duane1024/newyork_real_estate_salesperson_practice_exam

Question stringlengths 14 238	Option A stringlengths 2 127	Option B stringlengths 2 105	Option C stringlengths 2 105	Option D stringlengths 2 136 ⌀	Answer stringclasses 10 values
Which of the following statements about license laws is INCORRECT?	License laws are an exercise of the police power of the state.	The purpose of the license laws is to protect the general public.	Obtaining a license is a privilege, not an automatic right.	The federal government establishes the license	d
In New York, an individual may obtain a salesperson license at age:	17	18	19	21	b
A salesperson licensee may receive commissions from the:	cooperating broker	buyer	employing broker	seller	c
Which of the following does NOT apply to a salesperson's license? It:	is maintained by the broker with whom the salesperson is associated	need not be prominently displayed by the broker	authorizes the salesperson to work under the supervision a broker; not independently	authorizes the salesperson to work in a reciprocal state without broker sponsorship	d
A listing contract that gives the broker commission entitlement if anyone sells the property during the listing term is:	an exclusive-right-to-sell	open	exclusive agency	net	a
A real estate salesperson advises a prospective buyer that the property the buyer is considering will be annexed into the city limits. This disclosure constitutes:	disloyalty to principal	misrepresentation	required disclosure to buyer	violation of disclosure of information by agent	c
Knowing that his client, the owner, is eager to sell, the salesperson suggests that the prospective buyer make an offer of $210,000. Which of the following statements is CORRECT?	The salesperson is violating his obligation as a special agent.	Because the salesperson knows the owner is eager to sell, he is acting correctly.	The salesperson is violating his obligations as a universal agent.	The prospective buyer can be found guilty of conversion.	a
Within a ten-minute period, a salesperson receives two offers for a listed property. One is 2 percent less than the listed price, and the other offer is 6 percent less than the listed price. The salesperson should present to the seller:	neither offer	both offers	the highest ofter only	the lowest offer only if requested by the seller	b
In an independent contractor relationship, the salesperson is entitled to:	compensation related directly to sales output	health benefits	compensation based on hours worked	paid vacations	a
According to the Real Property Law, a broker may:	not accept compensation from more than one party to a transaction	accept compensation directly from a principal only	not split commissions with brokers from other states	accept compensation from more than one party to a transaction only with the full knowledge and consent of all parties to the transaction	d
An agent is a:	client	principal	fiduciary	contractor	_
An owner lists her property with three brokerage firms. In each case, she retains the right to sell the property herself without being obligated to pay a commission. The type of listing contract is called:	exclusive-right-to-sell	open	multiple	net	b
A listing contract creates an agency relationship in which the:	broker is a general agent	seller is the principal	seller is a general agent	broker is the principal	b
The type of listing that ensures the real estate agent a commission if the agent sells the property and no commission if the seller sells the property is called a(n):	net listing	exclusive-right-to-sell listing	exclusive agency	multiple listing	c
A real estate agent or a seller concealing a known defect is an example of:	positive misrepresentation	unintentional misrepresentation	mutual mistake	mistake of law	a
When a real estate firm attempts to represent the buyer and the seller in the same transac-tion, what type of agency has arisen?	Single agency	Dual agency	Broker agency	Seller agency	b
According to the New York Real Property Law, listing agreements for one- to four-unit residential property and residential condominiums and cooperatives in any size building must be accompanied by an):	agency disclosure form	exclusive right to sell agreement	payment of a partial fee or commission to the listing agent	informed consent to dual agency form	a
The owner of real property may NOT hold title as a(n):	tenant in common	lessee	owner in severalty	joint tenant	b
An estate created for the life of a person other than the life tenant is called a life estate:	in remainder	pur autre vie	by dower	in reversion	b
Ursula owns property with Dick and Judy. If Ursula dies, she plans to leave her ownership interest to her husband Kyle. Ursula is a(n):	joint tenant	tenant by the entirety	tenant in common	owner in severalty	c
A piece of personal property that has become real property by permanent attachment is called an):	fixture	trade fixture	chattel	encumbrance	a
Which of the following statements is CORRECT? An easement:	and a lien are one and the same	in gross has no servient tenement	is a fixture to real estate	appurtenant can be obtained by necessity	d
Liens that have the highest priority are:	real property tax liens	judgment liens	income tax liens	mortgage liens	a
A deed that provides the grantee with the greatest assurance of title is:	bargain and sale deed	deed of gift	full covenant and warranty deed	grant deed	_
A benefit of recording a deed is it:	prevents any liens from being filed against the property	protects the grantee against the grantee's creditors	protects the grantee against future conveyances by the grantor	makes a mortgage lien subordinate	_
Of the following types of deeds, which provides the grantee with the least assurance of title?	Bargain and sale	Quitclaim	Grant	Full covenant and warranty	b
A buyer purchased a rental property and closed the transaction on July 20. On July 1, the tenant had paid $540 rent for the month of July. The rent should be shown as a:	debit to buyer of $180	debit to seller of $180	debit to seller of $360	credit to buyer of $360	b
The amount of the earnest money deposit appears on closing statement as a:	credit to buyer	debit to seller	credit to seller	debit to buyer	a
A lease does NOT provide:	legal title to the property	equitable title to the property for the duration of the lease	exclusive right to possession and control of the property	quiet enjoyment of the property during the term of the lease	a
Which clause in an offer to purchase protects buyers from losing their earnest money if financing is not obtained?	Habendum	Contingency	Defeasance	Subordination	b
Sara Seller is satisfied with all of the terms of an offer from Bill Buyer to purchase her property except the date of possession, which she changes from April 9 to April 10. Which of the following is CORRECT?	Saras acceptance creates a valid contract.	Sara cannot make a counteroffer.	The contract is void.	Sara has counteroffered.	d
A real estate salesperson who prepares a fill-in-the-blanks contract of sale can avoid the unlawful practice of law:	if he makes disclosure and obtains informed consent from all parties	if he is a notary public	by including in the contract a condition making the contract subject to approval by each party's attorney	if he allows his broker to review the contract before the parties sign it	c
The main purpose of a mortgage is to:	secure the payment of a note	convey a title to the trustee	provide for equity of redemption	prevent assumption	a
The acceleration clause in a mortgage provides for:	equity of redemption	the right of the lender to require immediate payment of principal balance when the borrower is in default	alienation by the borrower	null	_
A lien that has priority over mortgage foreclosure sale proceeds is a(n):	mortgage lien	income tax lien	real property tax lien	mechanic's lien	c
All About Mortgage Company encouraged Tim and Harriet to finance a $200,000 mortgage based on their acquisition of some valuable antiques. Neither of them is employed, and they have limited savings. The lender's activity is an example of:	good lending practices	predatory lending	chattel financing	participation mortgaging	b
The mortgagee is the:	lender	borrower	escrow agent	purchaser	a
A mortgage that is subordinate to another mortgage is a:	first mortgage	junior mortgage	mortgage satisfaction	negative amortization	b
A blanket mortgage usually contains a:	closed-end clause	release clause	forbearance	due-on-sale clause	b
The regulation of advertisement of credit terms available for residential property offered for sale is governed by:	Freddie Mac	Fannie Mae	Equal Credit Opportunity Act	Regulation Z	d
Which of the following statements about zoning is CORRECT?	Spot zoning is illegal in New York.	If a nonconforming structure is destroyed, it may be replaced by another noncon-forming structure.	All nonconforming uses are illegal.	A preexisting nonconforming use requires a variance.	_
Deed restrictions enforced by a suit for damages or by an injunction are:	conditions	conveyances	covenants	considerations	_
A property owner in a recently zoned area is permitted to continue to use her property in a way that does not comply with zoning requirements. This use is described as:	spot zoning	deviation	nonconforming use	private control of land use	c
The state takes part of an owner's property for construction of a building. Which of the following statements about this event is CORRECT? The:	property owner must be compensated for the difference in market value of the property before and after the partial condemnation	building to be constructed may be used for the sole use and benefit of a private corporation	property owner has no recourse to challenge the state's taking his property	value established is the average of the owner's desired value, the states desired purchase price, and an independent appraisal	a
Guidelines for safe and sanitary well water are provided in New York by the:	Department of State	Department of Energy	Department of Health	Office of General Services	c
The most important foundation building block is the:	lally column	concrete slab	footing	foundation wall	_
The most common type of framing in residential construction is:	platform framing	post-and-beam framing	ridge form framing	balloon framing	a
The amount of current or electricity that flows through a wire is:	voltage	kilowatt strength	electromagnetic field	amperage	d
A substance containing fibrous particles that can irritate the lungs is:	radon	Freon™	chlordane	asbestos	d
The importance of the NYS Environmental Quality Review Act is that it provides:	funding for environmental projects	review of safe drinking water	radon contingencies in real estate contracts	environmental impact statements	d
The Residential Lead-Based Paint Hazard Reduction Act sets procedures in disclosing the presence of lead in:	residential properties built before 1978	all residential properties offered for sale	new residential construction only	residential properties built before 1998	a
A colorless, odorless gas that enters the home through surrounding soil and may cause lung cancer is:	lead	Puron™	radon	krypton	c
Comparative market analyses are based on the premise that:	many properties are exactly alike	no two properties are exactly alike	many properties are similar in quality, location, and utility	the law of supply and demand governs comparable property selection	c
An arm's length transaction implies:	buyers and sellers who are not related to each other	buyers and sellers who are related to another	commercial transactions only	a form of adjustable rate mortgage financing	a
The value of a property based on its utility to the owner or investor is:	value in use	insurance value	mortgage loan value	assessed value	a
Which appraisal approach to value is most similar to a comparative market analysis?	Cost approach	Income approach	Highest and best use analysis	Sales comparison approach	d
Inducing an owner to list property by telling the owner that people of a certain national origin are moving into the neighborhood is called:	steering	redlining	blockbusting	profiteering	c
Which of the following does NOT cause exemptions to the Fair Housing Act of 1968 to be lost? Use of:	discriminatory advertising	a broker	a sign that states "Room for Rent"	a REALTOR®	c
Which of the following is NOT exempt under the NYS Human Rights Law? The:	sale of a single-family house by the owner	rental of a duplex by an owner who resides in the other unit	rental of rooms in a single-family house when the rental is made by a resident owner	rental of apartments in a building exclusively to people 55 years and older	a
Redlining applies to:	brokers	lenders	developers	landlords	b
Which of the following is NOT covered under NYS Human Rights Law?	Discrimination in the sale or rental of commercial space	Age as a protected class	Military status as a protected class	Citizenship status as a protected class	d
The Supreme Court case Brown v. the Board of Education was important because it:	found that separate but equal facilities are unequal	formed the basis of the Americans with Disabilities Act	ruled that antitrust activities are illegal	ruled that block-by-block zoning is discriminatory	a
Miranda realized $70,000 for the sale of her house after paying off a $93,000 mortgage, a 10 percent commission, and $4,000 in closing costs. What was the selling price of her house?	$183,700	$185,555.55	$186,765	$189,567.45	b
Marcie wants to purchase a strip of beachfront property that measures 300 feet by 5,280 feet. How many acres is she considering?	36.36	41	45.9	49	a
Katherine is proposing a 100-unit townhouse subdivision in which the land is partially a wetland. Who should Katherine consult first?	Architectural review board	Village engineer	Conservation advisory council	Local planning board	c
The zoning board of appeals:	creates zoning ordinances	grants variances	provides municipal planning	creates cease-and-desist zones	b
Architectural review boards CANNOT:	review building plans and specifications	withhold approval of building permits	approve new construction and remodeling following local zoning ordinances	approve spot zoning	d
Monica files a claim against Jesse because she tripped and fell on Jesses property while visiting him. Which type of insurance should Jesse have to best cover this claim?	Replacement cost	Actual cost	Liability insurance	Workers compensation	c
A type of insurance policy that includes different types of coverage in one policy is an):	package policy	umbrella policy	market value policy	personal policy	a
New York insurers must provide a disclosure notice in homeowners policies for which deductible?	Flood	Earthquake	Ice storm	Windstorm	d
Which of the following groups is NOT eligible for a real property tax exemption?	Senior citizens	People with disabilities	Veterans	Students	d
A tax bill is computed by multiplying the:	assessed value by the tax levy	assessed value by the tax rate	equalization rate by the residential assessment ratio	level of assessment by the tax levy	b
If a taxpayer is delinquent in paying property taxes, the taxing jurisdiction initiates a:	tax easement	judgment	tax lien	certiorari proceeding	c
Angelina's tax bill is $15,700, and her tax rate is 0.03578. What is the assessed value of her property (rounded)?	$438,793	$478,640	$483,245	$490,723	a
An agreement that outlines the responsibilities between the cooperative corporation and a lender is a(n):	alteration agreement	declaration	letter of intent	recognition agreement	d
The only real property interest that shareholders have in a cooperative is a:	freehold	leasehold	fee simple absolute	fee simple defeasible	b
In a new condominium development, the obligations of the sponsor are stated in the:	alteration agreement	deed restrictions	letter of intent	offering plan	d
Lola's cooperative does not permit her to wear shorts while waiting for friends in the lobby. This prohibition is an example of:	house rules	bylaws	restrictive covenants	a building permit	a
Alexander wants to tear down a wall between two of his bedrooms and make one larger bedroom in his cooperative apartment. What type of agreement must Alexander enter into with the cooperative?	Recognition	Black book	Alteration	Declaration	c
A board package consists mostly of:	personal family data	financial information	cooperative rules and regulations	an applicants reasons for buying into the cooperative	b
If the annual net income for a property is $670,000 and the capitalization rate is 9 per-cent, which of the following is the estimate of property value (rounded)?	$6,275,000	$7,230,444	$7,346,794	$7,444,444	d
A clause in a commercial lease that states that the landlord's lender and future owners of the building cannot terminate the lease as long as the tenant fulfills lease obligations is a(n):	nondisturbance	subordination	adornment	estoppel	a
A natural break-even point defines:	when the investment should be sold	the point at which the investor should borrow more money	when an investment will generate a positive return	when the investment should be terminated	_
Lynne purchases a $2,500,000 multi-family apartment complex with a $600,000 down payment. Each month the cash flow from rentals, less expenses, is $20,000. Over a year's time, the cash-on-cash return would be:	25 percent	40 percent	50 percent	60 percent	b
Patrick owns a six-unit building with a gross income of $175,000 per year. His expenses total $45,000. What is his net return or cash flow?	$100,000	$105,000	$125,000	$130,000	d
A disadvantage of investment in land is that:	the taxes are always higher than in other investment types	it is always more costly than other investment types	since there are no improvements on the land, the property cannot be depreciated for tax purposes	land loses its value more rapidly than other investment types	c
The profit from income-producing property, less income taxes, is the property's:	after-tax cash flow	before-tax cash flow	cash-on-cash return	capitalization rate	a
Which of the following is TRUE?	The usable square footage is equal to the rentable square footage.	The rentable square footage equals the entire space including the usable square footage.	All of the rentable square footage in a space is generally usable.	The property owner always charges rent only for the usable square footage.	b
Retta, the property owner, pays a predetermined amount for property expenses. The tenant, Herbert, pays expenses above that amount. This is an example of a(n):	subordinate lease	gross lease	percentage lease	expense stop lease	d
When a leased space is sublet, who is responsible for the lease payment?	Lessee	Sublessee	Lessor	Assignee	a
A type of lease that provides for escalated rent based on an economic indicator is a (an):	estoppel	expense stop	index	attornment	c
Which of the following is FALSE regarding tax depreciation?	It is a deductible allowance from the net income of a property for tax purposes.	The property being depreciated actually may appreciate in value.	It results from physical deterioration caused by normal use of the property.	It is an accounting concept.	c
Lanni and Tom are married and sell their primary residence for a profit of $325,000. Which of the following is TRUE regarding the sale? They:	must pay a 15 percent capital gains tax	must pay a 20 percent capital gains tax	must pay a 33 percent capital gains tax	pay no capital gains tax	d
Abby wants to exchange her personal residence for a two-family income property and qualify the exchange for a tax- deferred 1031 exchange. Under what circumstances does this transaction qualify under IRS rules? It:	does not qualify	qualifies as long as other conditions for the exchange are met	qualifies if the exchange is made in the same tax year	qualifies as long as Abby identifies the two-family property within 45 days of the personal residence sales contract	a
According to IRS rules, which of the following is NOT a deductible expense in connection with home purchase and improvement?	Points	Mortgage interest	Home improvement loan interest	The cost of the appraisal	d
Joseph is a mortgage broker who represents the buyers and also a real estate broker who represents the sellers in the same residential real estate transaction. Joseph is a:	designated agent	dual agent	broker's agent	mortgage agent	b
A mortgage broker's license is issued by the:	Department of State	Department of Consumer Affairs	NYS Department of Financial Services	Attorney General's Office	c
Joyce is employed as a property manager for Lifetime Properties to perform only the maintenance work on a residential building. What kind of license does she require?	No license	A minimum of a salesperson license	A real estate broker license	An apartment information vendor's license	a
Expenses for week-to-week operations in a building are included in which type of budget?	Stabilized	Variable	Operating	Fixed	c
The most important consideration regarding safety measures while showing vacant and isolated property is to:	establish a firm asking price before showing it	have the property inspected first	bring your prospects with you in your car	not show it alone	d

Which of the following statements about license laws is INCORRECT?

License laws are an exercise of the police power of the state.

The purpose of the license laws is to protect the general public.

Obtaining a license is a privilege, not an automatic right.

The federal government establishes the license

d

In New York, an individual may obtain a salesperson license at age:

17

18

19

21

b

A salesperson licensee may receive commissions from the:

cooperating broker

buyer

employing broker

seller

c

Which of the following does NOT apply to a salesperson's license? It:

is maintained by the broker with whom the salesperson is associated

need not be prominently displayed by the broker

authorizes the salesperson to work under the supervision a broker; not independently

authorizes the salesperson to work in a reciprocal state without broker sponsorship

d

A listing contract that gives the broker commission entitlement if anyone sells the property during the listing term is:

an exclusive-right-to-sell

open

exclusive agency

net

a

A real estate salesperson advises a prospective buyer that the property the buyer is considering will be annexed into the city limits. This disclosure constitutes:

disloyalty to principal

misrepresentation

required disclosure to buyer

violation of disclosure of information by agent

c

Knowing that his client, the owner, is eager to sell, the salesperson suggests that the prospective buyer make an offer of $210,000. Which of the following statements is CORRECT?

The salesperson is violating his obligation as a special agent.

Because the salesperson knows the owner is eager to sell, he is acting correctly.

The salesperson is violating his obligations as a universal agent.

The prospective buyer can be found guilty of conversion.

a

Within a ten-minute period, a salesperson receives two offers for a listed property. One is 2 percent less than the listed price, and the other offer is 6 percent less than the listed price. The salesperson should present to the seller:

neither offer

both offers

the highest ofter only

the lowest offer only if requested by the seller

b

In an independent contractor relationship, the salesperson is entitled to:

compensation related directly to sales output

health benefits

compensation based on hours worked

paid vacations

a

According to the Real Property Law, a broker may:

not accept compensation from more than one party to a transaction

accept compensation directly from a principal only

not split commissions with brokers from other states

accept compensation from more than one party to a transaction only with the full knowledge and consent of all parties to the transaction

d

An agent is a:

client

principal

fiduciary

contractor

_

An owner lists her property with three brokerage firms. In each case, she retains the right to sell the property herself without being obligated to pay a commission. The type of listing contract is called:

exclusive-right-to-sell

open

multiple

net

b

A listing contract creates an agency relationship in which the:

broker is a general agent

seller is the principal

seller is a general agent

broker is the principal

b

The type of listing that ensures the real estate agent a commission if the agent sells the property and no commission if the seller sells the property is called a(n):

net listing

exclusive-right-to-sell listing

exclusive agency

multiple listing

c

A real estate agent or a seller concealing a known defect is an example of:

positive misrepresentation

unintentional misrepresentation

mutual mistake

mistake of law

a

When a real estate firm attempts to represent the buyer and the seller in the same transac-tion, what type of agency has arisen?

Single agency

Dual agency

Broker agency

Seller agency

b

According to the New York Real Property Law, listing agreements for one- to four-unit residential property and residential condominiums and cooperatives in any size building must be accompanied by an):

agency disclosure form

exclusive right to sell agreement

payment of a partial fee or commission to the listing agent

informed consent to dual agency form

a

The owner of real property may NOT hold title as a(n):

tenant in common

lessee

owner in severalty

joint tenant

b

An estate created for the life of a person other than the life tenant is called a life estate:

in remainder

pur autre vie

by dower

in reversion

b

Ursula owns property with Dick and Judy. If Ursula dies, she plans to leave her ownership interest to her husband Kyle. Ursula is a(n):

joint tenant

tenant by the entirety

tenant in common

owner in severalty

c

A piece of personal property that has become real property by permanent attachment is called an):

fixture

trade fixture

chattel

encumbrance

a

Which of the following statements is CORRECT? An easement:

and a lien are one and the same

in gross has no servient tenement

is a fixture to real estate

appurtenant can be obtained by necessity

d

Liens that have the highest priority are:

real property tax liens

judgment liens

income tax liens

mortgage liens

a

A deed that provides the grantee with the greatest assurance of title is:

bargain and sale deed

deed of gift

full covenant and warranty deed

grant deed

_

A benefit of recording a deed is it:

prevents any liens from being filed against the property

protects the grantee against the grantee's creditors

protects the grantee against future conveyances by the grantor

makes a mortgage lien subordinate

_

Of the following types of deeds, which provides the grantee with the least assurance of title?

Bargain and sale

Quitclaim

Grant

Full covenant and warranty

b

A buyer purchased a rental property and closed the transaction on July 20. On July 1, the tenant had paid $540 rent for the month of July. The rent should be shown as a:

debit to buyer of $180

debit to seller of $180

debit to seller of $360

credit to buyer of $360

b

The amount of the earnest money deposit appears on closing statement as a:

credit to buyer

debit to seller

credit to seller

debit to buyer

a

A lease does NOT provide:

legal title to the property

equitable title to the property for the duration of the lease

exclusive right to possession and control of the property

quiet enjoyment of the property during the term of the lease

a

Which clause in an offer to purchase protects buyers from losing their earnest money if financing is not obtained?

Habendum

Contingency

Defeasance

Subordination

b

Sara Seller is satisfied with all of the terms of an offer from Bill Buyer to purchase her property except the date of possession, which she changes from April 9 to April 10. Which of the following is CORRECT?

Saras acceptance creates a valid contract.

Sara cannot make a counteroffer.

The contract is void.

Sara has counteroffered.

d

A real estate salesperson who prepares a fill-in-the-blanks contract of sale can avoid the unlawful practice of law:

if he makes disclosure and obtains informed consent from all parties

if he is a notary public

by including in the contract a condition making the contract subject to approval by each party's attorney

if he allows his broker to review the contract before the parties sign it

c

The main purpose of a mortgage is to:

secure the payment of a note

convey a title to the trustee

provide for equity of redemption

prevent assumption

a

The acceleration clause in a mortgage provides for:

equity of redemption

the right of the lender to require immediate payment of principal balance when the borrower is in default

alienation by the borrower

null

_

A lien that has priority over mortgage foreclosure sale proceeds is a(n):

mortgage lien

income tax lien

real property tax lien

mechanic's lien

c

All About Mortgage Company encouraged Tim and Harriet to finance a $200,000 mortgage based on their acquisition of some valuable antiques. Neither of them is employed, and they have limited savings. The lender's activity is an example of:

good lending practices

predatory lending

chattel financing

participation mortgaging

b

The mortgagee is the:

lender

borrower

escrow agent

purchaser

a

A mortgage that is subordinate to another mortgage is a:

first mortgage

junior mortgage

mortgage satisfaction

negative amortization

b

A blanket mortgage usually contains a:

closed-end clause

release clause

forbearance

due-on-sale clause

b

The regulation of advertisement of credit terms available for residential property offered for sale is governed by:

Freddie Mac

Fannie Mae

Equal Credit Opportunity Act

Regulation Z

d

Which of the following statements about zoning is CORRECT?

Spot zoning is illegal in New York.

If a nonconforming structure is destroyed, it may be replaced by another noncon-forming structure.

All nonconforming uses are illegal.

A preexisting nonconforming use requires a variance.

_

Deed restrictions enforced by a suit for damages or by an injunction are:

conditions

conveyances

covenants

considerations

_

A property owner in a recently zoned area is permitted to continue to use her property in a way that does not comply with zoning requirements. This use is described as:

spot zoning

deviation

nonconforming use

private control of land use

c

The state takes part of an owner's property for construction of a building. Which of the following statements about this event is CORRECT? The:

property owner must be compensated for the difference in market value of the property before and after the partial condemnation

building to be constructed may be used for the sole use and benefit of a private corporation

property owner has no recourse to challenge the state's taking his property

value established is the average of the owner's desired value, the states desired purchase price, and an independent appraisal

a

Guidelines for safe and sanitary well water are provided in New York by the:

Department of State

Department of Energy

Department of Health

Office of General Services

c

The most important foundation building block is the:

lally column

concrete slab

footing

foundation wall

_

The most common type of framing in residential construction is:

platform framing

post-and-beam framing

ridge form framing

balloon framing

a

The amount of current or electricity that flows through a wire is:

voltage

kilowatt strength

electromagnetic field

amperage

d

A substance containing fibrous particles that can irritate the lungs is:

radon

Freon™

chlordane

asbestos

d

The importance of the NYS Environmental Quality Review Act is that it provides:

funding for environmental projects

review of safe drinking water

radon contingencies in real estate contracts

environmental impact statements

d

The Residential Lead-Based Paint Hazard Reduction Act sets procedures in disclosing the presence of lead in:

residential properties built before 1978

all residential properties offered for sale

new residential construction only

residential properties built before 1998

a

A colorless, odorless gas that enters the home through surrounding soil and may cause lung cancer is:

lead

Puron™

radon

krypton

c

Comparative market analyses are based on the premise that:

many properties are exactly alike

no two properties are exactly alike

many properties are similar in quality, location, and utility

the law of supply and demand governs comparable property selection

c

An arm's length transaction implies:

buyers and sellers who are not related to each other

buyers and sellers who are related to another

commercial transactions only

a form of adjustable rate mortgage financing

a

The value of a property based on its utility to the owner or investor is:

value in use

insurance value

mortgage loan value

assessed value

a

Which appraisal approach to value is most similar to a comparative market analysis?

Cost approach

Income approach

Highest and best use analysis

Sales comparison approach

d

Inducing an owner to list property by telling the owner that people of a certain national origin are moving into the neighborhood is called:

steering

redlining

blockbusting

profiteering

c

Which of the following does NOT cause exemptions to the Fair Housing Act of 1968 to be lost? Use of:

discriminatory advertising

a broker

a sign that states "Room for Rent"

a REALTOR®

c

Which of the following is NOT exempt under the NYS Human Rights Law? The:

sale of a single-family house by the owner

rental of a duplex by an owner who resides in the other unit

rental of rooms in a single-family house when the rental is made by a resident owner

rental of apartments in a building exclusively to people 55 years and older

a

Redlining applies to:

brokers

lenders

developers

landlords

b

Which of the following is NOT covered under NYS Human Rights Law?

Discrimination in the sale or rental of commercial space

Age as a protected class

Military status as a protected class

Citizenship status as a protected class

d

The Supreme Court case Brown v. the Board of Education was important because it:

found that separate but equal facilities are unequal

formed the basis of the Americans with Disabilities Act

ruled that antitrust activities are illegal

ruled that block-by-block zoning is discriminatory

a

Miranda realized $70,000 for the sale of her house after paying off a $93,000 mortgage, a 10 percent commission, and $4,000 in closing costs. What was the selling price of her house?

$183,700

$185,555.55

$186,765

$189,567.45

b

Marcie wants to purchase a strip of beachfront property that measures 300 feet by 5,280 feet. How many acres is she considering?

36.36

41

45.9

49

a

Katherine is proposing a 100-unit townhouse subdivision in which the land is partially a wetland. Who should Katherine consult first?

Architectural review board

Village engineer

Conservation advisory council

Local planning board

c

The zoning board of appeals:

creates zoning ordinances

grants variances

provides municipal planning

creates cease-and-desist zones

b

Architectural review boards CANNOT:

review building plans and specifications

withhold approval of building permits

approve new construction and remodeling following local zoning ordinances

approve spot zoning

d

Monica files a claim against Jesse because she tripped and fell on Jesses property while visiting him. Which type of insurance should Jesse have to best cover this claim?

Replacement cost

Actual cost

Liability insurance

Workers compensation

c

A type of insurance policy that includes different types of coverage in one policy is an):

package policy

umbrella policy

market value policy

personal policy

a

New York insurers must provide a disclosure notice in homeowners policies for which deductible?

Flood

Earthquake

Ice storm

Windstorm

d

Which of the following groups is NOT eligible for a real property tax exemption?

Senior citizens

People with disabilities

Veterans

Students

d

A tax bill is computed by multiplying the:

assessed value by the tax levy

assessed value by the tax rate

equalization rate by the residential assessment ratio

level of assessment by the tax levy

b

If a taxpayer is delinquent in paying property taxes, the taxing jurisdiction initiates a:

tax easement

judgment

tax lien

certiorari proceeding

c

Angelina's tax bill is $15,700, and her tax rate is 0.03578. What is the assessed value of her property (rounded)?

$438,793

$478,640

$483,245

$490,723

a

An agreement that outlines the responsibilities between the cooperative corporation and a lender is a(n):

alteration agreement

declaration

letter of intent

recognition agreement

d

The only real property interest that shareholders have in a cooperative is a:

freehold

leasehold

fee simple absolute

fee simple defeasible

b

In a new condominium development, the obligations of the sponsor are stated in the:

alteration agreement

deed restrictions

letter of intent

offering plan

d

Lola's cooperative does not permit her to wear shorts while waiting for friends in the lobby. This prohibition is an example of:

house rules

bylaws

restrictive covenants

a building permit

a

Alexander wants to tear down a wall between two of his bedrooms and make one larger bedroom in his cooperative apartment. What type of agreement must Alexander enter into with the cooperative?

Recognition

Black book

Alteration

Declaration

c

A board package consists mostly of:

personal family data

financial information

cooperative rules and regulations

an applicants reasons for buying into the cooperative

b

If the annual net income for a property is $670,000 and the capitalization rate is 9 per-cent, which of the following is the estimate of property value (rounded)?

$6,275,000

$7,230,444

$7,346,794

$7,444,444

d

A clause in a commercial lease that states that the landlord's lender and future owners of the building cannot terminate the lease as long as the tenant fulfills lease obligations is a(n):

nondisturbance

subordination

adornment

estoppel

a

A natural break-even point defines:

when the investment should be sold

the point at which the investor should borrow more money

when an investment will generate a positive return

when the investment should be terminated

_

Lynne purchases a $2,500,000 multi-family apartment complex with a $600,000 down payment. Each month the cash flow from rentals, less expenses, is $20,000. Over a year's time, the cash-on-cash return would be:

25 percent

40 percent

50 percent

60 percent

b

Patrick owns a six-unit building with a gross income of $175,000 per year. His expenses total $45,000. What is his net return or cash flow?

$100,000

$105,000

$125,000

$130,000

d

A disadvantage of investment in land is that:

the taxes are always higher than in other investment types

it is always more costly than other investment types

since there are no improvements on the land, the property cannot be depreciated for tax purposes

land loses its value more rapidly than other investment types

c

The profit from income-producing property, less income taxes, is the property's:

after-tax cash flow

before-tax cash flow

cash-on-cash return

capitalization rate

a

Which of the following is TRUE?

The usable square footage is equal to the rentable square footage.

The rentable square footage equals the entire space including the usable square footage.

All of the rentable square footage in a space is generally usable.

The property owner always charges rent only for the usable square footage.

b

Retta, the property owner, pays a predetermined amount for property expenses. The tenant, Herbert, pays expenses above that amount. This is an example of a(n):

subordinate lease

gross lease

percentage lease

expense stop lease

d

When a leased space is sublet, who is responsible for the lease payment?

Lessee

Sublessee

Lessor

Assignee

a

A type of lease that provides for escalated rent based on an economic indicator is a (an):

estoppel

expense stop

index

attornment

c

Which of the following is FALSE regarding tax depreciation?

It is a deductible allowance from the net income of a property for tax purposes.

The property being depreciated actually may appreciate in value.

It results from physical deterioration caused by normal use of the property.

It is an accounting concept.

c

Lanni and Tom are married and sell their primary residence for a profit of $325,000. Which of the following is TRUE regarding the sale? They:

must pay a 15 percent capital gains tax

must pay a 20 percent capital gains tax

must pay a 33 percent capital gains tax

pay no capital gains tax

d

Abby wants to exchange her personal residence for a two-family income property and qualify the exchange for a tax- deferred 1031 exchange. Under what circumstances does this transaction qualify under IRS rules? It:

does not qualify

qualifies as long as other conditions for the exchange are met

qualifies if the exchange is made in the same tax year

qualifies as long as Abby identifies the two-family property within 45 days of the personal residence sales contract

a

According to IRS rules, which of the following is NOT a deductible expense in connection with home purchase and improvement?

Points

Mortgage interest

Home improvement loan interest

The cost of the appraisal

d

Joseph is a mortgage broker who represents the buyers and also a real estate broker who represents the sellers in the same residential real estate transaction. Joseph is a:

designated agent

dual agent

broker's agent

mortgage agent

b

A mortgage broker's license is issued by the:

Department of State

Department of Consumer Affairs

NYS Department of Financial Services

Attorney General's Office

c

Joyce is employed as a property manager for Lifetime Properties to perform only the maintenance work on a residential building. What kind of license does she require?

No license

A minimum of a salesperson license

A real estate broker license

An apartment information vendor's license

a

Expenses for week-to-week operations in a building are included in which type of budget?

Stabilized

Variable

Operating

Fixed

c

The most important consideration regarding safety measures while showing vacant and isolated property is to:

establish a firm asking price before showing it

have the property inspected first

bring your prospects with you in your car

not show it alone

d