New York Real Estate Salesperson Exam Flashcards

New York Real Estate Salesperson Exam Flashcards Veterans Association- guarantees some loans with zero down payment which means loan is 100 percent of property value Evaluation-opinion on what they should do with property to make it highest and best use Subagent- salesperson is subagent of broker Grantee- person getting the real estate

Depreciation `- decrease in value: economic or tax- Economic- building

losing valueTax- tax break given by IRS based on the idea that buildings have lifespan- apartment buildings 27.5 years- office buildings 39 years Special Agent- brokers are special agents because they do one thing- mortgage brokers are special agents 1866 Civil Rights act- first fair housing law- gives people full real estate rights regardless of race Agency Disclosure Form- tells people in a deal who you work for- give in first substantial meeting- keep for 3 years- if someone refuses to sign form, can still show property- put aa date stamped record on file Primary Mortgage Marker- banks sell mortgages to people- Federal Housing Administration (FHA), VA (Veterans Affairs), USDA (US Dept. of Agriculture, SONYMA (State of NY Mortgage Agency) all on primary marker- FHA insures loans, does not make loans- encourages banks to lend to people buying inexpensive homes Specific Lien- against real estate only- mortgage lien and real estate tax lien are specific- means if you don't pay the bank can foreclose your house but can't take anything else Blind Ad- ad that is ambiguous or does not give actual geographic location- location is required and must be specific- also must put you have a real estate license CFC Chloro-fluoro-carbonsGases that leak out of air conditioning units and go into air- regulated by Clean Air Act- Freon- illegal Elements of valid deed- competent grantor- signature of grantor- identifiable grantee- consideration- words of conveyance- legal description- delivery and acceptance Wall Studwall column that is part of house frame- beams are horizontalcolumns are vertical Pre-Qualification- bank lender looks at income, debt, and assets and tells you how much you can afford (often over the phone) Tenants in Common- 2 or more unmarried people who own real estate together without survivorship

Operating Statement-shows the buildings actual performance this year Survivorship- if one owner dies the other owners automatically inherit the real estate- survivorship applies to owner by entirety (married couple) and joint tenants (2 or more married people with equal ownership shares) Municipal engineer- in charge of city infrastructure, roads, sewers, electric lines, subways Littoral-ownership and use of lakes Offering Plan-before rental building converted to condo or co-op or before built, offering plan must be sent to the state attorney general in albany for approval- cannot marker a property until the offering plan is approved Pitchslope or angle of roof Agent- someone who represents someone else Zoning- government allows certain use of real property in certain area- example of police power SEQRA, State Environmental Quality Review Act - state law that says if you want to build in a sensitive area you have to write an environmental impact statement to show how it will effect environment Partnership and Corporation- partnership has general partners that manage operations- limited partners (silent partners) who invest- corporation is an artificial being- shareholders in a corp can only be liable to the extent of their investment 1968 Supreme court case Jones V Mayer- established there are no exceptions to civil rights act Ground Lease- land lease- land is rented- one person owns land, other owns building- owner of building pays rent to owner of the land- 50-100 yearsnet leases because building owner maintains the buildings and pays tax and insurance General Lien- against all property- income tax is general- if you don't pay the iRS can take your salary, bank account, car, jewelry, dog, etc How to become salesperson- 18 years old- 75 hour class- state test and school test- Department of state approves- can only be paid by broker Clean Air Act- sets limits on pollutants in air- radon not covered by clean air act- covers CFCs (air conditioning gas) Kickback- payment for real estate services to an unlicensed person- very illegal- licensed person cannot receive payment from anyone except the broker they work for Graduated Mortgage/Lease- monthly payments increase periodically- common in commercial Pre- Approval- banker does research on your financial status and give you condition commitment in writing for an exact loan amount Homestead vs non-homestead- tax purposes- farms are both (barn in homestead and land is non homestead)

Secondary Market- FNMA (fannie Mae)- GNMA (Ginnie Mae)- FHLMC (Freddie Mac)- banks sell mortgages to other banks USTs Underground Storage Tanks- Regulated by Department of Environmental CONSERVATION- USTs under 1100 gallons that hold gas or diesel are not regulated CERCLA (Comprehensive Response, Compensation and Liability Act

• superfund- helps pay for clean ups- when uncontrolled or

hazardous spill this fun responds for clean up and sees who is responsible Department of Financial Services- licenses mortgage brokers Conventional Bank Loan- bank loan with no involvement by government groups (FHA or VA) Encumbrance- something that "weighs down" real estate making it harder

to sell- ex: liens, easements, taxes- burden the property

and make less marketable- most common is a lien Property Condition Disclosure Statement- 6 page statement seller must fill out on condition of property BEFORE buyer signs contract- if seller does not provide, has to pay $500 at closing- NOT needed for new construction residential, foreclosure sales, condos and co-ops, or commercial Riparian- ownership and use of rivers Balloon Payment- non amortized loan (not equal monthly payments)- if borrower pays interest at beginning and principal at end in one payment Acknowledgement- notary public certifies the signature and date of a document Article 12A: NYS Real Property Law"Real Estate License Law"- violation is a misdemeanor punishable by loss of license, $1000 fine, revoking of license- all salespersons have license suspended- after 1 year broker can apply to get license back Title Search Report- research chain of title and all documents associated with the property going back 40-60 years Keeping Real Estate Records- keep for 3 years in residential- Keep for 7 years in commercial ValuationValuation is money- valuation of real estate is an appraisal or comparative market analysis telling what dollar amount Actual Cash ValueReplacement cost- Depreciation= Actual Cash Value- replacement cost is how much it would cost to buy a new house or personal property at todays prices- actual cash value is what it would cost to buy new minus depreciation New York State Fair Housing Laws- federal law protects Race, national origin, religion, gender (Sex), disability and family status (kids)- states and cities protect age, marriage, sexual orientation Chain of titlelist of people who have owned a property Assignment- tenant who has to break a lease can assign lease to new tenant who has same lease teams (money, rent, time, etc)

old tenant leaves and new is responsible for lease