NY Real Estate Practice Exam Questions Flashcards

NY Real Estate Practice Exam Questions Flashcards

• A mortgage clause that allows a lender to declare the

balance due if the borrower sells the property is the:a. a

prepayment penalty clauseb. alienation clausec. granting claused. defeasance clause

• alienation clause

8. The first law to address antitrust violations was the:a.

Clayton Antitrust Actb. Real Estate Settlement Procedures Actc. Sherman Antitrust Actd. New York Real Property Law

• Sherman Antitrust Act
• Hattie wants to sell her home in Kingston, New York.

She decided not to use a broker so that she can sell her property to whomever she wants. Which of the following is

TRUE? Hattie:a. is exempt from all fair housing laws as

long as she does not use a brokerb. is exempt from fair housing laws in the sale of a single-family homec. can only sell her property to whomever she want if she does not advertised. and/or a broker are not entitled to any exemptions to fair housing laws in the sale of a single-family home in New York.

• and/or a broker are not entitled to any exemptions to fair

housing laws in the sale of a single-family home in New York.

• Which of the following would most likely prevent a

closing from taking place?a. the imposition of discount points by the lenderb. the hiring of an attorney by the purchaserc. the existence of outstanding unpaid liens against the propertyd. a purchase money mortgage given to the seller by the purchaser

• the existence of outstanding unpaid liens against the

property

• Which of the following individuals is exempt from

licensure?a. attorneys admitted to practice in the New York courtsb. property managers who manage property for more than one individual or companyc. individuals who only list property for saled. auctioneers who only auction commercial real estate

• attorneys admitted to practice in the New York courts
• Which of the following activities is NOT an element of

an independent contractor relationship?a. no compensation for a specific number of hours workedb. salespersons can work any hours they choosec. commissions are paid with deductions for income taxesd. either the salesperson or broker may terminate the relationship at any time

• commissions are paid with deductions for income taxes
• Francois and Helena purchase a property and their

attorney tells them that their title offers them the most

complete form of ownership. Their ownership right is:a. fee

simple on conditionb. fee simple absolutec. free simple defeasibled. a life estate

• fee simple absolute

• If Calvin buys three parcels of land for $8,000 and sells

them as four separate parcels for $9,000 each, what percent profit does he make?a. 33%b. 40%c. 45%d. 50%

• 50%

5. A broker's agent is hired by the:a. principalb. sellerc.

customerd. broker

• broker
• Martin signs an exclusive-right-to-sell listing agreement

for six months with Broker Gerald. Within one month, Martin sells his house himself and refuses to pay a

commission to Gerald. Martin's behavior is a possible:a.

reformationb. breach of contractc. injunctiond. assignment

• breach of contract
• Which of the following is NOT one of the four unities

required for joint tenancy?a. unity of timeb. unity of interestc. unity of partitiond. unity of possession

• unity of partition
• On the closing statement, which of the following

appears as a buyer credit?a. earnest money depositb.prepaid real property taxesc. prepaid insurance premiumd.sale of personal property

• earnest money deposit
• A sprayed insulation that caused noxious fumes is

called:a. loose fill insulationb. rigid insulationc. UFFId. batt

insulation

• UFFI
• One of the most important factors in selecting

comparables for a comparative market analysis is to select

properties:a. within a 50-mile radius of the subject

propertyb. older than the subject propertyc. as close in location as possible to the comparabled. that have inferior curb appeal to the subject property

• as close in location as possible to the comparable
• One of the differences between federal human rights

law and New York human rights law is that the:a. federal

law does not address discrimination based on familial status and the New York law doesb. federal law does not address discrimination based on disability and the New York law doesc. federal law has fewer protected classes than the New York lawd. federal law does not address discrimination based on sec and the New York law does

• federal law has fewer protected classes than the New

York law

• Lionel buys a cabin in a remote area and has no road

access except through his neighbor's adjoining property.

Lionel's property requires a(n):a. easement by

condemnationb. negative easementc. easement by necessityd. encroachment

• easement by necessity
• The profit from income producing property, less income

taxes, is known as:a. after tax cash flowb. before tax cash

flowc. debt serviced. the debt-to-equity ration

• after tax cash flow
• Harry has an ownership interest in a 60-unit apartment

building as a limited partner. According to IRS rules, this

kind of ownership is:a. active incomeb. passive incomec.

portfolio incomed. deductible income

• passive income
• In a tax-deferred exchange, the individual who accepts

the funds from the sale and handles the contract is called

the:a. arbitratorb. mediatorc. qualified intermediaryd.

coordinator

• qualified intermediary