State exam study guide 2

Which of the following is NOT exempt from obtaining a license?

A licensed attorney acting as a sponsor to a real estate salesperson

Where does a buyer's earnest money deposit get placed prior to closing on the transaction?

A separate escrow account

Which of the following is a condensed history of title to a property?

Abstract of title

Ad valorem means...?

According to value

If a broker commingles their client's funds, which of the following fiduciary duties are violated?

Accountability

The original cost plus certain additions and minus certain deductions is equal to the...?

Adjusted basis

Which of the following is required in order for a broker to act as a dual agent?

Advanced informed consent from both the buyer and seller

According to TILA, which of the following items may be specified in an advertisement without making a full disclosure?

Annual percentage rate

Which of the following types of ads are illegal in New York State?

Blind ads

Building contractors use which of the following detailed building plans to build a house?

Blueprints

Which of the following financial documents is used by the Board of Mangers to help determine if a prospective buyer's application to purchase a cooperative is approved or not?

Board package

Which of the following is typically used as a short-term loan?

Bridge loan

Which of the following must be obtained by a property owner before construction or renovation can begin on their property?

Building permit

If a broker is hired by a buyer to represent them in a transaction, the broker is considered what type of agent?

Buyer's agent

Which of the following is a chemical compound used in refrigerants?

CFCs

Which of the of following is used by real estate developers to test the market before building a new condominium or cooperative building?

CPS-1

Personal property is also known as...?

Chattel

Which of the following properties does not have to be assessed?

Church

Which of the following uses properties currently on the market, recently sold properties, and expired listings to determine the value of a property?

Comparative Market Analysis

A broker represents a seller in a transaction. If the seller tells the broker they must sell the property quickly due to financial hardship, the broker cannot reveal this information to a prospective buyer. Otherwise, the broker will violate which of the following fiduciary duties?

Confidentiality

Which of the following is a form of interim, or temporary, short-term financing for creating improvements or buildings on a property?

Construction mortgage

Which of the following is NOT considered real property?

Cooperative

Which of the following is an example of a fixture...?

Custom book shelves

Which of the following is NOT one of the four units of concurrent ownership?

Dedication

Which of the following written instruments is used to convey a grantor's interest in real property?

Deed

What is the role of an assessor?

Determine assessed values of properties

Which of the following would be considered a trade fixture by a commercial tenant?

Display case

Which of the following is a payment made by a purchaser of real estate as evidence of good faith?

Earnest money deposit

Which of the following types of easements is obtained by a squatter who uses another's property without the owner's permission?

Easement by prescription

The right of the government to acquire private property for public use is known as...?

Eminent domain

Which of the following leasehold estates is open-ended, as it does not have a termination date?

Estate at will

Which of the following agencies administers the National Flood Insurance Program (NFIP)?

FEMA

Which of the following interests in real property includes the full bundle of rights?

Fee simple absolute estates

The real estate agent serves as a/an ........to their client.

Fiduciary

Which of the following building components is primarily used to prevent water from entering a structure at a joint, corner, or bend?

Flashing

Which of the following structural members is set in the soil and supports the building's foundation wall?

Footing

Which of the following commercial leases increases in a stair-stepped fashion?

Graduated lease

Which of the following parties in required to sign a valid deed?

Grantor only

A land lease is also known as a...?

Ground lease

When an individual is renting an apartment or house, what type of insurance is typically obtained?

HO-4

A straight-term loan is also known as a/an...?

Interest-only loan

According to the ............., real estate salespersons are considered independent contractors.

Internal Revenue Service (IRS)

If a homeowners association does not allow houses in a sub-divided community to have brick on the exterior of the house, where will this restriction be documented?

It will appear as a restrictive covenant in the deed.

Which of the following framing members are horizontal beams that support the floor in a house?

Joists

Which of the following is considered a direct cost?

Labor fees

Which of the following estates provides the right of possession and control, but not title?

Leasehold estate

A claim or charge against the property of another is known as a/an...?

Lien

Mark owns a single family home. He decides to transfer ownership of the property to his daughter, Nancy; however, the ownership of the property will revert back to Mark upon the death of Nancy's aunt, Martha. Which of the following was created?

Life estate

Which of the following may be added to a contract, which awards the non-breaching party a specified sum of money for certain breaches listed in the contract?

Liquidated damages

According to this concept, real estate is considered an illiquid asset because it cannot quickly or easily be sold?

Liquidity

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on is known as...?

Littoral rights

Which of the following is NOT considered real property?

Living room furniture

The actual selling price of a property is known as the...?

Market price

The lender in a transaction is known as the...?

Mortgagee

This refers to a pool of insurance companies in New York State that writes fire insurance policies for homeowners, as well as coverage for vandalism and malicious theft?

NYPIUA

Which of the following is illegal in New York State?

Net Listing

What is the highest court in New York State?

New York Court of Appeals

Replacing an obligation to perform with a new obligation in a contract is known as...?

Novation

Which of the following is NOT considered a bi-lateral agreement?

Open Listing Contract

Which of the following is used by property managers to project the net operating income for a property?

Operating statement

The movement of water through soil is known as...?

Percolation

Money earned from interest, annuities, dividends, and royalties is known as...?

Portfolio income

Which of the following statements are used by real estate investors to estimate the return on investment for a particular investment property?

Pro forma

Which of the following items may be prorated between the buyer and seller at closing?

Property taxes

If an agent's client has a financial loss because of the agent's negligence, which fiduciary duty has been violated?

Reasonable skill and care

If a real estate salespersons license expires, what must they do to get their license re-activated?

Retake the State exam and submit a new license application

Which of the following allows a commercial tenant the option to match an offer from another prospective tenant?

Right of first refusal

Which of the following clauses may be included in a condominium contract, which allows the condominium association the first opportunity to purchase the condominium when it goes up for sale?

Right of first refusal clause

A common term for an easement is a...?

Right of way

This Act made price fixing, group boycotts, market allocation, and tie-in arrangements illegal?

Sherman Anti-Trust Act

Which of the following construction elements is the lowest horizontal wood beam in the frame of a house?

Sill plate

A real estate salesperson operates as what type of agent to their client?

Special agent

Where should a homeowner look to find the exact dimensions of their property?

Survey

Which of the following forms of ownership is limited to married couples?

Tenancy by the entirety

Which of the following are volunteers who pose as prospective homebuyers to see if race influences information and services offered by a real estate broker or salesperson?

Testers

What happens to the salesperson's license if the license of their sponsoring broker is suspended?

The license of the salesperson will also be suspended.

Why is the old deed needed to help prepare for the closing?

The old deed is used to prepare the new need.

In a residential transaction, who typically holds on to the buyer's down payment/earnest money?

The seller's attorney

Which of the following must a real estate salesperson carry on them at all times when doing business and show it on demand?

Their pocket card

Which of the following is used as evidence that an individual owns a particular piece of real property?

Title

Which of the following building materials is a type of foamed in-place insulation that releases formaldehyde gas?

UFFI

What type of agency gives complete authority over any activity of the principal?

Universal agency

If a tenant wants to throw late night parties in their apartment, what clause in the lease may prevent them from doing so?

Use provisions

Which of the following governs the amount of interest that can be charged on a loan?

Usury laws

If a property owner wants to enlarge the building on their property to be larger than is permitted by the local zoning code, they fist must obtain a/an...?

Variance

According to this, a broker may be held responsible for the unlawful actions of his/her salespersons?

Vicarious liability

If a clause in a contract is illegal, the contract will be considered...?

Void

A property manager is an example of a/an .......agent.

general

Which of the following leases is most commonly used by a long-term commercial tenant?

net lease

Which of the following liens takes the highest priority?

tax lien

If a married couple sold their property for a $435,000 profit, how much in capital gains taxes will the couple be responsible for?

0 Dollars ($)

In order to obtain an easement by prescription, for how many years must the property by used by the dominant tenement?

10 years

What is the maximum fine the Department of State may impose on a licensee for violations of the Real Property Law?

1000

Gender was added as a protected class to the Fair Housing Act in what year?

1974

Familial status was added as a protected class to the Fair Housing Act in what year?

1988

A real estate salespersons license must be renewed every .........years.

2

How many years of experience does an individual need as a NYS real estate salesperson in order to quality to obtain their broker's license?

2 years

For tax purposes, residential properties depreciate over how many years using the straight-line depreciation method?

27.5

If a seller nets $310,200 from the sale of their property, what was the final sales price if the broker was paid a 6% commission?

330,000 Dollars ($)

If a property sold for $2,200,000, and the net operating income is $132,000, what is the capitalization rate for the property?

6%