New York State Real Estate Salesperson
key terms exam questions with verified
answers 2023
1988 Amendment to Civil Rights Act - Answer-An amendment that added two new
protected classes: persons with mental or physical disabilities and familial status.
Abstract of title - Answer-A summary of all of the recorded instruments
Agency Disclosure 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.
Appraisal - Answer-An estimate of a property's value by an appraiser who is usually
presumed to be
expert in his work.
Assessed Value - Answer-A valuation placed upon property by a public officer or a
board, as a basis for
taxation.
Blockbusting - Answer-The practice of inducing homeowners in a particular
neighborhood to sell their homes quickly, often at below market prices, by creating the
fear that the entry of a minority group or groups into the neighborhood will cause a
precipitous decline in property values.
Bridge Loan - Answer-A type of short-term loan, typically taken out for a period of 2
weeks to 3 years.
Building Code - Answer-Regulations established by state or local governments stating
fully that structural requirement for a building.
Cash on Cash Return - Answer-A percentage return on money invested in a property by
an investor.
Formula: Cash Flow/Down Payment.
Comparative Market Analysis - Answer-A property evaluation that determines property
value by
comparing similar properties sold within the last year.
Confidentiality - Answer-An agent is obligated to safeguard his/her principal's lawful
confidences and secrets. Therefore, a real estate broker must keep confidential any
information that may weaken a principal's bargaining position. The duty of confidentiality
, precludes a broker who represents a seller from disclosing to a buyer that the seller
can, or must, sell a property below the listed price. Conversely, a broker who represents
a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than
what has been offered for a property. The duty of confidentiality does not include an
obligation by a broker who represents a seller to
withhold know material facts about the condition of the seller's property from the buyer
or to misrepresent the property's condition. To do so constitutes a misrepresentation
and may impose liability on both the broker or the seller.
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.
Cooperative - Answer-A dwelling unit owned by a corporation in which an owner owns
stock commensurate with the value of his or her apartment compared to the value of the
building as a
whole. The stockholder has a proprietary lease to the apartment.
Corrective Maintenance - Answer-A maintenance task performed to identify, isolate, and
rectify a problem with a property so that the property can be restored to an acceptable
condition.
Civil Rights Act of 1866 - Answer-A law with no exemptions and contains the blanket
statement that citizens have the same rights to inherit, buy, sell, or lease real and
personal property. The law
intended to prohibit racial discrimination.
Easement - Answer-A right that may be exercised by the public or individuals on, over
or through the
lands of others.
Eminent Domain - Answer-A right of the government to acquire property for necessary
public use by condemnation; the owner must be fairly compensated.
Escalation clause - Answer-A clause that allows landlords to raise rents during the term
of the lease.
Exclusive Right to Sell - Answer-An agreement of employment by a broker under which
the exclusive right to sell for a specified period is granted to the broker; if a sale during
the term of the agreement is made by the owner or by any other broker, the broker
holding such exclusive right to sell is nevertheless entitled to compensation.
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.
key terms exam questions with verified
answers 2023
1988 Amendment to Civil Rights Act - Answer-An amendment that added two new
protected classes: persons with mental or physical disabilities and familial status.
Abstract of title - Answer-A summary of all of the recorded instruments
Agency Disclosure 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.
Appraisal - Answer-An estimate of a property's value by an appraiser who is usually
presumed to be
expert in his work.
Assessed Value - Answer-A valuation placed upon property by a public officer or a
board, as a basis for
taxation.
Blockbusting - Answer-The practice of inducing homeowners in a particular
neighborhood to sell their homes quickly, often at below market prices, by creating the
fear that the entry of a minority group or groups into the neighborhood will cause a
precipitous decline in property values.
Bridge Loan - Answer-A type of short-term loan, typically taken out for a period of 2
weeks to 3 years.
Building Code - Answer-Regulations established by state or local governments stating
fully that structural requirement for a building.
Cash on Cash Return - Answer-A percentage return on money invested in a property by
an investor.
Formula: Cash Flow/Down Payment.
Comparative Market Analysis - Answer-A property evaluation that determines property
value by
comparing similar properties sold within the last year.
Confidentiality - Answer-An agent is obligated to safeguard his/her principal's lawful
confidences and secrets. Therefore, a real estate broker must keep confidential any
information that may weaken a principal's bargaining position. The duty of confidentiality
, precludes a broker who represents a seller from disclosing to a buyer that the seller
can, or must, sell a property below the listed price. Conversely, a broker who represents
a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than
what has been offered for a property. The duty of confidentiality does not include an
obligation by a broker who represents a seller to
withhold know material facts about the condition of the seller's property from the buyer
or to misrepresent the property's condition. To do so constitutes a misrepresentation
and may impose liability on both the broker or the seller.
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.
Cooperative - Answer-A dwelling unit owned by a corporation in which an owner owns
stock commensurate with the value of his or her apartment compared to the value of the
building as a
whole. The stockholder has a proprietary lease to the apartment.
Corrective Maintenance - Answer-A maintenance task performed to identify, isolate, and
rectify a problem with a property so that the property can be restored to an acceptable
condition.
Civil Rights Act of 1866 - Answer-A law with no exemptions and contains the blanket
statement that citizens have the same rights to inherit, buy, sell, or lease real and
personal property. The law
intended to prohibit racial discrimination.
Easement - Answer-A right that may be exercised by the public or individuals on, over
or through the
lands of others.
Eminent Domain - Answer-A right of the government to acquire property for necessary
public use by condemnation; the owner must be fairly compensated.
Escalation clause - Answer-A clause that allows landlords to raise rents during the term
of the lease.
Exclusive Right to Sell - Answer-An agreement of employment by a broker under which
the exclusive right to sell for a specified period is granted to the broker; if a sale during
the term of the agreement is made by the owner or by any other broker, the broker
holding such exclusive right to sell is nevertheless entitled to compensation.
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.
