NY STATE EXAM #2 QUESTIONS AND
ANSWERS
What occurs when the agent represents the seller but also works in the best interests of
the buyer? - ANSWER -Undisclosed Dual Agency
Who is not usually exempt from property taxes? - ANSWER -Second home owners
Who is usually exempt from property taxes? - ANSWER -Disabled, veterans, farmers,
elderly, gold star parents (whose kids died in war), and Star program homeowners.
The area the tenant actually occupies and uses is known as? - ANSWER -Usable
square footage (or net square footage)
What is the cash-on-cash return on a $2,000,000 property with a down payment of
$500,000 and $15,000 of monthly rental income? - ANSWER -36% (percent)
This right is reserved for the condo association, which gives them the first opportunity to
buy or lease a unit when it becomes available? - ANSWER -Right of first refusal
A Co-op is what type of ownership? - ANSWER -Leasehold
This document governs issues such as noise, pets, etc., in a co-op? - ANSWER -House
rules
This document provides detailed information on a condo or co-op development? -
ANSWER -Offering Plan
What are homestead properties? - ANSWER -Residential condos, 1-4 family homes,
mobile homes & farm dwellings
What type of listing agreement is it where the listing broker earns a commission for the
sale of the property, even if the owners themselves sell the property? - ANSWER -
Exclusive Right to Sell
What is the budget that is set aside for repairs and large improvements? - ANSWER -
Capital reserve budget
Fixing a leaking faucet is known as what type of maintenance? - ANSWER -Corrective
maintenance
Income earned from investing in a rental property is designated as what type of
income? - ANSWER -Passive
ANSWERS
What occurs when the agent represents the seller but also works in the best interests of
the buyer? - ANSWER -Undisclosed Dual Agency
Who is not usually exempt from property taxes? - ANSWER -Second home owners
Who is usually exempt from property taxes? - ANSWER -Disabled, veterans, farmers,
elderly, gold star parents (whose kids died in war), and Star program homeowners.
The area the tenant actually occupies and uses is known as? - ANSWER -Usable
square footage (or net square footage)
What is the cash-on-cash return on a $2,000,000 property with a down payment of
$500,000 and $15,000 of monthly rental income? - ANSWER -36% (percent)
This right is reserved for the condo association, which gives them the first opportunity to
buy or lease a unit when it becomes available? - ANSWER -Right of first refusal
A Co-op is what type of ownership? - ANSWER -Leasehold
This document governs issues such as noise, pets, etc., in a co-op? - ANSWER -House
rules
This document provides detailed information on a condo or co-op development? -
ANSWER -Offering Plan
What are homestead properties? - ANSWER -Residential condos, 1-4 family homes,
mobile homes & farm dwellings
What type of listing agreement is it where the listing broker earns a commission for the
sale of the property, even if the owners themselves sell the property? - ANSWER -
Exclusive Right to Sell
What is the budget that is set aside for repairs and large improvements? - ANSWER -
Capital reserve budget
Fixing a leaking faucet is known as what type of maintenance? - ANSWER -Corrective
maintenance
Income earned from investing in a rental property is designated as what type of
income? - ANSWER -Passive
