NYREI LATEST EXAM SCRIPT ALL
QUESTIONS AND ANSWERS SURE A+
✔Virginia received a letter from the city, stating that her property value had increased
from $185,000 to $310,000 for assessment purposes. Virginia felt the assessment was
too high. Her first avenue of recourse was - ✔✔to see the assessor.
(When property owners don't agree with the value placed on their property for tax
purposes (assessment), their first step would be to make an appointment to see the
assessor of the municipality. If the assessor refuses to lower the assessment, their next
step would be the grievance board, then small claims court, and lastly, the next higher
court.)
✔✔The agency relationship between the agent and seller has been terminated because
the purpose was satisfied. Which fiduciary duties still apply? - ✔✔Confidentiality
✔✔A system used to describe real estate that includes feet, degrees, and natural
markers as monuments is called the - ✔✔metes and bounds.
(The rectangular survey system is also called the government survey, as it is used to
describe land acquired by the federal government. A recorded subdivision plat uses lot
and block numbers to describe land, and is recorded with the county where the property
is located. In a metes and bounds description, the surveyor describes the perimeter of
the subject property in terms of distance, direction, and boundaries.)
✔✔A property has been renting for $750 per month. Based on comparables, the GRM
is 110. What is the indicated value of the property? - ✔✔82,500 (The indicated value
using a GRM (Gross Rent Multiplier) is the monthly rent x GRM. In this case, $750 x
110 = $82,500.)
✔✔The victim of fraud has ___ years to file suit. - ✔✔5 (New York allows a specific time
limit of six years during which parties to contract may bring legal suit to enforce their
rights. The six-year period applies to contracts, foreclosures, mortgages, and cases of
fraud)
,✔✔The Uniform Settlement Statement, required by RESPA, must be used in which of
the following instances? - ✔✔Residential transactions financed by federally related
mortgage loans
(RESPA applies to all federally related residential mortgage loans except: 1. a loan on
property of 25 acres or more;2. a loan for business, commercial, or agricultural
purposes; 3. a temporary construction loan; 4. a loan on vacant land; 5. assumptions
without lender approval; 6. a conversion of a federally related mortgage loan to different
terms, if a new note is not required; and 7. transfer of a loan in the secondary market.)
✔✔In real estate transactions, a real estate sales person has a direct fiduciary
relationship to - ✔✔the sponsoring broker.
(While the sales person has a fiduciary duty to the broker's client, direct fiduciary duty is
owed to the sponsoring broker.)
✔✔Which mortgage has established loan limits that differ from county to county? -
✔✔FHA
(Many types of mortgages have established a maximum loan limit that applies
throughout the country. FHA has established maximum loan limits for one- to four-unit
properties for every county in the country.)
✔✔The Human Rights Law, also called the Executive Law, extends the protected
classes to include - ✔✔sexual orientation and military status.
(The Human Rights Law (Executive Law) extends protected classes beyond those
covered in the federal Fair Housing Act to include age, creed, marital status, sexual
orientation, and military status.)
✔✔What is NOT grounds for revocation or suspension of a license? - ✔✔Violation of
the Code of Ethics
(The Code of Ethics is a set of voluntary rules of conduct established by the National
Association of Realtors(R). The Federal Fair Housing Act and the Civil Rights Act of
1866 are both federal statutes, and a licensee in violation of Acts set forth in Article 12-
A is guilty of a misdemeanor.)
✔✔Joe and Mary want to add a recreation room onto their home. Their one-story home
and garage together cover 1,600 square feet of their 75 x 110 foot lot. If the local zoning
law limits building sizes to 25% of the land lot, what is the maximum square footage of
floor area that Joe and Mary can add to their home? - ✔✔462.5 (75 x 110 feet = 8,250
square feet of lot x 0.25 (25%) building coverage ratio = 2,062.50 square feet of
maximum permissible building area. 2,062.50 maximum square feet of permissible
building area less 1,600 square feet of existing buildings = 462.50 additional permissible
square feet of building area.)
✔✔When the government exercises its right to restrict the land, this is known as -
✔✔police power.
,(Local power is not relevant to this question. Eminent domain refers to the government's
taking of someone's land. Police power is the government's right to restrict one's land.
This can be done on the local, state, or federal level. Zoning power has to do with
enforcing codes that were established by the local zoning board.)
✔✔Under New York State's anti-predatory law in 2003, FHA loans under $50,000 -
✔✔cannot have points and fees in excess of $1,500.
✔✔A grants to B the permission to use A's property to fish on one hot summer day. This
is referred to as a(n) - ✔✔license (An encumbrance is a burden on property that usually
runs with the land. It is an irrevocable right to use the land of another. Permission to use
the land of another is a license, which is revocable by the grantor at any time. An
easement is the right to use the land of another. An encroachment is a trespass by an
object, such as a building being built over a property line. A license is not an
encumbrance and gives temporary permission)
✔✔Which lease would likely have the lowest base rent? - ✔✔net-net-net
(A net-net-net lease requires the tenant to pay more of the cost of ownership separate
from the rent, so the base rent is typically lower.)
✔✔Informing clients on how to take title in real estate is - ✔✔unlawful practice of law.
(A real estate agent has a duty to inform the client that any questions dealing with title
possession should be discussed with the client's attorney, and that it is an illegal
practice to answer any question pertaining to law.)
✔✔When Louise paid off her mortgage, the lender was obligated to - ✔✔file a
satisfaction.
(Once a mortgage is paid in full, it is the obligation of the lender to file a satisfaction of
mortgage within 90 days of the paid balance.)
✔✔What are the three approaches to property valuation? - ✔✔Sales comparison, cost,
and income
✔✔The following occupations require a real estate salesperson's license EXCEPT -
✔✔in-house salesperson.
(Any person, firm, partnership, or corporation that negotiates any form of real estate
transaction must possess a salesperson's license. If the salesperson works for one
direct seller, as an employee, they are exempt.)
✔✔The day before his property was being auctioned off at a foreclosure sale, Peter
redeemed the property by - ✔✔equitable right of redemption.
(In New York, to save a property from going into foreclosure, the debtor has up to the
time of sale to redeem the property by paying the balance of the loan, plus all court
costs and any other accumulated fees. Statutory right of redemption gives the person
the same right, even after the sale of the property. New York does not allow statutory
, right of redemption. A deed in lieu of foreclosure is a way to avoid serious negative
credit standing by literally giving the deed to the property back to the bank before it
forecloses.)
✔✔The note that calls for periodic payments of the principal amount only, with a balloon
payment at the end of the loan term, is called a(n) - ✔✔installment note.
(The straight note calls for interest only; the amortized note is principal and interest.)
✔✔The federal Fair Housing Act of 1968 added what classes to the discrimination
laws? - ✔✔The federal Fair Housing Act of 1968 added what classes to the
discrimination laws?
✔✔Dwelling policies generally exclude - ✔✔water damage.
(While damage done by fire, wind, hail, or aircraft are usually covered in a dwelling
policy, water damage (including floods), sewer or drain back-ups, or ground seepage is
not typically covered in a dwelling policy.)
✔✔The loan officer took three mortgage applications for properties in poor
neighborhoods. The bank manager told him to give the applicants their money back,
because it was not worth doing those loans. Was this right or wrong? - ✔✔The lender
was guilty of redlining.
(Refusing to lend because of a neighborhood is considered Redlining and is a violation
of federal Fair Housing laws. RESPA is the Real Estate Settlement Procedures Act, and
is in regard to how the lender informs borrowers about the loan.)
✔✔A fee simple absolute estate is all of the following EXCEPT - ✔✔conditional.
(A fee simple absolute estate implies that there are no conditions on the deed.)
✔✔A section of land contains which of the following? - ✔✔640 acres
(An acre contains 43,560 square feet, which is equal to 160 square rods. A mile
contains 5,280 linear feet, which is equal to 1,760 yards or 320 rods. Each township
contains 36 sections. Each section is one square mile, or 640 acres.)
✔✔The owner of a parcel of real property wishes to convey his interest to a certain
buyer. The transfer of the grantor's ownership interest, if any, would be accomplished by
which of the following? - ✔✔Deed
Do not confuse title and deed. Title means ownership and a deed is not proof of
ownership of the property. A deed is just a written instrument transferring the grantor's
interest, if any, to the potential buyer.
✔✔The ability to convert an asset to cash quickly at any price is known as -
✔✔marketability
A marketable asset is easy to sell, but there's no guarantee that it won't be at the
expense of the principal.
QUESTIONS AND ANSWERS SURE A+
✔Virginia received a letter from the city, stating that her property value had increased
from $185,000 to $310,000 for assessment purposes. Virginia felt the assessment was
too high. Her first avenue of recourse was - ✔✔to see the assessor.
(When property owners don't agree with the value placed on their property for tax
purposes (assessment), their first step would be to make an appointment to see the
assessor of the municipality. If the assessor refuses to lower the assessment, their next
step would be the grievance board, then small claims court, and lastly, the next higher
court.)
✔✔The agency relationship between the agent and seller has been terminated because
the purpose was satisfied. Which fiduciary duties still apply? - ✔✔Confidentiality
✔✔A system used to describe real estate that includes feet, degrees, and natural
markers as monuments is called the - ✔✔metes and bounds.
(The rectangular survey system is also called the government survey, as it is used to
describe land acquired by the federal government. A recorded subdivision plat uses lot
and block numbers to describe land, and is recorded with the county where the property
is located. In a metes and bounds description, the surveyor describes the perimeter of
the subject property in terms of distance, direction, and boundaries.)
✔✔A property has been renting for $750 per month. Based on comparables, the GRM
is 110. What is the indicated value of the property? - ✔✔82,500 (The indicated value
using a GRM (Gross Rent Multiplier) is the monthly rent x GRM. In this case, $750 x
110 = $82,500.)
✔✔The victim of fraud has ___ years to file suit. - ✔✔5 (New York allows a specific time
limit of six years during which parties to contract may bring legal suit to enforce their
rights. The six-year period applies to contracts, foreclosures, mortgages, and cases of
fraud)
,✔✔The Uniform Settlement Statement, required by RESPA, must be used in which of
the following instances? - ✔✔Residential transactions financed by federally related
mortgage loans
(RESPA applies to all federally related residential mortgage loans except: 1. a loan on
property of 25 acres or more;2. a loan for business, commercial, or agricultural
purposes; 3. a temporary construction loan; 4. a loan on vacant land; 5. assumptions
without lender approval; 6. a conversion of a federally related mortgage loan to different
terms, if a new note is not required; and 7. transfer of a loan in the secondary market.)
✔✔In real estate transactions, a real estate sales person has a direct fiduciary
relationship to - ✔✔the sponsoring broker.
(While the sales person has a fiduciary duty to the broker's client, direct fiduciary duty is
owed to the sponsoring broker.)
✔✔Which mortgage has established loan limits that differ from county to county? -
✔✔FHA
(Many types of mortgages have established a maximum loan limit that applies
throughout the country. FHA has established maximum loan limits for one- to four-unit
properties for every county in the country.)
✔✔The Human Rights Law, also called the Executive Law, extends the protected
classes to include - ✔✔sexual orientation and military status.
(The Human Rights Law (Executive Law) extends protected classes beyond those
covered in the federal Fair Housing Act to include age, creed, marital status, sexual
orientation, and military status.)
✔✔What is NOT grounds for revocation or suspension of a license? - ✔✔Violation of
the Code of Ethics
(The Code of Ethics is a set of voluntary rules of conduct established by the National
Association of Realtors(R). The Federal Fair Housing Act and the Civil Rights Act of
1866 are both federal statutes, and a licensee in violation of Acts set forth in Article 12-
A is guilty of a misdemeanor.)
✔✔Joe and Mary want to add a recreation room onto their home. Their one-story home
and garage together cover 1,600 square feet of their 75 x 110 foot lot. If the local zoning
law limits building sizes to 25% of the land lot, what is the maximum square footage of
floor area that Joe and Mary can add to their home? - ✔✔462.5 (75 x 110 feet = 8,250
square feet of lot x 0.25 (25%) building coverage ratio = 2,062.50 square feet of
maximum permissible building area. 2,062.50 maximum square feet of permissible
building area less 1,600 square feet of existing buildings = 462.50 additional permissible
square feet of building area.)
✔✔When the government exercises its right to restrict the land, this is known as -
✔✔police power.
,(Local power is not relevant to this question. Eminent domain refers to the government's
taking of someone's land. Police power is the government's right to restrict one's land.
This can be done on the local, state, or federal level. Zoning power has to do with
enforcing codes that were established by the local zoning board.)
✔✔Under New York State's anti-predatory law in 2003, FHA loans under $50,000 -
✔✔cannot have points and fees in excess of $1,500.
✔✔A grants to B the permission to use A's property to fish on one hot summer day. This
is referred to as a(n) - ✔✔license (An encumbrance is a burden on property that usually
runs with the land. It is an irrevocable right to use the land of another. Permission to use
the land of another is a license, which is revocable by the grantor at any time. An
easement is the right to use the land of another. An encroachment is a trespass by an
object, such as a building being built over a property line. A license is not an
encumbrance and gives temporary permission)
✔✔Which lease would likely have the lowest base rent? - ✔✔net-net-net
(A net-net-net lease requires the tenant to pay more of the cost of ownership separate
from the rent, so the base rent is typically lower.)
✔✔Informing clients on how to take title in real estate is - ✔✔unlawful practice of law.
(A real estate agent has a duty to inform the client that any questions dealing with title
possession should be discussed with the client's attorney, and that it is an illegal
practice to answer any question pertaining to law.)
✔✔When Louise paid off her mortgage, the lender was obligated to - ✔✔file a
satisfaction.
(Once a mortgage is paid in full, it is the obligation of the lender to file a satisfaction of
mortgage within 90 days of the paid balance.)
✔✔What are the three approaches to property valuation? - ✔✔Sales comparison, cost,
and income
✔✔The following occupations require a real estate salesperson's license EXCEPT -
✔✔in-house salesperson.
(Any person, firm, partnership, or corporation that negotiates any form of real estate
transaction must possess a salesperson's license. If the salesperson works for one
direct seller, as an employee, they are exempt.)
✔✔The day before his property was being auctioned off at a foreclosure sale, Peter
redeemed the property by - ✔✔equitable right of redemption.
(In New York, to save a property from going into foreclosure, the debtor has up to the
time of sale to redeem the property by paying the balance of the loan, plus all court
costs and any other accumulated fees. Statutory right of redemption gives the person
the same right, even after the sale of the property. New York does not allow statutory
, right of redemption. A deed in lieu of foreclosure is a way to avoid serious negative
credit standing by literally giving the deed to the property back to the bank before it
forecloses.)
✔✔The note that calls for periodic payments of the principal amount only, with a balloon
payment at the end of the loan term, is called a(n) - ✔✔installment note.
(The straight note calls for interest only; the amortized note is principal and interest.)
✔✔The federal Fair Housing Act of 1968 added what classes to the discrimination
laws? - ✔✔The federal Fair Housing Act of 1968 added what classes to the
discrimination laws?
✔✔Dwelling policies generally exclude - ✔✔water damage.
(While damage done by fire, wind, hail, or aircraft are usually covered in a dwelling
policy, water damage (including floods), sewer or drain back-ups, or ground seepage is
not typically covered in a dwelling policy.)
✔✔The loan officer took three mortgage applications for properties in poor
neighborhoods. The bank manager told him to give the applicants their money back,
because it was not worth doing those loans. Was this right or wrong? - ✔✔The lender
was guilty of redlining.
(Refusing to lend because of a neighborhood is considered Redlining and is a violation
of federal Fair Housing laws. RESPA is the Real Estate Settlement Procedures Act, and
is in regard to how the lender informs borrowers about the loan.)
✔✔A fee simple absolute estate is all of the following EXCEPT - ✔✔conditional.
(A fee simple absolute estate implies that there are no conditions on the deed.)
✔✔A section of land contains which of the following? - ✔✔640 acres
(An acre contains 43,560 square feet, which is equal to 160 square rods. A mile
contains 5,280 linear feet, which is equal to 1,760 yards or 320 rods. Each township
contains 36 sections. Each section is one square mile, or 640 acres.)
✔✔The owner of a parcel of real property wishes to convey his interest to a certain
buyer. The transfer of the grantor's ownership interest, if any, would be accomplished by
which of the following? - ✔✔Deed
Do not confuse title and deed. Title means ownership and a deed is not proof of
ownership of the property. A deed is just a written instrument transferring the grantor's
interest, if any, to the potential buyer.
✔✔The ability to convert an asset to cash quickly at any price is known as -
✔✔marketability
A marketable asset is easy to sell, but there's no guarantee that it won't be at the
expense of the principal.
