RealEstate U Pass the New York State Exam v.2 2.3 Practice Exam

RealEstate U Pass the New York State Exam (v.2) 2.3 Practice Exam #

• (75 questions) Flashcards

The lender in a transaction is known as the...? Mortgagee According to this, a broker may be held responsible for the unlawful actions of his/her salespersons?Vicarious Liability Money earned from interest, annuities, dividends, and royalties is known as...?Portfolio Income Which of the following is NOT exempt from obtaining a license?A licensed attorney acting as a sponsor to a real estate salesperson Which of the of following is used by real estate developers to test the market before building a new condominium or cooperative building?CPS-1 The right of the government to acquire private property for public use is known as...?Eminent domain Which of the following financial documents is used by the Board of Mangers to help determine if a prospective buyer's application to purchase a cooperative is approved or not?Board Package Which of the following is an example of a fixture...?Custom book shelves What is the maximum fine the Department of State may impose on a licensee for violations of the Real Property Law?$1000 Which of the following must be obtained by a property owner before construction or renovation can begin on their property?Building Permit In a residential transaction, who typically holds on to the buyer's down payment/earnest money?Seller's Attorney If a property sold for $2,200,000, and the net operating income is $132,000, what is the capitalization rate for the property?6% If a homeowners association does not allow houses in a sub-divided community to have brick on the exterior of the house, where will this restriction be documented?It will appear as a restrictive covenant in the deed Which of the following is considered a direct cost?Labor Costs If a married couple sold their property for a $435,000 profit, how much in capital gains taxes will the couple be responsible for?zero Which of the following is used as evidence that an individual owns a particular piece of real property?Title Which of the following is required in order for a broker to act as a dual agent?Advanced informed consent from both the buyer and seller

The actual selling price of a property is known as the...?Market Price Which of the following governs the amount of interest that can be charged on a loan?Usury laws For tax purposes, residential properties depreciate over how many years using the straight-line depreciation method?

27.5 years Gender was added as a protected class to the Fair Housing Act in what year?1974 Which of the following types of ads are illegal in New York State?Blind Ads Which of the following parties in required to sign a valid deed?Grantor Only Which of the following is a form of interim, or temporary, short-term financing for creating improvements or buildings on a property?Construction Mortgage Which of the following types of easements is obtained by a squatter who uses another's property without the owner's permission?Easement by prescription Which of the following is NOT considered a bi-lateral agreement?Open Listing Contract Which of the following items may be prorated between the buyer and seller at closing?Property Taxes A real estate salesperson operates as what type of agent to their client?Special Agent Building contractors use which of the following detailed building plans to build a house?Blueprints Which of the following leasehold estates is open-ended, as it does not have a termination date?Estate at Will Familial status was added as a protected class to the Fair Housing Act in what year?1988 Ad valorem means...?According to Value A land lease is also known as a...?Ground Lease If a broker commingles their client's funds, which of the following fiduciary duties are violated?Accountability If a seller nets $310,200 from the sale of their property, what was the final sales price if the broker was paid a 6% commission?

$330,000

Which of the following statements are used by real estate investors to estimate the return on investment for a particular investment property?Pro forma When an individual is renting an apartment or house, what type of insurance is typically obtained?HO-4 A real estate salespersons license must be renewed every .........years.2

Personal property is also known as...?Chattel The original cost plus certain additions and minus certain deductions is equal to the...?Adjusted Basis This Act made price fixing, group boycotts, market allocation, and tie-in arrangements illegal?Sherman Anti-Trust Act Which of the following properties does not have to be assessed?Church Which of the following building components is primarily used to prevent water from entering a structure at a joint, corner, or bend?Flashing If a broker is hired by a buyer to represent them in a transaction, the broker is considered what type of agent?Buyer's Agent Which of the following may be added to a contract, which awards the non-breaching party a specified sum of money for certain breaches listed in the contract?Liquidated Damages Which of the following would be considered a trade fixture by a commercial tenant?Display Case Which of the following framing members are horizontal beams that support the floor in a house?Joists Which of the following building materials is a type of foamed in-place insulation that releases formaldehyde gas?

UFFI Which of the following is a chemical compound used in refrigerants?CFC's Replacing an obligation to perform with a new obligation in a contract is known as...?Novation Which of the following must a real estate salesperson carry on them at all times when doing business and show it on demand?Pocket Card Which of the following clauses may be included in a condominium contract, which allows the condominium association the first opportunity to purchase the condominium when it goes up for sale?Right of first refusal clause What is the role of an assessor?Determine assessed values of properties A claim or charge against the property of another is known as a/an...?Lien Mark owns a single family home. He decides to transfer ownership of the property to his daughter, Nancy; however, the ownership of the property will revert back to Mark upon the death of Nancy's aunt, Martha. Which of the following was created?Life Estate In order to obtain an easement by prescription, for how many years must the property by used by the dominant tenement?10 years

Which of the following is illegal in New York State?Net Listings Which of the following construction elements is the lowest horizontal wood beam in the frame of a house?Sill Plate According to this concept, real estate is considered an illiquid asset because it cannot quickly or easily be sold?Liquidity Which of the following commercial leases increases in a stair-stepped fashion?Graduated Lease A straight-term loan is also known as a/an...? Interest only loan The movement of water through soil is known as...?Percolation Which of the following structural members is set in the soil and supports the building's foundation wall?Footing This refers to a pool of insurance companies in New York State that writes fire insurance policies for homeowners, as well as coverage for vandalism and malicious theft?

NYIPUA

Which of the following uses properties currently on the market, recently sold properties, and expired listings to determine the value of a property?Comparative Market Analysis Which of the following are volunteers who pose as prospective homebuyers to see if race influences information and services offered by a real estate broker or salesperson?Testers Which of the following is NOT considered real property?Cooperative If an agent's client has a financial loss because of the agent's negligence, which fiduciary duty has been violated?Reasonable skill and Care Which of the following is used by property managers to project the net operating income for a property?Operating Statement According to TILA, which of the following items may be specified in an advertisement without making a full disclosure?Annual percentage rate Which of the following is typically used as a short-term loan?Bridge Loan Which of the following leases is most commonly used by a long-term commercial tenant?Net Lease Which of the following agencies administers the National Flood Insurance Program (NFIP)?

FEMA If a property owner wants to enlarge the building on their property to be larger than is permitted by the local zoning code, they fist must obtain a/an...?Variance According to the ............., real estate salespersons are considered independent contractors.

IRS