NYREI School Exam Questions and Answers Latest Version Graded A+

NYREI School Exam Questions and Answers Latest Version Graded A+ What is the minimum licensing requirement to sell commercial real estate in New York? a real estate salesperson's license What is the preferred method of creating an agency relationship? expressed agency An amenity purchaser occupies or uses the purchased property Condominium units are considered _____ property and are conveyed by _____. real / deed A salesperson who is an independent contractor is not subject to withholding requirements. A homeowner facing foreclosure has a number of liens: The original mortgage, a mechanic's lien from six months ago, a judgment lien from two years ago, and a property tax lien that was just filed. When the property is sold, which lien will be paid first from the proceeds? property tax lien What is another word for principal? Client. The principal in any fiduciary relationship is the client. The tenant signs a two-month lease on an apartment ending September 1. What type of leasehold estate does this represent? estate for years What are the age and experience requirements to apply for a salesperson license? 18 years old and no experience necessary Craig owns a warehouse and his property taxes were recently raised. In turn, Craig charged the tenant currently occupying the building additional operating expenses. This is an example of a pass-through. Which federal environmental law, known as the Superfund, creates requirements for closed and abandoned waste sites? Comprehensive Environmental Response, Compensation, and Liability Act Who is responsible for approving septic and other sanitation systems in New York State? NYS Department of Health Who pays the property taxes in a triple net lease? tenant Opal lives in an apartment that is going cooperative. The current residents are given the first option to buy in, and Opal decides to take advantage of the opportunity. Which statement about Opal's new co-op is FALSE? She will own the airspace inside her co-op fee simple. An example of chattel is wheat that has been harvested. A mortgage loan originator can perform each of these activities EXCEPT lend money. Which type of listing agreement provides the greatest opportunity for a listing broker to earn a commission? exclusive right to sell agreement Ad valorem taxes are based on a property's assessed value What is it called when a lender evaluates a prospective buyer and documents, in writing, that he is willing to loan this buyer up to a certain amount of money? pre-approval ABC Utility Company has the right to enter a homeowner's property to repair electric lines. What kind of easement does this represent? easement in gross A contract between a minor and an adult is voidable by the minor. Tony owns the barbershop he built 25 years ago on the same street as his family home. The area was zoned residential 10 years ago. Why is the barbershop allowed to remain open? It is a nonconforming use. When a licensee is the client's designated agent, the client gives up the agent's duty of undivided loyalty. Under what circumstance is a deed restriction most likely to be removed? The deed restriction prohibits minorities from owning the property. After examining a property, an appraiser made the following notes: Replacement cost= $465,000; Depreciation= $18,000; Site Value= $85,000. Determine the final estimate of value using the cost approach. $532,000 Homeowner Frank is challenging the assessment of his property. Each of these would be a valid reason to file a grievance EXCEPT the amount of the tax bill is too high. Sally is interested in renting the other half of an owner-occupied duplex. She calls the listing broker about it who tells her that the owner, his client, does not allow children. Who, if anyone, is violating fair housing laws in this situation? ABC Mortgage Company loaned Judy $180,000 to buy a house. A week later, they sold her mortgage on the secondary market. Who most likely bought Judy's mortgage? the Federal National Mortgage Association An agent who discusses the commission rates charged by his broker with someone from another agency could be accused of which antitrust violation? price fixing Which agency issues real estate licenses in the State of New York? the Department of State The fullest interest in property is known as what kind of estate? fee simple estate A licensee attempts to get listings by telling homeowners in a neighborhood that their property values will decline when a group of immigrants move in. The licensee could be found guilty of blockbusting. A buyer makes an offer, contingent on selling his house first. What clause can be included in the sales contract that would allow the seller to pursue other buyers in the meantime? escape clause A building has 28,000 rentable square feet, 22,160 square feet of which are considered useable. What is this building's loss factor? 20.9% In his first week on the job, property manager Tim checks the insurance coverage for the building he manages and indicates potential needs for more coverage. This is an example of Tim's obligation to risk management An agent owes all of these duties to a customer EXCEPT The Truth In Lending Act encompasses all of the following EXCEPT limits the number of points a lender may charge to close a commercial mortgage. An agent lists a 1.8 acre properly for sale. The owner wants $3.25 per square foot. What is the asking price of the properly? $254,826.00 A listing broker must maintain a signed agency disclosure form for at least three years after the transaction closes. Someone walks into an open house. The listing agent must present an agency disclosure before A valid deed must contain whose signatures? all granters The owner of Oliver's Bakery leases space in a recently renovated building in an up-and-coming neighborhood. His lease calls for a base rent of $3,500 per month plus a 6% overage percentage. What is Oliver's base rent for the year? $42,000 Title to a specific cooperative apartment is held by the corporation. A husband and wife purchase a home. Unless specified otherwise, it is assumed that they will take ownership as tenants by the entirety. A seller client has vicarious liability for each of these EXCEPT a broker's agent. Which is an example of a limited common area at a condominium with garden apartments? driveway for a particular unit In an advertisement for a four-bedroom home, which statement might be considered discriminatory? beautiful home in an exclusive neighborhood Which protected class is NOT covered by New York State law but may be covered by a specific municipality? lawful source of income A licensed salesperson acting as a subagent can receive commission payments only from his or her employing broker. The lender's interest in property insurance relates to making sure there is enough coverage to cover the value of the loan. Taylor has $80,000 to invest and considers buying a strip mall with an asking price of $480,000. The estimated NOI, based on the current owner's operating statement, is $36,000. What would be his expected capitalization rate? 7.5% Which type of deed would most likely be used to remove a cloud on a title? quitclaim deed A homeowner wants to net $140,000 on the sale of his house. If his closing costs will be $12,600, he owes $44,500 on his current mortgage, and he is paying a 6% commission, what is the minimum offer he will accept (rounded up to the nearest dollar)? $209,681 A buyer is considering a house with asbestos insulation coating the water pipes. What should the buyer be most concerned about? Asbestos can contaminate the house if removed improperly since airborne particles are dangerous. Net square footage refers to usable space. As a measure of the force that pushes electricity through a wire, residential circuits operate at a minimum of: 110 volts. The STAR program provides a partial exemption to New York State homeowners for school district taxes. Which pair could be used in a tax-deferred like-kind exchange? shares of stock for a cooperative apartment A zoning board of appeals rules on requests for variances. Which type of legal description uses a survey map of a subdivision? rectangular survey system Which is a characteristic of a pro forma statement that is NOT a characteristic of an operating statement? provides hypothetical data to assist in making decisions An advantage for businesses to do a sale-and-leaseback is to free up liquid assets to invest in other product or resources. Revocation of a license means a license is withdrawn and can only be reinstated after one year. Sue faces possible foreclosure, and contacts a mortgage lender whose ad promises to save her home for her. At closing, Sue sees that the lender changed the terms of the loan that they had agreed to, but she felt she had no choice but to go ahead with the loan or lose her house. This is an example of predatory lending. property owner who needs a high limit of liability coverage would likely consider an umbrella policy. Which is an example of a general involuntary lien? judgment lien The theoretical price real estate should bring in a typical transaction is known as the market value. Wilma sells her house for $600,000 two months after her husband passed away. They had purchased the house in 1952 for $58,000. Assuming they met the requirement for filing jointly, on what amount will Wilma have to pay income tax? When finding comparable properties for a comparative market analysis, a real estate agent will consider only homes that have recently sold. When someone dies without a will and without heirs or creditors, his properly reverts to the state through the process of escheat Lyle bought a duplex for $200,000 and leases each apartment for $580 a month. The land on which the duplex sits is valued at $30,000. How much can Lyle deduct from his income tax each year for straight line depreciation (rounded to the nearest dollar)? A _____ has a fiduciary obligation to a _____. property manager / property owner Fred has missed two mortgage payments. What clause would allow his lender to demand that he pay the entire balance now? acceleration clause In New York, which cost at closing is most typically paid by the seller? real property transfer tax Each of these is a type of construction framing EXCEPT slab on grade construction.