1-A broker legitimately may pay all or part of Real estate commission to a |
-B: Salesperson can accept compensation only from their sponsoring broker. |
2-The minimum age for a New York real estate broker’s license is |
C. As of July 1,2008 to become a broker you must be 20 years old. |
3-Which of the following acts would require a real estate license in New York |
C: selling land at an auction. |
4-An associate broker may a. sponsor a person for a salesperson’s license. |
D: Associate broker is a licensed broker but chooses to work under the supervision of another broker. |
5-Violation of the license law is a misdemeanor, Punishable by up to a year in jail and a fine of |
C: DOS may impose a fine not to exceed $1000. |
6-When salesperson Tom Jones left ABC Realty And went to work with XYZ REALTORS, |
B: When a licensee terminates with a broker they must turn over all information. |
A salesperson’s license must be a. displayed on the firm’s wall. |
C: Kept by the broker in a safe place. |
8-When does offering a client’s business for sale Require a real estate license? |
-D: selling a business where the real estate is greater than the business. |
An apartment information vendor is licensed by: a. Department of Law |
C: Department of State licenses apartment information vendors…. |
When a license is revoked, how long must a licensee wait before applying to have the license reinstated? |
B: If a license is revoke licensee must wait 1 year before reapplying.. |
The form of listing whereby an owner lists property for sale with a number of brokers is known as a(n) |
B: In an Open listing the seller allows the property to be shown by many Brokers. |
To avoid possible liability for the actions of c cooperating members of a multiple-listing system, the owner who lists property for sale may decline to offer |
B: By accepting subagency the owner will have no vicarious liability for the Acts of cooperating agents |
An agent who has the authority to represent the principal in specific matters is a(n): |
-B: A general agent has specific authority in representing owners. |
Jan Lipson gave Sun City Realty an exclusive agency listing on her property. If she sells the |
C: With the Exclusive Agency the owner owes no commission. |
15-When selling a property in New York, the Licensee is required to disclose to a potential |
B: If property is in an agricultural district buyer must be informed. |
The commission to be paid in a written listing |
D: The broker’s fee is specified in the listing agreement, management agreement, or rental agreement with the principal and is always subject to negotiation. |
The relationship between an agent and his or her |
-A: The agency relationship is always consensual, meaning both parties enter into it willingly. It is also a fiduciary |
If you are selling a house in New York, it is necessary to disclose that a. There is a utility surcharge. |
A: If a Utility surcharge is assessed shall provide written notice to the prospective purchaser |
Seller is legally required to reveal to a buyer anything seller knows about a. Crimes committed on the property in the past three years |
D: Sellers and Landlords shall disclose any lead paint they have knowledge of |
To create an agency relationship, it is necessary that a. A listing contract be registered with the DOS. |
D: The person who selects the agent to act on his behalf is the principal or client. |
If you are a salesperson working with a buyer, then the buyer is your client: |
C: The obligations of a buyer’s agent are also subject to any specific Provisions set forth in an agreement between the agent and the buyer |
-The type of listing illegal in New York State is a (n) |
A: Net Listing This type of commission arrangement is illegal in New York. |
A licensed salesperson or broker associate acting as an independent contractor must: a. be paid based upon sales and output |
D: Compensation is paid only for output. Law also requires a written agreement, executed by both parties |
A salesperson sells another firm’s listing of a commercial building for $462,500. The 7 percent commission is split 50/50 between the two companies. The salesperson received 60 percent |
C: $462500 x 7%=$32375. divided by 2 =$16187.50×60% agent=$9712.50 |
A broker may be entitled to a commission in the event that the sale does not close if the problem was caused by the a. Seller. |
A: The commission is usually considered earned when a broker brings a ready, willing, and able buyer to the seller, or the seller should accept an offer from the buyer. |
Big Apple Realty is concerned that its Commission on a sale will not be paid. Big Apple Realty may |
C: If a broker feels the commission will not be paid, they must file an affidavit of entitlement for completed brokerage services. |
-A real estate salesperson’s compensation is set by a. The local realty association. |
C: The fee or rate of commission paid to a real estate broker is strictly negotiable between the broker and the seller or buyer. |
The Duncan and Hill decision cautioned real estate licensees against |
C: In Duncan & Hill, the court upheld the Department of State’s determination that a real estate broker who was not a licensed attorney demonstrated untrust worthiness and incompetence in violation of Real Property Law sect;441-c, finding that, when he prepared documents that included detailed mortgage terms he had devised, he engaged in the unauthorized practice of law |
When a buyer/client wants to see property listed by his or her agent’s company, the possible conflict of interest can be solved by the use of |
-B: If the buyer and the seller or tenant and the landlord provide their informed consent in writing, the principals and the real estate broker who represents both parties as a dual agent may designate a sales agent to represent the buyer and another sales agent to represent the seller |
Buyers should be careful NOT to reveal the top price they’re willing to pay to a (n) a. Buyer’s agent. |
C: The seller’s agent because if the fiduciary must tell the seller. |
Ads made by real estate brokers that do not indicate that the advertiser is a broker are: a. legal in New York |
B: All ads placed by a broker must indicate that the advertiser is a broker. Ads that do not contain this are called BLIND ADS. |
If a licensee becomes a partner in a real estate firm, he must have a(n): |
B: Each officer of a corporation or member of a co-partnership must be licensed as a broker. |
Agency relationship in an in-house sale require a. No notice to the principle broker. |
-B: Broker dual agency can occur if agents of the broker represent both the buyer and seller in the same transaction, Full discussion and disclosure in writing to all parties must be made |
In a buyer/agency relationship the broker owes the seller a. Care. |
D: a buyer’s agent should deal honestly, fairly and in good faith. |
If you are a salesperson working with a buyer, then the buyer is your client: |
C: This is done through a buyer brokerage agreement |
-In a real estate transaction, a broker had a written representation agreement with the buyer but was paid 6 percent of the selling price at the closing by the seller. Under these facts, whose agent was this broker? a. The broker was the seller’s agent. |
B: Other means of payment can be through multiple listing services when the listing broker offers cooperating compensation to the buyer broker. The buyer broker will then be paid by the seller |
-A broker signed a listing agreement with the Ghent’s to market their luxury downtown condominium. A few days later, the broker Signed a buyer representation agreement with The Smiths, who were looking for a modest suburban single-family home. If the buyers decide they’re in the market for a luxury downtown condominium instead, and want to see the Ghent’s property, what should the broker do? a. Say nothing and collect a commission from b. Disclose the intended dual agency and c. Withdraw from representing one of the d. Nothing, but accept compensation from |
B: In New York dual agency is legal and permissible with timely and informed consent of both parties. In this case the agent must have the signed disclosure from both parties. |
The DOS regulation 175.7: "A real estate broker Shall make it clear for which party he is acting.. …" applies to |
D: Regulation 175.7 is not limited to residential transactions, but applies to all real estate transactions…. |
A licensee should use the disclosure form with prospective sellers or buyers at the first substantive contact. Which of the following illustrates the first substantive contact? b. individuals who call the real estate office asking about the location of a property for a drive-by on their own c. a prospective purchaser walking into a real estate office, meeting with an agent, and discussing the purchase of a specific property d. an agent giving a seminar on home buying to a group of prospective purchasers |
C: When a prospective buyer or seller may walk into a real estate office and want to discuss listing or purchasing a property, at this point, disclosure must be made. |
-In which clause in a deed would you find metes and bounds and monuments? a. Demising |
C: The types of legal descriptions are metes&bounds, block&lot, and monuments |
If Mr. Jones owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a (n) a. Life estate. |
B: Fee Simple Absolute-provides the most complete form of ownership and bundle of rights in real property |
The Goodman’s purchased a cottage bounding on a stream. They have rights to the stream known as a. Reversionary. |
D: Riparian rights belong to the owner of property bordering a flowing body of water |
-Which of the following would NOT be Considered chattel? a. A tractor |
B: Barn is real property. |
The most complete type of ownership in real estate is a. Fee on condition. |
D: Fee Simple Absolute-provides the most complete form of ownership and bundle of rights in real property |
-Deed restrictions may be established only by the a. Grantor. |
A: Deed restrictions are in the form of covenants or conditions. These restrictions run with the land, they are put by the "grantor" |
-One future action that may NOT be limited by a deed restriction is a. The free transfer of the property. b. The illegal covenant against religion. or c. Further subdivision. d. The total number of lots in a subdivision. |
B: An illegal covenant cannot be enforced [e.g. excluding people of certain religion, or color. |
Any right to or interest in the land interfering with its use or transfer is called an a. Encumbrance. |
A: An encumbrance is anything that lessens the bundle of rights in real property. |
A deed is valid when it is a. delivered and accepted. |
A: The deed is always signed by the grantor [seller] and must be delivered to the grantee [buyer] to be valid |
Which type of deed is used to convey title to a Parcel of land through a foreclosure proceeding? a. trust |
C: Execution of a judicial deed results from a court order; examples are guardian’s deed, referee’s deed, tax deed, and administrator or executor’s deed. They can used for a foreclosure. |
Title to real property is conveyed by a a. contract. |
D: A deed is the document used to convey title legally to real property, also known as a conveyance. |
A lease that provides for the lessee to pay all or part of the expenses of the property in addition to rent is called a(n): a. estate at sufferance |
B: In a net lease, the tenant pays some or all of the expenses. |
When a lessee transfers the entire remaining interest of his lease to another party who then must pay the owner, is called a(n): a. novation |
C: The assignment of the lease involves the transfer of the lease contract from the present tenant to the assignee. |
A contract transferring the rights to possession of real property for a specified term is known as a a. lis pendens. |
C: A lease is a contract, in which, for a consideration, an owner of property transfers a property interest to the tenant for a prescribed period of time. |
Under the New York General Obligations Law, Security deposits by a tenant a. Become the property of the landlord. |
B: The security deposit must be held in an escrow account. |
-A tenant learns her building has been sold to a new landlord. The sale of the property a. Automatically terminates all preexisting leases. |
C: Lease agreement does not terminate when an owner sells, new owner is bound by terms of lease |
-A legally enforceable agreement between competent parties in which each party acquires a right is called a a. Certiorari. |
C: A contract is an agreement between competent legal parties to do or refrain from doing some legal act in exchange for consideration. |
The usual listing agreement between a seller and a real estate agent is a (n) a. Implied contract. |
C: Express Contract-the parties to the contract have definitely agreed on all the terms in the contract |
-When the agreement of the parties is demonstrated by their acts and conduct, this is known as what type of contract? a. express |
C: Implied Contract has not been put into words but is implied by the action and conduct of parties |
When a new contract is substituted for an existing agreement, the process is known as a. Novation. |
A: A form of agreement that terminates contracts is novation the substitution of a new contract for a prior contract or the substitution of a new party for an old party. |
Except for the amount of mortgage that may be assumed, as sale in New York State is subject to a transfer tax of a. $0.55 per $500 or fraction thereof of the consideration paid. |
D: New York State transfer tax is based on sale price is $4.00 per $1,000 or $2.00 per $500 |
In the transfer of what type of property may a flip tax be imposed? |
B: Cooperatives may have a flip tax imposed upon transfer, paid by the seller. |
The Flintstones sold their house to the Simpsons and are to close on July 1. The Flintstones paid their annual town taxes in January. At the closing, the Simpsons will Reimburse the Flintstones for a. the tax for the balance of the year. |
A: Property taxes are paid in advance so the buyer will pay the seller for the balance of the year. |
RESPA explicitly prohibits the payment of a. Referral fee from an insurance agent. |
B: (RESPA) Prohibits kickbacks for services not performed |
An instrument in writing that is the security for A debt with specific property as a pledge is a a. bond. |
B: A mortgage is a type of security instrument pledging property to a lender. |
A Department of Veterans Affairs mortgage is a. Insured |
B: Guaranteed Loan Program -offers a loan that guarantees repayment of the top portion of the loan to the lender in the event the borrower defaults. |
-When a house purchase is financed by a Federally related mortgage loan. RESPA Requires that loan closing information be Prepared on the a. uniform settlement statement. |
A: RESPA requires a standard HUD-1 settlement statement for all federal-related loans |
A blanket mortgage usually encumbers: |
C: Blanket mortgage-two or more parcels of real estate are pledged as security for payment of the mortgage debt. |
Under a mortgage, the mortgagor is the party who: |
D: The borrower who gives the mortgage is called the mortgagor. |
Margo and Clarence Stilton have applied for An FHA/insured loan. The mortgage will be a. backed by the full faith and credit of the U.S. Government. |
B: FHA-insured loans protect lenders against financial loss. |
If a real estate broker earned a commission of $5,600 at a commission rate of 7%, at what price was the property sold? a. $39,200 |
C: $5600 IS COMMISSION DIVIDED BY 7% IS $80,000 |
What type of mortgage loan has an interest rate That may become higher or lower at specified Intervals, keyed to an economic indicator? a. pledged account |
D: An adjustable rate mortgage permits a lender to adjust the interest rate periodically so it reflects the economy. |
-Charging more than the legal interest rate is Known as a. points |
B: USURY LAWS are used by New York State to fix a maximum allowable interest rate. |
Deed restrictions are provisions that apply to current property owners and a. are regulated by a local jurisdiction. |
D: Deed restrictions are in the form of covenants or conditions. These restrictions run with the land, they are put by the "grantor" |
Variances and special use permits are issued by a(n) a. architectural review board. |
D: The Zoning Board of Appeals It is a local administrative appeal agency and an interpreter of the zoning ordinance. They also issue Variances and special use permits |
When the present usage of land is in legal conflict with an enacted zoning ordinance the usage is called: a. void |
D: Nonconforming uses occur when land does not conform to current zoning laws, but is legally allowed because it was there before new zoning. |
The owner whose five/unit apartment Building would not be allowed by a new zoning Law may be entitled to a (n) a. nonconforming use |
A: Nonconforming uses occur when land does not conform to current zoning laws, but is legally allowed because it was there before new zoning |
Among other methods, land use is controlled Or regulated by a. the local assessor. |
B: Individual owners have the right to place private controls on their own real estate. Which may effect a home or subdivision |
Examples of private land use controls would NOT include: |
D: Eminent domain is the power of the government or its agencies to acquire private property for public use. |
Even though a building permit is issued, new Construction will still need a. A certificate of occupancy. |
A: Permit issued to builder after all inspections are made and property is deemed fit is a Certificate of Occupancy |
A detailed architectural rendering of a structure is known as a(n): |
B: The building plan, also known as the blueprint, is a detailed architectural rendering of the structure that usually includes the plans for the mechanical systems. |
Electrical systems are routed through a a. Pier and beam. |
B: Circuit breakers will trip, or switch the electrical power for a given circuit off if the current increases beyond the capacity of the system |
A lakefront home sold for $385,000. The Broker received $27,912.50. What rate of Commission did this broker charge? a. 7 ¼ % |
A: COMMISSION IS DIVIDED BY SALE PRICE: $27,912.50 DIVIDED BY $385,000= 7.25% |
-The most commonly used insulation material is a. rock wool. |
D:R-factor, the greater the degree of insulation. Most common is fiberglass |
The amount a particular purchaser agrees to pay and a seller agrees to accept is known as: a. cost |
B: Price is the amount a particular purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding the transaction. |
A comparative market analysis resembles which approach to real estate evaluation? a. income approach. |
B: The "CMA" is closely related to the sales approach used by appraisers. |
The definition of market value includes a. Most recent sale price. |
D: Market value-the most probable price, for which the property should be sold with the buyer and seller acting prudently, neither is under undue duress. |
It can be dangerous for a real estate broker to a. discount the firm’s usual commission rates for a particular client. b. discuss commission rates with another broker d. charge more for selling vacant land than for selling single/family houses |
B: Price Fixing-occurs when competitors in a group conspire to charge a same or similar price for services rendered. |
A protected class under New York City law and not under state or federal law is which of the following? |
C: LAWFUL OCCUPATION is protected class only in NEW YORK CITY!!!! |
The civil rights act of 1866 a. prohibits any type of discrimination based on race. |
A: The Civil Rights Act of 1866-first significant statute affecting equal housing Has no exemptions BASED ON RACE |
Redlining is defined as a. Steering home seekers to a particular neighborhood. |
C: Redlining-refusing to make loans to purchase, construct or repair a dwelling by discriminating |
-New York State law goes beyond federal human rights law when it forbids discrimination based on a. race. |
B: New York State Helping to fight discrimination on the basis of… Marital Status |
PDQ Realty advertises that it specializes in areas suitable for European immigrants. This is A fair housing violation called a. redlining. |
B: Steering-direct prospective purchasers from diverse backgrounds to presently integrated areas to avoid integration of nonintegrated areas. |
Using "scare tactics" regarding the possible change in the demographics of a neighborhood when soliciting listings in a violation called a. redlining. |
-C: Blockbusting-illegal [scare tactic |
Although a property owner may be exempted sometimes from discrimination laws, a real estate licensee a. Is exempt as an owner. |
D: Fair Housing Exemptions no transaction involving a real estate licensee is exempt |
The Sherman Antitrust Law is intended to Promote a. a uniform commission rate schedule in any given area. |
C: Congress passed the first antitrust law, the Sherman Act, in 1890 as a "comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade |
The Underground Storage Tank Act in New York regulates underground fuel storage tanks That are a. 2,000 gallons or larger. |
C: Some types of tanks that are exempt Tanks on farms and residential store less than 1100 gallons |
Underground storage tanks are utilized by business and industry for all of the following reasons EXCEPT they are: a. out of sight |
A: Underground storage tanks are utilized by business and industry because the tanks are out of sight and are also protected against vandalism and fire. |
A salesperson who is an independent contractor a. cannot be charged for office space or supplies provided by the broker. |
C: Compensation is paid only for output without regard for the number of hours worked |
An asbestos problem is sometimes best treated by a. installing new distribution boxes. |
D- If the asbestos is in an area and is not disturbed it is best to leave it alone. |
The New York regulatory agency that oversees the safety of drinking water in New York is the Department of:
a. Agriculture |
B: New York State Department of Health (NYSDOH) is the regulatory agent that oversees the safety of drinking water. |
A property manager or property management firm is usually a _____ agent. d. general |
D: A general agent is empowered to represent the principal in a specific range of matters. An example is a property manager, |
REVIEW QUESTIONS FOR NY REAL ESTATE EXAM
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