Real Estate U final exam study guide with C
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omplete Solution 2023
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Articlek12-AkofkthekNYSkRealkPropertykLawk-kCorrectkAnswer-
TheksectionkofkthekNewkYorkkRealkPropertykLawkpertainingktokrealkestateksalespersonskand
kbrokers.
-kPrimarykpurposekisktok"ProtectkthekPublic"
-kRequireskaksalespersonktokbekatkleastk18kyearskofkage
-kRequireskakbrokerktokbekatkleastk20kyearskofkage
Sponsorkbrokerk-kCorrectkAnswer-
Aklicensedkrealkestatekbrokerkthatkholdsktheklicensekofkaksalesperson
"SummarykofkYourkSubmission"k-kCorrectkAnswer-
ObtainedkafterkyourkregisterkforkthekNewkYorkkStatekSalespersonkexamkusingkeAccessNY.k
Youkmustkbringkyourk"SummarykofkYourkSubmission"kwithkyoukwhenktakingkthekStatekexam
.
Misdemeanork-kCorrectkAnswer-
Akcrimekpunishablekbykupktokakyearkinkprisonkand/orkak$1,000kfine
ListingkAgreementk-kCorrectkAnswer-
Ankemploymentkcontractkbetweenkprincipalkandkagent,kauthorizingkthekagentktokperformkse
rviceskforkthekprinciplekinvolvingktheklatter'skproperty.
PocketkCardk-kCorrectkAnswer-
AkcardkissuedkbykthekDepartmentkofkStatektokeachklicenseekwhichkcontainskthekphoto,knam
ekandkbusinesskaddresskofktheklicensee,kand,kinkthekcasekofkakrealkestateksalesperson,kthek
namekandkbusinesskaddresskofkthekbrokerkwithkwhomkhekorkshekiskassociatedkandkshallkcer
tifykthatkthekpersonkwhoseknamekappearskthereonkiskaklicensedkrealkestatekbrokerkorksalesp
erson.
-kMustkbekcarriedkbykthekagentkatkallktimeskwhenkservingkaskaksalesperson.
Fiduciaryk-kCorrectkAnswer-
Akpersonkwhokonkbehalfkofkorkforkthekbenefitkofkanotherktransactskbusinesskorkhandleskmon
eykorkpropertyknotkthekperson'skown;ksuchkrelationshipkimplieskgreatkconfidencekandktrust.
-kOLDkCAR
-kObedience
-kLoyalty
-kDisclosure
-kConfidentiality
,-kAccountability
-kReasonablekCare
DisclosurekRegardingkRealkEstatekAgencykRelationshipskFormk-kCorrectkAnswer-
Akwrittenkexplanation,ktokbeksignedkbykakprospectivekbuyerkorksellerkofkrealkestate,kexplainin
gktokthekclientkthekrolekthatkthekbrokerkplayskinkthektransaction.
-kFirstkdocumentktokbeksubmittedktokallkprospectivekclients
ExclusivekAgencyk-kCorrectkAnswer-
Ankagreementkofkemploymentkofkakbrokerktokthekexclusionkofkallkotherkbrokers;kifksalekiskma
dekbykanykotherkbrokerkduringktermkofkemployment,kbrokerkholdingkexclusivekagencykiskenti
tledktokcommissionskinkadditionktokthekcommissionskpayablektokthekbrokerkwhokeffectedkthek
transaction
-kMadekbetweenkakbrokerkandkakseller
Principalk-kCorrectkAnswer-
Thekemployerkofkankagentkorkbroker;kthekbroker'skorkagent'skclient.
PricekFixingk-kCorrectkAnswer-
Conspiringktokestablishkfixedkfeeskorkpriceskforkserviceskorkproducts
MarketkAllocationk-kCorrectkAnswer-
Ankagreementkbetweenkmemberskofkaktradektokrefrainkfromkcompetitionkinkspecifickmarketk
areas.
IndependentkContractorkRelationshipk-kCorrectkAnswer-
Akpersonkthatkprovideskservicesktokanotherkunderktermskspecifiedkinkakcontractkorkwithinkakv
erbalkagreement.kAnkindependentkcontractorkisknotkankemployee.
-kThekagentkdoesknotkhavektokworkkinkakspecificklocationk
-kThekbrokerkcannotkcontrolkthekagent'skworkkactivities
BundlekofkRightsk-kCorrectkAnswer-
Thekpremisekthatkthekownershipkofkrealkestatekconsistskofkthekownershipkofkvariouskrightska
ssociatedkwithkit.kThesekrightskincludekthekrightktokusekand/orkoccupy,kthekrightktoksellkinkwh
olekorkinkpart,kthekrightktoklease,kthekrightktokbequeathkandkthekrightktokdoknonekofkthekforegoi
ng.
-kIncludeskthekrightktokquietkenjoyment
LittoralkRightsk-kCorrectkAnswer-
Thekrightkofkakpropertykownerkwhoseklandkborderskonkakbodykofkwater,ksuchkaskaklake,kocea
nkorksea,ktokreasonablekusekandkenjoymentkofkthekshorekandkwaterkthekpropertykborderskon
.
,RipariankRightsk-kCorrectkAnswer-
Thekrightkofkakpropertykownerkwhoseklandkborderskaknaturalkwaterkcourse,ksuchkaskakriver,kt
okreasonablekusekandkenjoymentkofkthekwaterkthatkflowskpastkthekproperty.kRipariankliterally
kmeansk"riverbank".
SpecifickLienk-kCorrectkAnswer-
Aklienkthatkonlykbindsktokakspecifickassetkorkpropertyk(Example:kmortgage).
VoluntarykLienk-kCorrectkAnswer-
Akcontractualkorkconsensualklienkthatkiskcreatedkbykankactionktakenkbykthekdebtor,ksuchkaska
kmortgagekloanktokbuykrealkestatek(Example:kmortgage).
TaxkLienk-kCorrectkAnswer-
Aklienkimposedkbyklawkuponkakpropertyktoksecurekthekpaymentkofktaxes.
Easementk-kCorrectkAnswer-
Akrightktokcrosskorkotherwisekuseksomeonekelse'skpropertykforkakspecifiedkpurpose.
Encumbrancek-kCorrectkAnswer-
Anykrightktokorkinterestkinktheklandkinterferingkwithkitskusekorktransfer,korksubjectingkitktokanko
bligation
AffirmativekEasementkAppurtenantk-kCorrectkAnswer-
Parcelskwithoutkaccessktokakpublickwaykmaykhavekankeasementkofkaccesskoverkadjacentkla
ndkifkcrossingkthatklandkiskabsolutelyknecessaryktokreachktheklandlockedkparcelkandktherekh
askbeenksomekoriginalkintentktokprovidektheklotkwithkaccess
FullkCovenantkandkWarrantykDeedk-kCorrectkAnswer-
Aktypekofkdeedkwherekthekgrantorkguaranteeskthatkhekorkshekholdskclearktitlektokakpiecekofkre
alkestatekandkhaskakrightktoksellkitktokthekgrantee.kThisktypekofkdeedkcontainskthekstrongestkg
uaranteekofktitle.
QuitclaimkDeedk-kCorrectkAnswer-
Akdeedkwhichkconveysksimplykthekgrantor'skrightskorkinterestkinkrealkestate,kwithoutkanykagr
eementkorkcovenantkasktoktheknaturekorkextentkofkthatkinterest,korkanykotherkcovenants;kusu
allykusedktokremovekakcloudkfromkthektitle.
HabendumkClausek-kCorrectkAnswer-
Akclausekinkakdeedkorkleasekthatkdefineskthektypekofkinterestkandkrightsktokbekenjoyedkbykthek
granteekorklessee.kAlsokknownkaskthek"tokhavekandktokhold'"kclause.
DeliverykandkAcceptancek-kCorrectkAnswer-
Legalkpolicykmandateskthatkakdeedktokrealkpropertykbekakmatterkofkpublickrecord;ktherefore,k
subsequentktokdeliverykandkacceptance,kakdeedkmustkbekproperlykrecorded.
, ChainkofkTitlek-kCorrectkAnswer-
Theksequencekofkhistoricalktransferskofktitlektokakproperty.kItkrunskfromkthe
presentkownerkbackktokthekoriginalkownerkofkthekproperty.
Titlek-kCorrectkAnswer-
Legalktermkforkakbundlekofkrightskinkakpiecekofkpropertykinkwhichkakpartykmaykownkeitherkakle
galkinterestkorkequitablekinterest
ClosingkStatementk-kCorrectkAnswer-
Akdocumentkcommonlykusedkinkrealkestatektransactions,kdetailingkthekfees,kcommissions,ki
nsurance,ketc.kthatkmustkbektransactedkforkaksuccessfulktransferkofkownershipktoktakekplace
.
EssentialkElementkofkakContract:k-kCorrectkAnswer-1)kConsideration
2)kMustkbekinkwriting
3)kMustkhavekcompetentkparties
EstatekforkYearsk-kCorrectkAnswer-
Akleaseholdkestatekforkanykspecifickperiodkofktime.kAnkestatekforkyearskisknotkautomaticallykr
enewed.
ExpresskContractk-kCorrectkAnswer-
Akcontractkinkwhichkallkelementskofkakcontractkarekspecificallykstatedk(offer,kacceptance,kco
nsideration).
AttorneykReviewkClausek-kCorrectkAnswer-
Akclausekfoundkinkrealkestatekcontractskthatkmaykallowkbuyersktokwalkkawaykfromkankagreed
kuponksalekforkanykreason.
MortgagekContingencykClausek-kCorrectkAnswer-
Akclausekinkakcontractkthatkstateskakmortgagekmustkbekobtainedkinkorderkforkthekcontractktok
bekbinding.
Evictionk-kCorrectkAnswer-
Aklegalkproceedingkbykaklessorklandlordktokrecoverkpossessionkofkrealkproperty.
HoldoverkTenantk-kCorrectkAnswer-
Aktenantkwhokremainskinkpossessionkofkleasedkpropertykafterkthekexpirationkofkthekleasekter
m.
TriplekNetkLeasek-kCorrectkAnswer-
Akleasekcommonlykfoundkinkakbuildingkwithkaksingle,klong-termktenant.
Mortgagek-kCorrectkAnswer-
Legalkagreementkbykwhichkakbankklendskmoneykinkexchangekforktakingktitlekofkthekdebtor'sk
k k k k k k k k
omplete Solution 2023
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Articlek12-AkofkthekNYSkRealkPropertykLawk-kCorrectkAnswer-
TheksectionkofkthekNewkYorkkRealkPropertykLawkpertainingktokrealkestateksalespersonskand
kbrokers.
-kPrimarykpurposekisktok"ProtectkthekPublic"
-kRequireskaksalespersonktokbekatkleastk18kyearskofkage
-kRequireskakbrokerktokbekatkleastk20kyearskofkage
Sponsorkbrokerk-kCorrectkAnswer-
Aklicensedkrealkestatekbrokerkthatkholdsktheklicensekofkaksalesperson
"SummarykofkYourkSubmission"k-kCorrectkAnswer-
ObtainedkafterkyourkregisterkforkthekNewkYorkkStatekSalespersonkexamkusingkeAccessNY.k
Youkmustkbringkyourk"SummarykofkYourkSubmission"kwithkyoukwhenktakingkthekStatekexam
.
Misdemeanork-kCorrectkAnswer-
Akcrimekpunishablekbykupktokakyearkinkprisonkand/orkak$1,000kfine
ListingkAgreementk-kCorrectkAnswer-
Ankemploymentkcontractkbetweenkprincipalkandkagent,kauthorizingkthekagentktokperformkse
rviceskforkthekprinciplekinvolvingktheklatter'skproperty.
PocketkCardk-kCorrectkAnswer-
AkcardkissuedkbykthekDepartmentkofkStatektokeachklicenseekwhichkcontainskthekphoto,knam
ekandkbusinesskaddresskofktheklicensee,kand,kinkthekcasekofkakrealkestateksalesperson,kthek
namekandkbusinesskaddresskofkthekbrokerkwithkwhomkhekorkshekiskassociatedkandkshallkcer
tifykthatkthekpersonkwhoseknamekappearskthereonkiskaklicensedkrealkestatekbrokerkorksalesp
erson.
-kMustkbekcarriedkbykthekagentkatkallktimeskwhenkservingkaskaksalesperson.
Fiduciaryk-kCorrectkAnswer-
Akpersonkwhokonkbehalfkofkorkforkthekbenefitkofkanotherktransactskbusinesskorkhandleskmon
eykorkpropertyknotkthekperson'skown;ksuchkrelationshipkimplieskgreatkconfidencekandktrust.
-kOLDkCAR
-kObedience
-kLoyalty
-kDisclosure
-kConfidentiality
,-kAccountability
-kReasonablekCare
DisclosurekRegardingkRealkEstatekAgencykRelationshipskFormk-kCorrectkAnswer-
Akwrittenkexplanation,ktokbeksignedkbykakprospectivekbuyerkorksellerkofkrealkestate,kexplainin
gktokthekclientkthekrolekthatkthekbrokerkplayskinkthektransaction.
-kFirstkdocumentktokbeksubmittedktokallkprospectivekclients
ExclusivekAgencyk-kCorrectkAnswer-
Ankagreementkofkemploymentkofkakbrokerktokthekexclusionkofkallkotherkbrokers;kifksalekiskma
dekbykanykotherkbrokerkduringktermkofkemployment,kbrokerkholdingkexclusivekagencykiskenti
tledktokcommissionskinkadditionktokthekcommissionskpayablektokthekbrokerkwhokeffectedkthek
transaction
-kMadekbetweenkakbrokerkandkakseller
Principalk-kCorrectkAnswer-
Thekemployerkofkankagentkorkbroker;kthekbroker'skorkagent'skclient.
PricekFixingk-kCorrectkAnswer-
Conspiringktokestablishkfixedkfeeskorkpriceskforkserviceskorkproducts
MarketkAllocationk-kCorrectkAnswer-
Ankagreementkbetweenkmemberskofkaktradektokrefrainkfromkcompetitionkinkspecifickmarketk
areas.
IndependentkContractorkRelationshipk-kCorrectkAnswer-
Akpersonkthatkprovideskservicesktokanotherkunderktermskspecifiedkinkakcontractkorkwithinkakv
erbalkagreement.kAnkindependentkcontractorkisknotkankemployee.
-kThekagentkdoesknotkhavektokworkkinkakspecificklocationk
-kThekbrokerkcannotkcontrolkthekagent'skworkkactivities
BundlekofkRightsk-kCorrectkAnswer-
Thekpremisekthatkthekownershipkofkrealkestatekconsistskofkthekownershipkofkvariouskrightska
ssociatedkwithkit.kThesekrightskincludekthekrightktokusekand/orkoccupy,kthekrightktoksellkinkwh
olekorkinkpart,kthekrightktoklease,kthekrightktokbequeathkandkthekrightktokdoknonekofkthekforegoi
ng.
-kIncludeskthekrightktokquietkenjoyment
LittoralkRightsk-kCorrectkAnswer-
Thekrightkofkakpropertykownerkwhoseklandkborderskonkakbodykofkwater,ksuchkaskaklake,kocea
nkorksea,ktokreasonablekusekandkenjoymentkofkthekshorekandkwaterkthekpropertykborderskon
.
,RipariankRightsk-kCorrectkAnswer-
Thekrightkofkakpropertykownerkwhoseklandkborderskaknaturalkwaterkcourse,ksuchkaskakriver,kt
okreasonablekusekandkenjoymentkofkthekwaterkthatkflowskpastkthekproperty.kRipariankliterally
kmeansk"riverbank".
SpecifickLienk-kCorrectkAnswer-
Aklienkthatkonlykbindsktokakspecifickassetkorkpropertyk(Example:kmortgage).
VoluntarykLienk-kCorrectkAnswer-
Akcontractualkorkconsensualklienkthatkiskcreatedkbykankactionktakenkbykthekdebtor,ksuchkaska
kmortgagekloanktokbuykrealkestatek(Example:kmortgage).
TaxkLienk-kCorrectkAnswer-
Aklienkimposedkbyklawkuponkakpropertyktoksecurekthekpaymentkofktaxes.
Easementk-kCorrectkAnswer-
Akrightktokcrosskorkotherwisekuseksomeonekelse'skpropertykforkakspecifiedkpurpose.
Encumbrancek-kCorrectkAnswer-
Anykrightktokorkinterestkinktheklandkinterferingkwithkitskusekorktransfer,korksubjectingkitktokanko
bligation
AffirmativekEasementkAppurtenantk-kCorrectkAnswer-
Parcelskwithoutkaccessktokakpublickwaykmaykhavekankeasementkofkaccesskoverkadjacentkla
ndkifkcrossingkthatklandkiskabsolutelyknecessaryktokreachktheklandlockedkparcelkandktherekh
askbeenksomekoriginalkintentktokprovidektheklotkwithkaccess
FullkCovenantkandkWarrantykDeedk-kCorrectkAnswer-
Aktypekofkdeedkwherekthekgrantorkguaranteeskthatkhekorkshekholdskclearktitlektokakpiecekofkre
alkestatekandkhaskakrightktoksellkitktokthekgrantee.kThisktypekofkdeedkcontainskthekstrongestkg
uaranteekofktitle.
QuitclaimkDeedk-kCorrectkAnswer-
Akdeedkwhichkconveysksimplykthekgrantor'skrightskorkinterestkinkrealkestate,kwithoutkanykagr
eementkorkcovenantkasktoktheknaturekorkextentkofkthatkinterest,korkanykotherkcovenants;kusu
allykusedktokremovekakcloudkfromkthektitle.
HabendumkClausek-kCorrectkAnswer-
Akclausekinkakdeedkorkleasekthatkdefineskthektypekofkinterestkandkrightsktokbekenjoyedkbykthek
granteekorklessee.kAlsokknownkaskthek"tokhavekandktokhold'"kclause.
DeliverykandkAcceptancek-kCorrectkAnswer-
Legalkpolicykmandateskthatkakdeedktokrealkpropertykbekakmatterkofkpublickrecord;ktherefore,k
subsequentktokdeliverykandkacceptance,kakdeedkmustkbekproperlykrecorded.
, ChainkofkTitlek-kCorrectkAnswer-
Theksequencekofkhistoricalktransferskofktitlektokakproperty.kItkrunskfromkthe
presentkownerkbackktokthekoriginalkownerkofkthekproperty.
Titlek-kCorrectkAnswer-
Legalktermkforkakbundlekofkrightskinkakpiecekofkpropertykinkwhichkakpartykmaykownkeitherkakle
galkinterestkorkequitablekinterest
ClosingkStatementk-kCorrectkAnswer-
Akdocumentkcommonlykusedkinkrealkestatektransactions,kdetailingkthekfees,kcommissions,ki
nsurance,ketc.kthatkmustkbektransactedkforkaksuccessfulktransferkofkownershipktoktakekplace
.
EssentialkElementkofkakContract:k-kCorrectkAnswer-1)kConsideration
2)kMustkbekinkwriting
3)kMustkhavekcompetentkparties
EstatekforkYearsk-kCorrectkAnswer-
Akleaseholdkestatekforkanykspecifickperiodkofktime.kAnkestatekforkyearskisknotkautomaticallykr
enewed.
ExpresskContractk-kCorrectkAnswer-
Akcontractkinkwhichkallkelementskofkakcontractkarekspecificallykstatedk(offer,kacceptance,kco
nsideration).
AttorneykReviewkClausek-kCorrectkAnswer-
Akclausekfoundkinkrealkestatekcontractskthatkmaykallowkbuyersktokwalkkawaykfromkankagreed
kuponksalekforkanykreason.
MortgagekContingencykClausek-kCorrectkAnswer-
Akclausekinkakcontractkthatkstateskakmortgagekmustkbekobtainedkinkorderkforkthekcontractktok
bekbinding.
Evictionk-kCorrectkAnswer-
Aklegalkproceedingkbykaklessorklandlordktokrecoverkpossessionkofkrealkproperty.
HoldoverkTenantk-kCorrectkAnswer-
Aktenantkwhokremainskinkpossessionkofkleasedkpropertykafterkthekexpirationkofkthekleasekter
m.
TriplekNetkLeasek-kCorrectkAnswer-
Akleasekcommonlykfoundkinkakbuildingkwithkaksingle,klong-termktenant.
Mortgagek-kCorrectkAnswer-
Legalkagreementkbykwhichkakbankklendskmoneykinkexchangekforktakingktitlekofkthekdebtor'sk
