EXAM 200 QUESTIONS AND CORRECT

NEW york real estate license ACTUAL

EXAM 200 QUESTIONS AND CORRECT

ANSWERS -

Which is not one of the factors used by the IRS to determine that a real estate agent qualifies as a statutory non-employee - CORRECT ANSWER-Has a fiduciary relationship with clients A real estate licensee has a fiduciary relationship with clients regardless of wether he is n employee of his broker or an independent contractor

Sue decides to discontinue her brokerage and work as a salesperson. She then affiliates with another broker and orders business cards that read: sue smith, broker. If she is acting as a salesperson, can she put "broker" on her cards - CORRECT ANSWER-Using the term broker may imply that sue is the broker in charge. If she list her status as an associate broker, then it clearly indicates her status as a broker, but not as the principal broker of the office No sue can list herself only as an associate broker

At the end of the year, what form will a real estate salesperson who filed as an independent contractor receive that details his or her compensation for the year - CORRECT ANSWER-1099 misc An independent contractor receives a 1099 misc form detailing any commission based on income

An important part of the relationship between a broker and an independent contractor salesperson is that the salesperson - CORRECT ANSWER-An independent contractor is paid commission for finding a ready, willing, and able buyer. It doesn't matter how many hours it took to do that Earns commission based on the results of his work efforts

Which is not an example of real property - CORRECT ANSWER-Wheat is an annual crop and therefore, an emblement. Emblements are always considered personal property. Even if included in the agreement of sale Wheat growing in the field that is sold with the farm

Which item is not a fixture - CORRECT ANSWER-New kitchen water faucet still in its box A fixture is personal property that has been attached to real property. The water faucet has not been attached so it is personal properly the rest of the items are attached

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Paul agrees to rent an apartment for six months for $700 a month. At the end of the six month, Paul agrees to rent for another six month. What does this situation describe - CORRECT ANSWER-Estate from year to year A lease that automatically renews Is an estate from year to year, even if it is personal property the rest of the items are attached

which is not an example of an encumbrance - CORRECT ANSWER-The shrub hanging over the property line is an encroachment, not an encumbrance. Liens and easements are encumbrances A neighbors shrubs hanging over your property line

Darrell has a written agreement to drive across Lin's property to get to his own. This is an example of an - CORRECT ANSWER-an apparent ant easement burdens one property, the servient tenement ( Lin's property), for the benefit of another property, the dominant tenement ( darrell's property).Darrell is allowed to cross the property ( nonencroachment). While the explanation with easement in gross is correct, here, the easement runs with the land and not a person Appurtenances easement, where Darrell's property is the dominant tenement and Lin's property is the servient tenement

A windstorm rips down power lines on farmer johns property. Big city telecommunications enters johns property without his permission to fix the lines. What is this an example of - CORRECT ANSWER-An easement in gross gives a person or company the right to enter another persons property. It is often a right of utility companies to fix or repair equipment Easement in gross

mark and Paula are married. They co- own a property with Tom as joint tenants with right of survivorship. Tom dies. What is Paula's interest in the property - CORRECT ANSWER-100%

The co owner of an undivided interest in land with no rights of survivorship owns it by - CORRECT ANSWER-tenancy in common Tenancy in common is co ownership with no right of survivorship. It is also the most common form of ownership

Ownership of property by one person or legal entity is called - CORRECT ANSWER-Severalty Ownership in severalty is real property ownership by only one person. When that person dies, the property descends to his heirs

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The unities of person, possession, interest, time, and title are required for which type of ownership - CORRECT ANSWER-In order to form a tenancy by the entirety, all five unities must be present Tenancy by the entirety

Adam and Jenny enter into an agreement wherein Adam will buy Jenny's house at the asking price if Jenny will install a new roof and if Adam can qualify for a loan sufficient to cover the purchase. Until the roof is installed and the financing obtained, the contract is said to be - CORRECT ANSWER- Executory An executory contract is one in which the parties have agreed to the terms but some conditions still remain to be fulfilled. Once once all of the conditions are met and all that remains is the closing, the contract is said to be complete, or executed

Walton decides to sell his cabin on the lake and offers it in a letter to his regular postman bill at a price of $5,000. The next day, Walton receives a note from a neighbor, a close friend of the postman.Who says, "I accept your offer" is Walton obligated to sell to the neighbor? - CORRECT ANSWER-No one but the offeree can accept an offer. The acceptance by the neighbor is not valid, no matter how or when it was communicated No, because both the offer and the acceptance were in writing

Who is authorized to rescind a voidable contract - CORRECT ANSWER-Either party A voidable contract may be rescinded by an injured party. A void contract is not really a contract at all because it lacks one of the essential elements or is defective in some way, and therefore is unenforceable

Larry has entered into a lease option to purchase susie's home. The option binds - CORRECT ANSWER-Susie only An option is a unilateral contract, which is binding only on one party. The lease option is binding on the seller. If Larry exercises his option to buy, the seller must sell. However Larry is under no obligation to buy

The statute of frauds is a statutory law that requires contracts regarding real estate to - CORRECT ANSWER-Statute of frauds requires all real estate contracts to be in writing to be enforceable Be in writing to be enforceable

Once a contract is terminated, it is considered - CORRECT ANSWER-Discharged A contract is discharged once an agreement has terminated. Ideally, this happens when all the terms of the contract have been carried out

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