New York Mortgage Property Real Estate

New York Mortgage Property Real Estate

This chapter covers New York Mortgage Property Real Estate.

1. A blanket mortgage usually contains which clause?

A. assumption
B. release correct
C. sunrise
D. good guy

2. A CMA is different from an appraisal because:

A. an appraisal is based only on facts
B. an appraisal is an opinion of value
C. a CMA can consider expired listings and properties on market correct
D. an appraiser cannot, by law, perform a CMA

3. A colorless, odorless, tasteless, radioactive gas which can enter homes is:

A. formaldehyde
B. freon
C. radon correct
D. carbon monoxide

4. A coop may turn down a prospective buyer for what reason?

A. any reason, as long as they don’t violate fair housing law
B. if they don’t qualify for financial reasons
C. if they have served time in prison
D. all of the above correct

5. A landlord discovers his tenant was only 17 when he signed the lease. For the landlord, the lease is:

A. unenforceable correct
B. void
C. voidable
D. a meeting of the minds

6. A lien is an:

A. appurtenance
B. encroachment
C. encumbrance correct
D. eminent domain

7. A listing contract creates an agency relationship in which the:

A. broker is a general agent
B. seller is the principal correct
C. salesperson in an agent
D. broker is a dual agent

8. A party wall is:

A. shared as joint tenants
B. a cross easement correct
C. part of the bundle of rights
D. an easement in gross

9. Which two protected groups are protected under the 1988 Amendment to Federal Fair Housing Act?

A. age and gender
B. disability and marital status
C. disability and familial status correct
D. religion and national origin

10. A property with a market value of $80,000 is assessed at 75%. What is the tax rate per mill if the annual tax

bill is $900?
A. 1.5
B. 15 correct
C. 106
D. 10.6

11. A real estate salesperson advises a prospective buyer that the coop they are considering does not accept

pets, and their precious Labradoodle cannot live there. This disclosure constitutes:
A. disloyalty to the seller
B. violation of fiduciary duty
C. required disclosure to buyer correct
D. compliance with the Statute of Frauds

12. Salesperson Sam, associated with Happy Realty, effects a co-broke with Pleasant Homes, who has the

exclusive listing. In this transaction, Sam is a subagent of whom?
A. seller correct
B. no one – he is a special agent
C. buyer
D. no one – he is an independent contractor

13. A salesperson licensee may receive commissions from:

A. a referral client
B. landlord or tenant
C. seller
D. supervising broker correct

14. A salesperson receives two offers for a listed property in the same afternoon. One offer is higher. The salesperson should present to the seller:

A. the offer he believes, in his professional opinion, is the stronger offer
B. both offers correct
C. the higher offer only
D. the offer which comes directly (is not a co-broke)

15. A salesperson working for broker Ralph sells a property for $90,000. Ralph keeps 40% of the 6% commission. How much does the salesperson receive?

A. $2,160
B. $3,240 correct
C. $5,400
D. $6,000

16. A wealthy widower devises his mansion to his children’s nanny as a life estate for the lifetime of the children. This is called:

A. in remainder
B. pur autre vie correct
C. seizin
D. escheat

17. A written listing agreement is an example of:

A. due diligence
B. acceleration
C. express agency correct
D. estoppel

18. Under NYS Real Property Law, licensees must present sellers of 1- through 4-apartment properties a(n):

A. agency disclosure form correct
B. exclusive right to sell agreement
C. agreement explaining the alienation clause
D. lead paint disclosure form

19. According to NYS Real Property law, a broker may:

A. be paid by only one party
B. co-broke with brokers in any state as long as they are licensed
C. represent only the parties who pay commission
D. represent both parties, with full disclosure and consent of both correct

20. An agent is a:

A. fiduciary correct
B. salesperson
C. employee of the broker
D. arbitrator

21. An agreement that is a financing instrument as well as a contract of sale is a(n):

A. package mortgage
B. qualified fee simple
C. installment contract correct
D. estate for years

22. An alienation clause makes a mortgage:

A. hypothecated
B. unassumable correct
C. in default
D. adjustable

23. An arm’s length transaction means:

A. buyer and seller are not related
B. one party does not attend the closing but sends a representative
C. the loan to value ratio is higher than usual
D. the contract was signed under duress

24. An estate that cannot be passed to the owner’s heirs is called:

A. tenancy by sufferance
B. conditional
C. life estate correct
D. non-freehold

25. An owner lists his property with several different brokers. If the seller sells the property himself, he does not owe the brokers any commission. This is called:

A. exclusive agency
B. open listing correct
C. net listing
D. qualified listing

26. Discriminatory advertising (except racial discrimination) may be allowed in a limited way if the ad is:

A. for mortgages
B. by the owner of a property that contains fewer than 4 units
C. by a person looking for a roommate
D. for a coop

27. Due to re-zoning, a nightclub is no longer in compliance with local ordinances, but is allowed to continue operating. This is called:

A. spot zoning
B. highest and best use
C. nonconforming correct
D. restrictive covenant

28. Environmental reviews by lenders, tenants, or purchasers are part of:

A. data required for the HUD-1 form
B. the Clean Air Act
C. compliance with State transfer requirements
D. due diligence correct

29. Safe well water is under the purview of:

A. U.S. Green Building Council
B. Department of Design and Construction
C. Department of Health correct
D. Attorney General

30. If a landlord turns off heat in the middle of winter to force a tenant to move out, this is:

A. actual eviction
B. energy conservation
C. escheat
D. constructive eviction correct

31. If a salesperson working as a buyer’s representative honors a buyer’s request to look at homes only in neighborhoods with a certain ethnic composition, the licensee is:

A. violating the Statute of Frauds
B. complying with Article 12A
C. committing steering correct
D. showing obedience to the principal

32. If all broker members of a real estate board agree to a standard commission rate, this is:

A. a violation of the Sherman Anti-Trust Act correct
B. a violation of RESPA
C. allowable under New York law if the property is commercial
D. an ethics violation only

33. If a seller sells a property himself and the listing agent is not entitled to a commission, this is:

A. exclusive right to sell
B. gross listing
C. exclusive agency correct
D. specific listing

34. In addition to a disclosure form, the Residential Lead-based Paint Hazard Reduction Act requires licensees to:

A. provide a Protect Your Family pamphlet correct
B. include a lead survey in the home inspection
C. advise buyers to obtain a complete home inspection
D. inform owners that soil, water and air samples should be taken if the property was built before 1978

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

A. 16
B. 18 correct
C. 25
D. 21

36. When submitting an offer for commercial property, the potential purchasers, an unmarried couple, asked the broker what is the best way to take title to the property. What should the broker suggest?
A. tenants in common
B. in severalty
C. in the entirety
D. ask a lawyer correct

37. Lead is NOT found in which of the following places?

A. drinking water
B. soil around the home
C. dust
D. insulation in older homes correct

38. New York State took over private property for construction of a new building. Which is true?

A. the owner must be paid fair market value correct
B. the building can only be a government office
C. this is an example of escheat
D. the owner can file a written complaint with the Zoning Board of Appeals on Grievance Day

39. Ralph has obtained his broker’s license and is opening his own brokerage, with salespersons working as independent contractors. Which of the following is he prohibited from doing?

A. refusing to provide health insurance
B. allowing salespersons to work whenever they want without a schedule
C. holding office meetings with attendance required correct
D. paying salespersons only for a sale or rental

40. The IRS considers real estate licensees:

A. statutory employees
B. independent contractors correct
C. special agents
D. supervised associates

41. Real estate licensees are:

A. special agents correct
B. universal agents
C. general agents
D. secret agents

42. Restraint of trade most closely pertains to:

A. the Sherman Act correct
B. New York State Real Property law
C. the definition of independent contractor
D. the Duncan and Hill decision

43. Rodney is an investor who wants a 9% return. He is considering buying a building with $40,000 NOI. What should he pay?

A. $444,444 correct
B. $400,000
C. $360,000
D. $900,000

44. Sam bought 3 acres at $1.50 per square foot. What was the price?

A. $130,680
B. $196,020 correct
C. $103,560
D. $180,000

45. In the cash on cash return calculation, how do you find out the before tax cash flow?

A. you don’t; it is privileged information
B. that is the purpose of the calculation; to find btcf
C. the seller must disclose it following a written request
D. it is on the operating statement correct

46. Sam owns his home in severalty but owns his roof deck as tenants in common. What kind of building is it?

A. coop
B. condo correct
C. rental
D. private house

47. Jack sold his property to Julie. Their closing was May 20. Jack’s tenant had already paid $600 rent for May. The proration will be a:

A. debit to buyer $400
B. debit to seller $200 correct
C. debit to seller $194
D. credit to buyer $194

48. Sam wants to net $180,000 after paying his broker’s 10% commission. What must the sale price be?

A. no price; this is an illegal net listing
B. $180,000
C. $190,800
D. $200,000 correct

49. Artie’s bank asked him to pay points at closing. What are points?

A. a percent of the loan amount correct
B. a payment required to secure an FHA loan
C. an extra payment to secure loans for borrowers with lower credit scores
D. a percent of the sale price

50. The Supreme Court case Jones vs. Mayer concluded there are no exceptions to:

A. Federal Fair Housing Act
B. a broker’s fiduciary duties
C. 1866 Civil Rights Act correct
D. Americans with Disabilities Act

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

A. volts
B. kiloWatt capacity
C. amps correct
D. electromagnetic field

52. The exterior elements of a building are collectively called:

A. bearing walls
B. framing
C. fa├žade
D. envelope correct

53. The highest priority liens are for:

A. real property tax correct
B. court judgments
C. income tax
D. mortgages

54. The IRS earnings form that independent contractors receive from their broker is a:

A. W-2
B. W-4
C. 1099 correct
D. 1040

55. The most common foundation in New York State is:

A. full basement correct
B. slab-on-grade
C. crawl space
D. raised platform

56. The most common framing in residential construction is:

A. platform correct
B. post-and-beam
C. trabeation
D. balloon

57. The first foundation building block is the:

A. lally column
B. concrete slab
C. footing correct
D. basement wall

58. The Supreme Court case Brown vs. Board of Education:

A. ruled that there are no exceptions to the 1866 Civil Rights Act
B. added a new protected group to fair housing law
C. found that separate but equal facilities are unequal correct
D. overturned the Arkansas Governor’s decision to deploy the National Guard

59. Which of the following is least associated with consumer protection?

A. Real Estate Settlement Procedures Act
B. Doctrine of Laches correct
C. Sherman Act
D. Truth in Lending Act

60. The value of a property based on its subjective meaning to the owner is:

A. value in use correct
B. pro forma value
C. cap rate
D. personalty

61. Through his broker, Susan, Sam accepts Jim’s offer of $1 million on his condo, but also insists Susan inform Jim that the crystal chandelier is not included in the sale. Which is true?

A. Susan has earned her commission by bringing a ready, willing, able buyer
B. the chandelier is a contingency
C. Sam and Jim have only a meeting of the minds
D. Sam has given Jim a counteroffer correct

62. Trade fixtures are:

A. part of the real estate once they are attached
B. removable only if both parties agree
C. personalty correct
D. removable only if specified in the lease

63. Transfer taxes are usually paid by:

A. the sponsor
B. the buyer
C. the seller correct
D. the coop board

64. Trying to scare owners into selling for discriminatory reasons is:

A. escheat
B. redlining
C. blockbusting correct
D. non-solicitation

65. Upon the broker’s advice, a seller accepted an offer 10% below asking price. The broker did not disclose to the seller that the buyer was the broker’s brother-in-law. Which is correct?

A. the broker may be engaging in illegal self-dealing correct
B. the buyer’s relationship to the broker is irrelevant
C. as long as the broker does not represent the buyer, it is not a problem
D. it is an arm’s length transaction

66. State Environmental Quality Review Act requires that:

A. private wells are tested annually
B. all new constructions comply with local environmental law
C. licensees must include give lead disclosure for property built before 1978
D. an Environmental Impact Statement be written for some properties correct

67. What does the acceleration clause do?

A. provides statutory right of redemption for borrower
B. eliminates the prepayment penalty
C. permits bank to make entire balance due if borrower defaults correct
D. allows for satisfaction of mortgage upon resale

68. The purpose of RESPA is to?

A. protect residential buyers by disclosing closing costs correct
B. allow exemptions from certain consumer protection laws for commercial transactions
C. control misleading advertising about mortgage terms
D. give buyers a 3-day right of rescission

69. What should a licensee always do?

A. explain contracts thoroughly
B. perform accurate appraisals
C. present all offers to seller correct
D. prepare a report on chain of title to be used at closing

70. When a lease ends, but tenant does not move, this is called:

A. estoppel
B. tenancy at will
C. estate at sufferance correct
D. constructive termination

71. When a real estate firm represents both landlord and tenant, this is:

A. general agency
B. dual agency correct
C. broker agency
D. tenants in common agency

72. When a real estate salesperson purposely conceals a known defect, this is:

A. unintended misrepresentation
B. a violation of the Sherman Act
C. positive misrepresentation correct
D. a violation of the Statute of Frauds

73. When listing a residential property for sale, a licensee should:

A. do a comparative market analysis correct
B. perform an appraisal to estimate market value
C. calculate IRV
D. make a full stigmatized property disclosure

74. Hal is about to default on his mortgage and may lose his home, so he borrows money from rich Uncle Fred to pay off the mortgage in full. Hal can do this because of which clause?

A. habendum
B. alienation
C. defeasance correct
D. acceleration

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

A. cost
B. income
C. highest and best use
D. comps

76. Which clause in a contract allows the buyer to back out under certain circumstances without losing the deposit?

A. acceleration
B. contingency correct
C. defeasance
D. subordination

77. Which is protected under New York State Human Rights Law?

A. renters of commercial space
B. Section 8
C. marital status correct
D. lawful occupation

78. Which is a way of describing property?

A. recordation
B. property disclosure statement
C. metes and bounds correct
D. appraisal

79. Which is illegal?

A. spot zoning correct
B. non-conforming use
C. net lease
D. cluster zoning

80. Which is most likely a market rate transaction?

A. the sale is not arm’s length
B. the seller is anxious because he has bought a new home
C. the seller accepts the first offer after listing his property a week ago
D. both parties are acting in their own best interest correct

81. Which is NOT a remedy for breach of the contract?

A. specific performance
B. liquidated damages
C. origination correct
D. compensatory damages

82. Which of the following does NOT apply to a salesperson’s license?

A. the broker is only required to keep the license in a safe place
B. it need not be prominently displayed by the broker
C. it permits the salesperson to work under a broker but not independently
D. it authorizes the salesperson to obtain referral fees from out of state brokers correct

83. Which does NOT cause exemptions to the Fair Housing Act of 1968 to be lost?

A. advertising in a paper like the New York Times
B. use of a broker
C. renting a room in one’s own home correct
D. putting a sign in front of a 100-unit building that says, “Apartments for Rent.”

84. Which is a trade fixture for a retail store?

A. vitrines correct
B. escalator
C. carpet
D. appurtenances

85. Which is legal for real estate licensees?

A. explaining a lease to a tenant
B. advising a customer to pay the asking price
C. failing to obtain an accepted offer during the term of the listing correct
D. agreeing with another broker to split territory (allocate markets)

86. Which is legal according to the Fair Housing Act?

A. discriminatory advertising if placed directly by the sponsor
B. college dorms for one gender correct
C. protecting familial status by renting only to individuals with children
D. redlining

87. Which is NOT a provision of the Clean Air Act?

A. fine of $25,000 per day for violations of CFC disposal requirements
B. CFCs may not be used in new refrigeration systems
C. CFCs may be used only with proper permitting correct
D. refrigerant must be recovered before disposal of an air conditioner

88. Which is NOT exempt under New York Human Rights Law?

A. sale of a single-family house by the owner
B. rental of a duplex if the owner lives in one unit
C. rental of a room in an owner’s house
D. senior housing

89. Which is NOT included in a comparative market analysis?

A. properties that have sold recently
B. properties currently on the market
C. foreclosure rates correct
D. recently expired listings

90. Which is NOT provided by a lease?

A. freehold correct
B. right of exclusion
C. possession
D. quiet enjoyment

91. Which is in words?

A. blueprint
B. building specifications correct
C. rendering
D. schematic

92. Which provides greatest protection for the grantee?

A. bargain and sale deed
B. a dedication deed
C. full covenant and warranty deed correct
D. deed of trust

93. Which statement about license law is incorrect? It is:

A. derived from police power
B. contained in Article 12A
C. administered by Dept. of State
D. contained in Article 78 correct

94. Which is correct?

A. in gross is the least common form of easement
B. an easement is a form of trespass
C. the servient tenement can use another’s property
D. an easement appurtenant can be prescriptive correct

95. Which substance contains fibrous particles that damage lungs?

A. radon
B. freon
C. chlordane
D. asbestos correct

96. Which is not covered by the Federal Fair Housing Act of 1968?

A. office space correct
B. coops
C. properties with fewer than 4 units
D. none of the above

97. Which regulates advertising for consumer mortgages?

C. Equal Credit Opportunity Act
D. Regulation Z correct

98. Which type of listing agreement is illegal?

A. exclusive right to sell
B. limited listing
C. open
D. net listing correct

99. Who must sign a valid deed?

A. notary public
B. grantor correct
C. grantee
D. all of the above

100. Who is the mortgagor?

A. borrower correct
B. lender
C. bank
D. loan officer who originated the mortgage