NYREI Exam Prep Flashcards

NYREI Exam Prep Flashcards A temporary insurance contract formed by oral or written agreement between the customer and the insurance company is called A binder To compute the real property tax on a parcel of land, multiply the assessed value by the tax rate.(The fair market value is not always the assessed value. Take the assessed value placed on the property by the town assessor and multiply it by the tax rate. Remember to divide by 1,000 for mills.) The effect when a loan balance grows because of a differed interest when payments are not covering the interest portion of the loan are called Negative Amortization Equitable title isAn interest in real property created by the execution of a valid sales contract Residential real estate developers do NOT form partnerships between attorneys and real estate agents.(The residential real estate developer will conduct a feasibility study to see if the project is worthwhile, as well as prepare the land for improvements and eventually market and sell the lots. The developer does not engage in creating legal entities between professionals.) Which statement about square footage is false? Net square feet is typically used to calculate base rent.(Rentable square feet, also called gross square feet, is the number typically used for calculating base rent.) Loan where the interest rate remains the same for the duration of the loan Fixed rate loan The agent who finds a buyer in a real estate transactionSellers agent Broker Bob uses money from the firms escrow account to pay the electrical bill. This could be best described as Conversion (Conversion is another word for stealing) In order to qualify for the Coastal Market Assistance Program, a homeowner must have received a Cancellation notice from their existing insurer.On dwelling property forms, there is no coverage for vandalism if the dwelling has been vacant for more than 60 Days Paul is doing an appraisal for fannie mae. What is the minimum number of comps he needs to consider when using the sales comparison approach?3 Intestate VS Testate-Intestate is when a person dies without leaving a valid will and without heirs, whereas testate is when a person dies leaving a will When something outside the control of a property makes it less desirable Economic/External obsolescence Homeowner insurance rates are not based on Premium Payments ( The location, materials, and amount of insurance all impact homeowners insurance rates. The rates determine how much the premiums will be.)

A leasehold estate that continues for a successive periods of equal length until terminated by proper notice from either party is a Periodic tenancy What property expense is left out of the net operating income statement?Debt service(All property expenses are listed in the net operating income statement, except for the mortgage payment, which is also referred to as debt service. Reason being; the current mortgage payment of the owner is irrelevant to a buyer, as they would be obtaining their own mortgage. Secondly, after deducting all property expenses from the gross income, an investor can tell if what is left over is enough for the mortgage payment.) A right that goes along with the ownership of real propertyAppurtenance Equipment a tenant installs for use in his or her business is called Trade fixture Henry was putting an addition on his home. Once complete, the building code enforcement office would issue a Certificate of Compliance.(A Certificate of Occupancy is used only for construction of a new building or if there is a complete change in use of the building. A Certificate of Compliance is used for additions, decks, and any improvements to the property. A Certificate of Completion is not used for building standards.) A common law independent contractorIs not subject to withholding requirements (An independent contractor mus manage his taxes himself. His employee does not withhold anything) Insurance coverage can be purchased by which of the following?Captive agents, Direct writing companies, and independent agents A revocable, non assignable permission to enter another persons land for a particular purpose is License Tracy Peters asked her real estate agent what was the best deed that could be created for her. Tracy's real estate agent should recommend that Tracy consult an attorney.(A licensed real estate salesperson cannot give legal advice to a client; the client should consult with an attorney for recommendations regarding deeds.) A latent defect can be best described as Not plainly visible The relationship between the cost of borrowing money and the total amount financed is APR A mill is equal to1/10 of a cent.During a phone call, a salesperson discusses showing a property to a prospect. Three days later, the agent shows the property; at that time the customer reveals her financial abilities and motivation. Three days after that, the agent prepares her offer; he asks the buyer to sign an agency disclosure statement stating he represents the seller. When should the agent have disclosed this fact?Before showing the house(An agent's duty is to be fair and honest. The agent should have disclosed that he represents the seller before the buyer had a chance to disclose information about financial abilities. The listing agent must now use the information against the buyer in negotiations.) An insurance policy covering more than one area is known as a Package policy

An agency relationship can be terminated legally without recourse under which of the following circumstances?When the listing broker dies(The listing broker is the agent of record in a listing. A listing is an employment agreement, and therefore, when an employee dies, the agreement is void. This is not the salesperson's listing; the listing belongs to the broker of record in every transaction, not to the agent.) Regulation 150 of the NY State insurance department was established for the purpose of providing Standards for insurance companies that offer insurance policies with a hurricane deductible A clause requiring commission to be paid even if the property is sold AFTER the listing agreement expires is known as a Protection period clause The illegal practice of inducing homeowners to sell their homes (Usually at a deflated price) by suggesting the ethinic or racial composition of the neighborhood Is changing, with the implication that property values will decline is called Blockbusting A provision in a deed that limits the use of the property is known as Covenant ( A deed restriction also known as a restrictive covenant, is a provision placed in the deed when the property is conveyed.) For VA loans, how much of the borrower's income can be debt?41%(VA loans allow 41% of the borrower's income to be debt. The VA requires only one ratio expense. The borrower is allowed up to 41% of their monthly gross income for PITI, car payments, credit cards, alimony, child support, and any other monthly revolving debt and does include house utilities. It does not include car insurance, phone, or cable as a utility.) Which is not a guarantee that comes with a warranty deed?Guardian Authority Which is not a means as to how insurance can be purchased Comprehensive dealers ( Insurance can be purchased through independent agents, exclusive agents, direct writing companies, and brokers) The HO-4 renters policy includes the following coverage's except Other structures (The HO-4 is designed to protect a tenant or renter for loss of their property or liability) When is the income approach best used?The income approach is a valuable appraisal method when determining the value of an investment property Nowhere City creates tax incentives to encourage the rehabilitation of property in a run-down neighborhood. This is an example of which great force?Governmental(The federal, state, and local governments have programs (often in the form of grants) for revitalization programs in distressed neighborhoods. Often, the county agency creates and monitors the program.) Funds offered as an indication of good faith regarding a future performance of a purchase agreement is called Earnest money Possession of property by a holdover tenant is Tenancy at sufferance A buyer's agent is showing buyers a piece of property for the first time. The buyers ask the agent if there is any dampness in the basement. The agent responds, "To my knowledge, there is no dampness in the basement." The

agent would be guilty of which of the following?Misrepresentation(Fraud is an intentional misrepresentation, while misrepresentation can be inadvertent or negligent. The agent did not intentionally lie to the buyers, but was negligent in not actually viewing the