Real Estate Mortgage Broker
This quiz is about mortgage, lease, broker, 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 – correct
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 – correct
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. façade
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 – correct
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 – correct
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?
A. RESPA
B. SONYMA
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