Real Estate Test Prep

  1. The colorless, odorless, tasteless radio active gas that can enter a home. Naturally occuring from the break down of soil.
  2. What is an encumberance?
    An interest in the property such as a lien.
  3. What is encroachment?
    A physical object protruding onto somone else's property.
  4. What agreement allows the use of a part of another person's property for a specific reason?
  5. Complaints regarding a real estate licensee are directed to?
    The Department of State
  6. What are the fees associated with a salesperson disassociating from one broker and joining another?
    Ten dollars to disassociate and ten dollars to associate with another.
  7. What allows you to use your license in other select states?
    License reciprocity
  8. How often must a salesperson license be renewed?
    Every two years
  9. How many hours of continuing education are required to renew your sales person license?
  10. How many hours of fair housing education are required per license renewal?
  11. All ads placed by a real estate agent, whether sales person or broker, must contain the broker's name and telephone number. Ads that do not have this information are considered...?
    Blind ads
  12. If someone tries to reward you with something having cash value and it does not go through your broker, it is illegal and called a
  13. Which document must a seller of residential property complete that highlights the current physical state of the property and cannot be changed once completed?
    Property Condition Disclosure
  14. How long does a licensee have to transfer their license after their broker dies?
    120 days
  15. If a seller decides not provide a Property Condition Disclosure, they must deduct how much from the agreed upon purchase price?
    Five hundred dollars
  16. After a license is revoked, one must wait how long before reapplying?
    One year
  17. Paying someone that is not licensed, for helping secure a deal is called
    A Kickback
  18. If your commission is determined by whatever is left over from a sale after the seller recieves a predetermined amount, this is what type of illegal listing?
    A net listing
  19. The approval of an act, although not authorized at the time it was performed is known as
  20. The certificate that prevents a person from takng a stand against or asserting facts that are inconsistent with previous actions or statments
    An Estoppel
  21. The point in time when an agent meets the client or customer face to face
    First Substantive Contact
  22. At First Sustantive Contact, which document should be signed by both the agent and the client or customer?
    Agency Disclosure Form
  23. Which reguation requires agents to make clear who they are working for?
    Regulation 175.7
  24. What is the minimum amount of time an agent should keep documentation relating to their transactions?
    Three years
  25. A property where a death, homicide, or illegal activity has taken place and is not required for the agent to disclose it is called a
    A Stigmatized Property
  26. If a buyer would like information regarding a stigmatized property, what should the agent recommend
    The buyer submit written request to the seller.
  27. In what year was Megan's Law passed?
  28. What is the name of the law that requires the names and addresses of sex offenders to be made public?
    Megan's Law
  29. Bed Bug Disclosure forms shall always be given when
    A vacancy lease is being signed
  30. Which act states that a broker can request their commission be placed into a seperate account by the client?
    The Commission Escrow Act
  31. The Commission Escrow Act went into effect on what date?
    January 1, 2009
  32. How long can a commission sit in an escrow account before the seller can reclaim it?
    60 days
  33. What are the three core anti-trust laws in effect today?
    • The Sherman act of 1890
    • The Federal Trade Commission Act 1914
    • The Clayton Act 1914
  34. Which type of easement involves two seperately deeded lands?
    Easement Appurtenant
  35. If a person has multiple liens on their property, in which order are they paid?
    • Taxes (real estate, water ect)
    • Liens (including IRS)
    • Brokers
  36. A part of a person's land is being occupied, with their knowledge, for 10 years or more. The person using the land can claim an
    Easement by Prescription
  37. A general lien targets?
    All of a person's property withing a given county
  38. A specific lien targets?
    Only the propertty in question.
  39. Attachment liens, ordered by the court, prohibit?
    The selling of the property in question
  40. A title by prescription, similar to an easement by prescription, is also known as
    Adverse possession
  41. This document shows that a person has an interest in a piece of real property
    A deed
  42. This document shows that a person owns a piece of real property
    The title
  43. Does the buyer need to sign a deed?
  44. Which deed shows the strongest form of ownership?
    Full covenant and warranty deed
  45. What is consideration?
    Anything, including money, having value that a person gives or recieves when entering a contract. The deed nust contain a clause that states the grantor was given consideration for the land.
  46. The legal description of a property does what?
    Identifies the property from all others, most commonly in the form of an address or BBL number
  47. What is the name of the system a surveyor uses to identify the boundaries of a piece of property?
    Metes and bounds
  48. What is POB and what is it used for?
    Point of Beginning and is used by a surveyor to determine the boundaries of a piece of preoperty.
  49. The transfer of land through a will is to ?
    Devise it
  50. If a person dies without a will, in what order is the property distributed?
    Spouse, Children, relatives..... if no one then it reverted back to the state.
  51. What is it called when a person should know something even if they do not?
    Constructive notice
  52. What is it called when a person actually knows something through either hearing it, seeing it, reading ect?
    Actual notice
  53. The chronological, summarized history of a title is referred to as
    Abstract of title
  54. Title insurance does what?
    Insures the buyer and/or lenders against any losses that may occur due to any clouds in the title, or discrepencies over the ownership of the property. Insures up to the purchase price.
  55. Settlement statements, which are tpically prepared by the buyer's and seller's attorneys or bank representatives, itemized all of the expenses involved in closing a realestate transaction. What is the name of the required form used to accomplish this?
    HUD-1 Settlement Statement
  56. Typically all closing costs are paid by the buyer except?
    Transfer tax
  57. The division of expenses between the buyer and the seller is called
  58. The rights that come with real property ie. air rights, water rights ect are called
  59. Bundle of rights includes:
    • Right of possession- to occupy land
    • Right of quiet enjoyment
    • Right of disposition- to give away rights
    • Right of exclusion- no tresspassing
    • Right of control- to physically alter
  60. Riparian rights involve?
    Water that is moving ie stram or river
  61. Littoral rights involve?
    Water that is subject to the ebb and flow of a tide ie ocean or large lake
  62. Percolating rights involve?
    Water that is underground
  63. When personal property is physically attached becoming a part of the real property, the process is called
  64. When property attached to a piece of real propery is detached making it personal property, this porcess is called?
  65. Plants that grow seasonally on a piece of real property is called fructus industriales or?
  66. Personal property is also known as
  67. When personal property is shown, ownership is conveyed through a?
    Bill of Sales
  68. Proof that a person owns a piece of personal property is shown through a?
    Certificate of title
  69. If a person has a piece of collateral, but instead of giving it to the lender, they keep it and a lien is placed on the property, this is called?
  70. A possesory interest in a piece of real proeprty with no known end date is called?
    A freehold estate
  71. A freehold estate that lasts only as long as the tenant lives is called?
    A conventional life estate.
  72. A life estate that is measured by the duration of a non-tenant's life is called?
    life estate pur autre vie
  73. Teanacy by the entirety involves just two co-owners that are?
    husband and wife
  74. The difference between a C Corportation and a Subchapter S Corportation is
    C corporations are double taxed and S corporations are only taxed afer the profits are divided
  75. Power of escheat states?
    If a person dies without  a will, title property reverts back to the state
  76. The governments constituational power to appropriate land for public use is called
    eminant domain
  77. The document that identifies the goals, objectives ect for the growth and development of a community is called a
    Master plan or Comprehensive plan
  78. The study of social and economic status of a given area is called?
  79. A city's support facilities and services, inclusing roads, parks, sewers, schools, police and fire protections is known as its?
  80. The physical characteristics of a parcel of land is called
  81. What allows landowners to use their land in a way that is not permitted by zoning regulation?
    A variance
  82. Name the two types of variance.
    Area and use variances
  83. The documents explaining the requirements for the scope of work for construction, including materials, are called?
  84. The underground base, usually made of concrete, that supports a foundation is called a
  85. Concrete foundation that is built directly on the ground is called
    slab on grade
  86. A measure of the force that pushes electricity through a wire is called?
  87. The amount of electricity flowing through the wire is measured in
  88. The amount of power consumed in measured in?
  89. Most building codes require kitchens and bathrooms to have specificaly grounded outlets that shut off power when the appliance gets wet or shorts. These outlets are called?
    Ground Fault Interrupters (GFI)
  90. Aluminum cabling was?
    Disconnected in 1972
  91. The National Enviornmental Policy Act was enacted in
  92. Comprehensive Enviornmental Response, Compensation and Liability  (CERCLA) addresses what?
    What to do with closed or abandoned waste sites. They created the Superfund which is used to clean up the site.
  93. The colorless, odorless, natural biproduct of fuel combustion, is known as
    Carbon Monoxide
  94. Lead Bsed Paint Hazards Disclosure Forms must be given to renters or buyers of property built before?
  95. Does NY state have a disclosure policy for mold?
  96. Another word for location is
  97. The opinion of the value of a property based on objective data is called an
  98. Appraisers value property using which three methods?
    • Sales comparision approach- most used and most credible. compares similar recently sold properties
    • cost approach- cost of the piece of land, materials to build and depreciation
    • income approach- how much revenue is currently being made and how much similar properties is bring in. Mostly for commercial property
  99. The combining of lots is called?
  100. The amount a property will most likely sell for is the?
    Market value
  101. A transaction in which all parties were strangers and acting in their own best interest is called an?
    Arms length transaction
  102. When a particular home achieves its maximum value when surrounded by similar homes, this is called
  103. When  a particular item in a home is worth what it actually contributes in value, this is its
  104. CMA stands for
    Comparitive Market Analysis
  105. Area of a rectangle is determined by?
    Multilpying length and width (LxW)
  106. Area of a triangle is determined by?
    Multiplying half of the base times the height (1/2b x h) or (b x h)/2
  107. How many square feet are in an acre?
    43,560 sq ft
  108. How to you determine the volume of a space? What is the unit of measurement?
    L x W x H. cubic feet
  109. The amount remaining in a loan is called?
  110. What is the name of the law and year passed, that prohibits any types of descrimination based on race or color?
    The Civil Rights Act of 1866
  111. Which law prohibits descrimination on the basis of color, race, religion or national origin when selling or leasing rental property?
    The Federal Fair Housing Act of 1968
  112. Plessy vs Ferguson ruled that?
    Seperate but equal was acceptable.
  113. Which supreme court decision ruled that seperate isn't equal?
    Brown v. the Board of Education
  114. There was an amendment to the Federal Fair Housing Act in 1988 that protected which two groups?
    Family status (having childen) and the disabled.
  115. Buildings built after March 13, 1991 must meet what standards?
    Accessibility and adaptablility standards
  116. Blockbusting, also known as panic selling or panic peddling is what?
    Inducing someone to sell there home becasue of a change in the neighborhood relating to race, religion ect.
  117. What is it called when a commercial lender discriminates against race, religion ect.
  118. Which Act covers everything that the amendent to the Federal Fair Housing Act does not cover in realtion to the disabled?
    The Americans with Disabilities Act
  119. Which law covers all groups against decrimination in all facets of living?
    The New York Human Rights Law
  120. Cease and desist zones prohibit what?
    Real estate agents from soliciting property owners.
  121. When a type of consideration prohibits someone from doing something, this is called
  122. The Plain-language requirement, also known as Sllivan's law states
    Written agreements for the selling or renting of residential property must be written in plain, everday language for amounts of $50,000 or less.
  123. Which clause allows for the freeing of a protion of the property from the mortgage once a predetermined amount is paid?
    Release clause
  124. substantial performance is?
    When a person does not fulfill all requirements of a contract but does enough to where that the other party has to live up to their end.
  125. Material breach is?
    a breach of contract important enough to where the other party is not obligated to perform any conract obligations.
  126. The substitution of an old contract for a new contract, or the substitution of one party for another is referred to as
  127. Earnest money is?
    A deposit a buyer makes when submitting an offer, showing their interest to purchase. This is NOT consideration.
  128. Which type of leasehold estate automatically terminates after a certain amount of time?
    An estate for years or a term tenancy
  129. Which type of leasehold estate does not have a lease?
    An estate at will
  130. What is a period estate?
    An estate that last for successive equal periods of time (ie month to month) until terminated by either the lessor or lessee.
  131. When a lease holder stays on the property after the lease expires without the landlord's permission, this describes?
    Tenancy at Sufferance
  132. A demising clause within a lease allows what?
    Possession of the property by the lessee
  133. Oral leases are enforceable for leases lasting?
    Less than one year
  134. What does covenant mean?
    A promise
  135. Rent control applies to buildings build before?
  136. Rent stabilization applies to buildings built between?
  137. In a net lease, tenants pay?
    A some of the expenses associated with the property  (taxes, insurance, maintenance) AND the rent. Depending on how may of the three are being paid, it may be referred to as a single-net, double-net or triple-net lease
  138. In a gross lease the tenant pays?
    Just the rent and the landlord pays the expenses
  139. What are the names of the legal documents that establish the rights and duties of all parties invovled in a transaction?
    Finance Instruments
  140. The most common type of security instrument is a?
  141. A promissory note is a type of negotiable instrument which means it can be?
    Transferred from one party to another. They can be sold for less than face value. Governed by the Uniform Commerical Code (UCC)
  142. What instrument allows a debtor to hypothecate property?
    Security Instrument
  143. The Federal Reserve Act of 1913 created the Federal Reserve System which allows banks to?
    Give out reale estate loans.
  144. Lenders who make mortgage loans directly to borrowers are a part of
    the primary mortgage market
  145. The Federal National Mortgage Association (Fannie Mae) was created to?
    Provide a place where banks and other lenders could sell FHA insured loans
  146. Loans that mean Fannie Mae and Freddie Mac requirements to be sold on the secondary market are called?
    Conforming loans
  147. The Federal Home Loan Mortgage Corporation (Freddie Mac) was designed to?
    Provide F&Ls with additional funds, by buying mortgages they already have, so they can continue to lend in the mortgage market
  148. Loans that are not insured or guaranteed by any governemnt agency are known as?
    Conventional loans
  149. The Federal Housing Administration (FHA)'s main purpose is to?
    Insure loans
  150. The State of New York Agency Mortgage Agency (SONYMA) was created in 1970 to?
    To reduce fund shortages from private banks for mortgage lending in New York state.
  151. Which loan type is more risky because it lends to those with low credit scores?
    Subprime loans
  152. What is the maximun loan amount on a conforming loan?
  153. Loan assumption allows?
    For a person to take over a person's loan as long as the terms stay the same.
  154. What is a property's assessment?
    It is a percentage of its market value.
  155. The tax assessor's office is responsible for?
    Determining the assessed value of property.
  156. The municipality's engineer's office is responsible for?
    The planning, design, and construction of New York's public works facilities and projects.
  157. Special Assessment districts are?
    Geographical areas designated to pay infrastructure costs for a specific project.
  158. The public record that that lists the assessed values of each property is called an?
    Assessment roll.
  159. Homestead properties are
    Dwellings of four or fewer units... residential properties
  160. Section 121 of the Taxpayer Relief Act provides...?
    Relief to taxpayers by exempting most, if not all, of the gain in selling a primary residence. must have resided for 2 of the last 5 years.
  161. What are the total allowable exclusions under Section 121 for both single and married?
    250k for singles and 500k for couples
Card Set
Real Estate Test Prep
Questions geared to help study for the Real Estate Sales person state exam