NYREI Test question with complete solution rated A.

NYREI Test question with complete solution rated A.Chapter 1 According to IRS, salespersons are independent contractors (earnings for 1099) Statutory Non-employees Keep records for 3 years Salesperson - 18 +, Broker - 20+ Receive commissions from supervising broker ONLY Broker cannot schedule them or require meetings - only regular supervision Chapter 2, 3, 4 Principal/ Client - hires agent While customer can see multiple brokers, clients cannot. Licensees are special, not general agents Dual agent - representing both parties, need to ask permission from both parties Subagent - duties to broker and seller (vicarious liability) Broker's agent - cooperating broker (no vicarious liability) Fiduciary duties - ObedienceLoyaltyDisclosureConfidentialityAccountabilityReasonableCare Written listing agreement = express agency Exclusive Right to sell - 1 broker, anyone sells, broker gets commission Exclusive Agency - 1 broker, if owner sells, no commission Open listing agreements - non-exclusive Net listing - illegal in NY Written disclosure - at first substantive contact, if refusal to sign, write declaration of facts and show property license law - derived from police power, contained in article 12A, administered by Dept. of State Restraint of Trade = Sherman Act Chapter 5 Lien = encumbrance - voluntary or involuntary, general or specific Highest priority liens are real property tax, then unpaid federal income tax, then mortgages Easement in Gross - public utilities (servient tenant gives up right, dominant tenant gains) Easement Appurtenant - all others Party Wall = cross easement Eminent Domain - Gov't takes land for public use w/ compensation Easements must be recorded in the deed Adverse Possession - acquire title to someone else's real property through open, notorious, hostile, adverse and continuous use for 10 use License - lowest form of use bc temporary Chapter 6 Deed - piece of paper - evidence of title (idea of ownership) Deed - conveyance Chain of title = succession of owners, summary is called Abstract of Title Alienation Clause - transfer of ownership (makes mortgage unassumable) Proration - financial adjustments made at closing (360 days in a year, 30 days in a month) Flip tax - move out fee paid by seller Fee Simple Absolute - fullest and most complete All grantors must sell the deed Full Covenant and Warranty Deed - most complete deed Quitclaim deed - divorces and dispute (removes a cloud on title) Judicial Deed - Referee's deed and Sheriff's deed Metes and Bonds - survey - starts at a point measures to a pin Block and Lot System - plats Accesion - real estate grows and shrinks if you die with a will = testate, otherwise intestate escheat - NYS takes real estate if you die without a will or heirs RESPA - requires banks to provide closing costs (consumer protection) Points = 1% of loan amount