NYC REAL ESTATE 9 EXAM WITH
100% CORRECT ANSWERS
A certain property has the following liens recorded against it: a mortgage lien dating
from three years ago; a mechanic's lien dating from two years ago; a real estate tax lien
for the current year; and a second mortgage lien dating from the current year. Which
lien would take priority? - Answer-Real estate tax lien
Which junior lien is last in the rank order of priority? - Answer-Mechanic's liens
The priority of junior liens are based on - Answer-the date of recording.
If a third party has been using a portion of a land owner's land without the owner's
permission but with the owner's knowledge for 12 years, what type of easement may the
third party obtain from a court order? - Answer-Easement by prescription
The date of recording of the lien determines priority for junior liens. Which junior lien is
the exception to this prioritizing? - Answer-Mechanic's liens
The date the lien is recorded determines its priority with the exception of mechanic's
liens which are prioritized based on the date the work commenced or ended rather than
from when it was recorded.
States where mortgage transactions convey legal title to the lender until the mortgage
debt is satisfied are called - Answer-Title-theory states
Estate and inheritance tax liens are determined by - Answer-probate.
Which of the following is NOT an appurtenance? - Answer-Pond fully contained on the
property
Appurtenances are all the rights, privileges, and improvements that transfer with the
property but are not a part of the actual property, so because the pond that is fully
contained on the property is a part of the actual property, it is not an appurtenance.
Does a government lien automatically receive payment priority if other liens exist on the
same property? - Answer-No, because payment priority is based on the date of the lien
Which type of lien has priority over all other liens regardless of the date placed? -
Answer-Ad valorem tax liens
, What type of lien is the result of a lawsuit? - Answer-Judgment Lien
When might an encroachment become an easement? - Answer-When the encroached
owner takes no remedial action to have the encroachment removed
A property owner has an easement appurtenant on her property. When the property is
sold to another party, what will happen to the easement? - Answer-It transfers with the
property.
What are the two most common types of encumbrances? - Answer-Liens and
easements
Most liens do not convey ownership. What is the one exception to that rule? - Answer-A
mortgage lien conveys legal title to the lender.
What is a judgment lien and how long does it last? - Answer-A judgment lien results
from a lawsuit. It attaches to real and personal property as a result of a money judgment
issued by a court in favor of a creditor. It lasts for ten years and can be renewed.
What is a corporation franchise tax and on what is it based? - Answer-A tax levied on
corporations for doing business in the state. This tax is based on the net profit of the
business and if it is not paid, it becomes a lien on all the property, both real and
personal, that the corporation owns.
Deed restrictions are either covenants or conditions - Answer-A condition can only be
created within a transfer of ownership
A covenant can be created by mutual agreement.
What type of lien takes priority over all other liens? - Answer-Real property tax lien
What is a mechanic's lien? - Answer-If a property owner fails to pay for work performed
or materials supplied, a worker or supplier can file a mechanic's lien to force the sale of
the property and collect the debt.
What factors determine lien priority? - Answer-The lien's categorization as superior or
junior
The date the lien was recorded
How can the priority order of a junior lien be changed? - Answer-A lienor can change
the priority of a junior lien by voluntarily agreeing to subordinate, or lower, the lien's
position in the hierarchy.
100% CORRECT ANSWERS
A certain property has the following liens recorded against it: a mortgage lien dating
from three years ago; a mechanic's lien dating from two years ago; a real estate tax lien
for the current year; and a second mortgage lien dating from the current year. Which
lien would take priority? - Answer-Real estate tax lien
Which junior lien is last in the rank order of priority? - Answer-Mechanic's liens
The priority of junior liens are based on - Answer-the date of recording.
If a third party has been using a portion of a land owner's land without the owner's
permission but with the owner's knowledge for 12 years, what type of easement may the
third party obtain from a court order? - Answer-Easement by prescription
The date of recording of the lien determines priority for junior liens. Which junior lien is
the exception to this prioritizing? - Answer-Mechanic's liens
The date the lien is recorded determines its priority with the exception of mechanic's
liens which are prioritized based on the date the work commenced or ended rather than
from when it was recorded.
States where mortgage transactions convey legal title to the lender until the mortgage
debt is satisfied are called - Answer-Title-theory states
Estate and inheritance tax liens are determined by - Answer-probate.
Which of the following is NOT an appurtenance? - Answer-Pond fully contained on the
property
Appurtenances are all the rights, privileges, and improvements that transfer with the
property but are not a part of the actual property, so because the pond that is fully
contained on the property is a part of the actual property, it is not an appurtenance.
Does a government lien automatically receive payment priority if other liens exist on the
same property? - Answer-No, because payment priority is based on the date of the lien
Which type of lien has priority over all other liens regardless of the date placed? -
Answer-Ad valorem tax liens
, What type of lien is the result of a lawsuit? - Answer-Judgment Lien
When might an encroachment become an easement? - Answer-When the encroached
owner takes no remedial action to have the encroachment removed
A property owner has an easement appurtenant on her property. When the property is
sold to another party, what will happen to the easement? - Answer-It transfers with the
property.
What are the two most common types of encumbrances? - Answer-Liens and
easements
Most liens do not convey ownership. What is the one exception to that rule? - Answer-A
mortgage lien conveys legal title to the lender.
What is a judgment lien and how long does it last? - Answer-A judgment lien results
from a lawsuit. It attaches to real and personal property as a result of a money judgment
issued by a court in favor of a creditor. It lasts for ten years and can be renewed.
What is a corporation franchise tax and on what is it based? - Answer-A tax levied on
corporations for doing business in the state. This tax is based on the net profit of the
business and if it is not paid, it becomes a lien on all the property, both real and
personal, that the corporation owns.
Deed restrictions are either covenants or conditions - Answer-A condition can only be
created within a transfer of ownership
A covenant can be created by mutual agreement.
What type of lien takes priority over all other liens? - Answer-Real property tax lien
What is a mechanic's lien? - Answer-If a property owner fails to pay for work performed
or materials supplied, a worker or supplier can file a mechanic's lien to force the sale of
the property and collect the debt.
What factors determine lien priority? - Answer-The lien's categorization as superior or
junior
The date the lien was recorded
How can the priority order of a junior lien be changed? - Answer-A lienor can change
the priority of a junior lien by voluntarily agreeing to subordinate, or lower, the lien's
position in the hierarchy.
