Practice Exam 67 %

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"

What is an installment sales contract?

A contractual agreement in which the buyer pays the seller the purchase price over time

According to the statute of frauds, which of the following contracts is not required to be in writing to be valid?

A lease for a term shorter than one year

In which of these situations would a listing be most likely to terminate due to listing agreement expiration?

A market with high inventory and low demand

When a New York zoning board of appeals is asked to grant a variance or a special use permit, what's required?

A public hearing

Which of the following is a way in which property taxes could impact your clients?

A sale in the area may prompt a reassessment, impacting new buyers.

Which document states that occupants in a cooperative unit will not make improvements without obtaining prior written consent from the board of directors?

Alteration agreement

What is another word for plottage?

Assemblage

Which of the following does a prospective cooperative buyer provide to the board to give a clear picture of the buyer's personal and financial situation?

Board package

When considering loan risk, which two items will lenders consider in equal measure?

Borrower and property

According to RESPA, what must the lender give to the borrower in the days immediately prior to settlement?

Closing Disclosure

Property owners who cannot purchase from regular insurance companies can purchase from an insurance pool. What is a disadvantage of this coverage?

Coverage costs are higher.

Camille is working with a seller who has asked her to lower her commission rate. What's the best way for her to explain why she won't do it?

Explain that her fee is based on the services she provides.

Marcia applied to purchase a cooperative. She submitted a board package, which was accepted. What is the next step?

Have a face-to-face interview

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?

Joint tenancy

When the lender gathers all kinds of information about the borrower's assets, debts, income, employment history, and pulls their credit report, the buyer is ___________________.

Making an application for a loan

According to the New York Attorney General's Office, a possible penalty for violating fair housing law is ______.

Making the housing or loan available that has otherwise been denied to the complainant

Which of the following is a specific lien filed by a supplier of products for the construction or improvement of a building?

Materialmen's

Which of the following is defined as the direction and distance of a line forming the boundary of a property?

Metes

It's a bad idea to include information about your loved ones and pets in your personal marketing because it's a safety risk to your loved ones. From a safety standpoint, there's also another reason to avoid including this information in your personal marketing. What is it?

Names and birth dates of children and pets can be used as clues to your passwords.

Existing uses in a new zoning district or in a rezoned district can be grandfathered from compliance with the zoning requirements and is known as ________.

Non-conforming use

Which phase of the investment cycle includes deductions for mortgage interest and property taxes?

Ownership

Which type of framing is most commonly used in housing?

Platform

When pricing a home for the market, what should a licensee try to get sellers to do?

Put themselves in the buyers' shoes

Which areas of New York were recently designated cease-and-desist zones for solicitation by real estate licensees?

Queens and the Bronx

When a licensee publishes a false or misleading advertisement, the New York Department of State may do ALL of the following for a single occurrence.

Reprimand, fine up to $1,000, license revocation

Licensee Ernie is working with his seller client Bertha, an elderly but spry woman. Bertha loves to chat about her garden, her grandchildren, and her neighbors—topics that Ernie doesn't find very interesting. What should Ernie do to best serve his seller client?

Stay customer-focused and try to understand Bertha's model of the world.

A seller tells his agent that he has to sell his house quickly because of a divorce proceeding, and that he's willing to accept less than his list price. His agent tells a buyer that the seller will accept as much as $10,000 less than the list price. Which of these is true?

The agent has breached his duty of confidentiality to his client.

If an agent fails to perform the duty of obedience, what might the legal consequence be?

The agent may be charged with misrepresentation.

Which one of these would void a deed that's intended to convey property?

The grantor is not mentally competent.

Which option lists information that must be included on a licensee's business card?

The licensee's full name, as licensed, type of license held, name of broker

What happens when a municipality completes an "in rem" foreclosure?

The municipality obtains title to the property.

Upon the death of a joint tenant, to whom will that person's interest in the joint tenancy pass?

The surviving joint tenants