REAL ESTATE U FINAL EXAM AND FINAL PRACTICE EXAM 2024-2025
450+QUESTIONS AND ANSWERS 100 % PASS SOLUTION A+ GRADE
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%
What type of investment properties are warehouses? - ANSWER--industrial manufacturing
The area the tenant actually occupies and uses is known as? - ANSWER-- usable sq footage
(or net square footage)
How much profit can a single person claim from the sale of a personal residence that's tax
free? - ANSWER--$250,000
Who is usually exempt from property taxes? - ANSWER--Disabled, veterans, farmers, elderly,
gold star parents (whose kids died in war), and Star program homeowners.
Who is not usually exempt from property taxes? - ANSWER--Second home owners
What occurs when the agent represents the seller but also works in the best interests of the
buyer? - ANSWER--Undisclosed dual agency
Tax strategies on investment properties are known as what? - ANSWER-- tax shelters
How many years is a residential investment property depreciable for? - ANSWER--27.5 years
Income earned from investing in a rental property is designated as what type of income? -
ANSWER--passive
Fixing a leaking faucet is known as what type of maintenance? - ANSWER-
-Corrective maintenance
,What is the budget that is set aside for repairs and large improvements? - ANSWER--Capital
reserve budget
A real estate agent serves as what type of agent? - ANSWER--special agent
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
Which of the following is NOT exempt from obtaining a license? - ANSWER--A licensed
attorney acting as a sponsor to a real estate salesperson
A real estate salespersons license must be renewed every .........years. - ANSWER—2
A real estate salesperson operates as what type of agent to their client? - ANSWER--special
agent
According to this, a broker may be held responsible for the unlawful actions of his/her
salespersons? - ANSWER--vicarious liability
This Act made price fixing, group boycotts, market allocation, and tie-in arrangements illegal?
- ANSWER--sherman antitrust act
Which of the following is required in order for a broker to act as a dual agent? - ANSWER--
Advanced informed consent from both the buyer and seller
Personal property is also known as...? - ANSWER--chattle
,Mark owns a single family home. He decides to transfer ownership of the property to his
daughter, Nancy; however, the ownership of the property will revert back to Mark upon the
death of Nancy's aunt, Martha. Which of the following was created? - ANSWER--life estate
Which of the following leasehold estates is open-ended, as it does not have a termination
date? - ANSWER--estate at will
Which of the following is an example of a fixture...? - ANSWER--custom book shelves
Which of the following would be considered a trade fixture by a commercial tenant? -
ANSWER--display case
Which of the following types of easements is obtained by a squatter who uses another's
property without the owner's permission? - ANSWER-- easement by prescription
Which of the following must a real estate salesperson carry on them at all times when doing
business and show it on demand? - ANSWER--their pocket card
A claim or charge against the property of another is known as a/an...? - ANSWER--lien
In order to obtain an easement by prescription, for how many years must the property by
used by the dominant tenement? - ANSWER--10 years
Which of the following parties in required to sign a valid deed? - ANSWER-- grantor only
If a homeowners association does not allow houses in a sub-divided community to have brick
on the exterior of the house, where will this restriction be documented? - ANSWER--It will
appear as a restrictive covenant in the deed.
Which of the following is used as evidence that an individual owns a particular piece of real
property? - ANSWER--Deed
, In a residential transaction, who typically holds on to the buyer's down payment/earnest
money? - ANSWER--The seller's attorney
Which of the following items may be prorated between the buyer and seller at closing? -
ANSWER--property taxes
Replacing an obligation to perform with a new obligation in a contract is known as...? -
ANSWER--Novation
Which of the following may be added to a contract, which awards the non- breaching party a
specified sum of money for certain breaches listed in the contract? - ANSWER--liquidated
damages
Which of the following is NOT considered a bi-lateral agreement? - ANSWER--open listing
contract
Which of the following types of ads are illegal in New York State? - ANSWER--blind ads
A straight-term loan is also known as a/an...? - ANSWER--interest only loan
Which of the following is typically used as a short-term loan? - ANSWER-- bridge loan
Which of the following is a form of interim, or temporary, short-term financing for creating
improvements or buildings on a property? - ANSWER--construction mortgage
According to TILA, which of the following items may be specified in an advertisement without
making a full disclosure? - ANSWER--annual percentage rate
The lender in a transaction is known as the...? - ANSWER--mortgagee
450+QUESTIONS AND ANSWERS 100 % PASS SOLUTION A+ GRADE
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%
What type of investment properties are warehouses? - ANSWER--industrial manufacturing
The area the tenant actually occupies and uses is known as? - ANSWER-- usable sq footage
(or net square footage)
How much profit can a single person claim from the sale of a personal residence that's tax
free? - ANSWER--$250,000
Who is usually exempt from property taxes? - ANSWER--Disabled, veterans, farmers, elderly,
gold star parents (whose kids died in war), and Star program homeowners.
Who is not usually exempt from property taxes? - ANSWER--Second home owners
What occurs when the agent represents the seller but also works in the best interests of the
buyer? - ANSWER--Undisclosed dual agency
Tax strategies on investment properties are known as what? - ANSWER-- tax shelters
How many years is a residential investment property depreciable for? - ANSWER--27.5 years
Income earned from investing in a rental property is designated as what type of income? -
ANSWER--passive
Fixing a leaking faucet is known as what type of maintenance? - ANSWER-
-Corrective maintenance
,What is the budget that is set aside for repairs and large improvements? - ANSWER--Capital
reserve budget
A real estate agent serves as what type of agent? - ANSWER--special agent
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
Which of the following is NOT exempt from obtaining a license? - ANSWER--A licensed
attorney acting as a sponsor to a real estate salesperson
A real estate salespersons license must be renewed every .........years. - ANSWER—2
A real estate salesperson operates as what type of agent to their client? - ANSWER--special
agent
According to this, a broker may be held responsible for the unlawful actions of his/her
salespersons? - ANSWER--vicarious liability
This Act made price fixing, group boycotts, market allocation, and tie-in arrangements illegal?
- ANSWER--sherman antitrust act
Which of the following is required in order for a broker to act as a dual agent? - ANSWER--
Advanced informed consent from both the buyer and seller
Personal property is also known as...? - ANSWER--chattle
,Mark owns a single family home. He decides to transfer ownership of the property to his
daughter, Nancy; however, the ownership of the property will revert back to Mark upon the
death of Nancy's aunt, Martha. Which of the following was created? - ANSWER--life estate
Which of the following leasehold estates is open-ended, as it does not have a termination
date? - ANSWER--estate at will
Which of the following is an example of a fixture...? - ANSWER--custom book shelves
Which of the following would be considered a trade fixture by a commercial tenant? -
ANSWER--display case
Which of the following types of easements is obtained by a squatter who uses another's
property without the owner's permission? - ANSWER-- easement by prescription
Which of the following must a real estate salesperson carry on them at all times when doing
business and show it on demand? - ANSWER--their pocket card
A claim or charge against the property of another is known as a/an...? - ANSWER--lien
In order to obtain an easement by prescription, for how many years must the property by
used by the dominant tenement? - ANSWER--10 years
Which of the following parties in required to sign a valid deed? - ANSWER-- grantor only
If a homeowners association does not allow houses in a sub-divided community to have brick
on the exterior of the house, where will this restriction be documented? - ANSWER--It will
appear as a restrictive covenant in the deed.
Which of the following is used as evidence that an individual owns a particular piece of real
property? - ANSWER--Deed
, In a residential transaction, who typically holds on to the buyer's down payment/earnest
money? - ANSWER--The seller's attorney
Which of the following items may be prorated between the buyer and seller at closing? -
ANSWER--property taxes
Replacing an obligation to perform with a new obligation in a contract is known as...? -
ANSWER--Novation
Which of the following may be added to a contract, which awards the non- breaching party a
specified sum of money for certain breaches listed in the contract? - ANSWER--liquidated
damages
Which of the following is NOT considered a bi-lateral agreement? - ANSWER--open listing
contract
Which of the following types of ads are illegal in New York State? - ANSWER--blind ads
A straight-term loan is also known as a/an...? - ANSWER--interest only loan
Which of the following is typically used as a short-term loan? - ANSWER-- bridge loan
Which of the following is a form of interim, or temporary, short-term financing for creating
improvements or buildings on a property? - ANSWER--construction mortgage
According to TILA, which of the following items may be specified in an advertisement without
making a full disclosure? - ANSWER--annual percentage rate
The lender in a transaction is known as the...? - ANSWER--mortgagee
