NY STATE EXAM GUIDE QUESTIONS
AND ANSWERS
Down payment - ANSWER -Anyone who holds a __________ must place it in a
separate escrow account.
The following people generally hold the down payment:
- Listing agent
- Seller's attorney
- Selling broker
Proration - ANSWER -The division of certain settlement costs between buyer and seller.
These items can include real estate taxes, fuel, a survey, water and sewer charges,
rent, and security deposits.
Proration ensures fair apportionment of expenses between buyer and seller.
Abstract of Title - ANSWER -A summary of all of the recorded instruments and
proceedings which affect the title to property, arranged in the order in which they were
recorded.
Legal Description and the 2 types of property descriptions - ANSWER -The deed must
contain as adequate formal legal description.
The legal description describes where the property is located and the size of the lot.
There are 3 acceptable types of property descriptions:
1) Metes and bounds
2) Description by reference, lot and block
3) Monuments
Conveyance - ANSWER -The transfer of the title of land from one to another. The
means or medium by which title of real estate is transferred.
A deed is a document used to convey title legally to real property. A deed is also called
an instrument of _____________.
Fee Simple Estate - ANSWER -Absolute ownership of real property; a person has this
type of estate where the person is entitled to the entire property with unconditional
power of disposition during the person's life and descending to the person's heirs or
distributees.
Most properties in New York have a_______________________ deed, unless specified
otherwise!
, Specific lien example (1) - ANSWER -A mortgage lien is an example of a
_____________ lien.
The Department of State - ANSWER -Who is primarily responsible for issuing real
estate licenses, pocket cards, and handing down disciplinary action.
Article 12-A - ANSWER -This Law outlines the roles/duties of the Department of State
Fiduciary Duties - ANSWER -Obedience - Agent must act in accordance to clients
demands/instructions
Loyalty - Agent must work in the best interest of his client
Disclosure of Information - Agent must communicate with client / must present all offers
Confidentiality - All confidential information as described by client must remain so
unless given permission in writing.
Accountability - One of the more serious fiduciary responsibilities.
Reasonable Care and Duty to Account - Agent may be liable for costly mistakes.
Full Coveyant and Warranty Deed - ANSWER -This deed contains the broadest form of
guarantee of title of any type of deed and provides the greatest protection to the
grantee.
The ________________ deed includes the following covenants:
1) Covenant of seisin - assures the grantee that the grantor holds the title specified in
the deed.
2) Covenant of right to convey - assures the grantee that the grantor has the legal
capacity to convey the title and has the title to convey.
3) Covenant against encumbrances - assures the grantee that no encumbrances
against the title except those set forth in the deed itself exist.
4) Covenant of quiet enjoyment - assures the grantee that they will have quiet
enjoyment and possession of the property.
5) Covenant for further assurances
6) Covenant of warranty
Rules of a contract - ANSWER -- In New York State, an individual must be at least 18
years of age to enter into a contract.
- Minors (less than 18 years old) CANNOT enter into a contract. The contract is
voidable if signed by a minor.
- In New York State, an individual must be mentally and emotionally capable to enter
into a contract.
- The purchaser signs the contract first
Mechanics Lien - ANSWER -A security interest in the title to property for the benefit of
those who have supplied labor or materials that improve the property.
AND ANSWERS
Down payment - ANSWER -Anyone who holds a __________ must place it in a
separate escrow account.
The following people generally hold the down payment:
- Listing agent
- Seller's attorney
- Selling broker
Proration - ANSWER -The division of certain settlement costs between buyer and seller.
These items can include real estate taxes, fuel, a survey, water and sewer charges,
rent, and security deposits.
Proration ensures fair apportionment of expenses between buyer and seller.
Abstract of Title - ANSWER -A summary of all of the recorded instruments and
proceedings which affect the title to property, arranged in the order in which they were
recorded.
Legal Description and the 2 types of property descriptions - ANSWER -The deed must
contain as adequate formal legal description.
The legal description describes where the property is located and the size of the lot.
There are 3 acceptable types of property descriptions:
1) Metes and bounds
2) Description by reference, lot and block
3) Monuments
Conveyance - ANSWER -The transfer of the title of land from one to another. The
means or medium by which title of real estate is transferred.
A deed is a document used to convey title legally to real property. A deed is also called
an instrument of _____________.
Fee Simple Estate - ANSWER -Absolute ownership of real property; a person has this
type of estate where the person is entitled to the entire property with unconditional
power of disposition during the person's life and descending to the person's heirs or
distributees.
Most properties in New York have a_______________________ deed, unless specified
otherwise!
, Specific lien example (1) - ANSWER -A mortgage lien is an example of a
_____________ lien.
The Department of State - ANSWER -Who is primarily responsible for issuing real
estate licenses, pocket cards, and handing down disciplinary action.
Article 12-A - ANSWER -This Law outlines the roles/duties of the Department of State
Fiduciary Duties - ANSWER -Obedience - Agent must act in accordance to clients
demands/instructions
Loyalty - Agent must work in the best interest of his client
Disclosure of Information - Agent must communicate with client / must present all offers
Confidentiality - All confidential information as described by client must remain so
unless given permission in writing.
Accountability - One of the more serious fiduciary responsibilities.
Reasonable Care and Duty to Account - Agent may be liable for costly mistakes.
Full Coveyant and Warranty Deed - ANSWER -This deed contains the broadest form of
guarantee of title of any type of deed and provides the greatest protection to the
grantee.
The ________________ deed includes the following covenants:
1) Covenant of seisin - assures the grantee that the grantor holds the title specified in
the deed.
2) Covenant of right to convey - assures the grantee that the grantor has the legal
capacity to convey the title and has the title to convey.
3) Covenant against encumbrances - assures the grantee that no encumbrances
against the title except those set forth in the deed itself exist.
4) Covenant of quiet enjoyment - assures the grantee that they will have quiet
enjoyment and possession of the property.
5) Covenant for further assurances
6) Covenant of warranty
Rules of a contract - ANSWER -- In New York State, an individual must be at least 18
years of age to enter into a contract.
- Minors (less than 18 years old) CANNOT enter into a contract. The contract is
voidable if signed by a minor.
- In New York State, an individual must be mentally and emotionally capable to enter
into a contract.
- The purchaser signs the contract first
Mechanics Lien - ANSWER -A security interest in the title to property for the benefit of
those who have supplied labor or materials that improve the property.
