Real Estate U Final Exam Questions And Answers
2022/2023
Article 12-A of the NYS Real Property Law Answer: The section of the New York
Real Property Law pertaining to real estate salespersons and brokers.
- Primary purpose is to "Protect the Public"
- Requires a salesperson to be at least 18 years of age
- Requires a broker to be at least 20 years of age
Sponsor broker Answer: A licensed real estate broker that holds the license of a
salesperson
"Summary of Your Submission" Answer: Obtained after your register for the New
York State Salesperson exam using eAccessNY. You must bring your "Summary of
Your Submission" with you when taking the State exam.
Misdemeanor Answer: A crime punishable by up to a year in prison and/or a $1,000
fine
Listing Agreement Answer: An employment contract between principal and agent,
authorizing the agent to perform services for the principle involving the latter's
property.
Pocket Card Answer: A card issued by the Department of State to each licensee
which contains the photo, name and business address of the licensee, and, in the
case of a real estate salesperson, the name and business address of the broker with
whom he or she is associated and shall certify that the person whose name appears
thereon is a licensed real estate broker or salesperson.
- Must be carried by the agent at all times when serving as a salesperson.
Fiduciary Answer: A person who on behalf of or for the benefit of another transacts
business or handles money or property not the person's own; such relationship
implies great confidence and trust.
- OLD CAR
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accountability
- Reasonable Care
Disclosure Regarding Real Estate Agency Relationships Form Answer: A written
explanation, to be signed by a prospective buyer or seller of real estate, explaining to
the client the role that the broker plays in the transaction.
- First document to be submitted to all prospective clients
,Exclusive Agency Answer: An agreement of employment of a broker to the exclusion
of all other brokers; if sale is made by any other broker during term of employment,
broker holding exclusive agency is entitled to commissions in addition to the
commissions payable to the broker who effected the transaction
- Made between a broker and a seller
Principal Answer: The employer of an agent or broker; the broker's or agent's client.
Price Fixing Answer: Conspiring to establish fixed fees or prices for services or
products
Market Allocation Answer: An agreement between members of a trade to refrain
from competition in specific market areas.
Independent Contractor Relationship Answer: A person that provides services to
another under terms specified in a contract or within a verbal agreement. An
independent contractor is not an employee.
- The agent does not have to work in a specific location
- The broker cannot control the agent's work activities
Bundle of Rights Answer: The premise that the ownership of real estate consists of
the ownership of various rights associated with it. These rights include the right to
use and/or occupy, the right to sell in whole or in part, the right to lease, the right to
bequeath and the right to do none of the foregoing.
- Includes the right to quiet enjoyment
Littoral Rights Answer: The right of a property owner whose land borders on a body
of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the
shore and water the property borders on.
Riparian Rights Answer: The right of a property owner whose land borders a natural
water course, such as a river, to reasonable use and enjoyment of the water that
flows past the property. Riparian literally means "riverbank".
Specific Lien Answer: A lien that only binds to a specific asset or property (Example:
mortgage).
Voluntary Lien Answer: A contractual or consensual lien that is created by an action
taken by the debtor, such as a mortgage loan to buy real estate (Example:
mortgage).
Tax Lien Answer: A lien imposed by law upon a property to secure the payment of
taxes.
Easement Answer: A right to cross or otherwise use someone else's property for a
specified purpose.
,Encumbrance Answer: Any right to or interest in the land interfering with its use or
transfer, or subjecting it to an obligation
Affirmative Easement Appurtenant Answer: Parcels without access to a public way
may have an easement of access over adjacent land if crossing that land is
absolutely necessary to reach the landlocked parcel and there has been some
original intent to provide the lot with access
Full Covenant and Warranty Deed Answer: A type of deed where the grantor
guarantees that he or she holds clear title to a piece of real estate and has a right to
sell it to the grantee. This type of deed contains the strongest guarantee of title.
Quitclaim Deed Answer: A deed which conveys simply the grantor's rights or interest
in real estate, without any agreement or covenant as to the nature or extent of that
interest, or any other covenants; usually used to remove a cloud from the title.
Habendum Clause Answer: A clause in a deed or lease that defines the type of
interest and rights to be enjoyed by the grantee or lessee. Also known as the "to
have and to hold'" clause.
Delivery and Acceptance Answer: Legal policy mandates that a deed to real property
be a matter of public record; therefore, subsequent to delivery and acceptance, a
deed must be properly recorded.
Chain of Title Answer: The sequence of historical transfers of title to a property. It
runs from the
present owner back to the original owner of the property.
Title Answer: Legal term for a bundle of rights in a piece of property in which a party
may own either a legal interest or equitable interest
Closing Statement Answer: A document commonly used in real estate transactions,
detailing the fees, commissions, insurance, etc. that must be transacted for a
successful transfer of ownership to take place.
Essential Element of a Contract: Answer: 1) Consideration
2) Must be in writing
3) Must have competent parties
Estate for Years Answer: A leasehold estate for any specific period of time. An
estate for years is not automatically renewed.
Express Contract Answer: A contract in which all elements of a contract are
specifically stated (offer, acceptance, consideration).
Attorney Review Clause Answer: A clause found in real estate contracts that may
allow buyers to walk away from an agreed upon sale for any reason.
Mortgage Contingency Clause Answer: A clause in a contract that states a mortgage
must be obtained in order for the contract to be binding.
, Eviction Answer: A legal proceeding by a lessor landlord to recover possession of
real property.
Holdover Tenant Answer: A tenant who remains in possession of leased property
after the expiration of the lease term.
Triple Net Lease Answer: A lease commonly found in a building with a single, long-
term tenant.
Mortgage Answer: Legal agreement by which a bank lends money in exchange for
taking title of the debtor's property, with the condition that the conveyance of title
becomes void upon payment of the debt.
APR Answer: The actual interest rate charged, including loan fees and points.
Secondary Mortgage Market Answer: The market where mortgage loans and
servicing rights are bought and sold between mortgage originators, mortgage
aggregators (securitizers) and investors.
Loan-to-Value (LTV) Answer: A financial term used by lenders to express the ratio of
a loan to the value of an asset (property) purchased.
- Determined by using the Purchase Price or the Appraised Value, whichever is less.
Satisfaction of Mortgage Answer: A document acknowledging the payment of a
mortgage debt.
Adjustable rate mortgage (ARM) Answer: A mortgage loan with the interest rate on
the note periodically adjusted based on an index which reflects the cost to the lender
of borrowing on the credit markets.
Fixed Rate Mortgage Answer: Accounts for the majority of mortgages.
Amortization Answer: The process by which a loan principal decreases over the life
of a loan
Condemnation Answer: Taking private property for public use, with fair
compensation to the owner; exercising the right of eminent domain.
Police Power Answer: The right of any political body to enact laws and enforce them,
for the order, safety, health, morals and general welfare of the public.
Variance Answer: The authorization to improve or develop a particular property in a
manner not authorized by zoning.
Building Codes Answer: Regulations established by state or local governments
stating fully that structural requirements for building.
- Building codes are enforced by the issuance of permits.
2022/2023
Article 12-A of the NYS Real Property Law Answer: The section of the New York
Real Property Law pertaining to real estate salespersons and brokers.
- Primary purpose is to "Protect the Public"
- Requires a salesperson to be at least 18 years of age
- Requires a broker to be at least 20 years of age
Sponsor broker Answer: A licensed real estate broker that holds the license of a
salesperson
"Summary of Your Submission" Answer: Obtained after your register for the New
York State Salesperson exam using eAccessNY. You must bring your "Summary of
Your Submission" with you when taking the State exam.
Misdemeanor Answer: A crime punishable by up to a year in prison and/or a $1,000
fine
Listing Agreement Answer: An employment contract between principal and agent,
authorizing the agent to perform services for the principle involving the latter's
property.
Pocket Card Answer: A card issued by the Department of State to each licensee
which contains the photo, name and business address of the licensee, and, in the
case of a real estate salesperson, the name and business address of the broker with
whom he or she is associated and shall certify that the person whose name appears
thereon is a licensed real estate broker or salesperson.
- Must be carried by the agent at all times when serving as a salesperson.
Fiduciary Answer: A person who on behalf of or for the benefit of another transacts
business or handles money or property not the person's own; such relationship
implies great confidence and trust.
- OLD CAR
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accountability
- Reasonable Care
Disclosure Regarding Real Estate Agency Relationships Form Answer: A written
explanation, to be signed by a prospective buyer or seller of real estate, explaining to
the client the role that the broker plays in the transaction.
- First document to be submitted to all prospective clients
,Exclusive Agency Answer: An agreement of employment of a broker to the exclusion
of all other brokers; if sale is made by any other broker during term of employment,
broker holding exclusive agency is entitled to commissions in addition to the
commissions payable to the broker who effected the transaction
- Made between a broker and a seller
Principal Answer: The employer of an agent or broker; the broker's or agent's client.
Price Fixing Answer: Conspiring to establish fixed fees or prices for services or
products
Market Allocation Answer: An agreement between members of a trade to refrain
from competition in specific market areas.
Independent Contractor Relationship Answer: A person that provides services to
another under terms specified in a contract or within a verbal agreement. An
independent contractor is not an employee.
- The agent does not have to work in a specific location
- The broker cannot control the agent's work activities
Bundle of Rights Answer: The premise that the ownership of real estate consists of
the ownership of various rights associated with it. These rights include the right to
use and/or occupy, the right to sell in whole or in part, the right to lease, the right to
bequeath and the right to do none of the foregoing.
- Includes the right to quiet enjoyment
Littoral Rights Answer: The right of a property owner whose land borders on a body
of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the
shore and water the property borders on.
Riparian Rights Answer: The right of a property owner whose land borders a natural
water course, such as a river, to reasonable use and enjoyment of the water that
flows past the property. Riparian literally means "riverbank".
Specific Lien Answer: A lien that only binds to a specific asset or property (Example:
mortgage).
Voluntary Lien Answer: A contractual or consensual lien that is created by an action
taken by the debtor, such as a mortgage loan to buy real estate (Example:
mortgage).
Tax Lien Answer: A lien imposed by law upon a property to secure the payment of
taxes.
Easement Answer: A right to cross or otherwise use someone else's property for a
specified purpose.
,Encumbrance Answer: Any right to or interest in the land interfering with its use or
transfer, or subjecting it to an obligation
Affirmative Easement Appurtenant Answer: Parcels without access to a public way
may have an easement of access over adjacent land if crossing that land is
absolutely necessary to reach the landlocked parcel and there has been some
original intent to provide the lot with access
Full Covenant and Warranty Deed Answer: A type of deed where the grantor
guarantees that he or she holds clear title to a piece of real estate and has a right to
sell it to the grantee. This type of deed contains the strongest guarantee of title.
Quitclaim Deed Answer: A deed which conveys simply the grantor's rights or interest
in real estate, without any agreement or covenant as to the nature or extent of that
interest, or any other covenants; usually used to remove a cloud from the title.
Habendum Clause Answer: A clause in a deed or lease that defines the type of
interest and rights to be enjoyed by the grantee or lessee. Also known as the "to
have and to hold'" clause.
Delivery and Acceptance Answer: Legal policy mandates that a deed to real property
be a matter of public record; therefore, subsequent to delivery and acceptance, a
deed must be properly recorded.
Chain of Title Answer: The sequence of historical transfers of title to a property. It
runs from the
present owner back to the original owner of the property.
Title Answer: Legal term for a bundle of rights in a piece of property in which a party
may own either a legal interest or equitable interest
Closing Statement Answer: A document commonly used in real estate transactions,
detailing the fees, commissions, insurance, etc. that must be transacted for a
successful transfer of ownership to take place.
Essential Element of a Contract: Answer: 1) Consideration
2) Must be in writing
3) Must have competent parties
Estate for Years Answer: A leasehold estate for any specific period of time. An
estate for years is not automatically renewed.
Express Contract Answer: A contract in which all elements of a contract are
specifically stated (offer, acceptance, consideration).
Attorney Review Clause Answer: A clause found in real estate contracts that may
allow buyers to walk away from an agreed upon sale for any reason.
Mortgage Contingency Clause Answer: A clause in a contract that states a mortgage
must be obtained in order for the contract to be binding.
, Eviction Answer: A legal proceeding by a lessor landlord to recover possession of
real property.
Holdover Tenant Answer: A tenant who remains in possession of leased property
after the expiration of the lease term.
Triple Net Lease Answer: A lease commonly found in a building with a single, long-
term tenant.
Mortgage Answer: Legal agreement by which a bank lends money in exchange for
taking title of the debtor's property, with the condition that the conveyance of title
becomes void upon payment of the debt.
APR Answer: The actual interest rate charged, including loan fees and points.
Secondary Mortgage Market Answer: The market where mortgage loans and
servicing rights are bought and sold between mortgage originators, mortgage
aggregators (securitizers) and investors.
Loan-to-Value (LTV) Answer: A financial term used by lenders to express the ratio of
a loan to the value of an asset (property) purchased.
- Determined by using the Purchase Price or the Appraised Value, whichever is less.
Satisfaction of Mortgage Answer: A document acknowledging the payment of a
mortgage debt.
Adjustable rate mortgage (ARM) Answer: A mortgage loan with the interest rate on
the note periodically adjusted based on an index which reflects the cost to the lender
of borrowing on the credit markets.
Fixed Rate Mortgage Answer: Accounts for the majority of mortgages.
Amortization Answer: The process by which a loan principal decreases over the life
of a loan
Condemnation Answer: Taking private property for public use, with fair
compensation to the owner; exercising the right of eminent domain.
Police Power Answer: The right of any political body to enact laws and enforce them,
for the order, safety, health, morals and general welfare of the public.
Variance Answer: The authorization to improve or develop a particular property in a
manner not authorized by zoning.
Building Codes Answer: Regulations established by state or local governments
stating fully that structural requirements for building.
- Building codes are enforced by the issuance of permits.
