NYREI test questions

  1. In NYS, how old must one be to enter into contracts?        What other capability should they possess?
    • 18 
    • Mental and emotional capability
  2. What happens if one of the parties to the contract is a minor?
    The contract is voidable by the minor
  3. What does the zoning board of appeals do?
    Grants variances
  4. Who grants variances?
    zoning board of appeals
  5. What regulates construction standards in NYS?
    Building codes
  6. What does municipal engineer’s office do? –
    Oversees planning and construction of major highways, sewer systems and water connections
  7. If a property ad states that the property is near the vicinity of a geographical area, what else must the ad include?
    It must include the name of the geographical area where the property is actually located
  8. Who is usually exempt from property taxes?
    –Disabled, veterans, farmers, elderly, gold star parents (whose kids dies in war) and star program homeowners
  9. Who is not usually exempt from property taxes?
    Second home owners
  10. What covers fully for personal property lost in a fire?
    Replacement cost
  11. What’s the cash on cash return on a $2,000,000 property with a down payment of 500,000 and $15000 monthly rental income?
    -36 percent
  12. Who hires the agent?
    –Principal or client
  13. What is not a CMA(comparative market analysis)?
    –An appraisal
  14. What can a salesperson  not do?
    Collect money directly from the client or customer
  15. When should the Agency disclosure form be submitted?
    –At the first substantive contact
  16. Which document describes the agency(who he or she represents) of the salesperson?
    –Agency disclosure form
  17. What’s another name for the slope of the roof?
  18. What carcinogenic component was used as insulation in electric transformers that contaminated soil and ground water?
    –PCBs or polychlorinated biphenyls
  19. What can brokers provide their salespeople if they are independent contractors?
    –Office phone
  20. What’s right to access water from a river or stream called?
  21. What did the Civil Rights Act of 1866 protect, without exception? –
  22. What did the 1988 amendment to the civil rights act protect?
    –Disability and familial status
  23. Blockbusting is...
    convincing owners to sell/lease property by telling them a particular group of people are moving into the area called
  24. What is Redlining?
    When lenders/insurance agents refuse to do business in a certain area based on the characteristics of the people living there.
  25. Unless specified a lesser estate, transfer of title to real property in NYS creates what type of interest?
    Fee Simple
  26. What is another name for transfer of title to real property?
  27. Zoning
    when the government dictates how a property can be used
  28. Who issues real estate licenses?
    –NY Department of State
  29. Who oversees licensing and registration of mortgage bankers and brokers?
    –NYS banking department
  30. Which department oversees drinking water safety?
    –NYS department of health
  31. Who determines the commission?
    Principal/client and the broker
  32. What occurs when the agent represents the seller but also works in the best interests of the buyer?
    Undisclosed dual agency
  33. A real estate salesperson is what type of agent?
  34. What clause in the deed describes the property?
    Legal descriptions
  35. What type of income is partnerships/investments?
  36. What’s the name of the policy that provides additional liability coverage beyond the primary policy?
    –Umbrella policy
  37. What type of maintenance is fixing a leaking faucet?
    –Corrective maintenance
  38. What are property taxes based on? –
    Assessed value
  39. What is the market value?
    –What the property will sell for in a competitive marketplace
  40. What is a loft lease?
    –It’s a lease for space that is not divided into rooms
  41. Which types of commercial properties use percentage lease?
    –Retail stores / shopping malls
  42. Who is responsible for the terms in the lease if the unit has been subleased? –
  43. Eminent domain
    the taking of private property by the government for public use
  44. How many years is a residential investment property depreciable for?
    27.5 years
  45. How much profit can a single person claim from the sale of a personal residence that’s tax free?
  46. What is the right to use another’s land that falls short of ownership called?
  47. Joe was not paid for the supplies and labor he provided to homeowner Smith. What kind of lien will he file against Smith?
    Mechanics lien
  48. What serves the same function as a circuit breaker?
  49. What type of estate is created when only one person holds title to real property?
    –Ownership in severalty
  50. How much should the seller reimburse the buyer for refusing to provide a property disclosure form?
  51. Seller tells the listing agent he filed for bankruptcy the previous year. The seller ends up not listing the property with the agent. Still, what fiduciary duty does the agent owe the seller?
  52. What type of financing is used to purchase a new property when the old property hasn't been sold yet?
    –Swing loan or bridge loan
  53. Who is the borrower of a mortgage loan?
  54. What does the Real Estate Settlement Procedures Act (RESPA) require?
    –Good faith estimate of the closing costs for federally funded loans
  55. What is the right reserved for the condo association that gives them the first opportunity to buy or lease a unit when it becomes available?
    –Right of first refusal
  56. A coop is what type of ownership?
  57. What is the summary of the chronological history of title and related documents to that called?
    Abstract of Title
  58. What type of mortgage is when a new mortgage that is higher in amount wraps around an existing first mortgage that’s smaller in amount?
    –Wraparound mortgage
  59. What document provides detailed information on a condo or coop project?
    Offering plan
  60. What is the process called that calculates the value of an asset in the past, present and future?
    Time value of money
  61. What is it called when a building loses its desirability because of an outdated design feature?
  62. What types of investment properties are warehouses and distribution centers? –
  63. What governs issues such as noises, pets in a condo or coop?
    House rules
  64. What are homestead properties?
    –Residential condos, 1-4 family homes, mobile homes & farm dwellings
  65. What’s the area the tenant actually occupies and uses?
    –Usable square footage or net square footage
  66. Who signs the contract first? –
  67. What is the budget that is set aside for repairs and large improvements?
    Capital reserve budget or replacement reserve budget
  68. What’s another name for land lease?
    –Ground lease
  69. What allows landlords to raise rents during the term of the lease?
    –Escalation clause
  70. What are tax advantages on investment properties called?
    –Tax shelters
  71. What type of listing agreement is it where the listing broker gets commission for the sale of the property even if the owners themselves sell the property?
    –Exclusive right to sell
  72. What’s an implied clause in a deed?
    –Grantor owns the property and has a right to convey it or right of quiet enjoyment
  73. What does Regulation Z (TILA) require beside the disclosure of interest rates?
    –Down payment
  74. What does the secondary mortgage market do?
    –Buys and sells mortgages
Card Set
NYREI test questions
From online versions of the test.