NY 30hr Remedial Course

Which type of leasehold lasts for a defined period of time and automatically terminates when that period ends?

Estate for years

What happens during an abatement period?

Existing properties are charged the usual property tax on the property's pre-improvement value only.

This means that a building is unusable for today's needs. Some of these will be curable defects and some will be incurable.

Functional obsolescence

Expected

Having the cooperative board of directors ask questions about your personal lifestyle is ________.

What's required for both assignments and subleasing in most cases?

Landlord approval

The sellers plan to possess the property for a few days post closing, but the buyers don't yet know how much they'll need to cover their mortgage costs. What may be written in the Possession of Property section of the sales contract to cover this situation?

"Buyer PITI pro-rate"

A property valued at $1 million is returning a net annual income of $85,000. What's its cap rate?

8.5% ($85,000/$1,000,000.)

A property valued at $500,000 is returning a net annual income of $45,000. What is the cap rate for this investment?

9% (45,000/500,000)

Which of the following describes a high-rise building?

10-15 Stories Tall

abstract of title

A condensed history of a title; a summary of all links in the chain and that includes other public record matters affecting the title, a legal description of the property and a summary of every related document in chronological order Ex. Karen's abstract of title showed ownership of her property back to the time the property was developed.

Which of the following defines an option to purchase?

A contract between a seller and a potential buyer that gives the potential buyer the right to make an offer on the seller's property but does not obligate him to do so

Personal liability insurance covers incidents such as ______.

A dinner guest twisting an ankle after falling down the stairs

Which of the following belongs in the commercial category referred to as retail?

A gift shop

Which of these is NOT considered a residential property?

A hotel with fewer than 20 rooms

What's an expense stop as used in leases?

A lease that increases its rate when operating expenses exceed a certain threshold

What's a special assessment?

A levy local government applies to individual parcels of real estate that will benefit from road or other infrastructure improvements

1 In which of the following can you look up a property's legal description?

A tax map

What is C-MAP?

A voluntary network of insurers that helps New York homeowners who live in coastal areas to find insurance coverage

To which of the following borrowers might a lender be most likely to recommend an FHA loan?

A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores

Which of the following is earned income, i.e., income earned directly through the taxpayers' efforts?

Active

Your buyer client is paying cash and wants to know when and whether to purchase property insurance. How do you advise your client?

Advise your client that insurance is there to protect him, and it should be purchased upon transfer of ownership.

Historic Preservation Commission

Aesthetics, history, and preservation are all part of which municipal agency's responsibilities?

acceleration clause

Allows a lender to demand immediate and full payment of all debt owed if a buyer defaults

What is static risk?

An insurable business risk that includes insuring for accident liability, fire, theft, and vandalism

When must lenders provide borrowers with a disclosure statement regarding finance charges, annual percentage rate, etc.?

At loan application or within three days after loan application

In this form of price determination, the real estate professional will often just drive by the property and take photos, then complete paperwork for the lender.

Broker's price opinion

Which type of analysis is a broad estimate of price in case the lender must take over the property and sell it to an investor or on the market?

Broker's price opinion

A project that is for renovation rather than new construction is permitted by which municipal agency?

Building Department

What is the best description for a nonconforming loan?

Cannot be sold easily on the secondary market

What does "after tax cash flow" mean?

Cash flow after considering income taxes

What should a real estate professional do regarding property taxes?

Check the title report for property tax liens.

Points deduction

Clay and Myra just bought a home. Based on where they are in the property ownership life cycle, which tax-related item is likely to be of the most concern to them?

Non-homestead properties include which of the following

Commercial and industrial property

A ______ is a mixed-use building where the developer retains ownership of the 20% of the building used for commercial purposes and allows the remaining 80% to operate as a cooperative.

Condop

Local regulations have to be more protective of wetlands than the current state regulations. A municipality can regulate the wetlands by setting up a separate Wetlands Commission or ________ to monitor the wetlands.

Conservation Advisory Council

Which of the following is true regarding cooperatives?

Cooperative ownership is considered personal property.

Which type of investor will find a property in disrepair, make the required repairs, then sell the property for a profit?

Flipper

Buying at one price and immediately trying to sell it at a higher price is known as ______.

Flipping

In general, a deductible will ______.

Help lower your premium

Which is the most widely used policy, recommended by lenders, which covers a home for all risks of physical loss except listed exclusions, and covers loss of contents for many of the same perils.

Homeowners 3 (HO-3)

Which of the following statements is a true statement about points paid by a borrower for refinancing?

If a portion of the amount refinanced is used to improve the home, points could be deductible

Once taxes are delinquent, what action might be taken?

If the property is in a city or village, the municipality will enforce its tax lien through a tax sale.

Estate at will

In this type of leasehold, the duration of the lease is unknown at the time it's created.

GRM (Gross Rent Multiplier)

Kobi, an appraiser, is appraising a single-family home used for a rental. If he wants to use the income approach, he will likely use ______.

abutting

Land sharing a common border

What does a CMA determine?

Market price range

What happens when an appraiser determines a property's value to be less than the pre-approved loan amount?

Most buyers will have an appraisal contingency, so they can back out and receive a refund of their earnest money.

A duplex is what type of property?

Multi-family residential

When Sarah closed on her co-op, in addition to her proprietary lease, she received ________.

Shares of stock in the corporation

Which of the following is an example of a prime lender, as compared to a subprime lender?

Offers lower fees

A taxpayer can claim a capital gains exclusion ______.

Once every two years

Randa is trying to lower the vacancy rates for the commercial property she manages because her revenue targets have increased by 8% over the next year. What type of budget contains this revenue detail?

Operating budget

Holdover tenant

This is a tenant who refuses to leave after the expiration of a lease.

What's the amount of money you have now called?

Present value

Insurers are required to offer premium discounts for ______

Preventive measures taken against hurricanes and storms

What are two ways in which an investor's approach to strategy might be categorized?

Property type and investment strategy

Which of the following is a type of subprime loan usually offered to consumers with insufficient or marginal credit history?

Qualified mortgage with the rebuttable presumption

When a lease contains an automatic renewal clause, the landlord must remind the tenant of the right to terminate the lease. Section 5-905 of the General Obligations Law governs leases with automatic renewal clauses and states that a _______.

Reminder to the tenant must be given no more than 30 days nor fewer than 15 days before the period for furnishing the notice of termination begins

Let's say you are a real estate broker and also a mortgage broker. Under what circumstance would dual agency apply?

Representing a buyer in a transaction for which you are the listing agent

Association fees

Sandra doesn't have to worry about any maintenance on the common areas of her condo building, such as the fitness facility or exterior lawn care, because she pays ______.

What is the term for a vacation home, an investment property, or even a seasonal home a taxpayer uses for a few months every year?

Second home property

1031 tax-deferred exchange

Section 1031 of the Internal Revenue Code allows the owner of real property to sell that property and then reinvest the proceeds in a "like-kind" property and defer paying any capital gains taxes. Ex. Real estate investors can take advantage of the 1031 tax-deferred exchange to defer capital gains taxes when selling a property provided the money is rolled into another "like" purchase

Zack has an investor client who makes a lot of offers, but frequently doesn't have the offer accepted because he is always substantially below asking price. Zack has learned that it is important to ______.

Set an expiration date for the offer

Rosie wants to make an offer on a home, but she's having trouble coming up with a down payment. She can withdraw $10,000 from her IRA without penalty to use for this purpose, but only under what circumstances?

She hasn't been a homeowner during the last two years.

Which of the following requires that contracts transferring ownership of real property be in writing to be enforceable?

Statute of frauds

Consent is not present when ______.

The contract is signed under duress or undue influence

Using _________, tax rates are expressed as either per $100 or per $1,000 of assessed value.

The mill rate

In which of the following documents might an attorney look for information required to complete the deed prior to closing?

The previous deed

Which best describes condominium ownership?

The space inside the unit itself belongs to the unit owner, and all owners also share in the ownership of the common elements.

Which one of the following characteristics makes property taxes a reliable target for taxation?

They have a high compliance rate.

Why are residential properties popular with investors?

They're always in demand.

An office property manager has responsibility for which area?

Thinking about how much build out or change to the design, floor plan, and power requirements a tenant will require

Leasehold estate

This defines the legal relationship between the parties who sign the lease. It grants possession, but not title, to the tenant, and is for a limited period of time.

Periodic estate

This involves possessory interest that's automatically renewed at the end of each period specified in the lease. An example would be a month-to-month lease.

Lease

This is a contract that transfers possession for consideration.

Estate for years

This is a fixed termination type of lease that may be for a day, week, month, year, several years, or any definite period of time. When the specified date occurs, the lease terminates automatically.

Two intoxicated co-workers sign a contract in which they agree to marry each other if they're both still single when they reach age 40. Which of the following is true about this contract?

This is a voidable contract because the parties were intoxicated at the time they signed it.

Lessee

This is the one who leases and is placed in possession (tenant).

Lessor

This is the one who leases out, granting temporary possession to another (landlord).

What is the purpose of the Lawyers' Fund for Client Protection?

To reimburse client money that goes missing during the practice of law, including earnest money

This Municipal Agency enacts ordinances for the government of the town and the management of its business.

Town Council

An agent lists a home that receives an offer for full list price within one day in a buyers' market. There is a chance the agent ______ the home.

Underpriced

Sylvia, 15, and her neighbor, Marge, 24, agree that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this?

Voidable

Tools and equipment

What can be depreciated by an investor?

Wholesaler

Which type of investor finds a deeply discounted property, gains control (or rights) of the property, then immediately sells it to another investor?

Why are foreign investors attracted to New York real estate?

economic environment

Estate at sufferance (a.k.a. tenancy at sufferance)

tenancy at sufferance) This is a type of possession in which a tenant stays after the right to possess has terminated.

When a buyer signs a purchase offer, the buyer also makes a deposit to show good faith to the seller. In this case, "good faith" means _______.

that the buyer intends to complete the transaction.