NYREI PRACTICE EXAM QUESTIONS WITH ANSWERS LATEST UPDATE 2024/2025 (100% CORRECT ANSWERS)

For the income approach to appraisal, value is a reference to what? - ANSWER the worth of the investment Which method of property description is most frequently used in New York State? - ANSWER Metes and bounds One important characteristic of investing caused Bill to invest in certificates of deposit rather than real estate. Bill was concerned with - ANSWER liquidity. Who sets the legal description? - ANSWER surveyor Dwelling policies generally exclude - ANSWER water damage. John is gathering up his paperwork to complete his income taxes. His home expenses include: Mortgage interest / month = $520; Property taxes = $3,280; New deck = $5,300. What is the total deduction John can take for the year? - ANSWER $9,520 Broker Sam told the seller that her listing contract would automatically renew after the expiration date of June 1st. One June 2nd, the seller listed with another agency. Sam's statement had no effect because - ANSWER New York prohibits automatic extensions of listings. Effective gross income best describes - ANSWER gross income minus a figure for vacancy and collection losses. A lease temporarily transfers the rights of property from the _________ to the ________. - ANSWER lessor / lessee When showing a downtown condominium, a licensee brags, "This unit probably has the best view of Lake Michigan in the whole city!" Would this statement have legal consequences? - ANSWER No, this is puffing and is the agent's opinion The Division of Licensing Service may suspend or revoke a sales license on the basis of which of the following? - ANSWER All of the above Alfred and Allie buy a 10-year-old home and have it tested for radon prior to closing. The test results in an average reading of 4.8 pCi/L. Under federal law, is NYREI PRACTICE EXAM QUESTIONS WITH ANSWERS LATEST UPDATE 2024/2025 (100% CORRECT ANSWERS) GRADED the seller required to mitigate the home? - ANSWER No, unless agreed upon in the contract between buyer and seller. The best way to create an agency relationship is by - ANSWER written agreement. The day before his property was being auctioned off at a foreclosure sale, Peter redeemed the property by - ANSWER equitable right of redemption. The Santiagos placed their home on the market for $100,000. The price it sold for was $99,000. What was the market price? - ANSWER 99000 The type of legal description that references a plat of subdivision is - ANSWER the section/block and lot method. During a phone call, a salesperson discusses showing a property to a prospect. Three days later, the agent shows the property; at that time the customer reveals her financial abilities and motivation. Three days after that, the agent prepares her offer; he asks the buyer to sign an agency disclosure statement stating he represents the seller. When should the agent have disclosed this fact? - ANSWER Before showing the house Broker Bruce, on behalf of his client, Jim, who wanted to buy a vacant lot from Tom, submits to Tom a purchase and sale agreement signed by Jim and stipulating a price of $25,000, a sales commission of 6%, and closing within 90 days. Tom accepts the price, changes the commission rate to 5%, the closing period to 45 days, initials the changes, then signs and returns the contract to Broker Bruce who gives it to Jim. Is the contract valid? - ANSWER No, because there was no meeting of the minds. Mrs. Wilson hired a carpenter to fix some items around her house. His estimate was $875 for the entire job. Which of the following requirements was the carpenter bound to regarding his work? - ANSWER Both B and C A CMA is prepared to estimate the likely sale price of a property. This analysis is based on the - ANSWER market data approach. Bill has a right of way through his neighbor's property. What type of easement would Bill receive? - ANSWER Easement appurtenant What are the three approaches to real estate value? - ANSWER The sales comparison approach, the income approach, and the cost approach An amenity's market value is a reflection of - ANSWER what a typical buyer would pay for the item The term "right of survivorship" is closely associated with a - ANSWER joint tenancy. An agency agreement that allows the sellers to procure the buyer themselves best describes a(n) - ANSWER exclusive agency. Which of the following liens expire one year after filing? - ANSWER Mechanic's lien A real estate salesperson says, "I hear that a large group of minorities is moving into the neighborhood. It may be time to move before your property value decreases." This is an example of - ANSWER blockbusting Jahred sold an investment property he purchased three years before for $275,000. He lived in the home for one year, made $45,000 worth of improvements, and paid a broker a 5% commission for selling it for $400,000. What was his capital gain? - ANSWER 60,000 From an investment standpoint it is usually the best idea, based on the theory of progression and recession, to buy the - ANSWER cheapest house on the block. Construction loans usually have two closings: one for the actual construction and one for the full amortization of the loan. Which one is generally interest only? - ANSWER The construction portion of the loan If a developer would like to finance a subdivision, he would most likely use a - ANSWER blanket mortgage An anchor store at the mall pays a fixed monthly rent and a portion of its gross sales. What type of lease is this? - ANSWER Percentage lease A sales agent is showing a married couple a one-bedroom apartment, but informs them that the unit is not available for them because it is reserved for singles only. Which statute has the agent violated? - ANSWER None of the above No matter what type of property is being sold, the agent is obligated to make clear who he represents. This is noted in - ANSWER Regulation 175.7 of Article 12A. Mr. and Mrs. Bruger did not like their roofer's workmanship and refused to pay him half of the $15,000 bill. What avenue could the roofer pursue? - ANSWER Mechanic's lien Those who complete training courses offered by BOMA are - ANSWER RPAs (Real Property Administrators). A group of New York City neighbors wants to get a theater on their block designated as a landmark. How old must that theater be? - ANSWER 30 Of the following types of real estate, which is an example of special-purpose real estate? - ANSWER A public library