NY STATE RealEstateU test exam prep Flashcards

NY STATE RealEstateU test exam prep Flashcards Wraparound MortgageSecondary financing for the purchase of real property.Seller extends to the buyer a junior mortgage which _______ the existing loan in addition to any superior mortgages already secured by the property.Where must down payment be placed and who generally hold down payments?Placed in escrow account-Listing agent-Sellers attorney-selling broker Regulation Z AKA the Truth-In-Lending Act The truth in lending act of 1968 US law designated to promote the informed use of consumer credit, by requiring disclosures about its terms and cost.4 main disclosures-APR-Finance charge-amount financed-total amount of money to be paid toward principal and interest payments Article 12-A NYS real property law outlines Roles and responsibilities of department of state.What is legal description and 3 types of property descriptions?Describe where the property is located and size of lot.-meets and bounds-description by reference, lot and block-monuments SheathingPlaced over the roof rafters, used to enclose the roof and stiffen the roofing system.typically made of plywood or exterior grade gypsum board.(RESPA) Real Estate settlement Procedures Act Consumer protection statute, first Passed in 1974.-help consumers become better shoppers for settlement services and eliminate kickbacksREQUIRES-good faith estimate (GFE)-HUD booklet-HUD form # 1 zoning board of appealshears and appeals requests for variances and special permits brought before the board SpecificationsA doc provided by architects that describe the quality of construction.When is agency disclosure form?A written explanation to be signed by a prospective buyer or seller of real estate, explaining to the client role that the broker plays in transaction.-Should be signed at first substantive contact-outlines the agents duties-allows for advance consent to dual agency-explains that an agent owes a fiduciary duty to the client.Commissions are ______ and determined by____? -Negotiable-both client and broker Full covenant and warranty deedProvides the strongest and broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee.What can a salesperson/agent not do?Collect money or commissions-broker must pay salesperson applies to any referral fees paid from another broker/salesperson/mortgage broker.

Riparian rightsRights belong to owner of a property bordering flowing body of water.sub leasefinding a tenant when you are still the tenant Escalation ClauseA clause that allows landlords to raise rents during the term of lease.-different reasons at specified times during the lease term What does zoning determine?Usage allowed for a building or subdivision meaning the maximum size of structure.-also determines bulk of a house building (height, square footage, size of floor plate) SidingCan be metal, wood, or vinyl.Behind the ____ is a layer of sheathing Functional ObsolescenceCan be an outdated design or floor plan BlockbustingThe practice of inducing homeowners in a particular neighborhood to sell their homes quickly often at below market prices by creating fear that the entry of a minority group will cause decline in property values.What is proration?Ensures fair apportioned expenses between buyer and seller. Division of certain settlement cost between buyer and seller.-Items include real estate taxes, fuel, a survey, water, and sewer charges, rent, and security deposits What is Earnest money deposit?A deposit that a buyer makes at the time of submitting an offer to demonstrate the true intent of the purchase; also referred to as a binder, good faith deposit, and escrow deposit.Exclusive right to sellAn agreement of employment by a broker under which the exclusive right to sell for specified period is granted to the broker; if a sale during the term of the agreements made by owner or by other broker, the broker holding such exclusive right to sell is nevertheless entitled to compensation.Prepayment Penalty ClauseStates that the borrower can not pay off the loan at any time before expiration of the full mortgage term without a financial penalty for early payoff.polychlorinated biphenyls (PCBs)Can appear in ground water and soilWere widely used as

coolant fluidsEX: transformers, capacitors, and electric

motors What is ownership severalty?When title to real estate is in the name of only one

person.EX: dads house

Market valueThe most probable price that a property should sale.Bridge loanA short-term loan (or swing loan) for borrowers who need more time to find permanent financing. Typically 2 weeks -3 Years.-a gap Loan, allows a buyer to obtain a new property without having to sell his/her current property.Eave-Lowest part of roof-The section of the roof that overhangs the walls of a house.

NYS department of financial services /NYS banking department Registers and licenses all companies and individuals who conduct mortgage related services in New York.What is a Mortgagor?Borrower Undisclosed AgencyA relationship which the real estate agent found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties.-illegal in NY-agent should notify both parties and have them sign agency disclosure form which states that the agent is acting as a dual agent. This is known as Advance consent to dual agency.eminent domain/condemnationthe right of government to take private property for public use. Owner must be fairly compensated.FasciaThe area of material facing the outer edge of the soffit.What happen if broker license is suspended or there is revocation?Salesperson and associates broker licenses are suspended.Non conforming useOccur when a preexisting ur of property in a zoned area is different from that specified by the zoning. The existing use is not as of right.building codesa set of rules that specify the minimum acceptable level of safety for constructed facilities FuseA device used in electrical systems to protect against excessive current.

• hectare2.47 acres

Department of State responsibility?Responsible for issuing real estate licenses, pock cards, and handing down disciplinary action.What is conveyance?The transfer of the title of land from one person to another.A deed is a document used to _____ title legally to real property.-which is also called an instrument What is Fee Simple Absolute?Absolute ownership of real property; a person has this type of a estate where the person is entitled to the entire property with unconditional power of this position during the persons life and descending to the person's heirs or distributees.Loft leaseA lease for the rental of floor space that is not generally divided into rooms.What is Mortgagee?Lender/bank-the homeowner gives bank the mortgage AgentSales person or broker Easement in grossA right of use in land of another without the requirement that the holder of the right own adjoining land.-Also known as commercial easement- A utility company uses/owns this type of easement.EasementRight to cross or otherwise use someone else's property for a specified purpose.-no possessory interest in land owned by another

What are Fiduciary Duties?ObedienceLoyaltyDisclosureConfidentialityAccountabilityR easonable care and duty to account General AgentSomeone authorized to transact every kind of business for the principal.-Property Manager Mechanics lienA security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.SoffitArea under the roof extension Secondary Mortgage MarketWhere loans are bought and sold ObsolescenceOne of the causes of depreciationLoss of desirability and usefulness caused by new inventions changes in design.-may be either economic or functional Comparative market analysisProperty evaluation that determines the properties value by comparing similar properties sold within the last year.-and analysis of the competition in the marketplace that he probably will face upon sale attempts. Not an appraisal-an opinion of value Ground leaseAn agreement for the tenant who is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner.-also known as land lease commonly used for commercial property.

• acre43,560 square feet

What's a independent contractor requirements? -Real estate sales person-pay their own taxes-have no set work house-responsible for SS taxes and self employment taxes-can have another job-covers his or her expenses-either party can terminate the relationship any time blueprintsArchitectural drawings that describe the layout and construction of a house these drawings describe the Quantities used in construction What must be included in advertisement?17.25 Article 12-A of NY real property law stats-must indicate broker name and phone # Negative AmortizationOccurs when the monthly payment is less than full interested and does not pay any principal. The interest that is unpaid accrues and the principal balance owed increases.Civil Rights Act of 1866Citizens have the same rights to inherit buy sale or lease real or personal property-Is primarily interpreted to prohibit racial discrimination Elements of valid contract?-must be over 18-cannot be under 18 or its voidable-must be mentally & emotionally competent-purchaser must sign first.Percentage LeaseA lease of property which the rental is based upon the percentage of the volume of sales made upon the leased