NYREI Exam Prep 2023-2024 Questions and Answers 100% Correct
A leasehold estate that continues for a successive periods of equal length until terminated by proper notice from either party is a - ANSWER-Periodic tenancy
Physical land and everything attached to it is called - ANSWER-Real Estate
Equipment a tenant installs for use in his or her business is called - ANSWER-Trade fixture
The illegal practice of inducing homeowners to sell their homes (Usually at a deflated price) by suggesting the ethinic or racial composition of the neighborhood Is changing, with the implication that property values will decline is called - ANSWER-Blockbusting
Loans that follow the criteria set by secondary markets are called - ANSWER-
Conforming loans
A "Rule" that says an informed buyer will not pay more for one home than a comparable
one is - ANSWER-Substitution
Funds offered as an indication of good faith regarding a future performance of a purchase agreement is called - ANSWER-Earnest money
Possession of property by a holdover tenant is - ANSWER-Tenancy at sufferance
An agent authorized to do everything that can be lawfully delegated to be a representative is a - ANSWER-Universal agent
The relationship between the cost of borrowing money and the total amount financed is - ANSWER-APR
A revocable, non assignable permission to enter another persons land for a particular purpose is - ANSWER-License
Lease for which a landlord pays all property taxed, insurance ect - ANSWER-Gross lease
Loan where the interest rate remains the same for the duration of the loan - ANSWER-
Fixed rate loan
When something outside the control of a property makes it less desirable - ANSWER-
Economic/External obsolescence An acre is a measure of a land area that is equal to - ANSWER-43,560 feet
A title that is free and clear from undisclosed encumbrances or other defects that would expose a purchaser to litigation or to impede a purchasers ability to enjoy the property or to later sell the property - ANSWER-Marketable title
A right that goes along with the ownership of real property - ANSWER-Appurtenance
A financial encumbrance on the owners title is called a - ANSWER-Lien
A written agency between a seller and broker is a - ANSWER-Listing
The effect when a loan balance grows because of a differed interest when payments are not covering the interest portion of the loan are called - ANSWER-Negative Amortization
The agent who finds a buyer in a real estate transaction - ANSWER-Sellers agent
Broker Bob uses money from the firms escrow account to pay the electrical bill. This could be best described as - ANSWER-Conversion (Conversion is another word for stealing)
A latent defect can be best described as - ANSWER-Not plainly visible
A clause requiring commission to be paid even if the property is sold AFTER the listing agreement expires is known as a - ANSWER-Protection period clause
Rachel and Monica work for different brokers. One morning over coffee, Rachel mentions that her broker has raised her commission to 7.5%. This can be considered what type of violation? - ANSWER-Antitrust
When is a broker/agent entitled to commission? - ANSWER-When a ready, willing, and able buyer is found on the terms accepted to the seller
Errors and omissions insurance cover all of the following except - ANSWER-Fraud (E&O) cover mistakes and negligence
What duties does an agent owe a customer? - ANSWER-Fair dealing, Honesty, and integrity
They only owe loyalty to their client
How long must a New York Broker maintain record of sales? - ANSWER-3 years for one too four family dwellings What does an independent contractor receive at the end of the year that details his compensation for the year? - ANSWER-An independent contractor receives a 1099 MISC form detailing any commission based income
A common law independent contractor - ANSWER-Is not subject to withholding requirements (An independent contractor mus manage his taxes himself. His employee does not withhold anything)
A commercial property has a first year gross operating income of $64,000 and expenses of $12,000. If the capitalization rate for similar properties in the same area is 8% what is the estimate value? - ANSWER-$650,000 (The formula for determining value is Net Operating income 64,000-12,000=52,000 divded by the rate 8% 52,000/.08= 650,000
What would be considered external obsolescence? - ANSWER-A home fronting on a busy four-lane highway (External Obsolescence is when something outside the control of the property makes it less desirable. In this case, a high way.
When is the income approach best used? - ANSWER-The income approach is a valuable appraisal method when determining the value of an investment property
Paul is doing an appraisal for fannie mae. What is the minimum number of comps he needs to consider when using the sales comparison approach? - ANSWER-3
Which appraisal report is required when processing a VA loan application? - ANSWER-
Certificate of reasonable value
The accepted standards of ethics and appraisals practice are known as - ANSWER-
USPAP (Uniform Standards Of Professional Appraisal Practice)
The first step of the appraisal process is to - ANSWER-Define the appraisal also known as stating the problem
Market price is - ANSWER-The amount in dollars actually paid for the property
A quitclaim deed - ANSWER-Is often used to clear clouds on a title (Is often used to clear clouds on a title, comes with no warranties and is not transferable or court ordered)
Equitable title is - ANSWER-An interest in real property created by the execution of a valid sales contract
Which is not a guarantee that comes with a warranty deed? - ANSWER-Guardian Authority A deed contains a guarantee that the grantor really owns the property. This is an example of which covenant" - ANSWER-Seizen (Seizen is the grantors guarantee that he or she does own the property)
A new connector road needs to be built to relieve congestion that is causing many accidents. The city purchases 20 houses and tears them down to build that road. The act of taking the houses and tearing them down is called? - ANSWER-Condemnation (Condemnation or Appropriation is the actual act of taking private property for public use. The right to take private property is eminent domain.)
What is not an example of the governments police power? - ANSWER-Taxation (Police power can take the form of land use controls, zoning laws, environmental protection laws, eminent domain, and escheat. Taxation is a governmental revenue-generating power.)
Lyle dies intestate. According to NY law, who would be the first in line to get Lyle's estate? - ANSWER-His wife, his children, then his ex wife.
Taking occurs when: - ANSWER-The government acquires private property for public use by appropriation without compensation to the land owner. (Taking differs from eminent domain in that the government acquisition of private property for public use by appropriation is done without compensation to the land owner)
Intestate VS Testate- - ANSWER-Intestate is when a person dies without leaving a valid
will and without heirs, whereas testate is when a person dies leaving a will
When a planning board temporarily suspends the rights of property owners to obtain development approvals while the local legislature considers the impact of new or changing circumstances not adequately dealt with by current laws. This is known as - ANSWER-A moratorium ( A moratorium may be imposed by a planning board to allow time to study a situation that involves land use regulation or rules)
A provision in a deed that limits the use of the property is known as - ANSWER-
Covenant ( A deed restriction also known as a restrictive covenant, is a provision placed
in the deed when the property is conveyed.)
Which is not a way in which zoning ordinances are typically enforced? - ANSWER-
Federal government interventions ( Zoning is a local issue that is typically enforced through building permits, zoning permits, occupancy, and use permits, or possibly through the courts.)
Insurance coverage can be purchased by which of the following? - ANSWER-Captive agents, Direct writing companies, and independent agents
A temporary insurance contract formed by oral or written agreement between the customer and the insurance company is called - ANSWER-A binder
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