Real Estate Exam Chapter 2, Real Estate Exam Chapter 1, Real Estate Exam Chapter 3, Real Estate Exam Chapter 4, Real Estate Exam Chapter 5, Real Estate Exam Chapter 6, Real Estate Exam Chapter 7a, Real Estate Exam Chapter 7b, Real Estate Exam Chapter...
It is strongly recommended that informed consent from a client be obtained in what manner...?
In-writing
According to this concept, the principal must act to defend the agent in the event the agent is sued while acting on behalf of the principal...?
Indemnification
A lease tied to an index such as the consumer price index is known as what...?
Index Lease
An agreement to do something or to allow something to happen only after all the relevant facts are disclosed is known as...?
Informed Consent
In New York State, a referral fee may only be paid after this is obtained...?
Informed consent of the client
An alienation clause is also known as what...?
"Due on Sale" clause
Which of the following will yield negative leverage in a deal...?
Interest Rate > Cap Rate
A home equity line of credit is typically offered as...?
Interest only
Long-term capital gains applies to properties owned longer than...?
1 year
Mr. and Mrs. Smith own a 2-bedroom cooperative apartment, which accounts for a 0.5% ownership stake among the other shareholders. If the annual budget for the cooperative building amounts to $225,000, how much are the Smiths responsible for...?
1125
If the capitalization rate on a property is 12%, and the buyer purchases the property using all cash, what is the cash-on-cash return for the buyer...?
12 (Percent %)
The State is required to regulate wetlands greater than how many acres in size...?
12.4
How often must a real estate salesperson renew his/her license...?
2 years
Using the straight-line depreciation method, income producing, non-residential properties depreciate over how many years...?
39
If the annual rent on a 22,500 sq.ft. office space is $945,000, what is the rent per sq.ft....?
42
A property is valued at $515,000. What is the assessed value with an equalization rate of 10%...?
51500
Coverage A on a property is equal to $600,000. If Coverage B is equal to 10% of Coverage A, what is the amount of Coverage B on the property...?
60000
How is an agent�s commission typically paid in a residential rental transaction...?
A percentage of the annual rent
A mortgage loan in which the interest rate on the note periodically adjusts based on an index is known as what...?
Adjustable Rate Mortgage
Mr. and Mrs. Smith are looking to buy their first home. They only intend to live in the home for the next 3-5 years as they frequently transfer cities for work. What type of mortgage should Mr. and Mrs. Smith obtain...?
Adjustable rate mortgage
The original cost of a property minus depreciation and sales of portions thereof, plus allowable additions such as capital improvements and certain carrying costs and assessments, is referred to as...?
Adjusted Basis
Only after January 1, 2011 was this permitted, as stated under Section 443 of the NYS Real Property Law...?
Advance consent to dual agency
An Estate for Years automatically renews for how many years...?
An Estate for Years does NOT automatically renew
What is the difference between an FHA mortgage and a VA mortgage...?
An FHA mortgage is insured by the government while a VA mortgage is guaranteed by the government
Which of the following is an example of 'Other Miscellaneous Income', found in the operating budget...?
Application fees
The section of the New York Real Property Law pertaining to real estate salespersons and brokers is known as...?
Article 12-A
Andrew is a real estate broker who represents a buyer in a transaction. When do Andrew's fiduciary duties to his client terminate...?
At the closing of the transaction
David is a real estate broker who represents the seller in a transaction. When do David's fiduciary duties to his client terminate...?
At the closing of the transaction
One or more floors of a building that are either completely or partially below the ground floor is known as what...?
Basement
This document includes a written record of what occurs at a cooperative board meeting...?
Board Minutes
Which of the following is an owner of a fee simple absolute NOT able to do...?
Build beyond the property line of the land
This refers to the massing or bulk of a building...?
Building Envelope
Expenditures creating future value are known as...?
Capital Expense
A document issued by a governmental authority which states that a building is ready and fit for occupancy is known as what...?
Certificate of Occupancy
Construction on Jose's house was recently completed and signed-off by the building inspectors from the Department of Buildings. What will the Department of Buildings issue to Jose, which certifies that his house is ready and fit for occupancy...?
Certificate of Occupancy
Which of the following is issued by the Department of Buildings after final inspections have been completed...?
Certificate of Occupancy
An appraisal is NOT used in what analysis...?
Comparative Market Analysis
According to the duties a principal owes to the agent, the principal commits to doing which of the following...?
Compensate the agent for a successful transaction
Which of the following is an essential element of a valid contract...?
Competent parties
An HO-5 policy is also known as what...?
Comprehensive Form Policy
A master plan for a town or city may also be referred to as what...?
Comprehensive Plan
John is looking to assess a property in which he doesn't have access to the interior of the home. John knows from experience that the interior condition may affect the value of the property. How should John proceed with the assessment...?
Conduct an approximate assessment using his best judgment
An agent has become aware of information that may affect the value of his client's property. If the agent reveals this information to a prospective buyer, he will be in breach of which fiduciary duty...?
Confidentiality
An agent's duty to safeguard his/her principal's lawful confidences and secrets is known as...?
Confidentiality
A provision in a contract that requires the occurrence of a specific event before the contract can be completed is known as what...?
Contingency
Which of the following is NOT considered real property...?
Cooperative apartment
Which of the following is considered personal property...?
Cooperative apartment
Which of the following is NOT considered real property...?
Cooperative apartments
A list of upcoming capital improvements on a cooperative can be found in this document...?
Cooperative's Financial Statement
A board package is associated with which of the following�?
Cooperatives
Which of the following may NOT change drastically in a market trending upward...?
Cost
The annual amount to be paid by a debtor on an obligation to repay borrowed money is known as what...?
Debt Service
A contract which has not yet been fully performed is known as what...?
Executory Contract
One can protest taxes based on what type of error...?
Factual Error
As stated in the Exclusive Right to Sell Agreement, this clause dictates that an owner cannot discriminate against any potential buyers...?
Fair Housing clause
What is the most common form of ownership...?
Fee Simple
A primary horizontal structural element in which smaller joists or beams frame into is known as what...?
Girder
The period during which taxpayers may protest the assessed value placed on their property is known as what...?
Grievance Period
Tech Company recently signed a lease on their new office space. As part of the lease agreement, they only have to pay a fixed rent, without having to pay any of the building's expenses. What type of lease did Tech Company sign...?
Gross Lease
Which of the following lease types will typically have a higher rent...?
Gross Lease
An evaluation is used to determine which of the following...?
Highest and Best Use
Which of the following is an economic characteristic of real property...?
Immobility
A tank and any underground piping connected to the tank that has at least 10 percent of its combined volume underground is known as what...?
Underground Storage Tank
The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan is known as what...?
Underwriting
A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties, is known as...?
Undisclosed Dual Agency
The interest in property owned by tenants whereby each tenant has an equal right to enjoy the entire property is known as what...?
Undivided Interest
Chris and Mark are real estate agents working for the same broker. Chris is seeking to rent an apartment on behalf of his client, while Mark's client is interested in renting the apartment. If all parties in the transaction agree to dual agency, which fiduciary duty to the principals may be most at risk...?
Undivided loyalty
A standard set of business laws that regulate financial contracts is known as what...?
Uniform Commercial Code
Which of the following is NOT an example of a subsurface right...?
Unused buildable square footage
Claiming a rate of interest on a loan that is greater than that permitted by law is known as what...?
Usury
A mortgage loan designed to offer long-term financing to eligible American veterans is known as what...?
VA Mortgage
The process of estimating market value, investment value, insurable value, or other properly defined value of an identified interest or interests in a specific parcel or parcels of real property as of a given date is known as what...?
Valuation
The depreciable basis for a single family residence is calculated using the following formula...?
Value of house - land value = Depreciable basis
Marcus recently bought a plot of land which is zoned for single family homes. The local zoning laws dictate that Marcus build an 8'-0" wide driveway, leading to a garage at the rear of the lot. However, the lot is too narrow to accommodate the driveway and still be able to build a viable house. What must Marcus obtain in order to overturn the zoning laws' demand for an 8'-0" driveway...?
Variance
Mark would like to add an additional floor to his two story house; however, the local zoning ordinance only permits two story residences. What must Mark obtain in order to add a third floor to his house...?
Variance
Which of the following proposals is used to obtain permission to build a building that is not in compliance with the zoning resolution...?
Variance
You have a client who is interested in purchasing a coop in Manhattan. As a real estate agent, what should you do before showing prospective properties to your client...?
Verify that the client can obtain financing on the property
Which of the following is NOT a function of the city council, town board, or village board of trustees...?
Veto legislation
Which of the following is NOT considered an anti-trust violation...?
Vicarious Liability
Which of the following is an example of a municipal corporation...?
Village
An act, deed or conditions contrary to law or permissible use of real property is known as a...?
Violation
To have no force or effect is known as what...?
Void
Which of the following clauses will a mortgagor typically NOT encounter in his/her mortgage documents...?
Warranty clause
Which of the following is an example of a variable expense...?
Water and sewer fees
The Department of Health regulates which long standing issue...?
Water quality
When is a real estate salesperson required to give notice to the Department of State....?
When a salesperson changes his or her name
When does the price of a property exceed the cost of construction...?
When demand is high
When is a pro-forma conducted by a real estate investor...?
When evaluating a potential property to buy
Mark is a real estate broker who represents a tenant seeking to rent an apartment. When do Mark's fiduciary duties to his client terminate...?
When his client signs the lease
When will investors demand paying a lower price for a property...?
When interest rates are high
When does an owner have positive leverage in a deal...?
When the Cap Rate is greater than the Interest Rate
When is a landlord required to keep a security deposit in a separate bank account...?
When the building is 6 units or more
When will an owner experience a higher cash-on-cash return on his investment as compared to an all cash deal...?
When there is Positive Leverage in the deal
If an independent contractor relationship is breached and the agent is considered an employee according to New York State, what is the broker required to do...?
Withhold income taxes
According to the 'Time value of money' concept, $1 today is worth what, as compared to $1 in the future...?
Worth more
Which of the following is a tenant NOT entitled to in a typical lease agreement...?
Yearly upgrades to interior finishes
A local appointed board that has the power to review administrative rulings made by the planning board is known as what...?
Zoning Board of Appeals
Which of the following reviews projects that are NOT in accordance with the local zoning ordinances...?
Zoning Board of Appeals
Real estate agents should be familiar with this, which dictates the bulk of a building...?
Zoning laws
Using a mortgage to buy real estate is also known as what...?
Leverage
Severe exposure to friable asbestos may lead to what...?
Mesothelioma
The commencement date is typically earlier than this date...?
Move-in Date
In a commercial lease, the price charged to the tenant is based on what...?
Price per Sq.ft.
Which of the following is an example of a common unit of comparison...?
Price per sq.ft.
John, a real estate broker, and Chris, a property owner, have entered into an agency relationship. Soon after, a dispute arose in regards to how much commission should be paid to John if he finds a buyer for Chris' property. What should they do to resolve their dispute...?
Refer back to the listing agreement, which states the agreed upon commission
A remedy whereby a court orders a change in a written document to reflect what it ought to have said in the first place is known as what...?
Reformation
CFCs are most likely to be found in what equipment...?
Refrigerators
According to the 'In-house Sales' clause in an Exclusive Right to Sell agreement, a seller cannot do which of the following if the listing broker also finds a buyer...?
Refuse to pay a commission to the listing broker
Why may assessments differ...?
The assessments may have been done by different people
Many brokerages allow in-house referral fees when an agent refers a client to another agent. Who ultimately distributes the referral fee to a referring agent...?
The sponsoring broker
Due diligence is critical to understanding what of a commercial investment property...?
The true value of the property
If an owner opts NOT to list his/her property on the MLS, what may they be risking...?
Their property may not sell
A variance may be issued as an area variance or a�?
Use Variance
When will an owner experience positive leverage in a deal...?
When the Cap Rate is greater than the Interest Rate on the mortgage
A mortgage in which the seller extends to the buyer a junior mortgage which wraps around the existing mortgage is known as what...?
Wrap-around Mortgage
This type of mortgage is a form of secondary financing for the purchase of real property...?
Wrap-around Mortgage
Which clause found in a mortgage will take into effect if ownership of the property is changed...?
"Due on Sale" clause
A low-rise office building consists of how many stories...?
1-3 stories
David purchased a $2,400,000 shopping center at a 4.5% cap rate. What is the NOI on the building...?
108000
What is the maximum loan amount a bank will provide a borrower under the following circumstances: LTV: 75% Appraised Value: $455,000 Contract Price: $448,000
336000
When is a UCC-1 filed on public record...?
A loan is given on a cooperative apartment
An outdoor shed built behind a house, which is used to house lawn maintenance equipment, may be considered what type of use...?
Accessory Use
What will a landlord demand of their tenants when attempting to obtain financing on the building...?
An estoppel letter
If a real estate developer builds a building that complies with the local zoning laws, the building will be referred to as a/an...?
As-of-right development
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer is known as what...?
Assessment
What is the formula for determining the market value of a property...?
Assessment / Equalization Rate
An equalization rate is also known as what...?
Assessment Ratio
This individual acts as the owner�s advisor to determine the best long-term strategy for a property...?
Asset Manager
The method or manner by which a right or contract is transferred from one person to another is known as what...?
Assignment
When do the fiduciary responsibilities of an agent to a principal terminate...?
At the completion of the transaction
Which of the following is considered the legislative branch of a municipal corporation...?
City Council
David works in a newly built, high-rise office building. David most likely works in what Class of building...?
Class A
The subletting policies of a cooperative are described in which of the following documents...?
Cooperative House Rules
The 'E' in the acronym CERCLA refers to what...?
Environmental
An assessor explains to you that the market value of your property was converted to the assessed value using what's called an assessment ratio. The assessment ratio can also be considered what...?
Equalization Rate
A legal proceeding by a lessor landlord to recover possession of real property is known as what...?
Eviction
The Mayor serves under which branch of a municipal corporation...?
Executive Branch
Conditions under which a property condition disclosure statement is not required is known as a/an...?
Exemption
An actual agency created by written or oral agreement between the principal and the broker is known as...?
Expressed Agency
Asbestos was previously found in what type of building product...?
Fireproofing
Mark is a real estate agent who has entered into an agency relationship with David, a homeowner, to sell David's house. They agreed to set Mark's commission at 6% of the sales price. How else may the commission be calculated...?
Flat fee
A term used for buying a home and then turning around and reselling it for a profit is known as...?
Flipping
Asbestos needs to be removed if it is found in what condition...?
Friable
The loss of value caused by super adequacy, inadequacy or changes in the art inherent in the property itself is known as what...?
Functional Obsolescence
Which of the following refers to the amount of potential rent an owner can receive if his/her building were 100% occupied...?
Gross Potential Income
An agreement between members of a trade to exclude other members from fair participation in the trade is known as...?
Group Boycott
A Special Form Policy is also known as...?
HO-3
Under a NNN lease, who is responsible for maintaining the roof and structure of the building...?
Landlord
Which of the following is typically found in the Management Agreement between the property manager and the owner...?
Length of the agreement
One of the goals of Government regulations, with regards to land use, includes which of the following...?
Maintain property values
The Effective Gross Income minus Expenses will yield...?
Net Operating Income
This type of lease is typically found in office buildings...?
Net lease
In which type of property management must a manager understand the layout needs and desires of the tenant...?
Office Management
James owns a vacant property. By law, he can build the following building types, which generate a return on investment as listed: 1) Office building - 13.5% return 2) Mixed Use building - 10.5% return 3) Hotel - 12.8% return 4) Retail - 6.2% return Which use is the highest and best use for the property...?
Office building
Which of the following is considered an anti-trust violation...?
Price Fixing
Real estate is also referred to as what...?
Real Property
What should a property owner bring to a SCAR proceeding...?
Recently completed appraisal
The normal cost of an exact duplication of a property as of a certain date is known as what...?
Replacement Cost
Which of the following is considered a 'repairs and maintenance' expense...?
Replacing broken windows
A condominium is an example of what type of property use...?
Residential
The value of commercial real estate is based, in part, on which of the following...?
Return on Investment
This is a federal law intended to ensure safe drinking water for the public...?
Safe Drinking Water Act
As a real estate agent working as an independent contractor, compensation is directly related to what...?
Sales
What building element prevents rain from getting into the building...?
Sheathing
Which of the following is fastened to the exterior wall and helps prevent rain from entering the house...?
Sheathing
Which of the following is considered a primary commercial property type...?
Shopping centers
A term mortgage is also referred to as...?
Straight Mortgage
An annual allowance for the wear and tear, deterioration, or obsolescence of a property is known as...?
Tax Depreciation
An income deduction that allows a taxpayer to recover the cost or other basis of certain property is known as...?
Tax Depreciation
A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction is known as a...?
Tenant's Agent
Which of the following orders from a seller must a seller's agent NOT follow...?
The agent cannot sell to a minority
What determines the difference between the various types of net leases...?
The amount of expenses paid by the tenant
Who is required to sign the NYS Agency Disclosure Form...?
The buyer or seller
If offers are consistently coming in less than the listing price, what may be happening in the market...?
The market is trending downward
According to NYS Law, how much income must an agent generate in order to maintain their status as a licensed real estate agent...?
There are no required minimum earnings
A contract where one transaction depends upon another is known as a...?
Tie-in Arrangement
Which of the following is NOT an indicator that a market is appreciating...?
Time on market increases
The purchase and use of air rights from adjoining or nearby properties is known as what...?
Transfer of Development Rights
City Brokers recently signed a lease on their new office space. As part of the lease agreement, City Brokers must pay for all of the building's expenses. What type of lease did City Brokers sign...?
Triple Net Lease
Which of the following is NOT considered a conventional mortgage...?
VA mortgage
In real estate finance, 3.6 points is equivalent to what...?
0.036
If the final sales price on a property is $645,000, what is the commission rate, assuming the broker earned a commission of $25,800...?
0.04
How many acres is a lot that totals 19,602 square feet...?
0.45 acres
How long is the warranty for workmanship listed under Business Law 36-B....?
1 year
How many acres are in a lot that measures 145' x 450'...?
1.5 acres
How much time is given to complete the New York State real estate salespersons exam...?
1.5 hours
Other Structure's Coverage is typically equal to what percentage of Dwelling Coverage...?
10 (Percent %)
Typically, Coverage B amounts to what percentage of Coverage A...?
10 (Percent %)
What is the cash-on-cash return for an owner who purchases a $5,000,000 property, with an NOI of $500,000 using all cash...?
10 (Percent %)
Which of the following fixed amortization terms will yield the highest monthly payment ...?
10 year fixed
Which of the following adjustable rate mortgages will have the highest interest rate....?
10/1 ARM
How much of the purchase price of a condominium is eligible for depreciation...?
100 (Percent %)
What is the minimum distance a well needs to be from an absorption field...?
100'-0"
Retail outlet centers typically consist of how many square feet...?
100,000 - 300,000 sq.ft.
How many square meters are in 1 hectare...?
10000
The net income of a property is $125,000. If the allowable annual depreciation is $22,500, what is the taxable income for the property...?
102500
Abby purchased a commercial property using all cash at a 11% capitalization rate. What is Abby's cash-on-cash return on the deal...?
11 (Percent %)
What is the cap rate of a building that sold for $5,650,000 and yielded an NOI of $625,000...?
11.1 (Percent %)
The total market value of a municipality is $42,000,000 and the total assessed value of a municipality is $5,040,000. What is the equalization rate for the municipality...?
12 (Percent %)
The local municipality has control over the wetland regulations of land smaller than how many acres...?
12.4
This section of the Internal Revenue Code (IRC) allows for an exclusion on capital gains tax at the sale of a primary residence...?
121
If the final sales price on a property is $532,000, with a commission rate of 5%, what is the commission earned by the seller's broker if he splits the commission with the buyer's broker 50/50...?
13300
A property was sold for $555,000. The total commission for the transaction was 5%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...?
13875
If a property sold for $465,000, how much is the transfer tax paid by the seller, assuming a tax rate of $3 per $1,000...?
1395
If a buyer obtains a mortgage for $715,000, how much is owed to the bank if the bank demands a loan origination fee of 2 points...?
14300
XYZ Company recently signed a lease on 35,000 sq.ft. of office space at $41.50 per sq.ft.. What is the annual rent paid by XYZ Company...?
1452500
If the going cap rate for a multi-family building in a particular market is 8.5%, what will the purchase price be if the NOI on the property is $125,000...?
1470588
The total market value of a municipality is $24,000,000 while the total assessed value is $3,600,000. What is the equalization rate for the municipality...?
15 (Percent %)
What is a typical grace period, allowed by banks, for making payments on a mortgage after the due date...?
15 days after the due date
What is the value of a commercial property that yields an NOI of $115,000 at a 7.5% cap rate...?
1533333
If a buyer obtains a $325,000 mortgage, how much is paid in closing costs if the closing costs amount to 5.5 points...?
17875
When executing a 1031 Exchange, how many days does an owner have to acquire the new property...?
180 days
A property was sold for $605,500. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the listing broker...?
18165
How much cash will an investor have to pay on a property where the bank is providing a loan at 75% LTV, on a purchase price of $5,550,000 and $450,000 in closing costs...?
1837500
The New York State Environmental Quality Review Act (SEQR) was enacted in what year...?
1970
If the commission for a transaction is 5% and the seller's agent agrees to share 40% of his/her commission with participating brokers, what percentage of the purchase price is shared with the buyer's broker...?
2 (Percent %)
What is the typical term of the trustee in a village board of trustees...?
2 years
A one story house recently sold for $348,000. What is the price per square foot of the house, if the house measures 25' x 68'�?
204.71
Martha owns a 3-bedroom cooperative apartment, which accounts for a 2.5% ownership stake among the other shareholders. If the annual budget for the cooperative building amounts to $826,000, how much is Martha responsible for...?
20650
A vacant lot measures 50' x 102'. If the lot sold for $108,250, what was the price per square foot...?
21.23
The depreciable basis of an income producing, non-residential property is $840,500. Using the straight-line depreciation method, what is the allowable annual depreciation of the property...?
21551.28
What is the maximum loan amount a bank will provide a borrower under the following circumstances: LTV: 70% Appraised Value: $320,000 Contract Price: $330,000
224000
Mark owns a condominium apartment, which represents a 1.5% share of the condominium. If the annual upkeep of the common elements in the condominium amounts to $150,000, how much is Mark responsible for...?
2250
Abby is seeking to obtain a mortgage on his home. The property was appraised at $310,200 while the contract price was $296,000. If the bank lends money at at a 80% LTV, what is the maximum mortgage amount Abby will receive from the bank...?
236800
If an investor invests $550,000 in cash to purchase a property that yields $140,000 in available cash, what is the cash-on-cash return for the investor...?
25.45 (Percent %)
David owns a 2-bedroom cooperative apartment, which accounts for a 4.2% ownership stake among the other shareholders. If the annual budget for the cooperative building amounts to $725,000, how much is David responsible for on a monthly basis...?
2537.5
What is the available cash that a property yields if the income is equal to $550,000, the cash expenses equal $220,000, and the principal and interest amount to $75,000...?
255000
If an investor invests $620,500 in cash to purchase a property that yields $165,000 in available cash, what is the cash-on-cash return for the investor...?
26.59 (Percent %)
Using the straight-line depreciation method, income producing residential properties depreciate over how many years...?
27.5
Mark owns a single family residence. Using the straight-line depreciation method, what is the theoretical economic life of Mark's property...?
27.5 years
Your property has been assessed for $10,200; however, a comparable property on your block was assessed at $7,500. How much has your property been over assessed...?
2700
Jason purchased a property for $500,000. Over the 12 years he lived in the property, he accrued $218,000 is deducted depreciation. If Jason were to sell the property today, what would his adjusted basis be...?
282000
What is the perimeter of a rectangular lot measuring 48' x 97'�?
290'
Mark is seeking to obtain a mortgage on his home. The property was appraised at $420,800 while the contract price was $415,000. If the bank lends money at a 70% LTV, what is the maximum mortgage amount Mark will receive from the bank...?
290500
Kevin is a real estate investor looking to buy a multi-family building. If other investors in the market are willing to accept a 7.5% return on their money, how much should Kevin pay for a property that yields an NOI of $220,000...?
2933333
What is the minimum number comparables an appraiser will use when using the sales comparison approach...?
3
If the commission for a transaction is 6% and the seller's agent agrees to share 50% of his/her commission with participating brokers, what percentage of the purchase price is shared with the buyer's broker...?
3 (Percent %)
How many hours of Fair Housing training must a real estate salesperson complete every two years...?
3 hours
As a general rule of thumb, a cooperative should have at least how many months of reserve funds set aside...?
3 months
When trying to estimate market value, how far back should sales be researched...?
3 months - 1 year
Mega malls consist of how many anchor tenants...?
3 or more
If the 5 year treasuries are 1.25% and the bank's margin is 2.5%, what is the adjusted interest rate...?
3.75 (Percent %)
Michael would like to get an adjustable rate mortgage on his new home. If Michael wants to get the lowest starting interest rate, what adjustable rate mortgage should he get...?
3/1 ARM
If an investor invests $720,000 in cash to purchase a property that yields $225,000 in available cash, what is the cash-on-cash return for the investor...?
31.25 (Percent %)
The market value of a property is $450,000. The equalization rate for the local municipality is 7%. What is the assessed value...?
31500
Start-up Company recently signed a lease on 15,000 sq.ft. of office space at $21.50 per sq.ft.. What is the annual rent paid by Start-up Company...?
322500
If Coverage A on a property is equal to $325,000, what will be the amount of Coverage B...?
32500
For most lenders, a borrower�s monthly housing expense should NOT be greater than what percent of their gross monthly income...?
33 (Percent %)
What is the mortgage recording tax paid on a property that sold for $215,000, assuming there is a tax rate of $2.05/$100 of the loan amount and the bank uses an 75% LTV...?
3306
Louis purchased a $6,200,000 office building at a 5.5% cap rate. What is the NOI on the building...?
341000
If a property is currently worth $325,000, what will the property be worth in 4 years, assuming a rate of appreciation of 2.5%...?
358739
What is annual amount owed on a $752,000 interest only loan, with an interest rate of 4.8%...?
36096
A property is valued at $375,000. What is the assessed value with an equalization rate of 1%...?
3750
Coverage A on a property amounts to $500,000. If Coverage C is equal to 75% of Coverage A, what is the amount of Coverage C on the property...?
375000
Using the straight-line depreciation method, commercial property is depreciated over how many years...?
39
A property was sold for $200,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 65/35 split with his broker, how much commission is paid to the real estate agent...?
3900
Andrew is seeking to obtain a mortgage on his home. The property was appraised at $540,000 while the contract price was $532,000. If the bank lends money at a 75% LTV, what is the maximum mortgage amount Andrew will receive from the bank...?
399000
How many trustees typically comprise of a village board of trustees...?
4 or more
What is the Adjusted Basis on a property using the following criteria: Original Purchase Price: $500,000 Capital Improvements: $89,000 Depreciation: $184,000
405000
Susan has a gross monthly income of $12,500. Assuming a maximum front-end ratio of 33%, what is the maximum monthly housing expense a lender will allow for Susan...?
4125
The total market value of a municipality is $25,000,000 and the total assessed value of a municipality is $11,250,000. What is the equalization rate for the municipality...?
45 (Percent %)
When executing a 1031 Exchange, how many days does an owner have to identify a new property...?
45 days
Mr. Jones owns a 1-bedroom cooperative apartment, which accounts for a 1% ownership stake among the other shareholders. If the annual budget for the cooperative building amounts to $455,000, how much is Mr. Jones responsible for...?
4550
The market value of a property is $320,000. The equalization rate for the local municipality is 15%. What is the assessed value...?
48000
A commercial apartment building consists of how many units...?
5 or more units
If the 5 year treasuries are 2.5% and the bank's margin is 2.75%, what is the adjusted interest rate...?
5.25 (Percent %)
Brian, a property owner, recently accepted an offer from an interested buyer. Brian's attorney recommended that he NOT fill out the Property Disclosure Form. If Brian takes his attorney's advice, how much money will he have to pay at the closing in the form of a credit...?
500
Jason owns a 1,250 sq.ft. cooperative apartment. The size of Jason's apartment is roughly 1/100th of the entire cooperative building. If the cooperative has 500,000 shares of stock to distribute among its shareholders, what is a reasonable amount of shares Jason would receive...?
5000
Mark owns a 950 sq.ft. cooperative apartment. The size of Mark's apartment is roughly 1/50th of the entire cooperative building. If the cooperative has 2,500,000 shares of stock to distribute among its shareholders, what is a reasonable amount of shares Mark would receive...?
50000
The market value of a property is $535,000, while the contract price is $530,000. Which figure will the bank use to determine the maximum amount to lend on the property...?
530000
What is the area of a rectangle that measures 3 yards x 18 yards...?
54 sq. yards
A property was sold for $220,000. The total commission for the transaction was 5%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the listing broker...?
5500
What is the taxable gain of a property that sold for $1,100,000 with an adjusted basis of $525,000...?
575000
As a general rule of thumb, compensation in New York State is set at what percentage of the sales price...?
6 (Percent %)
What is the typical length of term for an Exclusive Right to Sell agreement...?
6 months
Bill owns a 3,250 sq.ft. cooperative apartment. The size of Bill's apartment is roughly 1/15th of the entire cooperative building. If the cooperative has 950,000 shares of stock to distribute among its shareholders, what is a reasonable amount of shares Bill would receive...?
63333
1 square mile is equal to how many acres...?
640 acres
A property is assessed at $260,000. The local municipality has an equalization rate of 40%. What is the market value of the property...?
650000
What is the total monthly rent roll of a building with the following rents: (1) 3 bedrooms at $4,600/month (8) 2 bedrooms at $3,800/month (8) 1 bedroom at $3,300/month (2) Studios at $2,200/month
65800
What is the total monthly rent roll of a building with the following rents: (10) 2 bedrooms at $4,200/month (5) 1 bedroom at $3,200/month (4) Studios at $2,100/month
66400
Michael owns a 2-bedroom cooperative apartment, which accounts for a 2.5% ownership stake among the other shareholders. If the annual budget for the cooperative building amounts to $325,000, how much is Michael responsible for on a monthly basis...?
677.08
If the capitalization rate of a property is 7%, and an investor purchases the property using all cash, what is the cash-on-cash return for the investor...?
7 (Percent %)
Mark purchased a multi-family property for $3,250,000. If the NOI on the property was $235,000, at what cap rate did Mark purchase the property...?
7.2 (Percent %)
What is the cash-on-cash return for an owner who purchases a $1,200,000 property, with an NOI of $90,000 using all cash...?
7.5 (Percent %)
A property was sold for $345,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the listing broker's real estate agent was responsible for the sale of the property and receives a 70/30 split with his broker, how much commission is paid to the real estate agent...?
7245
How many hours of course study must an individual take in order to sit for the New York State real estate salespersons exam...?
75
Coverage C typically amounts to what percentage of Coverage A...?
75 (Percent %)
If the rent on a 25,500 sq.ft. office space is $36 per sq.ft., how much does the tenant pay on a monthly basis...?
76500
A property is assessed at $48,550. The tax rate is equal to 15.8%. What are the taxes owed on the property...?
7670.9
A property was sold for $625,000. The total commission for the transaction was 5%. The listing broker and buyer's broker agreed to split the commission 50/50. If the listing broker's real estate agent was responsible for the sale of the property and receives a 50/50 split with his broker, how much commission is paid to the real estate agent...?
7812.5
What is the mortgage recording tax paid on a property that sold for $485,000, assuming there is a tax rate of $2.05/$100 of the loan amount and the bank uses an 80% LTV...?
7954
Retail strip centers typically consist of how many square feet...?
8,000 - 30,000 sq.ft.
What is the cap rate on a building that was purchased for $2,250,000 and yielded an NOI of $185,000...?
8.2 (Percent %)
Anthony bought a commercial property using all cash at a 8.5% capitalization rate. What is Anthony's cash-on-cash return for the deal, after year 1...?
8.5 (Percent %)
If the lifetime cap on an adjustable rate mortgage is 5% and the start rate is 3.5%, what will be the highest interest rate for the borrower...?
8.5 (Percent %)
If the net income on a property is $97,500 and the allowable annual depreciation is $8,725, what is the taxable income for the property...?
88775
What is the cash-on-cash return for an owner who purchases a $8,250,000 property, with an NOI of $750,000 using all cash...?
9.1 (Percent %)
A property was sold for $325,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...?
9750
What is the difference between a certificate of occupancy and a building permit...?
A Certificate of Occupancy legally allows the building to be occupied while a Building Permit grants permission to build or renovate a building
Who does the agent bring to the principal in a transaction...?
A Customer
According to NYS law, how long is a broker allowed to take an extended leave of absence from his/her brokerage office...?
A broker is not allowed to take an extended leave of absence
Which of the following are you NOT entitled to without a real estate license...?
A commission
What is often the first step in the process of a salesperson losing his/her license...?
A complaint is filed with the Department of State
Which of the following must an applicant bring with them when taking the New York State real estate salespersons exam...?
A copy of their "Summary of Your Submission"
A lower cap rate will yield what...?
A higher price
Which of the following is an example of real estate...?
A house built on a property
Which of the following may be viewed unfavorably by a bank seeking lend money on a cooperative apartment...?
A large number of unsold sponsor units
Who is a real estate salesperson required to work under...?
A licensed real estate broker
A higher cap rate will yield what...?
A lower price
A SCAR proceeding typically results in what...?
A written decision by the appointee
Abby, a real estate salesperson, successfully sold her client's house. Who receives the commission from the transaction...?
Abby's Broker
Parcels of land next to each other that share a common border are known as what...?
Abutting
Mark is reviewing the mortgage documents he received from the bank. What is a typical clause Mark will most likely encounter when reviewing the mortgage...?
Acceleration clause
Which of the following clauses in a mortgage will allow the lender to foreclose on the property if and when the borrower defaults on the loan...?
Acceleration clause
A second residential unit that may be contained within an existing single-family home, garage, or carriage house is known as what...?
Accessory Apartment Use
An attic apartment located within a single family home may be considered what type of use...?
Accessory Apartment Use
When a single family home contains a second residential unit, located above a garage, the additional unit is referred to as what...?
Accessory Apartment Use
The use of land that is subordinate, incidental to, and customarily found in connection with the principal use allowed on a lot by the zoning law is known as what...?
Accessory Use
John is interested in purchasing a two bedroom house and enters into an agency relationship with Chris, a real estate broker, to help him find a house. According to the fiduciary duties Chris owes to John, which of the following is true...?
According to the duty of Obedience, Chris should not show John one bedroom houses
According to an agent's fiduciary duties, the agent must not change or modify the financial terms of a deal. Which of the following fiduciary duties best reflects this...?
Accountability
If there is any doubt as to the distribution of proceeds at the closing table, it must be resolved in favor of the client, as per which fiduciary duty...?
Accountability
Mark is a real estate broker who represents a buyer in a transaction. He recommended a mortgage broker to help his client obtain financing for a property. What the client doesn't know is that Mark will receive a referral fee from the mortgage broker if the client obtains a mortgage from the mortgage broker. This is a breach of which fiduciary duty...?
Accountability
The 'A' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?
Accountability
A cause of action that can be brought in court to address a change in condition of a property brought about by a current tenant that damages or destroys the value of that property is known as what...?
Act of Waste
What is the formula to determine how much a property is over assessed...?
Actual Assessment - Appraised Assessment
A method of valuing insured property is referred to as what...?
Actual Cash Value
The Department of State�s ability to enforce license laws through reprimand and denial as well as the suspension and revocation of licenses is known as...?
Administrative Discipline
Prior to January 1, 2011, which of the following was NOT permitted under New York State law...?
Advance consent to dual agency
Which of the following is NOT a primary characteristic of real property investments...?
Aesthetics
A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction is described on the...?
Agency Disclosure Form
Which of the following is NOT considered a principal in an agency relationship...?
Agent
David owns a property in the Theater District of Manhattan. The property adjacent to David's property includes a landmarked Broadway theater with 8,500 unused buildable square feet. Unfortunately for the theater, the remaining buildable square footage cannot be used since the building is landmarked and cannot be modified. David offers to buy the theater's unused square footage. What is David looking to buy from the adjacent theater...?
Air Rights
Local zoning ordinances often regulate the development of these types of land rights...?
Air Rights
Rights in real property to use the space above the surface of the land are known as what...?
Air Rights
The rights in real property to use the space above the surface of the land are known as what...?
Air Rights
CFCs are most likely to be found in what type of equipment...?
Air conditioners
A "due on sale" clause is also known as what...?
Alienation Clause
A mortgage may be obtained from which of the following...?
All of the above
An appraisal is used in determining the value of what...?
All of the above
An appraisal is used when determining the value of what...?
All of the above
If a landlord would like to pass a utility bill on to his/her tenants, what type of metering would be required...?
All of the above
John is a real estate salesperson for City Realty, a local brokerage company. John has been hired by Josh, a homeowner seeking to sell his house. As a sub-agent to the transaction, which of the following fiduciary duties applies to John...?
All of the above
The bank has the right to do which of the following when lending money to a home buyer...?
All of the above
What is used by banks to determine if a borrower is qualified to obtain a mortgage....?
All of the above
Where can a buyer go to obtain a mortgage...?
All of the above
Which of the following is a function performed by a mortgage loan officer...?
All of the above
Which of the following is a test used to determine the highest and best use of a property...?
All of the above
Which of the following is a typical clause found in most mortgages...?
All of the above
Which of the following is an example of using leverage in a real estate transaction...?
All of the above
Which of the following is analyzed during the appraisal process...?
All of the above
Which of the following is considered a major commercial property type...?
All of the above
Which of the following loans are insured or guaranteed by a government agency�?
All of the above
Which of the following should be considered when determining the market value of a property...?
All of the above
Which of the following uses will demand a value-in-use approach when conducting an appraisal...?
All of the above
Why might the rentable square footage be greater than the usable square footage...?
All of the above
Air rights belonging to a condominium are owned by who...?
All of the owners of the condominium
This agreement describes the terms under which the cooperative gives permission to a shareholder before making any changes or improvements to the unit the shareholder occupies...?
Alteration Agreement
These are required if there are any material changes to the Offering Plan of a cooperative...?
Amendments
The process by which a loan principal decreases over the life of a loan is known as what...?
Amortization
A unit measure of electricity is known as what...?
Amperage
David is a real estate agent working for City Brokers. City Brokers offered to pay David an hourly wage as an incentive to keep David at the firm. If David accepts the hours wage, what may he be considered according to New York State Law...?
An employee
Marcus is a real estate agent with Town Brokers. Town Brokers demanded that Marcus work a minimum of 25 hours per week at their main office location. Under this scenario, what may New York State consider Marcus if he were to work a set amount of hours in a specific location...?
An employee
What is first in the order of adjustments when utilizing the sales comparison approach...?
Analyze any rights conveyed
Walmart serves as the primary tenant in a large shopping center. Walmart can also be referred to as what...?
Anchor tenant
The price/sq.ft. described in a commercial lease is typically represented on what basis...?
Annual
Peter is in the process of selling his multi-family building. In order to take advantage of a 1031 exchange, Peter must purchase which of the following properties...?
Any of the above
At what time during a transaction may a principal dissolve a dual agency arrangement...?
Any point in the transaction
Joan, a real estate agent, and her colleague Philip, a real estate agent working under the same broker as Joan, have entered into a dual agency relationship. At what point in the transaction may a principal dissolve the dual agency arrangement...?
Any point in the transaction
In order to qualify for a 1031 exchange, a newly purchased property must be located where...?
Anywhere in the United States
Any person who engages in the business of claiming, demanding, charging, receiving, collecting, or contracting for the collection of, a fee from a customer for furnishing information concerning the location and availability of real property, including apartment housing, which may be leased, rented, shared or sublet as a private dwelling, abode, or place of residence is known as a/an...?
Apartment Information Vendor
Which of the following is considered a main commercial property type...?
Apartment buildings
A SCAR proceeding is generally led by who...?
Appointee
Which of the following is NOT an economic characteristic of real property...?
Architectural Design
John wants to verify the license fees required by New York State. Where should John search to find this information...?
Article 12-A of the NYS Real Property Law
This law governs the practice of real estate salespersons and brokers...?
Article 12-A of the NYS Real Property Law
Which of the following is NOT an example of a long standing issue...?
Asbestos
A chronic lung disease caused by inhaling asbestos fibers is known as what...?
Asbestosis
How may a condominium owner have a 'right of first refusal' clause waived from their contract with the condominium...?
Ask the managing agent to remove the clause
A valuation placed upon property by a public officer or a board, as a basis for taxation is known as what...?
Assessed Value
A city, county, town or village with the authority to value real property for purposes of taxation is known as what...?
Assessing Unit
According to the Buyer's Agency Agreement, which of the following is the broker's obligation to his/her client...?
Assist in locating available property
Which of the following clauses is NOT found in an Exclusive Right to Sell Agreement...?
Automatic Renewal clause
According to Article 12-A of the NYS Real Property Law, which of the following will prevent an individual from obtaining their real estate salespersons license...?
Being a convicted sex offender
The person who receives, or is to receive, the benefits resulting from certain acts is known as what...?
Beneficiary
A higher R-Value means what...?
Better performing insulation
How many citizens are found in 'Class B' cities...?
Between 50,000 - 175,000
A type of loan used to fund the purchase of more than one piece of real property is known as what...?
Blanket Mortgage
What type of mortgage is often used to finance subdivisions...?
Blanket Mortgage
Unlike in a cooperative, a condominium owner does NOT have to go through what, when selling their unit...?
Board approval
How is a multi-family property valued different than an office building...?
Both property types are valued the same way
Jason is a broker who is involved in a dual agency arrangement. In order to satisfy the demands of his clients, Jason assigned designated sales agent to both the buyer and seller. As a broker in the transaction, to whom does Jason owe a fiduciary responsibility to...?
Both the buyer and the seller
When a broker is involved in a dual agency arrangement, whereby he/she designates sales agents to represent both the buyer and seller, the broker owes a fiduciary duty to whom...?
Both the buyer and the seller
Who is required to sign the Property Condition Disclosure Statement...?
Both the buyer and the seller
Brian would like to buy a larger commercial building. How can this be accomplished using less cash out of pocket by Brian...?
Brian should use leverage by obtaining seller financing
This type of loan is an example of a short-term loan...?
Bridge
This type of loan is typically taken out for a period of two weeks to three years...?
Bridge
Which of the following is NOT considered a principal in an agency relationship...?
Broker
Whose job is it to act as a middleman in a transaction...?
Broker
Regulations established by state or local governments stating the structural requirements for buildings are known as what...?
Building Code
Mark would like to gut renovate his condominium apartment. In order to do so, Mark must obtain which of the following...?
Building Permit
Which of the following must be obtained before a homeowner can start substantial work on their home...?
Building Permit
Which of the following expenses is typically related to the age of the building...?
Building repairs
Which of the following is considered a depreciable asset...?
Buildings
Which of the following helps ensure that buildings provide a minimum standard of life safety...?
Buildings Codes
The premise that the ownership of real estate consists of the ownership of various rights associated with it is known as what...?
Bundle of Rights
Which of the following is considered a depreciable asset...?
Business machinery
An agent who represents the buyer of real property is referred to as a...?
Buyer's Agent
According to Article 12-A of the NYS Real Property Law, which of the following actions does NOT require that an individual have a real estate license...?
Buying real estate as an investment
David owns a cooperative apartment in Midtown Manhattan. He would like to know when the board members of his cooperative meet, as he would like to present architectural plans for the renovation of his apartment. Where should David look to find this information...?
By-laws
This document describes how directors of a cooperative are elected...?
By-laws
The Clean Air Act enacted regulations regarding the use of what...?
CFCs
The Clean Air Act regulates what harmful emissions...?
CFCs
Although stable at ground level, CFCs are known to be harmful is what regard...?
CFCs lead to the depletion of the ozone layer
The capitalization rate of a property can be determined by which of the following formulas...?
Cap Rate = Income / Value
The net operating income of a property does NOT include which of the following expenses...?
Capital Expenditures
The difference between a lower selling price and a higher purchase price, resulting in a financial loss to the seller is known as...?
Capital Loss
Money set aside by a property owner for long-term capital expenditures to a property is known as...?
Capital Reserve Budget
Replacement reserves, as commonly found in pro-forma statements, typically account for what...?
Capital expenditures
Operations income does NOT include which of the following...?
Capital gains
This type of income is associated with the sale of a property...?
Capital gains
What do lenders typically have a buyer place in an escrow account...?
Capital reserves
The annual return an investor would achieve on a property that was purchased using all cash is equal to what...?
Capitalization Rate
The net result when income from an investment property is subtracted from the expenses is known as...?
Cash Flow
What is the formula for determining cash on cash return...?
Cash Flow / Down Payment
A residential property owner, as opposed to a commercial owner, is typically NOT concerned with what...?
Cash flow of the property
A latin term that means "let him beware" is also known as what...?
Caveat
This means "let the buyer beware"...?
Caveat Emptor
What is an important aspect of industrial warehouse space...?
Ceiling heights
Your property has been assessed for $5,200; however, a comparable property on your block was assessed at $4,000. What can you do in this situation...?
Challenge the assessment since your property is over assessed
A cooperative apartment is considered what type of property...?
Chattel
A colorless, odorless, viscous liquid used as an insecticide is known as what...?
Chlordane
A fluid, containing hydrocarbons that absorbs heat from a reservoir at low temperatures and rejects heat at higher temperatures is known as what...?
Chloro-flouro Carbons (CFCs)
Cindy was a real estate salesperson in a successful transaction. Who paid Cindy her commission for the deal...?
Cindy's Broker
The 'safety valves' in an electrical system are known as what...?
Circuit Breaker
Which of the following is an example of a municipal corporation...?
City
Eric works in a 20 year-old building that lacks some of the amenities found in newer office buildings. Eric most likely works in this Class of building...?
Class B
Which of the following is NOT considered a utility expense...?
Cleaning
According to Article 12-A of the NYS Real Property Law, which of the following actions requires a real estate license...?
Collect rent on behalf of another
This is the contracted date when the lease of a new tenant begins...?
Commencement Date
If a residential building consists of 5 dwelling units, what will the building be considered...?
Commercial
Retail space is considered which of the following zoning uses...?
Commercial
The amount of cash flow a property produces is used to determine the value of this property type...?
Commercial
The value of this property type is based primarily on an investor's return on their money...?
Commercial
This type of insurance policy covers bodily injury, property damage, physical injury, and advertising injury...?
Commercial Policy
Use provisions are typically found in what type of leases...?
Commercial leases
Which of the following is an example of a trade fixture...?
Commercial oven
What property types use the income approach to determine value...?
Commercial properties
Which illegal act may lead to a real estate salesperson losing his/her license...?
Commingling of funds
In addition to PITI, which of the following are included in a mortgage payment made on a condominium...?
Common charges
Real estate investors will most likely benefit most from this type of depreciation...?
Component Depreciation
This means of depreciation breaks down a property into various components and then determines the depreciation on each component separately...?
Component Depreciation
Taking private property for public use, with fair compensation to the owner is known as what...?
Condemnation
A form of fee simple ownership of part of a structure having multiple units is known as a/an...?
Condominium
In which type of property management is a manager most likely to be involved in the enforcement of the building association's rules and regulations...?
Condominium and Cooperative Management
An HO-6 insurance policy typically covers which of the following...?
Condominium owners
If an assessor is going to change an assessment, generally speaking, what must the assessor do...?
Conduct a total assessment change for the entire assessing district
According to the Buyer's Agency Agreement, which of the following is considered a buyer's obligation to the broker...?
Conduct all negotiations through the broker
Andrew has accepted a new job in San Francisco and needs to sell his house quickly. Andrew hired a real estate agent to help with the transaction. If the agent reveals this information to a prospective buyer, it would be a breach of which fiduciary duty...?
Confidentiality
Susan and Mark are in the process of getting a divorce and need to sell their house quickly. They have hired a real estate broker to help facilitate the transaction. According to which fiduciary duty must the information regarding the divorce not be disclosed...?
Confidentiality
The 'C' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?
Confidentiality
Which of the following is an essential element of a valid contract...?
Consideration
A loan secured by real estate which is for the purpose of funding the construction of improvements or building(s) upon the property is known as what...?
Construction Mortgage
Any disturbance of the tenant�s possession of the leased premises by the landlord whereby the premises is rendered unfit or unsuitable for the purpose for which they were leased is known as what...?
Constructive Eviction
The warranty of habitability, offered in a standard lease, may be violated by this type of eviction..?
Constructive eviction
What is the most common index used to determine rent increases in a lease escalation clause...?
Consumer Price Index
The process by which a rental building becomes a condominium building is known as this...?
Conversion
Which of the following is a primary duty of the principal to the agent...?
Cooperate with the agent
A dwelling unit owned by a corporation in which an owner owns stock commensurate with the value of his/her apartment compared to the value of the building as a whole is known as a/an...?
Cooperative
Who holds the right to approve the sale or a purchase of a cooperative apartment....?
Cooperative Board of Directors
David owns a cooperative apartment in Manhattan. He is thinking about getting a dog but is not sure if the cooperative will allow for pets. Where should David look to find this information...?
Cooperative House Rules
John would like to build an additional bathroom in his cooperative apartment. Where should John look to verify if a second bathroom is allowed by the cooperative...?
Cooperative House Rules
Mary owns a cooperative apartment and is thinking about getting a cat. However, she is not sure if the cooperative would allow for pets. Where should Mary look to find this information...?
Cooperative House Rules
A UCC-1 is filed on public record when a loan is given on which of the following...?
Cooperative apartment
A maintenance task performed to identify, isolate, and rectify a problem with a property so that the property can be restored to an acceptable condition is known as...?
Corrective Maintenance
Repairing a leak in the roof is an example of this type of maintenance...?
Corrective Maintenance
The total dollar expenditure for labor, materials, legal services, architectural design, financing, taxes during construction, interest, contractor's overhead and profit, and entrepreneurial overhead and profit is known as what...?
Cost
A method of estimating the value of real property by calculating a current construction cost, subtracting accrued depreciation and adding a land value obtained from the market is known as what...?
Cost Approach
The value of a special use property is most likely determined using which of the following approaches...?
Cost approach
A type of offer made in response to another offer, which was seen as unacceptable is known as what...?
Counteroffer
Which of the following individuals are exempt from having to obtain a real estate salespersons or broker�s license to practice real estate...?
Court ordered officials
Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property is known as what...?
Covenant
Dwelling coverage is also known as...?
Coverage A
Personal Property Coverage is also known as...?
Coverage C
Mark's home was damaged in a fire and no longer able to be occupied. Fortunately, the event was insured by Mark's property insurance policy. Since Mark was unable to occupy his house, the insurance company paid for temporary lodging while the damage to the house was being repaired. This was paid for under what type of coverage....?
Coverage D
Personal Liability Coverage is also known as...?
Coverage E
Which of the following is NOT analyzed during the appraisal process...?
Credit history of the buyer
While working as a landlord's broker in a transaction, David learned from the landlord in confidence that he is looking to sell his building in the next 6-12 months. When is David permitted to share this information with his colleagues...?
David is never permitted to share this information
A fundamental document that establishes the existence of and further governs the use and maintenance of a condominium property is known as...?
Declaration
The amount of expenses that must be paid out of pocket before an insurer will pay any expenses is known as what...?
Deductible
A imposed restriction in a deed for the purpose of limiting the use of the land is referred to as what...?
Deed Restriction
John is interested in buying a property to build a new neighborhood bar in his town. However, when John reviewed the deed of the prospective property, he found a restriction against the sale of liquor. The restriction to sell liquor is referred to as what...?
Deed Restriction
Which of the following is NOT an example of the governmental use of police power...?
Deed restrictions
Which of the following may be used to limit or restrict certain uses on a property�?
Deed restrictions
The failure to pay back a loan is known as what...?
Default
Michael has a mortgage on his single family home. However, he is having difficulty making payments and is nearly 3 months late on his mortgage. What is Michael in danger of doing...?
Defaulting on his mortgage
Robert is reviewing the mortgage documents he received from the bank. What is a typical clause Robert will most likely encounter when reviewing the mortgage...?
Defeasance clause
A city or town master plan is based, in part, on which of the following studies...?
Demography
Which of the following is responsible for ensuring that projects comply with the building code...?
Department of Buildings
Which of the following is responsible for issuing building permits...?
Department of Buildings
Sewage treatment is regulated by what public agency...?
Department of Health
Which of the following is an example of a qualified deduction an owner can take to reduce the amount of taxes owed on a property...?
Depreciation
Which of the following is NOT a function of the city council, town board, or village board of trustees...?
Design residential and commercial projects
When an agent is appointed to act on behalf of the seller in a dual agency arrangement, they are referred to as a...?
Designated Sales Agent
Which of the following is NOT a characteristic of commercial investment properties...?
Desirability
Equalization rates set by different people may cause what...?
Differences in assessments
According to this fiduciary duty, an agent must present all offers to the client...?
Disclosure
The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems is known as...?
Disclosure
Which of the following forms is used to inform the parties to a transaction about the risks of dual agency�?
Disclosure Form
A form of pre-paid interest where one point equals one percent of the loan amount is known as what...?
Discount Points
The failure to do something at the proper time, especially when such a delay will bar a party from bringing a legal proceeding, is known as what...?
Doctrine of Laches
In this lease type, the tenant is responsible for paying both the property taxes and premiums for insuring the building...?
Double Net Lease
XYZ Company recently signed a lease on their new office space. As part of the lease agreement, they must pay for property's real estate taxes and premiums for insuring the building. What type of lease did XYZ Company sign...?
Double Net Lease
The part of or interest in real estate of a deceased husband given by law to his widow during her life is known as what...?
Dower
The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan is known as what...?
Down Payment
Chris is a real estate salesperson who represents the seller in a transaction. If another agent from Chris' brokerage firm represents the buyer in the same transaction, what type of agency will exist...?
Dual Agency
Jim is a real estate salesperson who represents the seller in a transaction. Michael, a real estate salesperson from the same brokerage firm as Jim, represents the buyer in the transaction. In this scenario, what type of agency exists...?
Dual Agency
Representing both principals (seller and buyer) in a transaction is known as...?
Dual Agency
When a buyer's broker agrees to the cooperative arrangement of the MLS, and becomes a sub-agent to the seller, what type of agency is created...?
Dual Agency
When buying a home or building, an environmental assessment is typically conducted in what phase of the buying process...?
Due Diligence
A thorough review of a commercial investment property's financials are conducted during this process...?
Due diligence
Coverage A' is also known as...?
Dwelling Coverage
Which of the following coverage is the main coverage in any homeowner's policy...?
Dwelling Coverage
A down payment made by a purchaser of real estate as evidence of good faith is known as what...?
Earnest Money Deposit
Which of the following is NOT an example of the governmental use of police power...?
Easements
The section of the roof that overhangs the walls of a house is known as what...?
Eave
This type of depreciation is described by the physical deterioration of a property...?
Economic depreciation
Which of the following types of depreciation is relevant to real estate...?
Economic depreciation
What must an owner prove in order to obtain a variance on a proposed project which is not as-of-right...?
Economic hardship
The actual income that an owner collects on a property, before expenses, is known as what...?
Effective Gross Income
The amount of rent that a landlord actually collects, before expenses, is referred to as what...?
Effective Gross Income
This line on a pro-forma includes the actual amount of rent collected by the landlord...?
Effective Gross Income
Net operating income is equal to what...?
Effective Gross Income � Expenses
Mark is an agent with City Brokers. Mark decides that he wants to leave City Brokers to work with another broker. Who is capable of terminating the independent contractor relationship that exists between Mark and City Brokers...?
Either Mark and/or City Brokers
Which party is capable of terminating an independent contractor relationship...?
Either party
Which of the following may NOT be considered a main characteristic of commercial investment properties...?
Emotions
A person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business is known as a/an...?
Employee
According to New York State Law, an independent contractor may be considered this, if the requirements of an independent contractor are not followed...?
Employee
Which of the following is NOT considered one of the six fiduciary duties an agent owes to his/her client...?
Employee
Which of the following is considered a depreciable asset...?
Equipment
Mr. Davis owns an apartment building on the Upper East Side of Manhattan. He leases a one bedroom apartment to Andrew for a specified period of one year. What type of leasehold estate is Andrew receiving from Mr. Davis...?
Estate for Years
This type of leasehold estate lasts for a specified period of time and does NOT renew automatically...?
Estate for Years
According to this doctrine, a principal cannot claim that an implied agency relationship did not exist...?
Estoppel
The principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person, or by a previous pertinent judicial determination, is known as...?
Estoppel
A letter provided by the tenant to the landlord, which assures that their lease is binding, accurate, and being paid upon, is known as what...?
Estoppel letter
A study of the nature, quality, or utility of certain property interests in which a value estimate is not necessarily required is known as what...?
Evaluation
Andrew hires an appraiser to better understand the supply and demand in a particular market. What will the appraiser produce for Andrew...?
Evaluation
Which of the following is used when analyzing the highest and best use of a property...?
Evaluation
An agreement that has been fully performed is known as what...?
Executed Contract
The city would like to build a new highway that would drastically reduce traffic congestion; however, in order to do so, private property must be obtained by the city. How may the city obtain the private property needed for the new highway...?
Exercising Eminent Domain
A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration), and the terms are stated is known as what...?
Express Contract
When two brokers agree to the MLS' cooperative arrangement, what type of agency is created...?
Expressed Agency
Mr. and Mrs. Rogers are seeking to buy their first home. They both recently graduated from college and therefore lack the funds for a large down payment. What type of mortgage should Mr. and Mrs. Rogers seek...?
FHA mortgage
Which of the following expenses is NOT included in a net lease...?
Facade Maintenance
A group consisting of parents and children living together in a household is legally known as what...?
Family
A fee simple estate is also known as....?
Fee Simple Absolute
Absolute ownership of real property is known as what...?
Fee Simple Estate
In this type of estate the owner is entitled to the entire property with unconditional power of disposition during the owner�s life and descending to the owner�s heirs or distributees...?
Fee Simple Estate
This type of ownership includes all of the bundle of rights...?
Fee Simple Estate
Which of the following is an example of a type of fee simple absolute...?
Fee Simple on Condition
A person who on behalf of, or for the benefit of another, transacts business or handles money or property not the person�s own is known as a...?
Fiduciary
What must an appraiser do before two properties can be compared...?
Find a common unit of comparison
The first contact or meeting by a licensee when some detail and information about the property is shared with parties who express some interest in the real estate transaction is known as...?
First Substantive Contact
Sheet metal used at wall and roof junctions and around chimneys to prevent water entry is known as what...?
Flashing
There are generally two ways an agent is compensated for a transaction. One is a percentage of the sales price, while the other is...?
Flat fee
A fee paid by a seller or buyer on a housing co-op transaction is known as what...?
Flip Tax
Concrete set in the soil (foundation bed) that supports the foundation of a house is known as what...?
Footing
Which of the following elements is found at the base of the foundation wall, below the frost line...?
Footing
Which of the following is used to distribute the structural load of the foundation into the soil below...?
Footing
A special agreement between the lender and the borrower to delay a foreclosure is known as what...?
Forbearance
What type of HVAC system delivers both warm and cool air...?
Forced air system
What type of heating system delivers warm and cool air through the same ducts...?
Forced air system
The part of the structure, typically below grade, upon which all other construction is built is known as what...?
Foundation Walls
Radon is most likely to enter into a home through which part of the structure...?
Foundations
A material that easily crumbles or reduces to a powder is known as what...?
Friable
Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. Before offering the referral fee, however, Justin obtained informed consent from the client. Justin's actions are an example of what policy...?
Full disclosure
A typical skill that all property managers must be familiar with is known by the acronym GAAP. GAAP refers to what...?
Generally Accepted Accounting Principles
GAAP is an acronym for what...?
Generally Accepted Accounting Principles
A time past the deadline for an obligation during which a late penalty that would have been imposed is waived is known as what...?
Grace Period
Which of the following is considered an anti-trust violation...?
Group Boycott
If two or more brokerage firms conspire to not do business with another brokerage firm, what may they be liable of...?
Group Boycotting
Marcus is a real estate broker representing a seller. Jason, a buyer's broker, is attempting to do a deal with Marcus that would prevent other broker's from showing their clients Marcus' client's property. In this scenario, what may Jason and Marcus be liable of if they act on this agreement...?
Group Boycotting
Mark, a real estate broker, teamed up with Chris, another real estate broker, in an effort to not do business with a cross-town broker. What may Mark and Chris be accused of...?
Group Boycotting
A home where a small number of unrelated people in need of care, support, or supervision can live together, such as those who are elderly or mentally ill is known as what...?
Group Home
In this type of policy, the homeowner can select coverage for a single type of event, including fire, wind, or water damage...?
HO-1
Which of the following is an example of a standard insurance policy with single line coverage...?
HO-1
This type of insurance policy is provided to tenants and cooperative owners...?
HO-4
This type of insurance policy typically covers a tenant...?
HO-4
Which of the following is a skill typically required of property managers...?
Handle landlord-tenant relations
According to the Buyer's Agency Agreement, which of the following is NOT an obligation owed by the buyer to the broker...?
Have a personal real estate attorney on call to help with the negotiations
Which of the following should an agent recommend to their client as a means to verify the financial capabilities of the client...?
Have the buyer obtain a pre-approval letter from a lender
Mark is a real estate salesperson but wants to obtain his real estate broker's license. Which of the following requirements must Mark satisfy in order to obtain his broker's license...?
He must be at least 20 years of age
Mark is a newly licensed real estate salesperson who wants to start selling real estate. What must Mark do first in order to begin selling real estate...?
He must get sponsored by a licensed real estate broker
James purchased a commercial property at a 7.5% cap rate. The previous owner agreed to finance the deal at 8%. Why may James elect not to go ahead with the financing...?
He will experience negative leverage
Why may investors demand paying a lower price for a property when interest rates are high...?
High interest rates yield a lower cash flow
Higher interest rates will yield what...?
Higher Cap Rates
A loan secured by equity value in the borrower�s property is known as what...?
Home Equity Loan
An examination of a property's condition, usually performed in connection with the property's sale is known as a/an...?
Home Inspection
A home which is owned by and is the usual residence of a client, along with all the surrounding land and any building on that land, is known as what...?
Homestead
Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, and conflict resolution are known as...?
House Rules
This document defines the day-to-day operations of a cooperative...?
House Rules
A percolation test is conducted to help determine what...?
If a property can accommodate a septic tank
According to the Department of State, blind ads are considered what...?
Illegal
If an owner spends all of his/her cash on a down payment of an investment property, and does not have any additional cash during the operations of the property, he/she is considered what...?
Illiquid
The concept that property is an asset that cannot easily be sold or exchanged for cash is known as what...?
Illiquidity
Mr. and Mrs. Smith are seeking to sell their two bedroom house. Mark is a real estate broker and a family friend of the Smiths. The Smiths allowed Mark to show their house to prospective buyers but did not actually sign an agency agreement. Under this scenario, what type of agency relationship may arise...?
Implied Agency
This is a form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship...?
Implied Agency
An agreement created by actions of the parties involved, but it is not written or spoken is known as what...?
Implied Contract
A proceeding against the reality directly, as distinguished from a proceeding against a person, is known as what...?
In Rem
City Builders is a development company that builds office buildings throughout New York State. They recently completed a project whereby they were able to build 5 additional stories in return for providing a public park behind the building. City Builders benefited from what type of zoning...?
Incentive Zoning
This type of zoning benefits both local neighborhoods and developers, as developers are given a bonus for providing additional public space...?
Incentive Zoning
This type of zoning often results in a trade between a developer and the city, whereby the city allows the developer to build additional square feet in return for a public space built by the developer...?
Incentive Zoning
A property's net operating income must be determined before a property can be valued using this appraisal method�?
Income Approach
An appraisal technique whereby the value of an income producing property is estimated by capitalizing its net operating income using an appropriate capitalization rate is known as what...?
Income Approach
According to the IRS, which of the following property types is NOT considered a permitted deduction on one's tax return...?
Income producing properties
Net operating income is equal to what...?
Income � Expenses
As interest rates go up, cap rates do what...?
Increase
Why might a property owner want to decrease the taxes owed on their property...?
Increase the value of the property
As a/an ����... the work activities of a real estate agent cannot be controlled by his/her broker...?
Independent Contractor
Debby is a New York State real estate agent. According to State law, Debby is considered a/an...?
Independent Contractor
In New York State, all real estate agents are considered...?
Independent Contractors
Which of the following is considered a primary commercial property type...?
Industrial properties
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, is known as what...?
Inflation
The offering plan is a key document provided during the purchase of a cooperative. What is provided within the offering plan...?
Information required to be disclosed to the purchaser
Abby, a real estate agent, is working to rent an apartment on behalf of her client. Mark, a real estate agent who works for the same broker as Abby, has a client who is interested in renting the apartment. Before the apartment can be shown, what must be provided by the landlord and prospective tenant...?
Informed Consent
What should be provided before a dual agency relationship occurs...?
Informed consent by all parties
Which of the following is an example of a capital improvement...?
Installing a new roof on a building
The value of an asset or asset group that is covered by an insurance policy is referred to as what...?
Insured Value
Mortgage payments are made up of principal and what...?
Interest
What is the equation for negative leverage...?
Interest Rate > Cap Rate
Reductions of the income subject to tax, for various items, especially expenses incurred to produce income is known as what...?
Interest and Tax Deductibility
Which of the following is an example of a 'Deduction for Taxes'...?
Interest paid on a mortgage
If an owner is selling more than 100 vacant lots of land to out-of-state investors, he/she will be regulated by this Act...?
Interstate Land Sales Full Disclosure Act
The Act helped protect consumers from fraud and abuse in the sale or lease of land...?
Interstate Land Sales Full Disclosure Act
A commercial property will most likely yield what type of value by an appraiser...?
Investment Value
Mark, and his investor group, are looking to purchase an office building. To help in their analysis, they hire an appraiser to determine the value of the property. What value will the appraisal report most likely yield...?
Investment Value
What type of properties benefit from a 1031 exchange...?
Investment properties
Real estate is considered an illiquid asset because....?
It cannot easily be sold
Chris wants to file a protest against a tax assessment conducted on his property from two years ago. What should Chris do first...?
It is too late to file the protest
John has a faulty HVAC damper in his cooperative apartment. Where should John look to determine if he, or the cooperative, is responsible for fixing the damper...?
John's Proprietary Lease
John is the seller's broker in a transaction. An associate broker from John's office is interested in showing the property to his client. Who must provide informed consent before the associate broker's client views the property...?
John's client
John is in the process of closing on a new home in which he will obtain a mortgage of $450,000. During the process, John learns that he must obtain property insurance. Who may have required that John obtain property insurance...?
John's mortgage lender
Justin, a real estate salesperson with City Brokerage, received a referral fee after referring a client to Mark, another real estate salesperson with City Brokerage. Who ultimately pays Justin his referral fee...?
Justin's sponsoring Broker
A payment by a broker to anyone who is not licensed or who is not exempt from the license law is known as a...?
Kickback
This program was established to promote private sector involvement in the retention and production of rental houses for low income households...?
LIHC
Which of the following is an example of a hard cost...?
Labor
According to the doctrine of latches, an easement granted by a homeowner can be terminated by which of the following...?
Lack of use by the dominant tenement
Which of the following assets are NOT depreciable...?
Land
A ground lease is also known as what...?
Land Lease
A lease agreement that permits the tenant to use a piece of land owned by the landlord in exchange for rent is known as what...?
Land Lease
Which of the following is considered a principal in an agency relationship...?
Landlord
Who pays the expenses of the building in a gross lease...?
Landlord
Which of the following is NOT an example of an agency relationship...?
Landlord � Tenant
A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord is known as...?
Landlord's Agent
What is a borrower required to pay if a mortgage payment is made after the grace period allowed by the bank...?
Late charge
Which of the following is an essential element of a valid contract...?
Lawful objective
What material is commonly found in the paint of many older homes...?
Lead
Which of the following materials was commonly used in pipes and paint of many older homes...?
Lead
The governmental agency that oversees the environmental impact process and makes final decisions is known as what...?
Lead Agency
Which of the following statements about lead is TRUE...?
Lead is commonly found in pipes and paint of older homes
Which of the following is a common misconception with regards to presence of lead...?
Lead is only found in disadvantaged neighborhoods
Which of the following disclosures must be provided by an agent on behalf of his/her client...?
Lead paint
Title X requires that agents deliver what to new buyers and tenants, for buildings constructed prior to 1978...?
Lead-based Paint Hazard Disclosure Form
How many citizens are found in a 'Class C' city...?
Less than 50,000
Larry purchased a property at a 6% Cap Rate. What must the interest rate on his mortgage be in order to avoid negative leverage...?
Less than 6%
David bought a building at a 7% cap rate. What will the interest rate on his mortgage have to be in order to experience positive leverage...?
Less than 7%
One who rents property to another under a lease is known as the...?
Lessor
Adam is a commercial real estate investor. He almost always uses 'other people's money' to fund his deals. In doing so, Adam is using what...?
Leverage
Ely recently purchased a commercial investment property using a jumbo loan from the bank. Ely's use of bank financing is an example of what...?
Leverage
Howard wants to buy a commercial building but does not have enough cash. He decides to bring in partners to help fund the equity and provide them with a return on their money. Howard's decision to use partners is an example of what...?
Leverage
Obtaining seller financing to help fund the purchase of a commercial investment property is an example of using what....?
Leverage
Syndicating capital from friends and family to purchase a commercial investment property is an example of using what...?
Leverage
What is used by nearly every real estate investor to buy a commercial property...?
Leverage
Which of the following is a primary aspect of commercial investment properties...?
Leverage
Which of the following will allow an owner to buy a larger building, using the same amount of cash...?
Leverage
An assessment of tax is known as what...?
Levy
Insurance policies include two main types of coverage. The first part covers the structure of the building. The second covers what...?
Liability
The 'L' in in the acronym CERCLA refers to what...?
Liability
What is an example of a special assessment...?
Library
Which of the following is NOT an example of the governmental use of police power...?
Liens
Mary deeds her property over to her three children with the condition that she is able to live on the property for the remainder of her life. This is an example of what...?
Life Estate
This determines the maximum amount of interest an adjustable rate mortgage can increase over the start rate...?
Life cap
Interest rate limits found in some types of mortgages are referred to as...?
Lifetime Cap
When executing a 1031 exchange, the tax code requires an owner to purchase which of the following...?
Like-kind properties
In this type of ownership, profits pass through the property and taxes are paid at the personal level...?
Limited Liability Company
This type of ownership is common among real estate investors...?
Limited Liability Company
This type of ownership is common in real estate as the owners are not personally liable for any damages...?
Limited Liability Company
If an owner has enough cash to fund the operations of a commercial investment property while the cash flow becomes stabilized, he is considered this...?
Liquid
A property sold as part of a bankruptcy proceeding is most likely equal to what value...?
Liquidation Value
Which of the following will most likely yield the lowest price for a property...?
Liquidation Value
If the cash flow of a building cannot cover the cost of upkeep, the owner must have what, to maintain the building...?
Liquidity
What is needed of a commercial real estate owner when investing in a property...?
Liquidity
Lisa is a real estate broker who has entered into an agency relationship with Robert, a landlord looking to lease one of his apartments. Lisa brings Andrew, a prospective tenant, to Robert with an offer to rent Robert's apartment. Which of the following statements is correct...?
Lisa is the Agent, Robert is the Principal, and Andrew is the Customer
Lisa would like to buy a larger self storage building. How can this be accomplished using less cash out of pocket by Lisa...?
Lisa should use leverage by obtaining seller financing
An agent and the principal enter into an agency relationship through what document...?
Listing Agreement
An employment contract between principal and agent, authorizing the agent to perform services for the principal involving the latter�s property is known as a...?
Listing Agreement
John, a real estate broker, and Chris, a property owner, have entered into an agency relationship. The scope of their agency relationship is defined in what document...?
Listing Agreement
The agreed upon price between the seller and seller's agent, for which the property will be sold, is also known as what...?
Listing Price
Which of the following is an example of a contract that will most likely affect agents or brokers...?
Listing agreements
Michael owns a property adjacent to a pond. As the owner, Michael is entitled to build a dock on the pond, which can be used for boating and other recreations. What land right allows Michael to build a dock on the pond...?
Littoral Rights
Which of the following land rights is associated with a stagnant body of water...?
Littoral Rights
A financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased is known as what...?
Loan to Value Ratio
Subdivision regulations may dictate that a developer build which of the following when subdividing a large plot of land into smaller lots...?
Local road
As compared to a residential building, finding a new tenant for a commercial building often takes...?
Longer
Why may investors be willing to pay more for a property when interest rates are low...?
Low interest rates yield higher cash flows
This type of office building consists of 1-3 stories...?
Low-rise office building
According to an agent's fiduciary duties, the agent must work in the best interests of his/her client. Which of the following fiduciary duties best reflects this...?
Loyalty
According to which fiduciary duty is an agent prohibited from forcing on his or her client a sale, lease or opportunity to buy...?
Loyalty
Ben, a real estate agent, represents several buyers. In an attempt to increase his commission, he decides to have his clients bid against the same property without their knowledge or consent. Which fiduciary duty has Ben breached...?
Loyalty
The 'L' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?
Loyalty
Asbestosis and mesothelioma are known to cause what type of cancer...?
Lung cancer
Monthly payments by a shareholder to a cooperative corporation are referred to as what...?
Maintenance
All cooperative shareholders must pay which of the following each month...?
Maintenance fee
Which of the following actions may lead to a salesperson losing their license...?
Making a material misstatement in their license application
A contract between the owner of a property and someone who agrees to manage it is known as a/an...?
Management Agreement
A document that sets forth the duties of the manager when employed by the owner is known as a...?
Management Proposal
Mark wants to refinance his cooperative apartment in order to reduce the interest rate on his loan. What will the bank use as collateral for the loan...?
Mark's stock interest allocated to the apartment
City Brokerage and Town Brokerage entered into an agreement whereby City Brokerage will only do business on the East side of town and Town Brokerage will only do business on the West side of town. What may the two firms be guilty of...?
Market Allocation
Two brokerage firms in a particular market entered into an agreement with each other to refrain from competition. They agreed that one firm would only do business on the west side of the city while the other firm would only do business on the east side of the city. What are the two firms guilty of...?
Market Allocation
Which of the following is considered an anti-trust violation...?
Market Allocation
The actual selling price of a property is referred to as what...?
Market Price
This refers to the most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both the buyer and seller aware of current market conditions, neither being under duress...?
Market Value
A lender typically uses this valuation method when determining the value of a propety�?
Market approach
A '100%' assessment means the value of a property, as determined by a municipality, is equal to what...?
Market value
This clause found in a mortgage ensures that the borrower will maintain clear title on the property in the event the bank is forced to foreclose...?
Marketable title clause
This document is developed by the property manager and describes how rents will be maximized...?
Marketing Plan
This Act requires that key disclosures be provided by a cooperative in the purchase of a unit...?
Martin Act
When an entire community is being re-assessed, what technique is employed...?
Mass Appraisal Technique
Which of the following sets forth the long-term and short-term planning goals of the community?
Master Plan
Although an agent or principal is not obligated to disclose all information in a transaction, it is recommended that what information be revealed, in order to help the customer make an informed decision...?
Material information
Which of the following consists of the Executive branch of a municipal corporation...?
Mayor
Which of the following is NOT responsible for implementing zoning regulations...?
Mayor's Office
A crime punishable by up to a year in prison and/or a $1,000 fine is known as what...?
Misdemeanor
Making an intentionally false statement to induce someone to contract is known as...?
Misrepresentation
This type of property includes retail space on the ground floor with residential units above...?
Mixed-use
This property type is NOT considered a primary commercial property type...?
Mixed-use buildings
A fungus that grows in the form of multicellular filaments called hyphae is commonly referred to as what...?
Mold
Which of the following statements about mold is NOT true...?
Mold is only found in older construction
Which of the following statements about mold is TRUE...?
Mold needs moisture to grow
A policy containing a single coverage part plus the common policy conditions and common declarations is known as a...?
Monoline Policy
A property management report is typically delivered to the owner on what basis...?
Monthly
A temporary prohibition of an activity is known as what...?
Moratorium
How many citizens are found in a 'Class A' town...?
More than 10,000
How many citizens are found in 'Class A' cities...?
More than 175,000
A high-rise office building consists of how many stories...?
More than 20 stories
This document creates a lien against a property...?
Mortgage
Which of the following gets recorded in the public record...?
Mortgage
A company, individual or institution that originates mortgages is known as a...?
Mortgage Banker
A direct lender is also known as what...?
Mortgage Banker
Who should your client contact if he/she wants to get a mortgage, and prefers NOT to work with a middle man in the process...?
Mortgage Banker
An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use his/her own funds to originate mortgages is known as a...?
Mortgage Broker
A banking department form required when a person is acting as a mortgage broker and a real estate broker in the same transaction is known as what...?
Mortgage Broker Dual Agency Disclosure Form
The amount paid by a mortgagor for mortgage insurance is known as what...?
Mortgage Insurance Premium
Your client would like to obtain bank financing as quickly as possible. You advise that in order to do so they should work with a loan originator who is as close to the underwriter as possible. Based on this advice, who should your client work with to obtain a mortgage...?
Mortgage banker
Michael is seeking to purchase his first home using bank financing. Who should Michael work with to get the best terms possible for his mortgage...?
Mortgage broker
The lender or bank who provides a loan to the borrower or homeowner is known as the...?
Mortgagee
The borrower, typically a homeowner, who issues the mortgage is known as the...?
Mortgagor
The market value of a property is determined using what price...?
Most probable price
The landlord must be prepared to turn over the space to a new tenant by this date...?
Move-in Date
Which of the following is the date the tenant will physically move into a space...?
Move-in Date
MLS is an acronym for what...?
Multiple Listing Service
In larger towns and cities, who is responsible for the treatment of water and sewage systems...?
Municipality
Which of the following is NOT an essential element of a valid contract...?
Must be a US citizen
Which of the following is a requirement for obtaining a real estate salespersons license...?
Must be at least 18 years of age
Which of the following is an essential element of a valid contract...?
Must be in-writing
Which of the following is NOT an essential element of a valid contract...?
Must be recorded
Which of the following is NOT a requirement for homeowners when deducting mortgage interest on their tax returns...?
Must have a 30-year amortization loan
According to Article 12-A of the NYS Real Property Law, which of the following is a general requirement for obtaining a real estate salespersons license...?
Must have at least a work permit
Mark is looking to rent an apartment in his neighborhood. Which of the following standard lease provisions must Mark satisfy in order to rent an apartment...?
Must have the capacity of contract
This organization licenses mortgage bankers and brokers throughout the U.S....?
NMLS
Town Brokers have recently signed a lease to occupy an entire office building. What type of lease did Town Brokers most likely sign...?
NNN Lease
According to this document, a seller's agent owes his/her client the following six fiduciary duties; reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and duty to account...?
NYS Disclosure Form
According to this document, the buyer and/or seller do not have vicarious liability for the actions of a broker's agent...?
NYS Disclosure Form
Which of the following forms do seller's attorneys often recommend that their client not fill out and instead pay a credit to the buyer...?
NYS Property Disclosure Form
If the cap rate on a building is 4% and the interest rate on the mortgage is 5.5%, what will the owner experience...?
Negative Leverage
William buys a building in which the Interest Rate on his mortgage is greater than the Cap Rate of the building. What will William experience with the deal...?
Negative Leverage
This type of mortgage is considered illegal...?
Negative amortization mortgage
According to Article 12-A of the NYS Real Property Law, which of the following actions requires a real estate license...?
Negotiating a commercial loan secured by a mortgage on behalf of another
Which of the following is NOT considered a municipal corporation...?
Neighborhood
This retail property type is typically 30,000 - 100,000 sq.ft...?
Neighborhood Centers
A lease that requires the tenant to pay, in addition to rent, some or all of the property expenses that normally would be paid by the property owner is known as what...?
Net Lease
This is equal to the gross income minus expenses (and sometimes debt service)...?
Net Operating Income
The taxable basis of a property is equal to...?
Net Operating Income - Total Deductions
The formula for determining realized gains is equal to...?
Net Sales Price - Adjusted Basis
A loan that fails to meet bank criteria for funding is known as what...?
Non-conforming Loan
A home that is generally unavailable during the time the client makes a reasonable effort to sell the property is known as what...?
Non-homestead
The act of either: 1) replacing an obligation to perform with a new obligation; or 2) adding an obligation to perform; or 3) replacing a party to an agreement with a new party is known as what...?
Novation
This organization oversees public recreational areas and administers federal and state preservation programs authorized by federal and state law...?
OPRHP
According to an agent's fiduciary duties, the agent must act in accordance to his/her client's demands and instructions. Which of the following fiduciary duties best reflects this...?
Obedience
The 'O' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?
Obedience
The fiduciary relationship obligates the agent to act in good faith at all times, obeying the client�s instructions in accordance with the contract is known as...?
Obedience
The loss of desirability and usefulness caused by new inventions, changes in design, and improved processes for production, or from the influence of external factors, is known as what...?
Obsolescence
As stated in the Buyer's Agency Agreement, which of the following is NOT considered an obligation owed by the buyer to the broker...?
Obtain a pre-approval from a bank prior to viewing any properties
What is a primary responsibility of an agent with regards to tax rates and assessments...?
Obtain accurate information
When purchasing a cooperative apartment, this document is provided, which contains key information required to be disclosed to the purchaser...?
Offering Plan
A document prepared by the attorneys representing the builders of a newly constructed condominium building is known as what...?
Offering Statement
Which of the following actions may lead to a salesperson losing their license...?
Offering properties for sale without the consent of the owner
Which of the following is an example of a subsurface right...?
Oil located beneath a property
As an agent, how many brokers are you typically allowed to work for at any given time...?
One
Which of the following is an example of obedience, one of the six fiduciary duties an agent owes his/her client...?
Only showing the type/size of house the client is looking for
Abby is an agent who has been designated to represent the seller in a dual agency arrangement. Abby owes a fiduciary duty to whom...?
Only the seller
A listing given to any number of brokers without liability to compensate any broker, except the one who first secures a buyer ready, willing and able to meet the terms of the listing, is known as a/an...?
Open Listing
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively is known as a/an...?
Operating Budget
Which of the following is NOT included in the marketing plan...?
Operating Budget
Which of the following is an example of a cost that is covered by cooperative owner's monthly maintenance fee...?
Operating costs
This type of income is realized by the owner during the year-to-year operations of the property...?
Operation income
A right given for a consideration to purchase or lease a property upon specified terms within a specified time is known as a/an...?
Option
This retail property type typically consists of 1 - 2 anchor tenants...?
Outlet Centers
Which of the following is NOT an example of an agency relationship...?
Owner � Tenant
This is a method of financing in which the loan that finances the purchase of a home also finances the purchase of personal items such as a washer and dryer, refrigerators, stove, and other specified appliances...?
Package Mortgage
An insurance policy that combines coverage from two or more types of insurance (such as property and liability) into one policy is referred to as what...?
Package Policy
This type of policy typically provides discounts on each line of the policy...?
Package Policy
Which of the following is NOT a type of square footage found in commercial leases...?
Parking space
The division which is made of real property between those who own it in undivided shares is known as what...?
Partition
Earnings an individual derives from a rental property in which he or she is not actively involved is known as...?
Passive Activity Income
What would a commercial building owner consider a 'repairs and maintenance' expense, as opposed to a capital expenditure...?
Patching a roof leak
According to the Buyer's Agency Agreement, which of the following is NOT considered a buyer's obligation to the broker...?
Pay the broker a bonus for negotiating a lower purchase price
Which of the following is a means by which stock is allocated among cooperative tenants...?
Per apartment size in square footage
In this type of lease, the rent is based upon the percentage of the volume of sales made upon the leased premises...?
Percentage Lease
There are generally two ways a broker is compensated for a transaction. One is a flat fee, while the other is...?
Percentage of the sale price
Sandy is a real estate agent who has entered into an agency relationship with Jim, a homeowner, to sell Jim's house. They agreed upon a flat fee for Sandy as compensation for a successful transaction. What other means of compensation may be agreed upon between the two...?
Percentage of the sales price
The movement of water through soil is known as what...?
Percolation
This type of leasehold estate automatically renews...?
Periodic Estate
Also known as a tenancy from year to year, month to month, or week to week, this is an estate that exists for some period of time determined by the term of the payment of rent...?
Periodic Lease
Which of the following is NOT included on a real estate salesperson's pocket card...?
Personal Address
Coverage E is also known as...?
Personal Liability Coverage
Coverage C is also known as...?
Personal Property Coverage
According to the IRS, which of the following property types are considered a permitted deduction...?
Personal residences
Which of the following is NOT considered a depreciable asset...?
Personal use assets
Investigation of a site is conducted during which phase of an environmental assessment...?
Phase 1
Testing of a site is conducted as part of which phase of an environmental assessment...?
Phase 2
Which of the following is a likely place to find asbestos...?
Pipe insulation
A highly designed residential project that features relatively dense clusters of houses, which are usually surrounded by areas of commonly owned open space maintained by a nonprofit community association is known as a...?
Planned Unit Development
A local elected or appointed government board charged with recommending to the local town or city council the boundaries of the various zoning districts and appropriate regulations to be enforced therein is known as what...?
Planning Board
Wood frame construction commonly found in residential construction in which floors are supported by joists, beams, and bearing walls is known as what...?
Platform Construction
A card issued by the Department of State to each licensee is known as a...?
Pocket Card
A loan fee equal to one percent of the mortgage amount is known as what...?
Point
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public is known as what...?
Police Power
If the cap rate on a building is 7% and the interest rate on the mortgage is 5%, what will the owner experience...?
Positive Leverage
Which of the following is the next step in the mortgage process after a bank pre-qualifies a buyer...?
Pre-approval
Which of the following may be completed by the bank prior to a buyer finding a property to purchase...?
Pre-approval
The unfair, deceptive, or fraudulent practices of some lenders during the loan origination process is referred to as...?
Predatory Lending
James created a real estate syndication to purchase a multi-family building. He offered to pay his investors an 8% return first, after which he will split the remaining profits 50/50. What is the 8% return referred to...?
Preferred Return
According to the Buyer's Agency Agreement, which of the following in an obligation owed by the broker to the buyer...?
Present all offers to the seller or seller's agent as the buyer directs
Keeping property and equipment in a good state of repair so as to minimize the need for more costly major repair work or replacement is known as...?
Preventative Maintenance
Replacing filters is an example of this type of maintenance...?
Preventative Maintenance
The amount a purchaser agrees to pay and a seller agrees to accept in an arms length transaction is also known as...?
Price
The amount a purchaser agrees to pay and a seller agrees to accept in an arms length transaction is known as...?
Price
The market where borrowers and mortgage originators come together to negotiate terms and effectuate mortgage transactions is known as what...?
Primary Mortgage Market
The IRS considers mortgage interest a permitted deductible on this property type...?
Primary residence
The broker's client is also referred to as the...?
Principal
The one by whom a broker is employed is known as a...?
Principal
The sales comparison approach is based on what principle...?
Principle of Substitution
Which of the following is NOT considered a common element in a condominium...?
Private kitchens
Which of the following is most likely to become contaminated with radon...?
Private well
As opposed to the actual review of the past performance of a building, this statement estimates how a building may perform in the future...?
Pro-forma
John is looking to buy a multi-family building. As part of his due diligence, he estimates what the income and expenses of the building will be during the first 5 years of ownership. What document will show these numbers...?
Pro-forma
A signed document containing a written promise to pay a stated sum to a specified person/institution or the bearer at a specified date is known as what...?
Promissory Note
What parameters do appraisers typically use to determine the value of a property using the sales comparison approach...?
Properties within a 1 mile radius, sold within the past 6 months
Property A is an office building with a going cap rate of 6.5%. Property B is a multi-family building with a going cap rate of 4.7%. If both properties produce the same NOI, which property is worth more...?
Property B
This policy provides protection against most risks to property, such as fire, theft and some weather damage...?
Property Insurance
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period is known as a/an...?
Property Management Report
Which of the following is NOT a document needed to prepare a contract...?
Property floor plans
The stockholder in a cooperative building has what type of lease to his/her apartment...?
Proprietary Lease
This document lists the obligations of the cooperative with regards to the repairs and maintenance of an individual shareholder's apartment...?
Proprietary Lease
How can you successfully have your property reassessed through a SCAR proceeding...?
Prove that your property is over assessed by showing the assessed value of comparable properties in your neighborhood
According to the Buyer's Agency Agreement, which of the following is NOT considered an obligation owed by the broker to the buyer...?
Provide a survey of all potential properties
Governments can only exercise eminent domain for which of the following uses...?
Public use
What will leverage allow an investor to do...?
Purchase a larger building
Blueprints or construction drawings describe which of the following...?
Quantities of materials
A measurement of the ability of insulation to slow the transfer of heat or cold is referred to as what...?
R-Value
A consumer protection statute, first passed in 1974 is known as...?
RESPA
A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country is known as what...?
Radon
A private well is most likely to become contaminated with what harmful gas...?
Radon
Which of the following contemporary issues is the 2nd leading cause of lung cancer in the United States...?
Radon
An agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage over a specified period of time is known as what...?
Rate Lock
A profit on an investment over a period of time, expressed as a proportion of the original investment is also known as...?
Rate of Return
According to this doctrine, an agency relationship which is created after the fact when the principal agrees to be bound by the actions of the agent who was acting without authority, is known as...?
Ratification
Which of the following is an example of preventative maintenance...?
Re-pointing the bricks on the fa�ade
A practitioner who has the knowledge and expertise necessary to estimate the value of a property is known as a...?
Real Estate Appraiser
Which professional is exempt from obtaining a real estate salespersons or brokers license to practice real estate...?
Real Estate Attorney
According to this section of the Real Estate Property Law, agents can receive referral commissions for referring services...?
Real Estate Property Law 175.7
Which of the following individuals works under a real estate broker...?
Real Estate Salesperson
A condominium apartment is classified as what type of property...?
Real property
According to an agent's fiduciary duties, the agent must be competent and not act in a negligent manner. Which of the following fiduciary duties best reflects this...?
Reasonable Care
What is required in order to determine the market value of a property�?
Reasonable exposure and marketing time
Which of the following does NOT make up a mortgage payment...?
Rebate
The collecting officer for each city and town that receives real property taxes and assessments is known as who...?
Receiver of Taxes
An illegal practice in which a lender refuses to lend money in a specific area is known as what...?
Redlining
The Truth in Lending Act of 1968 is also known as�?
Regulation Z
Mary deeds her property to her sister for 15 years, in the form of a life estate. In addition, Mary also specifies that her sister's children will receive ownership of the property after the 15 years is up. Mary's sister's children are considered what...?
Remainderman
The person who is to receive the property after the termination of the prior estate is known as who...?
Remainderman
The monthly rent that each tenant pays in a multi-family building can be found in this document...?
Rent Roll
The tenant name and apartment number of each unit in a multi-family building can be found in this document...?
Rent Roll
This document lists all of the tenants in a particular building and how much each is paying in rent...?
Rent roll
This document will show what units in a particular building are vacant and which units are occupied...?
Rent roll
Usable area that can be leased/rented to a tenant is known as...?
Rentable Square Footage
According to Article 12-A of the NYS Real Property Law, which of the following actions requires a real estate license...?
Renting a property on behalf of another
The right of an individual involved in a contract to return to a state identical to that before they entered into the agreement, due to courts not recognizing the contract as legally binding is known as what...?
Rescission
What is a major factor that is always taken into consideration when doing an appraisal on a commercial property...?
Reserve Replacement
These types of properties are typically bought using emotions...?
Residential
What property type uses SCAR when protesting real estate taxes and assessments...?
Residential
In which of the following types of property management is a manager most likely to review previous landlord references of a tenant...?
Residential Management
In which type of property management is a manager most likely to run credit checks on the tenant...?
Residential Management
In which type of property management is the manager most likely to evict tenants...?
Residential Management
In what type of property management must a manager understand the needs and desires of an anchor tenant...?
Retail Management
John wants his assessment reduced by 30% since his property is located next to a power plant. The SCAR hearing officer granted John a 20% reduction, which is the maximum allowed in the State of New York. What should John do to get the full 30% reduction he desires...?
Return the following year and attempt to get an additional reduction
In regards to financing, banks are more favorable towards what type of trust...?
Revocable Trusts
A contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into the transaction with a third party is known as what...?
Right of First Refusal
The right to pass over another�s land pursuant to an easement or license is known as what...?
Right-of-Way
Access to a river flowing adjacent to a property is an example of what type of right...?
Riparian Right
Which of the following is associated with a flowing body of water...?
Riparian Rights
Which of the following is a primary characteristic of real property investments...?
Risk
Controlling and limiting risk in property ownership is known as...?
Risk Management
In this agreement, the tenant commits to maintaining their lease, even if the property changes ownership...?
SNDA
Which of the following should NOT be considered when trying to determine the market value of a property...?
Sales prices from over 1 year ago
Abby only has three more monthly payments left on her mortgage. After Abby completes her last three payments, what will she be issued by the bank...?
Satisfaction of Mortgage
Which of the following property types will most likely use a value-in-use value when conducting an appraisal...?
School
What type of property is generally exempt from paying real estate taxes...?
Schools
The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators and investors is known as the...?
Secondary Mortgage Market
According to the IRS, mortgage interest is considered a permitted deductible on this property type...?
Secondary residence
Which section of the New York State Real Property Law states that the broker may be liable for the salesperson's actions...?
Section 442-C
A monetary deposit given to a lender, seller or landlord as proof of intent is known as what...?
Security Deposit
Which of the following is NOT considered a main commercial property type...?
Self storage buildings
Which of the following is NOT a means by which one can terminate a lease...?
Self-help eviction
David is a real estate broker who represents a buyer in a transaction. David finds a potential property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, David has become a sub-agent to whom...?
Seller
When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes a sub-agent to whom...?
Seller
An agent who represents the seller of real property is referred to as the...?
Seller's Agent
Who typically prepares the contract in the sale of a home...?
Seller's attorney
A small-scale sewage treatment system common in areas with no connection to main sewage pipes provided by local governments or private corporations is known as what...?
Septic System
A private well must be at least 50'-0" from what...?
Septic tank
In addition to regulating water quality, the Department of Health is also responsible for regulating...?
Sewage treatment
A loan in which shares of stock are used as collateral is known as what...?
Share Loan
A _____ mortgage exists when joint ownership of real estate is by both lenders and property dwellers?
Shared Equity Mortgage
In most cooperatives, who is responsible for electing the directors on the board...?
Shareholders
Who owns the corporation that in turn, owns a cooperative building...?
Shareholders
Abby is a high school teacher but wants to get her salesperson�s license in order to rent real estate during the summer months. Which of the following requirements must Abby satisfy in order to obtain her license...?
She must be proficient in the English language
As a special agent in a translation, a real estate salesperson is permitted to do which of the following on behalf of the client...?
Show the property
A veneer cover found on the side of residential construction which are typically made of wood boards, vinyl, or aluminum are referred to as what...?
Siding
Which of the following occurs first...?
Signing of the lease
The bottom member of wood frame stud walls are known as what...?
Sill Plates
This wooden member gets bolted directly to the top of the foundation wall where it serves as a nailing surface...?
Sill plate
What is the first wooden member in a building that provides a nailing surface...?
Sill plate
What wooden member gets bolted to the top of the foundation wall...?
Sill plate
When an agent represents either the buyer or the seller, but NOT both in a transaction, the agent is considered what...?
Single Agent
Which of the following is NOT an example of a foundation system...?
Slab on deck
A structure which does not include a basement is typically built with what type of construction...?
Slab-on-Grade Construction
A garage is typically built of this type of construction...?
Slab-on-grade construction
John, a real estate salesperson, has entered into an agency agreement with a client whose scope is limited to that described in the agreement. This level of authority suggests that John is what type of agent...?
Special Agent
An assessment made against a property to pay for a public improvement by which the assessed property is supposed to be especially benefited is known as what...?
Special Assessment
A geographic area in which the market value of real estate is enhanced due to the influence of a public improvement and in which a tax is apportioned to recover the costs of the public improvement is known as what...?
Special Assessment Districts
In this type of policy, any event NOT specifically excluded by the owner is included in the policy...?
Special Form Policy
This type of policy is recognized as the most widely used policy for a homeowner...?
Special Form Policy
Church, theaters, or schools are examples of what...?
Special Purpose Real Estate
An order of a court which requires a party to perform a specific act, usually what is stated in a contract, is known as what...?
Specific Performance
Abby recently hired an architect to design her new home. Abby would like to know which manufacturer will be used for the flooring to be installed throughout the living room and dining room. Where should Abby look to find this information...?
Specifications
A licensed real estate broker that holds the license of a salesperson is known as what...?
Sponsor
A State law which provides that certain contracts must be in writing in order to be enforceable as law is known as what...?
Statute of Frauds
A statute barring all right of action after a certain period of time from the time when a cause of action first arises is known as what...?
Statute of Limitation
A purchaser of a cooperative apartment will receive which of the following at closing...?
Stock Certificate
Anthony recently purchased a cooperative apartment in Manhattan. What did Anthony receive at the closing...?
Stock Certificate
A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year is known as...?
Straight-line Depreciation
A major subdivision includes which of the following scope...?
Street improvements
Vertical framing members found in wall construction are referred to as what...?
Studs
Justin, a real estate broker representing a buyer in a transaction, found a property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, Justin will have what type of relationship to the owner of the listed property...?
Sub-agent
The broker, as a franchisee of a national brokerage, is considered what to the national brokerage...?
Sub-agent
The control of the division of a tract of land into individual lots by requiring development according to specific design standards and procedures adopted by local ordinances is known as what...?
Subdivision Regulations
An arrangement in which the lessee (tenant) in a lease assigns the lease to a third party, thereby making the old lessee the sublessor, and the new lessee the sublessee, or subtenant is known as what...?
Sublease
Although many factors affect the value of real property, what is the primary driver in determining the value of real property...?
Supply and Demand
A SCAR proceeding is generally held where...?
Supreme Court Building
The right of the Department of State to deactivate a broker�s or salesperson�s license for wrongdoing is known as what...?
Suspension
Which of the following is NOT an example of a trade fixture...?
Tables and Chairs
An elected or appointed official of a county, city, town or village whose function is to value real property for the purposes of taxation is known as who...?
Tax Assessor
The Receiver of Taxes issues what...?
Tax Bill
This Act lowered the top tax rate from 50% to 28%...?
Tax Reform Act of 1986
Every assessment role includes what...?
Tax Status Date
This type of depreciation is relevant to real estate...?
Tax depreciation
Under Section 1031 of the US Internal Revenue Code, the exchange of certain types of property may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due is known as...?
Tax-Deferred Exchange
When calculating the amount of taxes to be paid on a property, the tax rate is multiplied by this number...?
Taxable Income
This type of ownership is common among married couples....?
Tenancy by the Entirety
Which of the following is considered a principal in an agency relationship...?
Tenant
Which of the following is NOT a standard requirement found in a lease agreement...?
Tenant must be employed with a full-time job
A written document that terminates the relationship between an agent and his/her sponsoring broker is known as what...?
Termination of Association Notice
What is a typical due date for most mortgage payments...?
The 1st of the month
Abby, a real estate broker, has entered into an agreement to sell John's house. Who will be the customer in the transaction...?
The Buyer
Who holds the right to approve or disapprove an applicant seeking to buy a cooperative apartment...?
The Cooperative Board of Directors
Abby is a real estate agent who represents the seller in a transaction. Her colleague, Kimberly, works for the same broker and represents a prospective buyer. Both Abby and Kimberly's clients want to gain a better understanding as to the risks and benefits of entering into a dual agency relationship. What document should Abby and Kimberly present to their clients...?
The Disclosure Form
Jason is a real estate agent who is seeking to rent an apartment on behalf of his client. Jason's colleague, David, works for the same broker and has a client who is interested in renting the apartment. What document should Jason and David have their clients review and sign-off on prior to entering a dual agency relationship...?
The Disclosure Form
How do State statutes regulate rent controlled apartments...?
The State limits the amount of rent increases each year
Chris, a real estate broker, has entered into an agreement to lease one of John's apartments. Who is the customer in the transaction...?
The Tenant
The amount of taxes on a property can affect what...?
The Value of the Property
An assessment is NOT made on the highest and best use of a property but rather...?
The actual condition of the property
Which of the following is a typical characteristic of an independent contractor relationship...?
The agent can be employed by another company
Which of the following is NOT a characteristic of an independent contractor relationship...?
The agent cannot work for another company
At what point is an agent allowed to disclose information that a client provided in confidence during the client/agent relationship...?
The agent is never permitted to release confidential information
Which of the following is a characteristic of an independent contractor relationship...?
The agent is not required to work in a specific location
Which of the following is a characteristic of an independent contractor relationship...?
The agent is not required to work set hours
Which of the following is NOT a characteristic of an independent contractor relationship...?
The agent is paid hourly wages
In addition to the agent signing the independent contractor agreement, what else is required before the agreement can be finalized...?
The agreement must be notarized
What should one look for when reviewing a cooperative's financial statement...?
The amount of cash in the cooperative's working capital fund
When a property is partitioned between owners, their interests in the property are calculated by...?
The amount of money that each owner contributed to the property
According to Section 442-C of the NYS Real Property Law, who may be held liable for a salesperson's actions...?
The broker
Philip is a real estate salesperson who represents a seller in a transaction. However, Philip violated several of his fiduciary duties to the client. According to the concept of vicarious liability, who can be held liable for Philip's actions...?
The broker
Who has the right of first refusal when a cooperative unit is up for sale...?
The cooperative
Who owns the real estate in a cooperative building...?
The corporation that owns the cooperative
Reproduction cost is equal to what...?
The cost of rebuilding the subject property in its current condition
What must be modified/changed in order for the termination of a joint tenancy to occur...?
The deed must reflect the change of ownership
If all principals in a transaction initially agree to dual agency, but one of the principals subsequently withdraws their consent, what happens to the dual agency...?
The dual agency cannot proceed
If a principal or agent provides a customer with a material fact, which of the following must apply...?
The fact must be true and accurate
What will banks examine when trying to determine if a loan should be given on the purchase of a cooperative apartment...?
The financial strength of both the cooperative building and the shareholder
If offers are quickly being made on current asking prices, what might be happening in the market...?
The market is trending upwards
If one of the owners in a joint tenancy dies, their share of ownership is distributed to...?
The other joint tenant(s)
In a general agency relationship between the property manager and owner, who serves as the principal...?
The owner
Which of the following is typically found in the Management Agreement between the property manager and the owner...?
The owner's responsibilities and objectives
What may occur which will negate the need to partition the property among its owners...?
The owners can agree on a settlement
The amount needed to upkeep the landscaping of a cooperative building is shared among its shareholders based on which of the following...?
The percentage of ownership of each shareholder
The annual budget of a cooperative building is paid for by its shareholders. The amount each shareholder contributes is based on which of the following...?
The percentage of ownership of each shareholder
Who is required to sign the mortgage...?
The person(s) on the deed
The Listing Price is also referred to as what...?
The price agreed upon in the contract between the seller and seller's agent
In a general agency relationship between the property manager and owner, who serves as the agent...?
The property manager
Which of the following is a standard clause found in a mortgage...?
The property must be maintained in good condition
David, a real estate broker representing the seller, received an offer on his client's property for $450,000, $50,000 below the asking price. However, the prospective buyer told David that he is capable and willing to offer up to $525,000. According to David's fiduciary duties to his client, what should he tell the client...?
The prospective buyer is willing to offer $25,000 over the asking price
Which of the following should NOT be disclosed by a seller's agent, as it may harm the seller's negotiating position...?
The reasons why the seller is selling
Which of the following is an example of a littoral right...?
The right to access a lake adjacent to the property
Which of the following is NOT among the Bundle of Rights...?
The right to build over the property line
Which of the following rights is granted to the tenant of a life estate...?
The right to quiet enjoyment
Which of the following is an example of a riparian right...?
The right to use a river adjacent to the property
As a commercial real estate owner, what should be your primary focus...?
The risk involved in the deal
What discipline may be taken if a salesperson takes a property listing of a broker, after leaving that broker...?
The salesperson may lose his/her license
Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction...?
The seller
If a real estate agent representing the buyer enters into a dual agency arrangement, to whom does he/she become a sub-agent...?
The seller
Jason, a buyer's broker, found a property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, who in addition to his client does Jason have an agency relationship with...?
The seller
Insurance premiums for a cooperative building are paid with which of the following...?
The shareholder's monthly maintenance fees
Insurance policies include two main types of coverage. The first part covers liability. The second covers what...?
The structure of the house or building
In a typical commercial lease, who is given the option to extend a tenant's lease...?
The tenant
Which of the following is NOT a standard requirement found in a lease agreement...?
The tenant must have a high school diploma
Which of the following is NOT determined by local zoning ordinances...?
The type of construction used to build a building
Which of the following is NOT a test used to determine the highest and best use for a property...?
The use must be allowed by a variance
Property A is a self storage facility with a going cap rate of 6.0%. Property B is an office building with a going cap rate of 6.0%. If both properties produce the same NOI, which property is worth more...?
The value of the properties are the same
Real estate taxes paid by an owner are directly related to what...?
The value of the property
Which of the following is NOT the role of a salesperson...?
They must be able to accurately value a property
If a broker insists his/her client use a mortgage banker as a condition to the sale, the broker has engaged in what unlawful arrangement...?
Tie-in Arrangement
Maggie, a real estate broker representing a buyer, tells her client that they must use her mortgage broker to obtain a mortgage, otherwise, she won't show the best deals on the market. What has Maggie introduced to her client...?
Tie-in Arrangement
Marcus, a real estate broker representing a buyer, is insisting that his client use his real estate attorney, otherwise, he will only show a limited number of properties to the client. What has Marcus introduced to his client...?
Tie-in Arrangement
Mark, a real estate broker representing a seller, insists that his client use his real estate attorney, otherwise, he won't sell the house. What has Mark introduced...?
Tie-in Arrangement
The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity is known as...?
Time Value of Money
The concept that $1 dollar today is worth more than $1 in the future is known as what...?
Time value of money
Which part of the Federal Code explains the public's responsibilities regarding lead paint...?
Title X
In a single agency transaction, what are the seller's broker's duties to the buyer...?
To be fair and honest
Many investors invest in commercial real estate for what reason...?
To write-off taxes
The arrangement of the natural and artificial physical features of an area is known as what...?
Topography
Which of the following is an example of a municipal corporation...?
Town
Personal property that is attached to the land or improvements as to become part of the property is known as what...?
Trade Fixture
In this lease type, the tenant is responsible for paying all of the building expenses...?
Triple Net Lease
Where does a property manager typically hold the rents collected on behalf of the owner...?
Trust Account
