RE Must Study

What's one of the most fundamental of all fiduciary duties, and is the one that underlies all other duties?

loyalty

Brenda owns an old apartment building with older style electrical service. She likely has a ________ meter.

master

A homeowner sells his house for $325,000 more than he bought it for. When he files his income taxes, how much of this profit may he exclude from his capital gains if he's filing as a single taxpayer?

$250,000

Your client Frank is interested in selling a 54,450-square-foot lot. A comparable property in the vicinity sold for $3,500 per acre. What would be reasonable list price for Frank's property?

$4,375

If a property has a potential gross income of $50,000, a vacancy and collection loss of 10%, and taxes are another 10%, what's the effective gross income?

$45,000

A property has 10 units and is 90% occupied. Rent is $500 per month. Total vacancy and collection loss equals 10%. What's the potential gross income?

$60,000

Homebuyers who withdraw individual retirement account (IRA) funds under the first-time homebuyer program must use those funds within ______ to acquire, build, or improve a residence, or to contribute toward closing costs.

120 days

Over how many years is a residential income-producing property depreciated?

27.5 years

Which percentage reflects the top debt-to-income ratio limit for qualified mortgages?

43%

Jardin passed away suddenly, and when his family started looking through his documents, they found a handwritten will. Which of these statements about the will is true?

A handwritten will, also called a holographic will, may be valid if it meets other terms for validity.

Which of the following is true of agency agreements?

A listing agreement is an express agreement.

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

Stacy has gone into default on her mortgage. Her lender is demanding that the entire loan balance be paid in full. Which mortgage clause permits her lender to do this?

Acceleration

Which of these best exemplifies an estate from period to period?

After Morgan's one-year lease expired, he continued to lease the property with no defined end date.

Which protected classes does New York's Human Rights Law add to those already protected under the federal Fair Housing Act?

Age, marital status, sexual orientation, military status

Which of the following describes a high-rise building?

Always equipped with elevators

The appraisal on Jean's property came in at $22,000 less than the agreed-upon sales price, so the buyer, Thomas, wants to renegotiate the terms. If they can come up with a new price that is satisfactory to both parties, what will they use to document this?

Amendment

A person performing real estate activities under the judgment or order of a New York court, such as a trustee in a bankruptcy, is ______.

An exception to the real estate licensing requirement

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

When must all New York real property transfers taxes be paid?

At the time that the deed is recorded

Which of the following is true about down payments in New York?

Attorneys pay into a fund that reimburses down payment losses caused by New York lawyers' misconduct.

Which type of framing involves a single system of wall studs run from the foundation through the first and second floors to the ceiling support?

Balloon

Which of the following statements about insulation is true?

Blanket insulation comes in fiberglass rolls.

In which form of price determination does the real estate professional often just drive by the property and take photos, then complete paperwork for the lender?

Broker's price opinion

The land use department with responsibility for building codes and building code enforcement is the ________.

Building department

Loans for ______ purposes don't require TILA disclosure.

Business

The Institute of Real Estate Management, an affiliate of the National Association of REALTORS®, offers a specific certification program. What designation would you earn upon completing this program?

Certified Property Manager

All of the following are responsibilities of the Planning Director in a city, town, or village EXCEPT ________.

Collecting property taxes and assessments

Which of the following contracts would you use if selling large tracts of land?

Commercial contract of sale

Which category of worker is classified by the common understanding of the profession? A food server is an example.

Common law employee

For condominium properties, the owner's rights are detailed in the ______.

Condominium bylaws

What type of notice results from publicly recording a title transfer?

Constructive notice

Which of the following is a life estate in a property held by a widower?

Curtesy

Which of these is NOT one of the ways in which an agency relationship may be terminated without penalty for either the agent or the principal?

Delaney signed a buyer's representation agreement with Martha. After Delaney made an offer on a house, she changed her mind and terminated the agency agreement.

In investments, each type of depreciation is defined by a particular event. Which of the following best describes a depreciation type and an event it's tied to?

Economic depreciation and physical deterioration

You were elected to tour a local City Council, and you are reviewing the minutes from the most recent Council meeting. Several decisions were made at the meeting. Which of the following is NOT a possible decision made at the meeting?

Enacting land use ordinances that apply to communities in neighboring states

In New York, among other places, electromagnetic fields are another health consideration that can mostly be found in what situation?

Everywhere there is electricity

Daniella's rental property is barely covering her expenses. Two of her six tenants have moved out, and she has had to upgrade the building's heating and air conditioning systems. This is an example of which type of risk at work?

Financial

What may be the result if a tax assessor discovers an undeclared improvement?

Fines, back taxes, and redoing the work according to permit

If the borrower thinks that rates will fall, the borrower may let the interest rate _______.

Float

Which type of heating system takes cool air and passes it through the heat source using a fan or blower?

Forced air

Which of these residents of the town of Greenville, New York is qualified to hold a place on the town's architectural review board?

Hannah, an architect who has worked with the town's residents for five years

John just sold the home where he's lived for eight years and made a nice profit. Which of these statements about the profit he made is FALSE?

He can include depreciation costs in the adjusted basis he uses to calculate the amount of his capital gains.

During periods of inflation, what are you likely to see?

Higher interest rates

How are real estate transactions affected by the Taxpayer Relief Act of 1997?

Homebuyers may use IRA funds to acquire, build, or improve a residence, or for closing costs, and home sellers may exclude some capital gains from the sale from their income tax.

Prior to the _______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing.

Housing and Community Development Act of 1974

In a mortgage, the property is used as collateral for the loan. What's the term for the process of pledging something as collateral?

Hypothecation

Government regulation of a property that deprives the landowner of the economic value of the property without compensation from the government is called ______.

Inverse condemnation

What is a participation mortgage?

It allows the lender to participate in the project by investing funds and realizing a return

What is a leasehold mortgage?

It is a long-term estate for years where the interest in the estate is pledged to the lender instead of the property.

How does DOS regulation 175.23 impact the broker/independent contractor relationship?

It specifies record keeping requirements of brokers for their independent contractors.

Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned?

It's owned as an estate in severalty.

Andrea, a commercial developer, is planning to build an apartment complex on a lot in Miami and is using the land, pledged to the lender as an estate for years, as collateral for the loan. What type of mortgage is this?

Leasehold

Which of the following involves permission to do something on another's land without actually possessing any interest or ownership in the land?

License

Which term would you most likely see associated with a lake?

Littoral

According to RESPA, what must the lender give to the borrower at either the time of loan application or within three days following application?

Loan Estimate

Which of the following is a modified version of HO-1 that provides actual cash value coverage in place of replacement cost coverage?

Market value policy

All of the following liens are filed with the county clerk in the county where the property is located.

Mechanic's, materialmen's, income tax

A licensee stating that a property is "guaranteed to increase in value over the next five years" is an example of _______.

Misrepresentation

Who generally will service the loan?

Mortgage banker

Under which approach to value is personal property included in an appraisal?

None

Which of the following describes sub-agency?

Norm is a listing agent. He allows Stu, an agent from another firm, to present an offer from an unrepresented buyer.

With this type of loan, personal property is included with the real property in the sale. It's commonly seen in commercial real estate, but you may also see this in the sale of furnished condominiums.

Package mortgage

Marty just moved to Queens and is looking for a steller insurance broker. Which of the following is a characteristic of an insurance broker?

Personalized service

Which type of framing is most commonly used in housing?

Platform

Which decision stated that separate facilities for blacks and whites were constitutional as long as they were "equal"?

Plessy vs. Ferguson

An inheritable freehold estate that's a fee simple defeasible (where the grantor can reclaim ownership) is also known as ______.

Qualified fee

Which of the following is a framing member?

Rafters

What type of real estate investment may meet the definition of being a security and must adhere to the rules and regulations of the Securities and Exchange Commission?

Real estate syndicate

The list of reports that a property manager would provide to the owner would likely include which of the following?

Rental contracts, including expiration dates

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

The process of protesting a tax assessment starts with _______.

Reviewing a tentative assessment roll

The legal description of the project, easements that run with the land, and street and traffic patterns are all under consideration when a local planning board ______.

Reviews a developer's project plat

The characteristics of value include which of the following?

Scarcity

Which part of a homeowners policy covers the property of the insured?

Section I

Gina is a tax assessor. Which of the following is true about her job?

She compares nearby property sales to determine market value.

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.

Bridget is a licensed massage therapist with a strong financial record who works out of her home. She's trying to purchase an apartment in a local cooperative. What's one likely reason her package may be rejected by the board?

She works out of her home, which may not be permitted.

If the seller of a new condominium building wants to change the price of all the units, or all the two-bedroom units, what must the seller do?

Submit an amendment to the county land office if the change is 10% more than the original range.

The tax assessor's job is to assess or reassess each property in a town at a uniform percentage of market value each year. What is one reason for this?

Taxpayers understand their assessments better when the assessments correlate to market values

Local governments can become involved in environmental conservation in which of the following situations?

The construction activities are within the local government's borders and near wetlands or within wetlands.

Which valuation method estimates the value of all types of improvements in order to determine how much it would cost to exactly duplicate the business?

The cost approach

In New York, if a lender refinances its own high-cost home loan, what happens?

The lender cannot charge points or fees.

In completing a CMA, finding a comparable property that had a quick sale may indicate which of the following?

The market for similar homes is good.

Meredith died, leaving behind a will. Although her instructions to devise her property to her daughter were explicit, her husband inherited. Why might this be?

The operation of law

Harini had a lease with an option to buy on her condo since she wasn't financially stable enough to purchase the condo when she first signed the lease. Two years later Harini was in great financial shape, but she found out that the owner legally sold the condo to another buyer. Harini has to move out next month. What must have happened?

The option expired.

Which of the following is a characteristic of New York's equalization program?

The program ensures equitable distribution of state aid for education funds and other functions.

All of the following are under consideration when a property owner requests an area variance EXCEPT ________.

The property owner's income

What is financial risk?

The risk that is directly related to leverage

Simon is a buyer represented by Peter. Peter shows Simon several homes currently on the market. What is Peter's relationship to the sellers, if he doesn't represent them?

The sellers are Peter's customers.

What's true of chlorofluorocarbons (CFCs)?

They are nontoxic.

Ida and Barry are buying a home. They'll withdraw money from their traditional IRA to help with the down payment and closing costs. What's NOT true about this withdrawal?

They can exclude the amount of the IRA withdrawal when filing their income taxes.

With a well system, the typical household requires a minimum flow of how may gallons per minute to meet daily needs?

Three to five gallons per minute

What's the primary purpose of a New York town's planning board?

To offer professional advice regarding land use matters to all agencies and boards within the town.

A(n) _____ provides extra coverage beyond those offered by primary policies and does not become effective until the primary policy is exhausted.

Umbrella policy

Tammy ensures that a loan is compliant with federal and state requirements and lender's underwriting requirements. What roles does Tammy serve?

Underwriter

Kevin and Regina sold their property to Vickey using a general warranty deed. Which of these statements is true?

Vickey is the grantee.

For tax purposes, employees are required to complete IRS form W-4. Which IRS form or forms are independent contractors required to complete?

W-9 form

When must Jed, the sponsor of a new condo project, relinquish control of the board of managers?

When 50% of the units are sold

Once a petition is received at SCAR, the assessment review clerk of the state Supreme Court assigns a hearing officer to review and decide. What is the deadline for that hearing?

Within 45 days of the final date for filing the petition