REVIEW QUESTIONS FOR NY REAL ESTATE EXAM Flashcards

REVIEW QUESTIONS FOR NY REAL ESTATE EXAM Flashcards

An apartment information vendor is licensed by:a.

Department of Lawb. New York Attorney General's officec.Department of Stated. Division of Housing and Community Rental

C: Department of State licenses apartment information

vendors....In the transfer of what type of property may a flip tax be imposed?a. condominiumb. cooperativec. any fee simple interestd. on all properties sold in New York City

B: Cooperatives may have a flip tax imposed upon transfer,

paid by the seller.A comparative market analysis resembles which approach to real estate evaluation?a. income approach.b. Direct sales comparison.c. Cost approach.d. Guesstimate.

B: The "CMA" is closely related to the sales approach used

by appraisers.1-A broker legitimately may pay all or part of Real estate commission to aa. sellerb. salespersonc. buyerd. friend who provides a listing lead

-B: Salesperson can accept compensation only from their

sponsoring broker.If you are a salesperson working with a buyer, then the

buyer is your client:a. if you are servicing the buyerb. if the

buyer shared financial information with youc. if you have an agency contract with the buyerd. none of the above

C: This is done through a buyer brokerage agreement

The usual listing agreement between a seller and a real estate agent is a (n)a. Implied contract.b. Breach of contract.c. Express contract.d. Discharge of contract.

C: Express Contract-the parties to the contract have

definitely agreed on all the terms in the contract The commission to be paid in a written listingAgreement is thea. rate set by lawb. amount of money over the net listing amount.c. Customary rate in the area.d. Percentage of the sales price as negotiated and agreed or a flat fee.

D: The broker's fee is specified in the listing agreement,

management agreement, or rental agreement with the principal and is always subject to negotiation.An asbestos problem is sometimes best treated bya.installing new distribution boxes.b. Proper ventilation of the building.c. Removal of chipping paint.d. Leaving it alone.D- If the asbestos is in an area and is not disturbed it is best to leave it alone.Under the New York General Obligations Law, Security deposits by a tenanta. Become the property of the landlord.b. Are held in escrow by the landlord.c. May be commingled with the landlord's funds.d. Can be retained by the landlord after he or she sells the property.

B: The security deposit must be held in an escrow account.

-One future action that may NOT be limited by a deed restriction isa. The free transfer of the property.b. The illegal covenant against religion. orNationality.c. Further subdivision.d. The total number of lots in a subdivision.

B: An illegal covenant cannot be enforced [e.g. excluding

people of certain religion, or color.RESPA explicitly prohibits the payment ofa. Referral fee from an insurance agent.b. Kickbacks.c. Brokerage referral fee.d. Fee to a moving company.

B: (RESPA) Prohibits kickbacks for services not performed

A licensee should use the disclosure form with prospective sellers or buyers at the first substantive contact. Which of

the following illustrates the first substantive contact?a.individuals walking through an open house who do not speak to an agentb. individuals who call the real estate office asking about the location of a property for a drive-by on their ownc. a prospective purchaser walking into a real estate office, meeting with an agent, and discussing the purchase of a specific propertyd. an agent giving a seminar on home buying to a group of prospective purchasers

C: When a prospective buyer or seller may walk into a real

estate office and want to discuss listing or purchasing a

property, at this point, disclosure must be made.The Duncan and Hill decision cautioned real estate licensees againsta. Misrepresentation.b. Consumer fraud.c.The unauthorized practice of law.d. Undisclosed dual agency.

C: In Duncan & Hill, the court upheld the Department of

State's determination that a real estate broker who was not a licensed attorney demonstrated untrust worthiness and incompetence in violation of Real Property Law sect;441-c, finding that, when he prepared documents that included detailed mortgage terms he had devised, he engaged in the unauthorized practice of law Except for the amount of mortgage that may be assumed, as sale in New York State is subject to a transfer tax ofa.$0.55 per $500 or fraction thereof of the consideration paid.b. 1 percent on a sale of less than $500,000c. 10 percent where the consideration is more than $1 million.d.$2 per $500 or fraction thereof of the Consideration paid.

D: New York State transfer tax is based on sale price is

$4.00 per $1,000 or $2.00 per $500 If you are selling a house in New York, it is necessary to disclose thata. There is a utility surcharge.b. The former owner committed suicide.c. The train station is eight miles away.d. A shopping center is the nearby town is closing.

A: If a Utility surcharge is assessed shall provide written

notice to the prospective purchaser A salesperson sells another firm's listing of a commercial building for $462,500. The 7 percentcommission is split 50/50 between the two companies. The salesperson received 60 percentof her office's share. How much does she receive?a. $1,619.75b. $3,237.50c. $9,712.50d.

$10,850.00

C: $462500 x 7%=$32375.divided by 2

=$16187.50x60%agent=$9712.50 To avoid possible liability for the actions of c cooperating members of a multiple-listing system, the owner who lists property for sale may decline to offera. commission to the selling agent.b. Subagency.c. Cooperation with buyer brokers.d. A written disclosure of property condition.

B: By accepting subagency the owner will have no

vicarious liability for the Acts of cooperating agents The form of listing whereby an owner lists property for sale with a number of brokers is known as a(n)a. Exclusive agency.b. Open listing.c. Exclusive right to sell.d. Net listing.

B: In an Open listing the seller allows the property to be

shown by many Brokers.The civil rights act of 1866a. prohibits any type of discrimination based on race.b. Prohibits discrimination only in federally Funded housing.c. allows an exception for an owner/occupied two/family house.d. does not apply to nonlicensed persons.

A: The Civil Rights Act of 1866-first significant statute

affecting equal housing Has no exemptions BASED ON RACE

A licensed salesperson or broker associate acting as an

independent contractor must:a. be paid based upon sales

and outputb. execute a written independent contractor agreement yearly with the brokerc. receive half of her health care premium paid by the brokerd. both a and b

D: Compensation is paid only for output. Law also requires

a written agreement, executed by both parties Variances and special use permits are issued by a(n)a.architectural review board.b. building department.c.planning department.d. zoning board of appeals.

D: The Zoning Board of Appeals It is a local administrative

appeal agency and an interpreter of the zoning ordinance.They also issue Variances and special use permits -The most commonly used insulation material isa. rock wool.b. Cellulose fiber.c. Urea formaldehyde foam.d.Fiberglass.

D:R-factor, the greater the degree of insulation. Most

common is fiberglass A contract transferring the rights to possession of real property for a specified term is known as aa. lis pendens.b.Lien.c. Lease.d. Deed on condition.

C: A lease is a contract, in which, for a consideration, an

owner of property transfers a property interest to the tenant for a prescribed period of time.Even though a building permit is issued, new Construction will still needa. A certificate of occupancy.b. A variance from the zoning board of appeals.c. Approval by an architectural review board.d. An environmental survey.

A: Permit issued to builder after all inspections are made

and property is deemed fit is a Certificate of Occupancy When the present usage of land is in legal conflict with an

enacted zoning ordinance the usage is called:a. voidb. a

variancec. spot zoningd. nonconforming

D: Nonconforming uses occur when land does not conform

to current zoning laws, but is legally allowed because it was there before new zoning.In a buyer/agency relationship the broker owes the sellera.Care.b. Accountingc. Obedienced. Fair and honest dealing

D: a buyer's agent should deal honestly, fairly and in good

faith.A protected class under New York City law and not under state or federal law is which of the following?a. ageb.marital statusc. lawful occupationd. familial status

C: LAWFUL OCCUPATION is protected class only in NEW

YORK CITY!!!!

Any right to or interest in the land interfering with its use or transfer is called ana. Encumbrance.b. Encroachment.c.Easement.d. Appurtenance.

A: An encumbrance is anything that lessens the bundle of

rights in real property.Among other methods, land use is controlled Or regulated bya. the local assessor.b. Subdivision regulations.c.Demographicsd. The economic cycle.

B: Individual owners have the right to place private controls

on their own real estate. Which may effect a home or subdivision 15-When selling a property in New York, the Licensee is required to disclose to a potentialBuyer thata. There is a group home 1 ½ miles away.b. The property lies in an agricultural district.c. There is a fundamentalist church three blocks away.d. The former owners were divorced

B: If property is in an agricultural district buyer must be

informed.-When a house purchase is financed by a Federally related mortgage loan. RESPA Requires that loan closing information be Prepared on thea. uniform settlement statement.b. Fannie Mae form.c. Mortgage Reduction Certificate.d. Affidavit of title.

A: RESPA requires a standard HUD-1 settlement

statement for all federal-related loans A salesperson who is an independent contractora. cannot be charged for office space or supplies provided by the broker.b. is not subject to any direction or control by the