UPDATED NYS REAL ESTATE EXAM QUESTIONS AND 100% CORRECT ANSWERS

UPDATED NYS REAL ESTATE EXAM QUESTIONS AND 100% CORRECT ANSWERS “In NYS how old must one be to enter into contracts? - CORRECT ANSWER 18" "What covers fully or personal property lost in a fire? - CORRECT ANSWER Replacement cost" "What's the cash on cash return on a $2,000,000 property with a down payment of 500,000 and 15,000 monthly rental income? - CORRECT ANSWER 36 percent" "Who hires the agent? - CORRECT ANSWER Principal or client" "What is not a CMA (comparative market analysis) - CORRECT ANSWER An appraisal" "What can't a salesperson do? - CORRECT ANSWER Collect money directly from a client or customer" "What should the agency disclosure form be submitted? - CORRECT ANSWER At the first substantive contact" "What is another name for transfer of title or real property? - CORRECT ANSWER Conveyance" "What is it called when the government dictates how the property can be used? - CORRECT ANSWER Zoning" "Who issues real estate licenses? - CORRECT ANSWER NY Department of State" "Who oversees licensing and registration of mortgage bankers and brokers? - CORRECT ANSWER NYS banking department" "Which department oversees drinking water safely? - CORRECT ANSWER NYS department of health" "Who determines the commission? - CORRECT ANSWER Principal/client and the broker" "What occurs when the agent represents the seller but also works in the best interest of the buyer? - CORRECT ANSWER Undisclosed dual agency" "A real estate salesperson is what type of agent? - CORRECT ANSWER Special" "What clause in the deed describes the property? - CORRECT ANSWER Legal descriptions" "What type of income is partnerships/investments? - CORRECT ANSWER Portfolio" "What is the name of the policy that provides additional liability coverage beyond the primary policy? - CORRECT ANSWER Umbrella policy" "What type of maintenance is fixing a leaking faucet? - CORRECT ANSWER Corrective maintenance" "What are property taxes based on? - CORRECT ANSWER Assessed value" "What is the market value? - CORRECT ANSWER What the property will sell for in a competitive marketplace" "What is a loft lease? - CORRECT ANSWER Its a lease for space that is not divided into rooms" "What is the borrower of a mortgage loan? - CORRECT ANSWER Mortgagor" "What does the Real Estate Settlement Procedures Act (RESPA) require? - CORRECT ANSWER Good faith estimate of the closing costs for federally funded loans" "What is the right reserved for the condo association that gives them the first opportunity to buy or lease a unit when it becomes available? - CORRECT ANSWER Right of first refusal" "A coop is what type of ownership? - CORRECT ANSWER Leasehold" "What is the summary of the chronological history of title and related documents to that called? - CORRECT ANSWER Abstract of title" "What type of mortgage is when a new mortgage that is higher in amount wraps around an existing first mortgage that's smaller in amount? - CORRECT ANSWER Wraparound mortgage" "What document provides detailed information on a condo or coop project? - CORRECT ANSWER Offering plan" "What is the process called that calculates the value of an asset in the past, present, and future? - CORRECT ANSWER Time value of money" "What is it called when a building loses its desirability because of an outdated design feature? - CORRECT ANSWER Obsolescence" "What type of investment properties are warehouses and distribution centers? - CORRECT ANSWER Manufacturing" "What governs issues such as noises, pets in a condo or coop? - CORRECT ANSWER Home rules" "What are homestead properties? - CORRECT ANSWER Residential condos, 1-4 family homes, mobile homes and farm dwellings" "What's the area the tenant actually occupies and uses? - CORRECT ANSWER Usable square footage or net square footage" "Who signs the contract first? - CORRECT ANSWER Purchaser" "What is the budget that is set aside for repairs and large improvements? - CORRECT ANSWER Capital reserve budget or replacement reserve budget" "What's another name for land lease? - CORRECT ANSWER Ground lease" "action to quiet title - CORRECT ANSWER legal action to perfect the claim" "Adirondack Park Agency - CORRECT ANSWER regulates development on private land in the park" "affirmative marketing - CORRECT ANSWER program to inform all buyers in a minority community about housing opportunities available, without discrimination" "alpha particles - CORRECT ANSWER uranium decays and produces radon gas, which in turn decays and produces alpha particles" "apportionments - CORRECT ANSWER adjustment of the income, expenses, or carrying charges of real estate usually computed to the date of closing of title so that the seller pays all expenses to that date" "asbestos - CORRECT ANSWER lung disease caused by exposure to asbestos" "basement - CORRECT ANSWER space wholly or partly below grade, usually not used for living accommodations" "black book - CORRECT ANSWER offering plan for a coop or condo as accepted for filing by the attorney general and used for marketing" "boot - CORRECT ANSWER money or property given to make up any difference in value or equity between two properties in an exchange" "building-related illness (BRI) - CORRECT ANSWER symptoms such as hypersensitivity, asthma, and allergic reactions caused by toxic substances and pathogens in a building that remain with the affected individual even when away from the building" "bullet loan - CORRECT ANSWER short or intermediate term (3 to 5 years) interest-only loan with a balloon payment at the end of the term ; as called an intermediate loan or conduit financing" "casement window - CORRECT ANSWER a window that opens on hinges" "CBS - CORRECT ANSWER memory aid for an appraiser's adjustments: Comparable, better, subtract" "chlordane - CORRECT ANSWER an insecticide banned in the 1980s" "company dollar - CORRECT ANSWER funds remaining after the costs of sales, such as commissions paid to sales associates, referral fees, and cooperating fees paid to other brokers, are deducted from gross commissions received by the company" "CPA - CORRECT ANSWER Appraiser's memory aid in making adjustments: Comparable Poorer, Add" "datum - CORRECT ANSWER point from which elevations are measured; mean sea level in New York harbor, or local ___________" "double-hung window - CORRECT ANSWER a sash window with two vertically sliding sashes; both single-hung and double-hung window sashes are controlled and held in place by springs or weights" "electromagnetic field (EMF) - CORRECT ANSWER Invisible energy fields created by the movement of electrical currents in high-tension wires and electrical appliances. EMFs may be responsible for occurrences of cancer, hormonal changes, and behavioral disorders" "pier and beam foundation - CORRECT ANSWER Foundation style in which partly submerged columns (piers) support the foundation slab, with an air pocket (crawlspace) between the slab and the ground." "polychlorinated biphenyls (PCBs) - CORRECT ANSWER Potentially hazardous chemical used in electrical equipment, principally transformers." "potentially responsible parties (PRPs) - CORRECT ANSWER under Superfund, the landowners suspected of contaminating a property" "preapproval loan - CORRECT ANSWER a pending loan in which all of the underlying documents are in file and there is a strong probability that there are no credit or income issues stopping the loan from closing" "prepaid item - CORRECT ANSWER a bill paid by the seller for something the buyer will benefit from: the coming year's property taxes, for example. Buyer will reimburse seller at closing for the unused portion." "prequalification - CORRECT ANSWER refers to a pending loan in which a mortgage broker believes that, based on a preliminary interview and a credit report, the borrower will probably (subject to verification) be able to meet the loan requirements of a lender--assuming the borrower is telling the truth about the borrower's financial situation and income status" "primary residence - CORRECT ANSWER the location where a taxpayer has resided for at least two out of the previous five years before the sale of the property; in addition, the residence must be used as the primary place of residence (when the taxpayer files an income tax return)" "pro forma statement - CORRECT ANSWER financial statement showing what is expected to occur, particularly with income property" "public offering - CORRECT ANSWER a transaction falling under the jurisdiction of the New York attorney general's office, requiring certain specific transactional and financial disclosures. The sale of any form of shared housing in New York is a public offering" "prospectus - CORRECT ANSWER a printed statement disclosing all material aspects of a real estate project" "pollution - CORRECT ANSWER artificially created environmental impurity" "primary mortgage market - CORRECT ANSWER lenders who make loans directly to real estate borrowers" "progression - CORRECT ANSWER economic principle that a lower-quality property's worth will be enhanced by its proximity to higher-quality properties" "property analysis - CORRECT ANSWER a property manager's examination of leases and rental rates" "quiet title suit | suit to quiet title - CORRECT ANSWER a court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title" "radioactive waste - CORRECT ANSWER hazardous by-product of uses of uses of radioactive materials in energy production, medicine, and scientific research" "radon gas - CORRECT ANSWER Odorless, naturally occurring radioactive gas that becomes hazardous when trapped and accumulated in unventilated areas of buildings. Long-term exposure to radon is suspected of causing lung cancer." "ratification - CORRECT ANSWER the situation in which individual parties are prevented by their own acts from taking a different position because it would cause detriment to another party" "sensitivity analysis - CORRECT ANSWER analysis of a projected investment to discover which variable is most significant in anticipated cash flow" "sheathing - CORRECT ANSWER material applied to framing members--to form walls, often plywood, insulating material, or sheetrock" "siding - CORRECT ANSWER exterior wall finish of a building: commonly brick, shingles or clapboard, wood, or vinyl" "sill plates - CORRECT ANSWER horizontal supports on top of the foundation" "Social Security Tax - CORRECT ANSWER a tax of 15% required of every taxpayer; half of the tax is withheld from an employee's paycheck and half must be paid by the employer" "solar energy - CORRECT ANSWER use of solar collectors to convert heat from the sun into usable heat and energy from a building" "specific performance suit - CORRECT ANSWER A legal action brought in a court of equity in special cases to compel a party to carry out the terms of a contract. The basis for an equity court's jurisdiction in breach of a real estate contract is the fact that land is unique and mere legal damages would not adequately compensate the buyer for the seller's breach." "statutory lien - CORRECT ANSWER A lien imposed on property by statute—a tax lien, for example—in contrast to a voluntary lien such as a mortgage lien that owners place on their own real estate" "statutory redemption period - CORRECT ANSWER period after a tax sale in which the delinquent taxpayer may regain the property by paying the back taxes, penalties, interest, and costs" "subletting - CORRECT ANSWER The leasing of premises by a lessee to a third party for part of the lessee's remaining term." "subrogation - CORRECT ANSWER the substitution of one creditor for another with the substituted person succeeding to the legal rights and claims of the original claimant" "supervising broker - CORRECT ANSWER the one broker registered with the Department of State as in charge of a real estate office, responsible for the actions of salespersons and associate brokers" "Taking - CORRECT ANSWER Government restriction on use of property, to the extent that the owner must be compensated for loss of value." "tax certiorari - CORRECT ANSWER appeal in state court of a ruling by the local assessment board of review" "tax credit - CORRECT ANSWER a direct reduction in tax payable, as opposed to a deduction from income" "truss roof - CORRECT ANSWER Particularly strong roofing system composed of chords, diagonals, and gusset plates; preassembled at a mill." "without recourse - CORRECT ANSWER words used in endorsing a note or bill to denote that the future holder is not to look to the endorser in case of nonpayment" Article 12-A of the NYS Real Property Law - CORRECT ANSWER The section of the New York Real Property Law pertaining to real estate salespersons and brokers. - Primary purpose is to "Protect the Public" - Requires a salesperson to be at least 18 years of age - Requires a broker to be at least 20 years of age" "Sponsor - CORRECT ANSWER A licensed real estate broker that holds the license of a salesperson." ""Summary of Your Submission" - CORRECT ANSWER Obtained after your register for the New York State Salesperson exam using eAccessNY. You must bring this with you when taking the State exam." "Misdemeanor - CORRECT ANSWER A crime punishable by up to a year in prison and/or a $1,000 fine." "Listing Agreement - CORRECT ANSWER An employment contract between principal and agent, authorizing the agent to perform services for the principle involving the latter's property." "Pocket Card - CORRECT ANSWER A card issued by the Department of State to each licensee which contains the photo, name and business address of the licensee, and, in the case of a real estate salesperson, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesperson. - Must be carried by the agent at all times when serving as a salesperson." "Fiduciary - CORRECT ANSWER A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence and trust." "OLD CAR - CORRECT ANSWER - Obedience - Loyalty - Disclosure - Confidentiality - Accountability - Reasonable Care" "Disclosure Regarding Real Estate Agency Relationships Form - CORRECT 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. - First document to be submitted to all prospective clients" "Exclusive Agency - CORRECT ANSWER An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding exclusive agency is entitled to commissions in addition to the commissions payable to the broker who effected the transaction - Made between a broker and a seller" "Principal - CORRECT ANSWER The employer of an agent or broker; the broker's or agent's client." "Price Fixing - CORRECT ANSWER Conspiring to establish fixed fees or prices for services or products." "Market Allocation - CORRECT ANSWER An agreement between members of a trade to refrain from competition in specific market areas." "Quitclaim Deed - CORRECT ANSWER A deed which conveys simply the grantor's rights or interest in real estate, without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title." "Habendum Clause - CORRECT ANSWER A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Also known as the "to have and to hold'" clause." "Delivery and Acceptance - CORRECT ANSWER Legal policy mandates that a deed to real property be a matter of public record; therefore, subsequent to delivery and acceptance, a deed must be properly recorded." "Chain of Title - CORRECT ANSWER The sequence of historical transfers of title to a property. It runs from the present owner back to the original owner of the property." "Title - CORRECT ANSWER Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest." "Closing Statement - CORRECT ANSWER A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. that must be transacted for a successful transfer of ownership to take place." "Essential Element of a Contract - CORRECT ANSWER 1) Consideration 2) Must be in writing 3) Must have competent parties" "Estate for Years - CORRECT ANSWER A leasehold estate for any specific period of time. An estate for years is not automatically renewed." "Express Contract - CORRECT ANSWER A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration)." "Attorney Review Clause - CORRECT ANSWER A clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason." "Mortgage Contingency Clause - CORRECT ANSWER A clause in a contract that states a mortgage must be obtained in order for the contract to be binding." "Eviction - CORRECT ANSWER A legal proceeding by a lessor landlord to recover possession of real property." "Holdover Tenant - CORRECT ANSWER A tenant who remains in possession of leased property after the expiration of the lease term." "Triple Net Lease - CORRECT ANSWER A lease commonly found in a building with a single, long-term tenant." "Mortgage - CORRECT ANSWER Legal agreement by which a bank lends money in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon payment of the debt." "APR - CORRECT ANSWER The actual interest rate charged, including loan fees and points" "Secondary Mortgage Market - CORRECT ANSWER The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors." "Loan-to-Value (LTV) - CORRECT ANSWER A financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased. - Determined by using the Purchase Price or the Appraised Value, whichever is less." "Satisfaction of Mortgage - CORRECT ANSWER A document acknowledging the payment of a mortgage debt." "Adjustable rate mortgage (ARM) - CORRECT ANSWER A mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets." "Fixed Rate Mortgage - CORRECT ANSWER Accounts for the majority of mortgages." "Title X - CORRECT ANSWER a Federal law that makes real estate licensees liable for the disclosure of lead paint." "Radon - CORRECT ANSWER A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country." "Asbestos - CORRECT ANSWER A naturally occurring mineral fiber sometimes found in older homes. It is hazardous to health when a possibility exists of exposure to inhalable fibers. Homeowners should be alert for friable asbestos and always seek professional advice in dealing with it." "Asbestosis - CORRECT ANSWER A chronic lung disease caused by inhaling asbestos fibers." "Lead - CORRECT ANSWER A material used in pipes and paint of many older homes." "Clean Air Act (CAA) - CORRECT ANSWER Federal law designed to control air pollution on a national level." "Appraisal - CORRECT ANSWER An estimate of a property's value by an appraiser who is usually presumed to be expert in his work." "Cost Approach - CORRECT ANSWER A method of estimating the value of real property by calculating a current construction cost, subtracting accrued depreciation and adding a land value obtained from the market. - Used for specialized properties that don't have many comparables." "Income Approach - CORRECT ANSWER An appraisal technique whereby the value of an income producing property is estimating by capitalizing its net operating income using an appropriate capitalization rate. Value = Income / Rate. - Commonly used in commercial properties" "Sales comparison approach - CORRECT ANSWER Valuation method which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions" "Red-lining - CORRECT ANSWER The refusal to lend money within a specific area for various reasons. This practice is illegal." "Blockbusting - CORRECT 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." "Fair Housing Act of 1968 - CORRECT ANSWER A federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability." "Brown vs. Board of Education - CORRECT ANSWER Determined that separate is NOT equal." "Testers - CORRECT ANSWER Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers." "The Offering Plan - CORRECT ANSWER A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser." "Board Package - CORRECT ANSWER A series of documents submitted for the review by a cooperative board." "By-laws - CORRECT ANSWER The owner's rights and obligations for a condominium" "House rules - CORRECT ANSWER Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution." "Condominium - CORRECT ANSWER Considered real property, which is conveyed by a deed" "Maintenance - CORRECT ANSWER Monthly payments by a shareholder to a cooperative corporation." "Common Charges - CORRECT ANSWER Monthly payment by an owner of a condominium." "Sponsor - CORRECT ANSWER The developer or owner organizing and offering for sale a condominium or cooperative development." "Leverage - CORRECT ANSWER The use of borrowed capital (mortgage) to increase the potential return of an investment." "Pro-forma Statement - CORRECT ANSWER An accounting statement that forecasts income and expenses for a period of time, typically five or more years." "Cap Rate - CORRECT ANSWER NOI / Purchase Price" "Liquid - CORRECT ANSWER The ability to have cash readily available to support the demands of running and maintaining real property" "Gross Income - CORRECT ANSWER The total amount collected from rents and other income producing opportunities." "Capital Gain - CORRECT ANSWER A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price." "Boot - CORRECT ANSWER Cash received in a tax-deferred exchange" "Tax Shelter - CORRECT ANSWER Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments." "Straight-line Depreciation - CORRECT ANSWER A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. - A residential property is depreciated over a 27.5 year period. - A commercial property is depreciated over a 39 year period." "1031 Exchange - CORRECT ANSWER - 45 days to identify a new property - 180 days to close on a new property" "Mortgage Broker - CORRECT ANSWER An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages." "Mortgage Banker - CORRECT ANSWER A company, individual or institution that originates mortgages. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages." "General Agent - CORRECT ANSWER Someone authorized to transact every kind of business for the principal (Example: Property Manager)." "Operating Budget - CORRECT ANSWER An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively." "Management Agreement - CORRECT ANSWER A contract between the owner of a property and someone who agrees to manage it." "Property Management Report - CORRECT ANSWER An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period." "What other capability should they possess (to enter into a contract)? - CORRECT ANSWER Mental and emotional capability" "What happens if one of the parties to the contract is a minor? - CORRECT ANSWER The contract is voidable by the minor" "What does the zoning board of appeal do? - CORRECT ANSWER Grants variances" "What regulates construction standards in NYS? - CORRECT ANSWER Building codes" "What does municipal engineers office do? - CORRECT ANSWER Oversees planning and construction of major highways, sewer systems and water connections" "If a property ad states that the property is near the vicinity of a geographical area, what else must the ad include? - CORRECT ANSWER It must include the name of the geographical area where the property is actually located" "Who is usually exempt from property taxes? - CORRECT ANSWER Disabled, veterans, farmers, elderly, gold star parents (who kids dies in war) and star program homeowners" "Who is not usually exempt from property taxes? - CORRECT ANSWER Second home owners" "Which document describes the agency (who he or she represents) of the salesperson? - CORRECT ANSWER Agency disclosure form" "What is another name for the slope of the roof? - CORRECT ANSWER Pitch" "What carcinogenic component was used as insulation in electric transformers that contaminated soil and groundwater? - CORRECT ANSWER PCBs and polychlorinated biphenyls" "What can brokers provide their salespeople if they are independent contractors? - CORRECT ANSWER Office phone" "What's right to access water from a river or stream called? - CORRECT ANSWER Riparian" "What did the Civil Rights Act of 1866 protect, without exception? - CORRECT ANSWER Race" "What did the 1988 amendment to the civil rights act protect? - CORRECT ANSWER Disability and familial status" "What is convincing owners to sell/lease property by telling them a particular group of people are moving into the area called? - CORRECT ANSWER Blockbusting" "What is called when lenders/insurance agents refuse to do business in a certain area based on the characteristics of the people living there? - CORRECT ANSWER Redlining" "Unless specified a lesser estate, transfer of title to real property in NYS creates what type of interest? - CORRECT ANSWER Fee Simple" "What types of commercial properties use percentage lease? - CORRECT ANSWER Retail stores/shopping malls" "Who is responsible for the terms in the lease if the unit has been subleased? - CORRECT ANSWER Lessee" "What is taking of private property by the government for public use called? - CORRECT ANSWER Eminent domain" "How many years is a residential investment property depreciable for? - CORRECT ANSWER 27.5 years" "How much profit can a single person claim from the sale of a personal residence that's tax free? - CORRECT ANSWER $250,000" "What is the right to use another's land that falls short of ownership called? - CORRECT ANSWER Easement" "Joe was not paid for the supplies and labor he provided to homeowner Smith. What kind of lien will he file against Smith? - CORRECT ANSWER Mechanics lien" "What serves the same function as a circuit breaker? - CORRECT ANSWER Fuse" "What type of estate is created when only one person holds title to real property? - CORRECT ANSWER Ownership in severity" "How much should the seller reimburse the buyer for refusing to provide a property disclosure form? - CORRECT ANSWER $500" "Seller tells the listing agent he filled for bankruptcy the previous year. The seller ends up not listing the property with the agent. Still, what fiduciary duty does the agent owe the seller? - CORRECT ANSWER Confidentiality" "What type of financing is used to purchase a new property when the old property hasn't been sold yet? - CORRECT ANSWER Swing loan or bridge loan" "What allows landlords to raise rents during the term of the lease? - CORRECT ANSWER Escalation clause" "What are tax advantages on investment properties called? - CORRECT ANSWER Tax shelters" "What type of listing agreement is it where the listing broker gets commission for the sale of the property even if the owners themselves sell the property? - CORRECT ANSWER Exclusive right to sell" "What's an implied clause in a deed? - CORRECT ANSWER Grantor owns the property and has a right to convey it or right of quiet enjoyment" "What does Regulation Z (TILA) require beside the disclosure of internet rates? - CORRECT ANSWER Down payment" "What does the secondary mortgage market do? - CORRECT ANSWER Buys and sells mortgages" "What agency issues real estate licenses? - CORRECT ANSWER NYDOS" abstract of title - CORRECT ANSWER The condensed history of a title to a particular parcel of real estate" "abutting - CORRECT ANSWER neighboring land with a common boundary" "acceleration clause - CORRECT ANSWER clause in a note or mortgage that can be enforced to make the entire debt due immediately if mortgagor defaults" "accession - CORRECT ANSWER acquisition of land by deposits from an adjoining stream; also the acquisition of fixtures or improvements built on one's land by another" "accessory (apartment) use - CORRECT ANSWER an additional apartment, usually small, sometimes allowed in an area zoned for one-family homes, which might be used for elderly grandparents; or a small home business" "equalization factor - CORRECT ANSWER A multiplier that adjusts for different communities' tax assessment policies." "filtering down - CORRECT ANSWER process by which housing units formerly occupied by middle-and upper-income families decline in quality and value and become available to lower-income occupants" "hamlet - CORRECT ANSWER growth and service centers of the park where the APA encourages development. Intentionally, the agency has very limited permit requirements in these areas" "group home - CORRECT ANSWER a living unit housing more than three unrelated individuals" "hectare - CORRECT ANSWER land measurement equivalent to 10,000 square meters, or approximately 2.471 acres" "jalousie window - CORRECT ANSWER a window that is formed by horizontal slats of glass that open or close vertically by the action of a gear" "Lally columns - CORRECT ANSWER upright columns that support the main beams of a building" "notice of pending legal action - CORRECT ANSWER lis pendent" "novation - CORRECT ANSWER Substituting a new obligation for an old one or substituting new parties to an existing obligation." "New York State Official Tidal. Wetlands Inventory - CORRECT ANSWER Established in 1974; a set of maps delineating and classifying all the tidal wetlands in New York . These maps are used by DEC and other municipal agencies to control and manage the development, filling, and dredging of areas in and around New York's valuable tidal wetlands" "overall capitalization rate (OCR) - CORRECT ANSWER a figure that estimates value by comparing capitalization rate to income" "OPRHP - CORRECT ANSWER New York State's Office of Parks, Recreation and Historic Preservation" "participation financing - CORRECT ANSWER a mortgage in which the lender participates in the income of the mortgaged venture" "Reading Prong - CORRECT ANSWER an area of New York, Northern New Jersey, and northeastern Pennsylvania; a uranium-rich underground formation of rock that forms the bedrock of the area and is the source for most of the radon problems in homes in this area" "real estate broker - CORRECT ANSWER Any person, partnership, association, or corporation that sells (or offers to sell), buys (or offers to buy), or negotiates the purchase, sale, or exchange of real estate, or that leases (or offers to lease) or rents (or offers to rent) any real estate or the improvements thereon for others and for compensation or valuable consideration." "recession - CORRECT ANSWER periods of low general economic activity" "recognition agreement - CORRECT ANSWER a document signed by the borrower , lender, and coop board. The signature by the coop acknowledges the lending party's lien interest in the shares covered by the unit. These agreements normally call for the cooperative to notify the lender of any default by the shareholder/borrower (ie. the nonpayment of maintenance fees)" "red herring - CORRECT ANSWER preliminary offering plan for a cooperative or condominium project submitted to the attorney general and to tenants and subject to modification" "reduction certificate - CORRECT ANSWER a statement from the lender detailing the amount remaining and currently due on a mortgage, usually sought when a mortgage is being assumed or prepaid (also referred to as an estoppel certificate)" "rent stabilization - CORRECT ANSWER local regulations that stem from the adoption of the Emergency Tenant Protection Act, and that limit maximum allowable rent increases" "reverse discrimination (benign discrimination) - CORRECT ANSWER housing discrimination, usually based on quotas, designed by a municipality to achieve a racial balance perceived as desirable" "reversionary right - CORRECT ANSWER The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease." "seisin - CORRECT ANSWER the possession of land by one who claims to own at least an estate for life therein" "Independent Contractor Relationship - CORRECT ANSWER A person that provides services to another under terms specified in a contract or within a verbal agreement. An independent contractor is not an employee. - The agent does not have to work in a specific location - The broker cannot control the agent's work activities" "Bundle of Rights - CORRECT ANSWER The premise that the ownership of real estate consists of the ownership of various rights associated with it. These rights include the right to use and/or occupy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing. - Includes the right to quiet enjoyment" "Littoral Rights - CORRECT ANSWER The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on." "Riparian Rights - CORRECT ANSWER The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. This term literally means "riverbank"" "Specific Lien - CORRECT ANSWER A lien that only binds to a specific asset or property (Example: mortgage)." "Voluntary Lien - CORRECT ANSWER A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate (Example: mortgage)." "Tax Lien - CORRECT ANSWER A lien imposed by law upon a property to secure the payment of taxes" "Easement - CORRECT ANSWER A right to cross or otherwise use someone else's property for a specified purpose." "Encumbrance - CORRECT ANSWER Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation." "Affirmative Easement Appurtenant - CORRECT ANSWER Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access." "Full Covenant and Warranty Deed - CORRECT ANSWER A type of deed where the grantor guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee. This type of deed contains the strongest guarantee of title." "Amortization - CORRECT ANSWER The process by which a loan principal decreases over the life of a loan." "Condemnation - CORRECT ANSWER Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain." "Police Power - CORRECT ANSWER The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public." "Variance - CORRECT ANSWER The authorization to improve or develop a particular property in a manner not authorized by zoning." "Building Codes - CORRECT ANSWER Regulations established by state or local governments stating fully that structural requirements for building. - Building codes are enforced by the issuance of permits." "Air rights - CORRECT ANSWER Rights in real property to use the space above the surface of the land." "Certificate of Occupancy (CO) - CORRECT ANSWER A document issued by a governmental authority that a building is ready and fit for occupancy." "Stud - CORRECT ANSWER Vertical framing members found in wall construction. Typically placed 12", 16" or 24" on center." "Beam - CORRECT ANSWER A horizontal structural member that supports a floor. Beams are typically wood, cold formed metal framing or steel." "Bearing Walls - CORRECT ANSWER Structural walls that transfer building loads down to the foundation. Joists, beams, and roofs are typically supported by bearing walls." "Bond Beam - CORRECT ANSWER Concrete set in soil" "Circuit Breaker - CORRECT ANSWER The safety valves for electrical systems" "Construction Drawings - CORRECT ANSWER Drawings produced by Architects that describe the quantities of a building." "Specifications - CORRECT ANSWER A written document produced by an Architect that describes the quality of construction for a building." "Mandated warranty for new construction according to the NYS General Business Law 36-B - CORRECT ANSWER 1) 1 year of workmanship 2) 6 years for material defects 3) 2 years for plumbing, electrical, and HVAC systems" "Acre - CORRECT ANSWER A measure of land equaling 43,560 square feet." "Planning Board - CORRECT ANSWER Responsible for developing and controlling a municipality's comprehensive strategy for growth and development" "Architectural Review Board - CORRECT ANSWER Oversees and upholds the quality and aesthetics of a neighborhood, town, or city." "The Office of Receiver of Taxes - CORRECT ANSWER Responsible for collecting taxes" "Building Department - CORRECT ANSWER A town or city agency that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances." "Deductible - CORRECT ANSWER The amount of expenses that must be paid out of pocket before an insurer will pay any expenses." "Umbrella Policy - CORRECT ANSWER Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Also called excess insurance." "Tax Assessor - CORRECT ANSWER Responsible for determining a municipality's tax rate." "Levy - CORRECT ANSWER An assessment of tax." "Assessed value - CORRECT ANSWER A valuation placed upon property by a public officer or a board, as a basis for taxation." "Share in a Cooperative Unit - CORRECT ANSWER Considered a proprietary lease and personal property (NOT real property)."