real estate NYC
A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400 feet deep. What was the price per front foot of the property? A. $1,335.67 B. $2,000 C. $363.64 D. $598.95
A. $1,335.67 First, find the square footage (5.5 × 43,560 = 239,580). You're given one dimension of the rectangle, so find the other: 239,580 ÷ 400 = 598.95 front feet. To find the price per front foot, $800,000 ÷ 598.95 = $1,335.67 per front foot.
A buyer with a 20-year, $419,000 loan at a 4.25% interest rate has a monthly principal and interest payment totaling $2,594.59. If $1,483.95 is interest, how much is applied toward principal for that payment? A. $1,110.64 B. $1,246.10 C. $1,578.57 D. $1,780.75
A. 1,110.64
Which of these best exemplifies an estate from period to period? A. After Morgan's one-year lease expired, he continued to lease the property with no defined end date. B. John's lease terminates automatically and is inheritable. C. Peggy's lease expired, but she wouldn't leave the apartment. D. Ricardo's lease has no specified end date and requires reasonable notice to terminate.
A. After Morgan's one-year lease expired, he continued to lease the property with no defined end date. An estate from period to period (periodic) typically begins with a defined term and then, at the end of the term and with both parties' permission, continues on a periodic basis (e.g., month to month).
SEQRA requires an environmental assessment by ___________ any time any action is taken that may impact the environment. A. All levels of government B. The homeowner C. The local planning board D. The state
A. All levels of government SEQRA requires an assessment at all government levels.
This is a way of listening to your intuition and involves an excuse and a way to remove yourself from a situation. What is it? A. An "escape plan" B. Your cell phone C. Your commission check D. Your intuition
A. An "escape plan"
You're trying to locate the northwest corner of a recently surveyed 10-acre property you will be listing for sale. The deed tells you that this corner is marked with a monument. What are you looking for? A. An iron rod with a surveyor's cap B. An "X" painted on the ground C. A rock with a surveyor's mark etched in it D. A small copper sign labeled "monument"
A. An iron rod with a surveyor's cap
Based on their credit rating and stated income, a lender pre-qualified Sam and Lisa for a loan. Which statement is true? A. As long as they've told the truth about their income, Sam and Lisa have a good chance of getting the loan. B. The loan is approved. C. The loan is guaranteed. D. This should provide the sellers with confidence Sam and Lisa's financing is in place.
A. As long as they've told the truth about their income, Sam and Lisa have a good chance of getting the loan.
Where would you likely find loose-fill insulation? A. Attic floor B. Basement C. Crawl space D. Walls
A. Attic floor
When considering loan risk, which two items will lenders consider in equal measure? A. Borrower and property B. Credit and employment C. Debt and income D. Loan and value
A. Borrower and property The property's value (as underlying collateral) and the borrower's ability to repay the loan will be equal considerations for the lender.
Among the following details, which one is required to appear in a licensee's advertisement? A. Broker's name B. Licensee's cell number C. Licensee's logo D. Photo of broker
A. Broker's name
Real estate investing may be done individually, in partnerships, or through what other means? A. Corporations B. Credit reports C. Credit unions D. E&O insurance
A. Corporations
In local land use, the connection of utilities is considered a ______. A. Development cost B. Development impact C. Planning board function D. Wasteful expense
A. Development cost
Which fiduciary duty is missing: loyalty, reasonable skill and care, obedience, confidentiality, accounting, and ______? A. Disclosure B. Disobedience C. Lawfulness D. Skill
A. Disclosure
Which of the following could an investor who sells an apartment house buy using a 1031 exchange? A. Duplex, office building, or warehouse B. Duplex only C. Office building only D. Warehouse or office building only
A. Duplex, office building, or warehouse Any of these would be allowed with a 1031 exchange.
Susan, an interested buyer, has presented Byron, the seller, with a letter of intent to purchase his property. The parties have both signed the letter of intent. Which of the following statements about this situation is true? A. Either party may choose not to pursue the transaction with no penalties. B. Susan and Byron have a legally binding agreement. C. With a signed letter of intent, Byron is legally obligated to sell the property to Susan. D. With a signed letter of intent, Susan is legally obligated to purchase the property.
A. Either party may choose not to pursue the transaction with no penalties. Even though letters of intent must be signed by all parties to be valid, they aren't binding agreements. They create no liability or obligation on anyone's part.
Which of the following are reasons you should insist clients enter a space first? A. If you enter a space first, you could be cornered, locked in, or pushed from behind and disabled. B. It is poor etiquette. C. The person might see something you don't want them to see. D. The person might take one look at the property and try to leave.
A. If you enter a space first, you could be cornered, locked in, or pushed from behind and disabled.
Marissa is closing a transaction in New York. Who will prepare the sales contract? A. It depends where the transaction is located. B. The buyer's agent C. The buyer's attorney D. The listing agent
A. It depends where the transaction is located. In upstate New York, the buyer's agent usually prepares a binder or contract of sale, subject to attorney review. Downstate, the buyer's agent customarily prepares a binder and forwards it to the seller's attorney, who prepares the contract.
Which of the following statements about the fiduciary duty of confidentiality is true? A. It doesn't extend to material facts relating to the property. B. It encompasses any and all information the client tells the agent, not just confidential information. C. It ends with the termination of the agency agreement. D. It never conflicts with the duty of disclosure.
A. It doesn't extend to material facts relating to the property. Agents are required to keep their client's confidential information confidential, but only if the information doesn't include material facts relating to the property.
Melissa just purchased a condop unit. What does this mean for her? A. It will be easier for her to sublet if she wants to. B. Selling the property will be next to impossible. C. She is prohibited from selling her unit. D. She is prohibited from subletting her unit.
A. It will be easier for her to sublet if she wants to.
What happens when an appraiser determines a property's value to be less than the pre-approved loan amount? A. Most buyers will have an appraisal contingency, so they can back out and receive a refund of their earnest money. B. Most sellers will have an appraisal contingency, so the seller can keep the buyer's earnest money. C. The buyer must make up the difference between the appraisal and the purchase price. D. The seller must make up the difference between the appraisal and the purchase price.
A. Most buyers will have an appraisal contingency, so they can back out and receive a refund of their earnest money.
When the sale includes a co-op or a condominium, what might the seller be required to do? A. Pay certain co-op and condo fees B. Pay for a co-op and condo attorney C. Pay for a separate title commitment D. Pay the common area transfer tax
A. Pay certain co-op and condo fees
When pricing a home for the market, what should a licensee try to get sellers to do? A. Put themselves in the buyers' shoes B. See how much it might be able to fetch on the market C. Set the price at one level, with the expectation of lowering it in 30 days D. Visit the neighbors and come up with a price
A. Put themselves in the buyers' shoes By viewing the property from a buyer's perspective, sellers can gain a realistic view of pricing.
Mona's business is booming. She's representing an owner who's selling a $500,000 home on one side of town, and a buyer who's purchasing a $300,000 property on the other side of town. As it happens, the seller and buyer both know each other from church and have been talking to others about Mona's talents, which has brought in several new leads for her to pursue. What type of agency relationship does Mona have with the seller and buyer? A. She is each party's agent. B. She's a dual agent, since the seller and buyer know each other. C. She's the buyer's agent and the seller's sub-agent. D. She's the seller's agent and the buyer's sub-agent.
A. She is each party's agent.
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? A. Taxpayers understand their assessments better when the assessments correlate to market values B. To build in inequity C. To help the LOA, or level of accuracy D. To offset a decrease in homeowner income
A. Taxpayers understand their assessments better when the assessments correlate to market values A good reason for keeping the assessments tied to market value is that taxpayers have an understanding of market value.
Which fiduciary duty may continue even after the transaction closes? A. The duty of accounting B. The duty of disclosure C. The duty of obedience D. The duty of reasonable skill and care
A. The duty of accounting The duty of accounting continues even after the transaction closes. For instance, any money the agent holds after a transaction closes must be accounted for until it's delivered to the appropriate party.
Chip represents Ginger, the buyer. Raphael represents Tom, the seller. If Chip and Raphael are from the same brokerage, what is their agency relationship with their clients? A. They're designated agents; their broker is a dual agent. B. They're designated agents; their broker is also a designated agent. C. They're dual agents; their broker is also a designated agent. D. They're dual agents; their broker is also a dual agent.
A. They're designated agents; their broker is a dual agent. In a designated agency situation, the broker is a dual agent and each assigned agent is a designated agent.
In 1934, when the Federal Housing Administration was created, it adopted the practice of crossing off cities and neighborhoods it considered risky and withheld mortgage funds from those areas. What is this action called? A. Blockbusting B. Gerrymandering C. Redlining D. Steering
C. Redlining
Which of these is NOT considered a residential property? A. A condominium unit B. A hotel with fewer than 20 rooms C. A single-family home used for rental income D. A triplex
B. A hotel with fewer than 20 rooms
Camille, a buyer, wants to change the price already agreed to in a sales contract. What document should she use? A. Addendum B. Amendment C. Bill of sale D. New contract
B. Amendment
What is a major site consideration when constructing a well? A. Aesthetics B. Contamination sources C. Landscaping D. Lot size
B. Contamination sources
Which law or regulation requires supervision by the broker to include regular, frequent and consistent guidance, instruction, and oversight? A. 1986 New York Independent Contractor Law B. DOS Regulation 175.21 C. Internal Revenue Code Section 3508 (a) (b) D. Sarbanes-Oxley Act
B. DOS Regulation 175.21
What steps can the real estate professional take to assist buyers with property taxes? A. Calculate the tax ramifications of property tax deductions. B. Disclose to buyers that a sale may prompt a reassessment. C. Offer low-interest loans. D. Tell buyers that property taxes aren't important.
B. Disclose to buyers that a sale may prompt a reassessment.
In New York, among other places, electromagnetic fields are another health consideration that can mostly be found in what situation? A. Around lightning rods B. Everywhere there is electricity C. Inside caves D. In subdivisions with curbs and sidewalks
B. Everywhere there is electricity
If the borrower thinks that rates will fall, the borrower may let the interest rate _______. A. Expire B. Float C. Increase D. Lock
B. Float
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. A. Homeowners 1 (HO-1) B. Homeowners 3 (HO-3) C. Homeowners 4 (HO-4) D. Homeowners 6 (HO-6)
B. Homeowners 3 (HO-3)
The transfer of land through eminent domain or condemnation is known as what? A. Dedication B. Involuntary alienation C. Reliction D. Voluntary alienation
B. Involuntary alienation
Which of the following involves permission to do something on another's land without actually possessing any interest or ownership in the land? A. Grant B. License C. Permission D. Reserve
B. License
Dexter is a nonresident real estate licensee based in Pennsylvania. Because of the uniform irrevocable consent and designation form, if he violates New York real estate law, any summons for him ________. A. May be served on one of his New York-based clients B. May be served on the New York Secretary of State and need not be served directly on Dexter C. Must be served on him in Pennsylvania D. Must be served on him when he visits New York
B. May be served on the New York Secretary of State and need not be served directly on Dexter. The purpose of this form is to allow summons to be easily served on those from out of the area.
Drinking water safety, including establishing standards for private and community well construction and, in addition, water safety and regulation, is most impacted by the ________. A. Municipal Fire Department B. NYS Department of Health C. Town Council D. Zoning Board
B. NYS Department of Health
Nathan assisted with the purchase of a commercial building that will be used as a community center. He doesn't hold a real estate license, yet his actions didn't violate any New York license laws. What must be true about Nathan's situation? A. He received a commission of less than $1,000. B. Nathan is a public official whose salaried duties include real estate transactions. C. Nathan's church purchased the building. D. The commercial building was valued at less than $500,000.
B. Nathan is a public official whose salaried duties include real estate transactions.
Which of the following is a framing member? A. Footings B. Rafters C. Soffits D. Sticks
B. Rafters Studs, joists, and rafters are all framing members.
Alyssa's mortgage loan is secured by the note and the mortgage. Which of the following is true if she lives in a lien theory state? A. Her lender can foreclose on her without advance notice. B. She holds title to the property, and the mortgage becomes a lien on the property. C. The lender can never legally foreclosure on her home. D. The lender doesn't need to involve the court to foreclose.
B. She holds title to the property, and the mortgage becomes a lien on the property.
The real estate taxes assessed on Roseann's property are $600 for the year. The taxes were paid on January 1 and closing is held on May 31. Using the statutory year, how much will Roseann owe for prepaid taxes at closing? A. $250 B. $300 C. $350 D. $400
C. $350
Gary has an 80% LTVR on his new $318,000 townhome with an annual interest rate of 4.125%. What's his interest payment the first month? A. $1,093.13 B. $1,126.25 C. $874.50 D. $901
C. $874.50
Specifically, what does the fiduciary duty of disclosure relate to? A. Adverse material facts and publicly recorded facts only B. Conflicts of interest and confidential information only C. Conflicts of interest, material facts, and adverse material facts D. Material facts and adverse material facts only
C. Conflicts of interest, material facts, and adverse material facts
What type of an eviction could tenants claim if they're forced to vacate an apartment after the landlord failed to repair the heat? A. Actual eviction B. Aggressive eviction C. Constructive eviction D. Vigilante eviction
C. Constructive eviction
When you overhear that your neighbor is considering erecting a 50-foot building - completely blocking the sunlight and much of the air space - you could offer to purchase from your neighbor an ______________. A. Easement appurtenant B. Easement by prescription C. Easement for light and air D. Easement of necessity
C. Easement for light and air
The state's claim to property when a property owner dies, leaving no will, heirs or creditors, is the power of ______. A. Condemnation B. Eminent domain C. Escheat D. Taking
C. Escheat
Which of the following individuals would be a competent party to a contract? A. Byron, a 17-year-old MENSA member B. Claudia, a 37-year-old in-patient receiving treatment for schizophrenia C. Graciella, a 28-year-old unemployed parolee D. Norman, a 40-year-old heroin addict
C. Graciella, a 28-year-old unemployed parolee Individuals are considered competent parties if they have reached the age of majority (not a minor) and are of sound mind (free of mental illness or the influence of anything that impairs mental capacity).
How are real estate transactions affected by the Taxpayer Relief Act of 1997? A. First-time homebuyers may exclude the value of the purchased property from assets used to determine income their tax bracket. B. Homebuyers may borrow against their income tax refund to pay for or improve a personal residence, and homeowners may exclude the cost of capital improvements from taxable income when filing. C. 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. D. Homeowners may claim a loss on their income tax if their home's value falls below the amount they paid for it.
C. 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. The Taxpayer Relief Act of 1997 made it possible for homebuyers to use money from their traditional IRA to fund a down payment on a personal residence. The act also gives a tax exemption on capital gains from the sale of a personal residence.
What's it called when a number of percentage points is added to the index to determine the rate for an adjustable rate mortgage? A. Initial cap B. Lifetime cap C. Margin D. Usury
C. Margin
Meg is considering a move to a foreign country and wants to deed her property to her son, Christian, who's 16. Which of these must occur to make this transfer legal? A. Christian must agree to the transfer and sign the deed. B. Christian must provide monetary compensation to Meg. C. Meg must sign the deed and have her signature acknowledged. D. Meg must wait until Christian has reached the age of majority.
C. Meg must sign the deed and have her signature acknowledged.
Which group ensures that community growth is controlled and orderly? A. HOA B. Master commission C. Planning board D. Zoning board of appeals
C. Planning board The planning board ensures that community growth is controlled and orderly. It is also responsible for developing the master plan, which includes budgeting for long-term projects.
Three brokers meet and agree that all of their listing contracts will have one-year terms. Of which type of antitrust violation is this an example? A. Group boycotting B. Market allocation C. Price fixing D. Tie-in arrangement
C. Price fixing
Jess has permission to live on his father's property as long as Jess' grandmother is alive. This is an example of which type of life estate? A. Conventional B. Life estate with remainder C. Pur autre vie D. Reversionary
C. Pur autre vie
As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to ______. A. Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer's favor B. Explain to the buyer why it's unnecessary to have a professional inspection done on a new home C. Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license D. Show properties the buyer might qualify for if he would put down more earnest money
C. Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license
There are several types of shares in a cooperative unit. Which type of share allows the holder to sell shares without approval? A. Cooperative shares B. Sold shares C. Sponsor shares D. Stock shares
C. Sponsor shares Only the owner/builder (sponsor) may sell shares without approval.
Luther is analyzing an investment property. During his analysis, he looks at environmental sensitivity, political climate, the potential for a development moratorium, economic downturns, etc. What is Luther demonstrating? A. That financing is important B. That real estate investments have too many risks C. That risks involved with real estate investments need to be analyzed D. That there are too many factors to consider when investing in real estate
C. That risks involved with real estate investments need to be analyzed
Simone can't believe that her client won't let her put a lockbox on the property. How does he expect other agents to be able to show the home? Oh well, it's not as if he's asking her to do something illegal. The client's wish is her command. What fiduciary duty is this an example of? A. The duty of accounting B. The duty of loyalty C. The duty of obedience D. The duty of reasonable skill and care
C. The duty of obedience
The statute of frauds states that if a contract transferring ownership of real property is not in writing, it's ______. A. Enforceable B. Executory C. Unenforceable D. Voidable
C. Unenforceable Per the statute of frauds, with the exception of certain leases, a contract transferring an estate or interest in real property that's not in writing is unenforceable.
Which of the following is a type of loose-fill insulation? A. Batting B. Fiberglass roll C. Vermiculite D. Wallboard
C. Vermiculite Types of loose-fill insulation include vermiculite, perlite, wood paper, or cotton fibers.
The couple you're working with purchased their home five years ago, which was valued at $175,000 at the time. Property values have increased by about 1% a year for the last five years. What is the property's current value (rounded to the nearest dollar)? A. $178,517 B. $180,302 C. $182,105 D. $183,927
D. $183,927
What's the process of paying off a loan by making periodic payments? A. Accession B. Accretion C. Acquisition D. Amortization
D. Amortization
When referring to private land use restrictions, fence height, additional structures, and architectural design are generally categorized under ______. A. Codes B. Conditions C. Contingencies D. Covenants
D. Covenants Fence height, additional structures, and architectural design typically would be categorized under covenants. (HOA restrictions are typically set up as covenants.)
Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination? A. Fair Housing Amendments Act of 1988 B. Federal Fair Housing Act of 1968 C. Housing and Community Development Act of 1974 D. Housing for Older Persons Act of 1995
D. Housing for Older Persons Act of 1995 Under the Housing for Older Persons Act of 1995, housing must have one person who is 55 or older residing in at least 80% of its occupied units to be exempt from charges of familial status discrimination by age preference.
Which of the following is a characteristic of a tax rate? A. If it's used to fund political campaigns, the amount cannot exceed 20% and must be repaid within two years. B. It is applied to the market value. C. It is based on the previous budget of the most recent fiscal year. D. It is certified by the NYS Office of Real Property Tax Services, and it may be a separate tax rate for homestead vs. non-homestead properties.
D. It is certified by the NYS Office of Real Property Tax Services, and it may be a separate tax rate for homestead vs. non-homestead properties.
Which of the following is a characteristic of predatory lending? A. Disclosing fees B. Disclosing the true nature of the loan obligation C. Linking interest rates charged to consumer creditworthiness D. Making loans the consumer can't afford
D. Making loans the consumer can't afford
Which type of risk refers to the chance that an investor might lose earnings or capital? A. Business B. Financial C. Liquidity D. Safety
D. Safety This is a safety risk, which includes market risk and risk of default.
Lewis and Elliot started a real estate investment business together. After much discussion with their attorney, they decided to incorporate, but in such a way that they are treated like a partnership and don't have to pay corporate taxes. What form of business do they have? A. Double proprietorship B. Limited liability partnership C. Subchapter C corporation D. Subchapter S corporation
D. Subchapter S corporation S corporations are corporations that are taxed as partnerships. They don't pay corporate income taxes, and shareholders may deduct losses on their taxes that represent their share of the corporation's losses.
Which of the following is true about New York licensees' responsibilities relating to fair housing? A. A pre-license course, which includes fair housing education, is all the licensee needs in their career. B. If it's covered in the broker's policy manual, then that's all the knowledge you need. C. Knowledge of law and responsibilities is best left to your broker. D. Three hours of approved fair housing/discrimination coursework is mandatory at each renewal cycle.
D. Three hours of approved fair housing/discrimination coursework is mandatory at each renewal cycle.
Julian is glad that the property owner at the townhouse community he manages established a substantial capital reserve budget for unexpected expenses, like the new roofs needed after a hail storm. What are these types of expenses called? A. Fixed B. Operating C. Stable D. Variable
D. Variable These are called variable expenses because property managers never know when they'll hit or what they'll cost—but they must still plan for them.
Which system uses a central exhaust fan and ducts to move stale air out of the building? A. Air conditioning B. Forced air C. Heating D. Ventilation
D. Ventilation
New York Architectural Review Boards have a broad scope of responsibility that includes the ability to ________. A. Preserve the quantity of buildings in the municipality B. Protect such things as sculptures, railings, ceiling panels, and wall hangings C. Take private property under Eminent Domain D. Withhold approval of building permits
D. Withhold approval of building permits
Which of the following statements is true about the listing presentation? A. It's best to leave out financial data (such as a CMA or comparable property information) and listing agreements, so the seller doesn't think you're jumping the gun and already counting your commission. B. The less you say, the better. You don't want to overwhelm your potential clients with numbers and decisions at this first presentation. C. The most important part of a listing presentation is to make the buyers like you as a person. Try not to talk numbers or about their house, but instead focus on charming them. D. You should go into the presentation fully prepared with a comparative market analysis, listing agreement, MLS listings of comparable properties, and your plan for marketing the sellers' property.
D. You should go into the presentation fully prepared with a comparative market analysis, listing agreement, MLS listings of comparable properties, and your plan for marketing the sellers' property.