New york Real Estate

What is a disadvantage of an oil-fueled heating system? a. Heating systems requiring oil emit toxic fumes. b. It is the most expensive heat source. c. It requires delivery and storage the oil. d. Heating systems requiring oil cannot be used in residential applications.

. Answer C. It requires delivery and storage the oil.

Who can define how much compensation may be given to the broker during an agreement: a. The seller. b. Designated agent. c. Broker's agent. d. The buyer.

. Answer: D. The buyer Does Everyone Need an Agent - Tailored Buyer Agreement When the buyer and the broker write their agreement, the buyer can have it tailored to meet his or her needs. The buyer can specify the exact type of property he or she is seeking and define the geographic location. The buyer can also define how much he or she is willing to pay in compensation.

Property is acquired by: a. Will. b. Alienation. c. Eminent domain. d. All of these.

. Answer: d. All of these. Acquisition of Property The regulations governing how property is transferred are many and do not differentiate between real and personal property. The ways to acquire property are: will, succession, accession, occupancy, and by transfer as follows: By will By succession of separate property or community property By accession: through accretion (alluvion or reliction); through avulsion; through addition of fixtures and through improvements made in error By occupancy: Abandonment, prescription and adverse possession By transfer: Private or public grant; Gift (to private person or by public dedication) Alienation by court-ordered partition or foreclosure By marriage By escheat By eminent domain By equitable estoppel

The most ________ is the one that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeable, and assuming the price is not affected by undue stimulus. a. The highest price. b. Guesstimate. c. Reduced price. d. Probable price.

. answer D Probable price.

Which of the following is not correct in relation to group boycotting?

A.Group boycotting involves brokers agreeing to show the listings of limited services firms.

In order for an owner to reach a natural break-even point, she/ he needs a: a. Net lease b. Percentage lease. c. Gross lease. d. Index lease.

Answer b. Percentage lease.

The relationship created between a principal and the principal's agent when a contract is made empowering the agent to represent the principal in dealings with third parties is called: a. agency. b. mutual consent. c. subrogation. d. escheat

Answer A agency.

Ownership held by only one person, is known as: a. tenancy in severalty. b. tenancy in common. c. tenancy by the entirety. d. joint tenancy.

Answer A tenancy in severalty.

An appraisal is different from a CMA in all of these ways EXCEPT: a. A CMA gives a range of value while an appraisal gives an opinion of value. b. A CMA is not used for lending or insurance purposes, but an appraisal is. c. An appraiser must follow specific guidelines to do an appraisal, where a sales associate follows his broker's direction to do a CMA. d. A CMA uses three approaches to value, where an appraisal uses only one approach to value.

Answer A. CMA uses three approaches to value, where an appraisal uses only one approach to value.

Which of the following is correct about "Consideration"? a. Consideration is a concept of legal value in connection with contracts. b. Consideration declares money or another value being unexchanged. c. Both a and b. d. Neither a nor b.

Answer A. Consideration is a concept of legal value in connection with contracts.

Which of the following type of property is commercial property? a. Retail store b. Apartment Block c. Bungalow d. Warehouse

Answer A. Retail store

A property manager is: a. An employee of the owner. b. An agent of the owner. c. A licensed real estate agent. d. All of these

Answer B An agent of the owner

Which of the following is not provided by a lease? a. Quit enjoyment of the property during the term of lease. b. Legal title by the property. c. Exclusive right to possession. d. Equitable title to the property.

Answer B Legal title by the property.

The act of acquiring title to a property that already has an existing mortgage is called: a. Mortgage loan. b. Mortgage assumption. c. Lease. d. None of these.

Answer B Morgage assumption

An agent has a duty of disclosure to a seller on matters such as: a. Purchaser's anxiousness to the transaction. b. The ability of the purchaser to complete the transaction. c. Deficiencies in the property. d. Both b and c

Answer B. The ability of the purchaser to complete the transaction.

What is the Condensed history of the title to a particular parcel of real estate called? a. Title of Public Records. b. Title set out in a will. c. Abstract of Title. d. Transfer of Title.

Answer C Abstract of Title.

The profit from income-producing property, less income taxes, is the property's a. Before tax cash flow. b. Cash-on-cash return. c. After-tax cash flow. d. Capitalization rate.

Answer C After-tax cash flow

Which of the following indicators would best define the purchasing power of the U.S. Dollar? a. Discount Rate. b. Gold Standards. c. The Consumer Price Index. d. Interest rates on treasury notes.

Answer C The Consumer Price Index.

Paying all taxes and Assessments is the duty of: a. The lender. b. The seller. c. The Mortgagor. d. None of these.

Answer C The Mortgagor.

The plan showing the individual lots in a subdivision is called: a. The zoning plan. b. The lot-and-block plan. c. The plat map. d. The master plan.

Answer C The plat map

The guarantee of the grantor's ownership of the property is called the covenant of? a. Quiet enjoyment. b. Further assurance. c. Seisen. d. Warranty forever.

Answer C. Seisen.

A condominium is: a. A building like a cooperative. b. A type of mortgage on real estate. c. A zero-lot-line house. d. A hybrid form of ownership.

Answer D A hybrid form of ownership.

Which of these is NOT an example of blockbusting? a. A lender withholds mortgage loans in areas considered demographically risky. b. A licensee focuses on showing properties in areas that are demographically similar to her buyer clients' ethnicity. c. A licensee didn't tell her buyer client about a first-floor condo because she felt it wasn't safe for the client. d. All of these

Answer D All of these

If an owner wants an antique chandelier to remain personal property, what must he or she do? a. Have the intention of removing it when he or she sells the home. b. Never install it permanently. c. List it as a personal item when the property sells. d. Any of these.

Answer D Any of these

Certain ______ are tolerable traffic in general, cul-de-sac, which are dead-end streets. a. Prices. b. Drawbacks. c. Costs. d. Assets.

Answer D Assets

A partial release provision is characteristic of what kind of mortgage? a. Open-end mortgage. b. Construction loan. c. Package mortgage. d. Blanket mortgage.

Answer D Blanket mortgage.

The consumer price index is essential to commercial clients because: a. It is the only true measure of the gross national product. b. It indicates how much commercial space will be available in a year. c. It indicates how many customers a client can expect every year. d. Some lease increases are based on it.

Answer D Some lease increases are based on it.

When an agent performs the duty to be honest and fair, this specific duty is also known as a: a. Duty to agent's client and not customers b. A financial duty c. Ethical duty, but not required d. a fiduciary duty

Answer D a fiduciary duty

Which physical characteristic of land best describes the following: two parcels of land are not identical: a. immobility. b. homogeneity. c. a physical characteristic of land. d. non-homogeneity

Answer D non-homogeneity.

The real estate transfer tax is a. The title recording fee. b. The closing fee. c. An annual tax on purchased real estate. d. A transfer fee based on how much money the seller gets.

Answer D. A transfer fee based on how much money the seller gets.

Which of the following is correct? a. Assets requirements for bank financing include retirements and loan value ratios. b. Assets requirements for condo or co-op admission include Earnings to Debt Rations and Loan to Value Ratios. c. Condo and co-op boards consider acceptable and non-acceptable income. d. Both b and c.

Answer D. Both B and C

the management plan for an environmentally polluted site would be developed in which phase environmental assessment? a. One b. Two c. Three d. Four

Answer D. Four Environmental Assessments- Phase IV - Management Phase During this phase, the project is monitored by the appropriate parties, and any on-going or potential issues are addressed.

Repairs and maintenance are incurred after a tenant leaves and space must be made ready for the next tenant, so they are: a. Variable expenses. b. Fixed expenses. c. Predictable expenses. d. Cash flow expenses.

Answer b Fixed wxspenses

The condominium concept is unique in that one buys a common interest in the common area and an exclusive interest in the unit. Which of the following statements is not correct about a condominium? a. An owner of a condominium has an interest in real property. b. A Condominium is a structure of two or more units. c. A condominium can be a part of an office building. d. A condominium can be lined generally or specifically

Answer c. A condominium can be a part of an office building.

What are the primary types of financing available to a buyer? a. Traditional mortgage financing. b. VA or FHA financing. c. Assumable mortgage. d. All of these.

Answer is d. All of these

Which of the following is true about fair housing laws? a. Local, state and federally protected classes may be different b. Fair housing laws and responsibilities remain constant through time c. Fair housing laws and responsibilities are difficult to comply with d. The broker, not the licensee, is responsible for keeping current on fair housing laws

Answer: A Local, state and federally protected classes may be different Discussion of The Development of Fair Housing Laws and The Protected Classes Both Federally and Protected Classes In New York Laws at both the state and federal level prohibit discrimination in every type of real estate transaction. It is important to note that the information offered here applies specifically to business practices related to real estate transactions. There are a vigorous investigation and enforcement of these laws and regulations. Any complaint filed based on alleged discriminatory activities is pursued with the full support and backing of state and federal authorities. If a real estate agent or supervising real estate broker is found to be in violation, they will likely have their license suspended or permanently revoked. As with antitrust laws, even more so, familiarize yourself with these laws for the same three reasons: it's very easy to unintentionally violate the rules; the punishment can include imprisonment, severe fines and monetary damages on all governmental levels; and basic human decency. Federal anti-discrimination law encompasses a wide array of business and real property situations, including products and services offered by banks, insurance companies, corporations, and small businesses, construction divisions, multiple listing services, and real estate organizations. Enforcement and administration of the Federal Fair Housing Act are headed by the Secretary of Housing and Urban Development, a cabinet position reporting directly to the President. The Attorney General has the right to bring action against anyone suspected of engaging in the practice of denying access or the "full enjoyment" protected by these Acts. The court can issue a temporary restraining order, permanent injunction or another legal remedy against the person or persons denying others any protected civil rights.

Which is not an example of a buyer-agency agreement? a. A dual agency. b. An open buyer's agency. c. An exclusive-agency buyer agency. d. An exclusive buyer agency

Answer: A. A dual agency. Buyer/ Tenant Agency Today's consumers realize how much they can benefit from client-level representation in a real estate transaction - whether they are sellers or buyers. As we have mentioned before, sellers who sign listing agreements with a broker automatically become clients and receive that level of service. For many years, brokers who specialize in commercial and industrial properties have offered client-level services to buyers and lessees. More recently, residential brokers are offering this same opportunity and level of service to home buyers. Buyers realize how important it is to have a broker who will help them negotiate a good and fair price and to have someone in their corner to advise them of how to handle a particular offer. Their broker can also, help them find a good mortgage or give them advice on alternative financing strategies.When a buyer signs an agency agreement with a broker, the broker owes all of the fiduciary responsibilities to that buyer and not to the seller. The agreement they sign outlines all of the specifics of their relationship and prevents any potential disputes. Before a buyer broker shows a property, he or she must disclose his or her buyer agency relationship to the seller.Buyer agency has been around for many years, though sometimes, due to misconceptions about representation and agency, buyers are still hesitant to enter into an agency agreement and don't see the value in signing one. It's important to explain, so the buyer fully understands, the difference in duties owed to the buyer if the buyer remains a customer compared with those the buyer is owed as a client.

What is the Condensed history of the title to a particular parcel of real estate called? a. Abstract of Title. b. Chain of Title. c. Attorneys opinion of title. d. Public record of Title.

Answer: A. Abstract of Title. Abstract of Title An abstract of title is the condensed history of title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate. In the United States, the abstract of title furnishes the raw data for the preparation of a policy of title insurance for the parcel of land in question, except for in Iowa, where a Title Guaranty policy is issued instead of title insurance. An abstract of title should be distinguished from an opinion of title. While an abstract state that all of the public record documents concerning the property in question are contained therein, an opinion states the professional judgment of the person giving the opinion as to the vesting of the title and other matters concerning the status of the chain of title. Many jurisdictions define the giving of an opinion of title as the practice of law, thus making it unlawful for a non-attorney to do so. A title opinion is the written opinion of an attorney, based on the attorney's title search into a property, describing the current ownership rights in the property.

During a property inspection, the inspector learned that the building had been used as a facility to repair automobile brakes. This should suggest the possible presence of: Select one: a. Asbestos b. Radon c. Hydrocarbons d. Lead-based paint

Answer: A. Asbestos Asbestos Asbestos is a mineral that was used as a component in the construction of a wide variety of construction materials, especially insulation, because it was fireproof and an excellent insulator. It was also used in insulation covering water heaters, pipes, ducts, and furnaces, and was also used in floor tiles, linoleum floors, wallboard material, and for exterior siding and roofing. Asbestos has subsequently been found to cause lung disease—asbestosis—and cancer, especially mesothelioma, and other problems when breathed. In most cases, the asbestos was contained in the materials and not hazardous, but because it is friable—it tends to splinter into tiny, breathable filaments as it ages—it becomes especially hazardous during remodeling, when the materials may be exposed to the air or manipulated in such a way as to facilitate the dispersal of asbestos filaments such as would occur in replacing the insulation.

In all residential transactions, licensees must give potential sellers or buyers a written disclosure form: Select one: a. At the first substantive contact. b. After signing the sale contract. c. Before the first substantive contact. d. During the transaction.

Answer: A. At the first substantive contact. Obligations of Informed consent from All Parties Both parties must agree in writing to the dual agency relationship. Meaning that all parties fully understand the ramifications and purpose of dual agency. In all residential transactions (as of January 1, 2011), licensees must give potential sellers or buyers a written disclosure form when they make their first substantive contact.

Property transferred by private grant is: Select one: a. By one private party to another. b. A private inheritance transferred by will. c. Includes private money for upkeep. d. By a private person for public use.

Answer: A. By one private party to another. Transfers of title fall into one of the following categories Private Grant: by deed from one private party to another. Most property is transferred in this manner.

There is a rule known as _______ that holds that one who causes another to rely on his or her words or actions shall be prohibited from later taking a contrary position detrimental to the person who so relied. a. Estoppel. b. Ratification. c. Express agreement. d. The equal dignities rule.

Answer: A. Estoppel. Transfers of title fall into one of the following categories. Equitable estoppel: a former owner is legally barred ("estopped') from denying the title of the innocent claimant. For example, if an owner permits a friend to appear to the world as the owner of certain property, and an innocent third party buys the land from that apparent owner; the true owner is barred under equitable estoppel from claiming ownership.

Hydronics is the name for the use of: a. Hot water system b. Steam system c. Forced - air system d. Heat pumps system

Answer: A. Hot water system Heating - Hot Water System Hydronics is the name for the use of water as the heat-transfer medium in heating and cooling systems. Some of the oldest and most common examples are steam and hot-water radiators. In any hot water system, the water is heated by the boiler to a high temperature and then run through pipes to either baseboards or radiators. Once the hot water is delivered, the heat will radiate from the baseboard and radiators.

A broker "shall make it clear for which party he is acting and he shall not receive compensation from more than one party except with the full knowledge and consent of all parties", this is included in: Select one: a. Real Property Law, Section 175.7 b. Real Property Law, Section 443 c. Real Property Law, Section 440 d. Real Property Law, Section 220

Answer: A. Real Property Law, Section 175.7 Receiving Compensation for Services Rendered to Another Party in the Transaction (Eg. Mortgage Brokerage Referral Fees) Circumstances exist whereby an agent may receive compensation for services he or she has given to another party in the real estate transaction. An example of this would be when an agent who is representing the seller helps the buyer by referring him or her to a mortgage broker. According to Real Property Law, Section 175.7, a broker "shall make it clear for which party he is acting, and he shall not receive compensation from more than one party except with the full knowledge and consent of all parties." It states that licensees must disclose who they represent in a real estate transaction. A real estate agent must present the required disclosure form when listing, selling, or leasing property, and when he represents a buyer or tenant.

Which New York state Law requires that deeds, real estate sales contracts and certain leases be in writing to be legally enforceable? Select one: a. Statute of Frauds b. Statute of contracts c. New York land sales and real property Conveyances law d. Statute of Limitations

Answer: A. Statute of Frauds Statute of Frauds GOL 5-703 In contrast to its name, the Statute of Frauds does not deal with fraud at all, at least not directly, and is not even one discrete statute, but rather a number of different statutes, variously codified. New York's Statute of frauds (General Obligations Law Section 5-703), reads like this: An estate or interest in real property, other than a lease for a term not exceeding one year, or any trust or power, over or concerning real property, or in any manner relating thereto, cannot be created, granted, assigned, surrendered or declared, unless by act or operation of law, or by a deed or conveyance in writing, subscribed by the person creating, granting, assigning, surrendering or declaring the same, or by his lawful agent, thereunto authorized by writing. But this subdivision does not affect the power of a testator in the disposition of his real property by will; nor prevent any trust from arising or being extinguished by implication or operation of law, nor any declaration of trust from being proved by a writing subscribed by the person declaring the same. A contract for the leasing for a longer period than one year, or for the sale, of any real property, or an interest therein, is void unless the contract or some note or memorandum thereof, expressing the consideration, is in writing, subscribed by the party to be charged, or by his lawful agent thereunto authorized by writing. A contract to devise real property or establish a trust of real property, or any interest therein or right with reference thereto, is void unless the contract or some note or memorandum thereof is in writing and subscribed by the party to be charged therewith, or by his lawfully authorized agent. Nothing contained in this section abridges the powers of courts of equity to compel the specific performance of agreements in cases of part performance.

How does the term "break-even point" relate to percentage leases? Select one: a. The landlord doesn't charge a percentage of sales until the tenant's sales exceed a break-even point. b. The landlord must receive enough in rent plus the share of sales to break even on the debt service. c. Sales proceeds must exceed last year's total before the percentage applies. d. The tenant has to break even on expenses before the percentage charges are applied. The percentage charge applies when the tenant's sales exceed a break-even point. This point is specified in the lease.

Answer: A. The landlord doesn't charge a percentage of sales until the tenant's sales exceed a break-even point. Percentage Lease A percentage lease is more commonly seen in retail properties such as shopping centers and malls. With a percentage lease, the tenant pays a base rent plus an additional charge that's a percentage of the tenant's gross sales. Retail tenants don't want leasing to be a losing proposition, so often the interest charged will be set to enable the retailer to reach a natural break-even point, and gradually stepped up as the retailer's business grows.

The Americans with Disabilities Act (ADA) prohibits: Select one: a. discrimination against persons with a physical or mental impairment that substantially limits a major life activity b. impairment due to substance abuse c. both a and b d. neither a nor b

Answer: A. discrimination against persons with a physical or mental impairment that substantially limits a major life activity Americans with Disabilities Act Under the Americans with Disabilities Act (enacted in 1990), a person with a disability is someone who: has a physical or mental impairment that substantially limits a "major life activity," or has a record of such an impairment, or is regarded as having such an impairment.

The dominant tenement has the _______ and the servient tenement has the _______. Select one: a. easement, encumbrance b. easement, appurtenance c. encumbrance, easement d. cloud on its title, easemen

Answer: A. easement, encumbrance Easement Appurtenant (An easement is for the benefit of the dominant tenement, and since an easement is an encumbrance, it encumbers the servient tenement.) An easement appurtenant gives a property owner a right of usage to portions of an adjoining property owned by another party. The property enjoying the usage right is called the dominant tenement, or dominant estate. The property containing the physical easement itself is the servient tenement, since it must serve the easement use. The term appurtenant means "attaching to." An easement appurtenant attaches to the estate and transfers with it unless specifically stated otherwise in the transaction documents. More specifically, the easement attaches as a beneficial interest to the dominant estate and as an encumbrance to the servient estate. The easement appurtenant then becomes part of the dominant estate's bundle of rights and the servient estate's obligation, or encumbrance.

By accepting or retaining the benefit of an act made by an unauthorized agent or by an agent who has exceeded his or her authority, a principal can create an agency by Select one: a. ratification b. express agreement c. implication d. the equal dignities rule

Answer: A. ratification Ratification and Estoppel Ratification is acceptance after the fact, sometimes in contrast to a prior agreement. Ratification may occur through contractual paperwork or the parties' actions. The doctrine of estoppel is a legal doctrine that says that a person is stopped from asserting rights or facts that aren't consistent with a previous statement, position, or behavior.

Because the infrastructure to support new construction was not available, the town decided to halt construction for six months. This action is called: a. Census. b. Moratorium. c. Referendum. d. Injunction.

Answer: B Moratorium. Zoning Acts- Moratorium A moratorium is a temporary suspension of the development of a property. For example, issuance of building permits could be suspended while a government agency studies the zoning controls currently in place for a particular project. Sometimes a moratorium is put in place when a municipality does not have the services it needs for the proposed development. In such a case, the municipality would have time to make the services available, and then the moratorium could be lifted to allow the development project to proceed. A moratorium is sometimes known as a zoning freeze.

Central air conditioning units may be affected by the climate, but they are expected to last about: a. 5 - 10 years b. 15 - 20 years c. 10 - 15 years d. 5 - 20 years

Answer: B. 15 - 20 years Air conditioning - Life Expectancies Most central air conditioning units can be expected to last about 15-20 years. However, this number may be affected by the climate in the geographical location of the unit.

Which one of the following statements is false? a. A net listing is a contract in which the broker receives as commission all monies over and above a minimum sales price agreed upon by the broker and the seller b. A licensed broker or applicant applying for a broker's license may use a trade or corporate name which, in the opinion of the Dep artment of State, is so similar to the name of another licensed broker that it will confuse the public c. The broker and salesperson must keep written records of all real estate listings the salesperson obtains and of all sales and other transactions the salesperson makes during the period of his or her association with the broker. d. A salesperson may not own any voting shares of stock in any licensed real estate brokerage corporation with which he or she is associated.

Answer: B. A licensed broker or applicant applying for a broker's license may use a trade or corporate name which, in the opinion of the Department of State, is so similar to the name of another licensed broker that it will confuse the public Regulations Promulgated by the Department of State - Use of Trade or Corporate Name A licensed broker or applicant applying for a broker's license may not use a trade or corporate name which, in the opinion of the Department of State, is so similar to the name of another licensed broker that it will confuse the public.

The rights in real property to the reasonable use of the surface of the land are termed: Select one: a. Riparian rights. b. Air rights. c. Surface rights. d. Mineral righs.

Answer: B. Air rights. Real Property Air rights: Air rights apply to the space above the surface boundaries of the parcel, as delineated by imaginary vertical lines extended to infinity. Since the advent of aviation, air rights have been curtailed to allow aircraft to fly over one's property, provided the overflights do not interfere with the owner's use and enjoyment of the property. The issue of violation of air rights for the benefit of air transportation is an ongoing battle between airlines, airports, and nearby property owners. In theory, a landowner owns the air space above the surface of the land. If this were the case literally, then air traffic would be able to fly over land that was not owned by the public. When Congress gave the federal government complete control over the national airspace, it left landowners with the right to use airspaces at the lower reaches as long as it did not interfere with air traffic.

Jack mistakenly violates a setback requirement by two feet. His house is already constructed and complying with the full setback now would be extremely expensive, if not impossible. This is an example of: Select one: a. Use Variance. b. Area Variance. c. Use Permit. d. Special Use Permit.

Answer: B. Area Variance. Use & Area Variance: "Unnecessary Hardship" A zoning variance allows a use that differs from the applicable ordinance for a variety of justifiable reasons, including that: compliance will cause unreasonable hardship the use will not change the essential character of the area the use does not conflict with the general intent of the ordinance For example, an owner mistakenly violates a setback requirement by two feet. His house is already constructed and complying with the full setback now would be extremely expensive, if not impossible. The zoning board grants a variance on the grounds that compliance would cause an unreasonable hardship. A grant of a zoning variance may be unconditional, or it may require conditions to be fulfilled, such as removing the violation after a certain time. Most zoning ordinances recognize unusual circumstances that require a certain degree of flexibility in applying zoning regulations. A one-property variation from the requirements of the zoning ordinance is called a variance. Variances can be granted whenever an owner can prove that a practical difficulty or hardship will result in an attempt to build on the land or show that existing zoning will deprive him or her of all economic use of the land. For example, a zoning ordinance requires that a building must be set back 50 feet from the front property boundary line, but because of a rock outcropping, that extends deep into the land from the back of the lot, the 50-foot setback would be impractical. A variance may be granted, permitting the building to be built ten feet from the front boundary line, rather than the required 50 feet. This type of variance is called an area variance. A use variance, on the other hand, permits a different use of the land. One example of a use variance is a house with two apartments in an area that's zoned for single-family houses.

An agency agreement does NOT terminate because of: a. Expiration of time set out in the agreement. b. Bankruptcy of the salesperson. c. Revocation of broker's license. d. Completion of the sale of the property subject to the agency agreement.

Answer: B. Bankruptcy of the salesperson. Termination of Agency An agency relationship is terminated when one of the following occurs (whichever occurs first or earliest): Performance, which means the licensee has performed the tasks set forth in the agency agreement - that is, helped the buyer find a home for purchase or help the seller find a ready, willing, and able buyer to purchase his or her home. Expiration of the agreement term, which is stated in writing when the relationship is initiated. Termination of the relationship by mutual agreement of the parties. Termination of the relationship by one party, in which case the terminating party must provide notice to the other party that he or she is terminating the relationship. Note: This type of termination does not affect either party's rights under their contract.

A valid grant deed must: Select one: a. Be acknowledged. b. Have a granting clause. c. Be signed by the grantee. d. All of these.

Answer: B. Have a granting clause. Act of Conveyance - Granting Clause Words of conveyance which is the "Granting Clause" is then included leading the legal description (address) of the property being convey. The granting clause is important because it specifically states the intent of the grantor to "grant" or "convey" the property to the grantee.

Which New York Real Property Law that requires that licensees provide the agency disclosure form to potential clients in any transactions that involve residential real property? Select one: a. Section 440 b. Section 443 c. Article 12-A d. Section 220

Answer: B. Section 443 Forms and Disclosure Policysection 443 of the Real Property Law requires that licensees provide the agency disclosure form to potential clients in any transactions that involve residential real property.

A general warranty deed conveys a warranty that the grantors are the owners of the property and have the right to convey it. This type of warranty is referred to as what type of covenant? a. Quiet enjoyment. b. Seisen. c. Against encumbrances. d. Further assurance.

Answer: B. Seisen. Covenant of Seize Covenant of seisin assures that the grantor both holds and is conveying the type of title specified in the deed. The grantor warrants the title that is being conveyed to the grantee. If the title proves to be defective, the grantee can sue for damages. The following warranties can be construed as being corollaries of the covenant of seisin.

A zoning ordinance consists of two parts. One part is the zoning map. What's the other part? a. Blueprints and schematics of the buildings within the zone. b. Text describing the zoning classifications and permitted uses. c. The tax basis for the property. d. The capital budget of the zone.

Answer: B. Text describing the zoning classifications and permitted uses. Zoning Ordinances A zoning ordinance, which in some municipalities is called the zoning code, is a set of rules that control what property in the municipality can be used for and regulates where on the land any buildings will be located, the maximum height of the building, and the amount of land it can cover. The zoning code essentially tells you what you can build, where you can build it, and how much you can build, all by designating zoning districts and establishing specific regulations for each district. A zoning district is an area that's designated for a certain type of use, such as housing and commercial use. Typically, a zoning ordinance divides a community into different districts for residential use, commercial use, agricultural use, and industrial use. Several districts may be designated in each of these categories. For example, one residential district may permit high-rise apartment buildings, while another may allow only single-family houses.

The legitimacy of zoning laws rests upon: a. The fact that planning boards are local, and thus close to the people they regulate. b. The established right of police power of government. c. The ease of enforcing them. d. The fact that their enforcement does not interfere with interstate commerce.

Answer: B. The established right of police power of government. Police Power The police power is the natural prerogative of sovereign governments to enact laws, promulgate regulations, and take action to protect, preserve a, d promote public health, safety, and welfare. The states can pass these powers to local government. These regulations must not infringe upon any of the rights of the people protected under the U.S. or States constitutions. Police powers translate to ownership limitations and restrictions, in that it allows zoning regulations, implementation of building codes, health codes, and city planning. The most common exercise of the police power over real property is a local or regional government's adoption and enforcement of zoning regulations, building codes, and environmental protection regulations. One way to think about this is to consider that local governments use police powers to restrict a private property right, so as to protect the common good.

A contractor started a foundation for a new dwelling, but the owner was not satisfied with his work and paid him off. Three weeks later the owner got a construction loan secured by a deed of trust which was recorded. The owner proceeded to hire another contractor to build his home and when the building was finally completed, a painting subcontractor filed a mechanic's lien against the property. Which of the following is correct? a. A mechanic's lien always take priority over trust deeds. b. The mechanic's lien took priority over the deed of trust because some work had been done before the trust deed was recorded. c. The deed of trust took priority over the mechanic's lien. d. The subcontractor could not file against the property but could file a lien against the contractor's property

Answer: B. The mechanic's lien took priority over the deed of trust because some work had been done before the trust deed was recorded. Mechanic's Lien A mechanic's lien must be placed within four months of the completion of work on a single dwelling and within eight months on other buildings. The lien will expire in one year from the filing, but it can be renewed. New York lien law may allow brokers to file claims for unpaid leasing commissions as mechanic's liens. This is allowed if the property is not used as residential property, the lease is three or more years long and the broker was working under a written commission agreement. Such a lien must be filed within eight months of the date when the commission was due. The priority of a mechanic's lien dates from the time when the work was begun or completed. For example, a carpenter finishes a job on May 15. The owner refuses to pay the carpenter in spite of the carpenter's two-month collection effort. Finally, on August 1, the carpenter places a mechanic's lien on the property. The effective date of the lien for purposes of lien priority is May 15, not August 1.

Which of the following agreements is similar to the exclusive right to sell agreement: a. Open listing agreement b. Exclusive right to rent agreement c. Exclusive right to represent d. Exclusive agency agreement

Answer: B.Exclusive right to rent agreement The Exclusive Right to Rent Agreement An exclusive right to rent agency agreement is a contract between an owner or landlord and a real estate professional regarding the rental of residential property. Just as with an exclusive right to sell listing agreement, if the agent finds the tenant, the agent is owed a commission. If another agent finds the tenant, you are still owed a commission. And if the landlord/owner finds the tenant, the agent is owed a commission. Exclusive right to rent an exclusive right to sell ensure the highest level of effort on the part of the listing agent because the agent is guaranteed a commission when a buyer or tenant is found.

A document that makes changes to a contract and is included with the contract is called what? Select one: a. A modification b. A change request c. A rider d. An attachment

Answer: C. A Rider Riders As we mentioned earlier, there may be several riders or addenda attached to the contract. If prepared by the broker, these riders should also be on preprinted forms available through the local Real Estate Board or MLS. Riders are used to modify or add information to a contract to deal with issues that may not be dealt with in the contract itself, and they are always included with the contract.

Which of the following best describes a bilateral contract Select one: a. A contract in which only one of the parties offers consideration. b. A contract that is enforceable by law. c. A contract that involves an exchange of consideration between two parties. d. A contract for which one or more terms has yet to be completed.

Answer: C. A contract that involves an exchange of consideration between two parties. Bilateral This is a "two-way" contract where each party to the contract promises to do something. A good example of the bilateral contract is a sales contract. The seller promises to sell and the buyer promises to buy.

A real estate salesperson is: a. A special agent b. An employee c. An agent of the broker d. b and c

Answer: C. An agent of the broker Real Estate Salesperson A Real Estate Salesperson is an agent of the broker who can work as an employee of the sponsoring broker or as an independent contractor under the sponsoring broker.

If a lienor agrees to subordinate the junior lien he or she holds, what is the lienor agreeing to do? a. Have the amount of the debt lowered b. Foreclose on the property c. Change the lien priority d. Have the lien re-ranked from a superior lien to a junior lien

Answer: C. Change the lien priority Subordination Agreements A lienor can change the priority of a junior lien by voluntarily agreeing to subordinate, or lower, the lien's position in the hierarchy. This change is often necessary when working with a mortgage lender who will not originate a mortgage loan unless it is senior to all other junior liens on the property. The lender may require the borrower to obtain agreements from other lien holders to subordinate their liens to the new mortgage.

A person dies leaving no will and no heirs. The decedent's property would transfer by: Select one: a. Adverse possession. b. State. c. Escheat. d. Laws of descent.

Answer: C. Escheat. Transfers of title fall into one of the following categories Escheat: transfer of property from someone who died without heirs or without a will (intestate). Property is usually transferred to the state to ensure it is not left unattended.

Type of listing where a broker's commission is protected against a sale by other agents but not against a deal by the principal: Select one: a. Open listing b. Net listing c. Exclusive agency listing d. Exclusive right to sell listing

Answer: C. Exclusive agency listing

In which of the following types of contract is one or more of the contract's terms yet to be completed? a. Unilateral contract b. Bilateral contract c. Executory contract d. Executed contract

Answer: C. Executory contract Executory An executory contract is one in which performance is yet to be completed. A sales contract prior to closing is executory. While the parties have agreed to buy and sell, the buyer has yet to pay the seller and the seller has yet to deed the property to the buyer.

The type of statutory deed that contains the most complete protection for the grantee is a Select one: a. Guardian's deed. b. Special warranty deed. c. Full Covenant and Warranty Deed. d. Quitclaim deed

Answer: C. Full Covenant and Warranty Deed. Full Covenant and Warranty Deed Full Covenant and Warranty deed convey the broadest and strongest guarantee of the title of any deed. It is the most commonly used deed. It contains the fullest possible assurances of good title and protection for the grantee. The deed is technically a bargain and sale deed in which the grantor promises to defend against any and all claims to the title. The overall general warranty covenant is: "I own and will defend." The full covenant and warranty deeds, provide the greatest protection and warranties by the grantor to the grantee. The warranties, which are usually called covenants, are listed here in the order in which they usually appear in the deed.

The main carrying beam of a structure is called a: a. Still plate b. Joist c. Girder d. header

Answer: C. Girder Structure - Girders These main support beams are set in pockets that were formed in the top of the end walls of the foundation. Steel girders may be used for extra strength, or wooden girders may be fabricated by nailing together three or more wooden planks. The size of the girders can be calculated from beam formulas, span tables or local codes and are supported by lally

Partnership status prohibits discrimination based on: a. Income from social security and any federal, state or local public housing assistance, including section 8 vouchers b. The immigration status of individuals who are not a citizen or national of the United States c. Sexual orientation/same-sex marriage to include gender identity and sexual harassment. d. Lawful trade, occupation, profession or specializatio

Answer: C. Sexual orientation/same-sex marriage to include gender identity and sexual harassment. New York City Commission on Human Rights partnership status - expands the state prohibition of sexual orientation/same-sex marriage to include gender identity and sexual harassment.

An easement in gross benefits: Select one: a. the servient tenement b. the land of the owner c. a person or company d. the state

Answer: C. a person or company Easement in Gross An easement in gross, is an easement that attaches a particular right to an individual, or entity, rather than to the property itself. The easement in gross is often considered irrevocable for the life of the individual, but it can be rendered void if the individual sells the property, upon which the easement request was based. The individual who benefits from the easement in gross, is unable to transfer the associated rights to any other person. If the property is transferred to another owner, through sale, inheritance, or any other mechanism, the current easement in gross is considered void. The new property owner can attempt to reach a new easement in gross agreement, but there is no guarantee the right will be granted. An easement in gross, benefits a particular individual or business entity. Generally, easements in gross cannot be sold, assigned, or inherited. A common example of an easement in gross is the utility easement. There are no dominant or servient estates in an easement in gross. An easement in gross may be personal or commercial.

Emily and Olivia, though close friends are competing brokers in the same small town. They agree that it would be in their mutual best interests, and the interests of their clients if Emily handled all of the town's "luxury listings" (list price over $200,000) and Olivia handled all of the other listings. This is an example of a. an impermissible tying arrangement b. price-fixing c. illegal market allocation d. a legal agreement because both brokers decided that they could better serve their clients through this kind of specialization[FA1]

Answer: C. illegal market allocation Market Allocation Agreements Market allocation is an antitrust violation. Market allocation occurs when real estate professionals from competing firms agree to divide their market—by geography, price range, property type, etc.—and then refrain from competing for business. This used to be common practice between brokerage firms "you take the north side of town; we'll take the south"—so the firms weren't tripping over one another in their pursuit of business. But these agreements between competing firms restrict trade, discourage competition, and restrict consumer choice, and they violate antitrust law. It's important to distinguish between making an independent legal decision about the areas, and clients the agent and his firm wish to serve (as long as this decision isn't based on discrimination against any protected class) and an actual agreement (written or oral) with competing brokers to allocate territories or customers, which is illegal. This refers to the division of markets by location or price. "Why don't you take the south side of town and our company will take the north side" is another statement that would also violate Sherman Antitrust law. These types of allocation agreements could also be about types of properties, sociological divisions of the business, or the refusal to deal with a competitor.

A person claims ownership of a parcel of real estate to a prospective buyer, stating that she has lived on the property for five years and nobody has ever bothered her. The claimant also shows the buyer a copy of the deed. The legal basis of this claim is referred to as: Select one: a. Prescriptive notice. b. Constructive notice. c. Hostile notice. d. Actual notice.

Answer: D. Actual notice. Actual Notice Actual notice is when a party has awareness or direct notification of a specific fact or proceeding through reading, hearing, or seeing. So actual notice has occurred when an individual was directly told about something -- for example, when a tenant notifies the landlord that a furnace isn't working, the landlord has actual notice of the faulty furnace even though the landlord hasn't personally come in contact with the furnace. "Personal service" of court documents is another common method of delivering actual notice when the person accepts the documents.

What are the primary types of financing available to a buyer? a. Traditional mortgage financing b. VA or FHA financing c. Assumable mortgage d. All of these

Answer: D. All of these The Mortgage Contingency There are several types of financing available for buyers, Traditional Mortgage Financing, VA or FHA Financing, Purchase Money Mortgage, and Assumable Mortgages.

A type of pipe typically found in a structure drainage system is: a. Brass b. Aluminum c. PVC d. Cast iron

Answer: D. Cast iron Type of Piping- Cast Iron This type of pipe is used for underground plumbing in the drainage system because it is strong and durable. It is available in light and heavyweights. Building codes specify the required weight for the application. The disadvantage of cast iron pipe is that it is heavy, time-consuming to install, and can rust on the inside.

A broker can enter into a single agency agreement with all of the following except: a. Tenant. b. Buyer. c. Landlord. d. Principal.

Answer: D. Principal. "A Single Agency Broker Represents Either the Buyer or The Seller in A Transaction A broker who offers single agency may choose to represent either buyers or sellers exclusively. If a firm chooses to represent sellers only, then all buyers who come to that firm are considered customers. If a firm chooses to represent buyers only, then the sellers of the homes that firm shows are the customers. A broker can enter into a single agency agreement with a: Seller. Buyer. Landlord. Tenant.

"An ownership that arises between a husband and wife when a single instrument transfers property to both of them and says nothing about the type of ownership" is a. Joint tenancy b. Tenancy in common c. Tenancy of sufferance d. Tenancy by the entirety

Answer: D. Tenancy by the entirety Tenancy by the Entirety Tenancy by the entirety is a form of co-ownership specifically geared toward protecting the interests of married couples, by providing a right of survivorship. The theory behind tenancy by the entirety is that a couple is treated as if it were one person owning property, insofar as each spouse has an undivided, and equal interest in the property. Upon the death of one spouse, the deceased spouse's interest automatically goes to the surviving spouse, without having to go through the process of probating a will, or other inheritance issues. A form of joint tenancy has the same four unities that joint tenancy has: possession, interest, title, and time. This means they possess the whole property together with an undivided interest, and they take the title at the same time, on the same deed. Another unique feature of tenancy by the entirety is that neither spouse can sell his or her share without doing so together. The entire property must be sold by the combined actions of both parties signing the deed. In the event of a divorce, a tenancy by the entirety is changed to a tenancy in common. Tenancy by the entireties is reserved exclusively for husband and wife. It features the right of survivorship, equal interests, and limited exposure to foreclosure.

All of the following are means of creating an agency relationship except: Select one: a. agreement b. ratification c. estoppel d. inclination

Answer: D. inclination How Is Agency Created? An agency relationship is created when a person (buyer or seller, landlord or tenant) delegates to another person, the agent, the right to act on his or her behalf in business transactions with third parties (customers). Several principles govern that relationship. Both parties must consent to the relationship. Both parties must agree to form the relationship. The relationship is fiduciary - meaning the agent owes specific duties to the principal as we have previously discussed. In an agency relationship, the principal delegates to the agent the right to act on his or her behalf and to exercise some degree of discretion while doing so An agency relationship can be created by either an oral or a written agreement between the principal and the agent. It can also be implied from either words or actions. Although the agency can be created orally, it would be in the best interests of all concerned to have the relationship clearly defined with a written agreement. Providing a service to a customer does not in itself create an agency relationship. Agency is created by mutual consent of the principal and the agent. Already performed on behalf of a person without prior authorization. So, in our example above, if one of broker Hal's buyers indicates an interest in purchasing the property, Broker Hal will contact Charles. If Charles agrees to sell, he "ratifies" an agreement to pay a commission. Agency can also be created as the result of the conduct of the parties and the agent's inherent relationship with third parties. This is termed "ostensible" or "implied" agency.

The _________ includes the materials and components that physically separate the interior and exterior of the structure a. Building envelops b. Ventilation c. Sill plates d. Headers

Answer: a. Building envelops Site Requirement - New York State Energy Code The New York State Energy Code addresses the design of energy-efficient building envelopes and the installation of energy-efficient mechanical, lighting and power systems through requirements which emphasize performance. A building envelope is the separation between the interior and the exterior environments of a building. It serves as the outer shell to protect the indoor environment as well as to facilitate its climate control.

Individuals, who experience housing discrimination are provided the opportunity to file a complaint based on the provisions of which act? a. Federal Fair Housing Act of 1968 b. Fair Housing Amendments Act of 1988 c. Americans with Disabilities Act of 1990 d. Civil Rights of 1866

Answer: a. Federal Fair Housing Act of 1968 Fair Housing Act of 1968 The federal Fair Housing Act of 1968 began a monumental change in the U.S. On April 11, 1968, fair housing reached a pivotal moment when Pres. Lyndon Johnson signed the Civil Rights Act. Title VIII of that law, called the Fair Housing Act, prohibited discrimination in the sale, rental, and financing of housing and housing-related transactions based on race, color, national origin, and religion. It also created the Office of Fair Housing and Equal Opportunity (FHEO) under the Department of Housing and Urban Development (HUD). This agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations. Individuals who have experienced housing discrimination can file a complaint with this agency at no cost to themselves.

Which program requires registering various types of underground storage tanks? Select one: a. LUST b. OSHA c. SARA d. CERCLA

Answer: a. LUST Underground Storage Tanks - Concerns of Leaking The issue for real estate, of course, is leakage from the tank into the ground, and then into wells or nearby water supply systems of recreational streams and lakes. In addition to the danger posed by tanks that are in current use, the issue of tank abandonment is also significant. Usually, local government agencies establish proper procedures for abandoning a tank. One of the most important ones is pumping out the material in the tank so that nothing is left to leak out. The containers are then generally filled with material like sand. A leaking UST can present health and environmental risks, including the potential for fire and explosion. In 1984, Congress responded to the increasing threat to groundwater posed by leaking USTs by requiring EPA to develop a comprehensive regulatory program for USTs storing petroleum or certain hazardous substances. There are financial responsibility regulations designed to ensure that, in the event of a leak or spill, an owner or operator will have the resources to pay for costs associated with cleaning up releases and compensating third parties. There are several exceptions to the underground storage tank program, including tanks with a storage capacity of fewer than 110 gallons; tanks used for heating oil used on the property; and motor fuel storage tanks of less than 1,100 gallons on farms and residential properties. The program regulates such areas as tank installation and maintenance as well as spill prevention and monitoring.

An agent meets with a client in their home for the first time, and the couple decides to sign the listing agreement authorizing the broker as their listing agent. The agent loves the home and believes it would make a great starter home for Jack, her 'neighbor's son. The agent holds an open house and receives two offers along with 'Jack's offer. These offers are all very similar. Then just before she (agent) leaves to present the offer, she gets a new offer, which is much better than the current offers. Even though she wants Jack to get the home, she shows all offer to her client. Which of the six agent responsibilities did the agent demonstrate? a. Loyalty b. Accounting c. Reasonable care d. Confidentiality

Answer: a. Loyalty loyalty Of the six agent responsibilities, obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care, the agent showed loyalty to her clients by putting their interest above her own.

_________for specific risks, such as theft, vandalism, burglary, illness and accident, machinery damage Select one: a. casualty-coverage b. workers' compensation-hospital and medical coverage c. flood-coverage d. fire and hazard-coverage

Answer: a. casualty-coverage The Purpose of Property Insurance Many types of insurance are available to allow for the shifting of liability away from the owner. An insurance audit by a competent insurance agent will indicate what kind of and how much coverage is advisable. Common types of insurance coverage for income and commercial properties include: Casualty-coverage for specific risks, such as theft, vandalism, burglary, illness and accident, machinery damage. Liability-coverage for risks incurred by the owner when the public enters the building; medical expenses resulting from owner negligence or other causes. Workers' compensation-hospital and medical coverage for employees injured in the course of employment, mandated by state laws. Fire and hazard-coverage for damage to the property by fire, wind, hail, smoke, civil disturbance, and other causes. Flood-coverage for damages caused by heavy rains, snow, drainage failures, and failed public infrastructures such as dams and levees; flood insurance is not included in regular hazard policies. Contents and personal property-coverage for building materials and own property when they are not actually on the building premises. Consequential loss, use, and occupancy-coverage for the business losses resulting from a disaster, such as loss of rent and other revenue, when the property cannot be used for business surety bond-coverage against losses resulting from criminal or negligent acts of an employee.

The ___________________ pledges the property as collateral. a. mortgage lien b. mortgage c. mortgage note d. collateralization note

Answer: a. mortgage lien Mortgage Lien A mortgage lien is a voluntary lien, it pledges the property as collateral for the debt. If the borrower does not repay the loan, the lender is entitled to foreclose which generally results in the property being sold at public auction to satisfy the debt. It actually becomes a lien when the lender disburses the funds and the borrower signs the mortgage documents and delivers the documents to the lender. The lender will have the documents recorded in the county clerk's office. Lenders usually require a first mortgage lien. This means that no other liens on the property will take priority over the mortgage, except for the property tax lien we just discussed. The lien is removed when the property is fully paid for. The lender will sign a satisfaction certificate to remove the lien.

An agency agreement does NOT terminate because of: a. Expiration of time set out in the agreement. b. Bankruptcy of the salesperson. c. Revocation of broker's license. d. Completion of the sale of the property subject to the agency agreement.

Answer: b. Bankruptcy of the salesperson. Termination of Agency An agency relationship is terminated when one of the following occurs (whichever occurs first or earliest): Performance, which means the licensee has performed the tasks set forth in the agency agreement - that is, helped the buyer find a home for purchase or help the seller find a ready, willing, and able buyer to purchase his or her home. Expiration of the agreement term, which is stated in writing when the relationship is initiated. Termination of the relationship by mutual agreement of the parties. Termination of the relationship by one party, in which case the terminating party must provide notice to the other party that he or she is terminating the relationship. Note: This type of termination does not affect either party's rights under their contract.

A clause that modifies or changes the original policy in some way is a(n): a. Premium. b. Endorsement. c. Deductible. d. Peril.

Answer: b. Endorsement. Contents Coverage for contents is usually issued on an actual cash basis in homeowners and tenant's policies. This means that the insured probably will not receive the full amount needed to replace or repair the damaged or stolen property. However, some insurance companies may sell the insured an endorsement that provides replacement cost coverage for the contents of the insured's home. Replacement cost coverage generally costs an additional 10 percent to 15 percent. An endorsement is a document attached to the policy that modifies or changes the original policy in some way

In a dual agency situation: a. the agent will be able to effectively provide all fiduciary duties to both parties. b. the agent will not be able to provide the full range of fiduciary duties to the buyer/tenant or to the seller/landlord. c. agents are committing an illegal act. d. no disclosure is necessary.

Answer: b. the agent will not be able to provide the full range of fiduciary duties to the buyer/tenant or to the seller/landlord. Consensual Dual Agency- Does it Work? New York license law Section 443 requires that licensees disclose their agency relationship to their clients using a disclosure form designed specifically for this purpose. In the case of a dual agent arrangement, the form provides a place for both the prospective buyers and the sellers to acknowledge the arrangement and sign the form, thereby giving their informed consent to the dual agency.Let's take a look at the agency disclosure form that licensees will use with buyers and sellers. The first paragraph on page one of the form describes to the consumer that the presentation of this document is required by New York law and is designed to help the consumer make informed choices about the relationship he or she may want to have with any real estate licensees.On the remainder of page one and the top of page two, the form goes on to define the various types of agency relationships available that we have discussed in this chapter. The second half of page two gives space to indicate the name of the licensee and firm that is providing the form, places to check the appropriate agency relationship, and lines for the buyers and/or sellers to sign and date the form.With changes enacted to the Agency Disclosure Law in 2011, consumers can now consent to dual agency and dual agency with designated sales agents in advance of a dual agency situation arising.

The part of the purchase price of a property that the buyer pays in cash and does not finance with the mortgage is called the: Select one: a. Deposit b. Second mortgage c. Down payment d. Deed of trust

Answer: c. Down payment The Down Payment Down payment is often required for a mortgage. A down payment is the part of the purchase price paid in cash up front, reducing the amount of the loan or mortgage. It becomes the amount the home owner personally has invested in the property. There are 100% loans requiring no down payments. This is less common in today's mortgage market, except for VA and USDA loans. FHA requires a minimum of 3.5% down payment. Conventional mortgages require a down payment ranging between 5-20%. If less than 20% is invested by the buyer with a conventional mortgage, Private Mortgage Insurance will be charged to help protect the lender in the case of loss. The part of the purchase price paid in cash up front, reducing the amount of the loan or mortgage. 100% Loan = No down payment (VA and USDA). 3.5% Required for FHA Loans. 5-20% Standard for Conventional. Private Mortgage Insurance if less than 20% down When a borrower puts money down on the purchase, the remaining cost of the home purchase is covered by the loan. The percentage amount covered by the loan, compared to the entire value of the home, is known as the loan-to-value ratio. If an FHA buyer put down only the required 3.5%, then the loan to value ratio is 96.5%. If 20% has been put down, then the loan to value ratio would be 80%. The remaining value of the home, minus the mortgage debt, is the borrower's equity in the home. For example, if a home is appraised at $ 270,000, and the borrower put down 10%, then he put down $ 27,000, which is the amount of his equity. His loan-to-value ratio would be 90%. His equity ratio would be 10%. Keep in mind equity increases both as the buyer pays off the mortgage debt, and as the property increases in value, due to a good market. The opposite can happen as well whereby, if the market is declining, the equity can decline.

Sam represents Jenny, the seller, and does not represent anyone else throughout the transaction. He has placed Jenny's listing on MLS. The agency relationship that does NOT apply to Sam is: a. Single agent b. Subagent c. Dual agent d. Seller agent

Answer: c. Dual agent Dual agent The dual agent acts as a buyer's agent and a seller's agent or as a tenant's agent and a landlord's agent in the same transaction. In other words, Dual agency takes place when the listing broker, who is the actual agent of the seller, also becomes the agent of the buyer. Because a dual agent owes fiduciary duties to both the seller and the buyer, a dual agent must not take an adverse position concerning either the seller or the buyer without their approval.

A real estate broker hires a person to conduct some business for him. Which of the following arrangements will suggest the least liability to the broker? Select one: a. a full-time employee b. a part-time employee c. an independent contractor d. a gratuitous agent

Answer: c. an independent contractor The nature of the Independent Contractor Relationship An independent contractor Works with the supervision of a broker but otherwise works independently. Compensation is based on closed transactions and varies depending on results. A broker can tell the independent contractor what to do, but not how to do it. In this case, the broker cannot dictate working hours. The independent contractor must Secure listings and buyers for the firm Representing clients under the license of the broker Transaction management through a successful closing. Salespersons working as independent contractors are paid by the job (commission rather than an hourly or weekly salary), they must usually pay their expenses, and they must provide their tools. The broker does not withhold anything from the commission he or she pays the independent contractor. If the licensee makes more than $600, the broker must file an IRS Form 1099-MISC. For that licensee to report how much he or she earned for the year. A salesperson operating as an independent contractor must pay his or her income tax, self-employment taxes, Social Security tax, Medicare tax, and MTA Tax for Net Income over $10,000.

Brokers and their agents work with a number of different types of contracts that are related to items such as, employment contracts, which of these are Contracts affecting brokers: a. employment contracts b. listing agreements c. sales contracts, and leases d. all of these

Answer: d. all of these Contracts Affecting Brokers Brokers and their agents work with a number of different types of contracts that are related to items such as, employment contracts, Listing agreements, Leases, and Sales.

A real estate agent acting under an exclusive agency agreement signed by the seller owes a fiduciary obligation to: Select one: a. The buyer b. The seller. c. Both the buyer and the seller d. Primarily to the seller and partially to the buyer

Anwser: B The seller.. Fiduciary Responsibilities The real estate agent's fiduciary obligation is to the seller. He does have the responsibility to reveal material facts to the buyer, but his loyalty and the fiduciary relationship is owed to the seller.

How many types of pipes that appear in water distribution and plumbing systems?

The main types of pipes that appear in water distribution and plumbing systems are 5: cast iron, galvanized steel, copper, PVC (plastic).

The method of sales comparison is based on the following

a. Highest and best use. b. Anticipation. c. CMA. d. Substitution. Answer D substitution

A written contract in which the agent receives the right to a commission regardless of who sells the property, except the owner, is: Select one: a. Exclusive agency b. Open listing c. Option d. Exclusive right to sell

answer: A. Exclusive agency The Exclusive Agency Agreement An exclusive agency relationship marries representation with self-representation. Buyers who opt exclusive agency are represented by a single agency but reserve the right to self-represent. If buyers under an exclusive agency agreement find a home on their own, they may work directly with the seller, who may be a For Sale by Owner (FSBO) or unlisted builder. This allows them and the seller to avoid paying any real estate commission on an unknown property. The exclusive agency listing agreement gives a broker the right to market and sell a property for a specified period, while the owner retains the right to find a buyer and sell the property without owing the broker a commission. The seller must pay a commission only if the home is sold by the broker or an authorized agent or subagent of the broker. This type of agreement is exclusive in the sense that the property is listed with only one broker. And as we mentioned on the previous screen, all exclusive listings must stipulate a definite termination date. They cannot be "automatically" extended. For example, Broker Bill lists Jim's property. If Broker Bill (or anyone other than Jim) sells the property, he gets the commission. But if owner Jim sells his property, Bill receives no commission. This type of listing is not very common these days in residential transactions because it increases the chances of a dispute over the commission between the broker and the seller over who was the procuring cause of the sale.

If the licensee is a salesperson or an associate broker, the renewal application must be signed by: a. The attorney b. The broker agent c. The broker d. The Department of state

answer: c. The broker Renewal Requirements One or two months before renewal, the Department of State sends renewal applications to the broker of the licensees. A licensee may renew his or her license online at the Department of State website using his/her login, password and unique ID number or by directly mailing in his/her application to the Department of State. If the licensee is a salesperson or an associate broker, the renewal application must be signed by the broker, confirming the fact that that broker sponsors the licensee. The renewal application also asks if the licensee has completed the continuing education requirements. Even though the Department of State sends the licensee a renewal application, it is still the licensee's responsibility to complete the renewal form and pay the appropriate fees before the license expires. If the licensee does not receive a renewal application, he or she should call the Department of State to get one.

If the net operating income of a commercial building is $156,000, and the capitalization rate is 12 percent, what is the value of the building? income ÷ capitalization rate = value $156,000 ÷ .12 (12 percent)

income ÷ capitalization rate = value $156,000 ÷ .12 (12 percent) = $term-321,300,000