh didn't meet the bank's normal underwriting standards, but Mark made the loan because he was able to arrange for a guarantee from ______.
The Farm Service Agency
What is the Farm Service Agency?
The Farm Service Agency, which operates through the USDA, provides loan guarantees to lenders for up to 95% of the loss of principal and interest.
What is meant by "rentable" square footage?
The area occupied by the tenant plus the tenant's share of common areas
In order for you to earn compensation for brokerage activities, you must be employed as the agent of the client. How is this employment accomplished?
The client must make an express agreement to pay a commission to your broker.
Under standard lease provisions, a demising clause would contain ______.
The date the tenant will take possession of the property
Which of the following is true regarding an appraiser's three approaches to value?
The income approach is most applicable to rental properties.
If a licensee has been misclassified as an independent contractor, which of the following is a consequence for the licensee?
The licensee can no longer file Schedule C to deduct business expenses.
What specific criteria are required before adverse possession will apply?
The possession must be open, notorious and hostile and the trespasser must believe that he or she is entitled to the property
Question 36 In a taxing unit, what is the tax rate based on?
The projected budget for the upcoming fiscal year
Which one of the following characteristics makes property taxes a reliable target for taxation?
They have a high compliance rate.
Ralph leases 1,000 square feet in a large warehouse. The lease agreement requires him to pay portions of the landlord's taxes, insurance, and maintenance, in addition to the amount he pays to lease the space. What type of lease does Ralph have?
Triple net lease
Which individual takes a look at a potential borrower's application and verifies things like their employment and financial information, then analyzes their credit report as well as the appraisal report on the property?
Underwriter- this is why many things can go wrong in the underwriting process!
Referee Dead
Used in foreclosure
Quit Claim Deed
Used to clear clouds on title and no warranties offered
Consideration
Value exchanged
Bargain and sale deed What is this called with a covenant in most states
With or without warranties, is called special warranty deed in other states
When you refuse to screen prospective buyers based on their ethnicity, your client, Matt, "fires" you as his agent, and you agree to his decision to part ways. Do you still owe this guy any fiduciary duties?
Yes, we ALWAYS owe confidentiality!
CCIM, SIOR, CPM, BOMA and ISCS are accreditation programs for licensees who represent ______ investors.
commercial
Mary Jane owns a building in which electrical service is supplied to the entire building through a utility-owned meter, and the cost of the service is shared among the building's tenants. What type of system does she have?
master
What is a demising clause?
states when the landlord will lease the property and the date the tenant will take possession.
the grantee is
the buyer
The grantor is
the seller
Conveyance Clause
"Does hereby convey, grant..."
What is the Habendum clause?
"To have and to hold"
Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he'll be subject to. What should you tell him?
"You might consider a 1031-deferred tax exchange."
Billy, a contractor, has violated Article 36-A of New York General Business Law. His minimum fine is $250. What is his maximum fine?
$2500
Carson is purchasing a $600,000 property by obtaining an 80/20 loan. How much is Carson financing?
$480,000
What's the typical useful life of an underground storage tank?
15 years
What's the depreciation schedule for a residential income-producing property?
27.5 years
What is a Seisin?
A covenant that the grantor holds title to the property as specified in the deed
Michael doesn't have a real estate license, but he helps his friend, Nancy, sell her home. What can Michael legally receive as compensation?
A heartfelt thank you, nothing else is legal
What is a pro forma statement?
A projection of how an investment would perform if something changed
What are the three main purposes of a deed?
Accurately identifies the property being conveyed, identifies the grantor and grantee, conveys interest in real property
What is a 1031 tax-deferred exchange?
Basis from first property transfers to second.
When may informed consent for dual agency be obtained?
Before the fact, or as the situation arises
To whom must a licensee provide an agency disclosure form according to Section 443 of New York Real Property Law?
Both Buyers and sellers
Roberta is an investor who likes to invest for appreciation potential and tax write-offs. What's her investment strategy?
Buy and hold. They hold the property but are using it for other things (potential ROI, tax write offs, etc.)
______ property loans have higher interest rates, shorter terms, and balloon payments, as compared with traditional property loans.
Commercial
Barb deposited her client's down payment funds into her broker's business account, intending to remove it the next day and deposit it into the client's trust account. This is an example of ____________.
Commingling- mingling the accounts
What regulation or regulatory authority identifies sites that have hazardous substances, and requires the responsible parties to clean them up?
Comprehensive Environmental Response Compensation and Liability Act
Executor deed
Conveyance of property from decendant's estate
What is quiet enjoyment?
Covenant that the grantee has possession and will not be disturbed in use of property
What are further assurances?
Covenant that the grantor will correct defects
What is Warranty?
Covenant that the grantor will defend title against lawful claims of others
For a deed to be eligible for recording, it must:
Deed must be acknowledged or have an oath of a subscribing witness, Grantor of deed must appear before a public officer
WHich agency enforces the federal fair housing act?
Department of Housing and Urban Development
What are the requirements for security deposits in New York when a landlord owns six or more units?
Deposit the funds in an interest-bearing New York bank account and notify each tenant in writing of the name and address of the bank and the amount of the applicable deposit.
Real property ownership may offer significant tax advantages. Which one of the following is a potential advantage?
Depreciation- sounds bad but can actually be a tax advantage
A month-to-month lease agreement is considered to be this type of leasehold estate, in which the total duration is unknown.
Estate at will MONTH TO MONTH= ESTATE AT WILL
What regulation requires that building owners of two-family or more dwellings have an asbestos survey completed before renovating or demolishing work is done?
Federal Asbestos Hazard Emergency Response Act of 1988
Which of the following is an example of a deed restriction?
Fence Height
What might the financial implications be if a buyer needed to use individual retirement account funds toward a down payment?
First-time homebuyers can use up to $10,000 of their IRA funds penalty free for down payment and closing costs.
Frank took out a mortgage from First National Bank in order to purchase a new home. In a lien theory state, who or what retains the title to the property?
Frank, the borrower
In what type of lease does the landlord pay taxes, maintenance, and insurance?
Gross Lease
Which loan type is a fixed-rate mortgage where the monthly payments increase over time, according to a set schedule?
Growing Equity
What is Covenant against encumbrances?
Guarantees the only encumbrances are those listed in deed.
If there are questions regarding the exact property description, which of the following is recommended?
Have the property surveyed
What must real estate licensees do with all advertisements before publishing them?
Have them approved by the broker
Avery wants to solicit listings within a cease-and-desist zone in Queens. He may do this if __________.
He avoids homeowners who are on a cease-and-desist list.
Question 96 Jillian has a loan-to-value ratio of 90/100. This means __________.
Her loan is 90% of the value of the real estate used as collateral and she is putting 10% down.
Which IRS forms are independent contractors and employees required to complete?
Independent contractors fill out W-9s, and employees fill out W-4s.