Real Estate Exam Guide and Review Tests Complied by Bill Plunkett and Students

THIS IS A BRIEF OVERVIEW OF CHAPTERS THAT MAYBE HELPFUL!!!

- Independent Contractor or Employee

Independent contractor must pay his own expenses.
According to IRS code section 3508[A, B], real estate agents are statutory
nonemployees and are therefore independent contractors. The code also states
that there must be a written contract between the broker and the sales
associate, also reviewed every 12-15 months
All records must be kept for 3years
If sales associate not deemed independent then they will not be able to file
"SCHEDULE C' of the federal return
The Independent Contractor Relationship
Salespersons are free to engage in outside employment
Either party may terminate the relationship at any time
- License Law & Regulations
The New York Department of State, Division of licensing Services is the
regulatory agency that oversees and administers the licensure process. Most of
the law pertaining to salespersons and brokers is contained in Article 12-A of
the real property law.
A real estate broker is any person, partnership, association or corporation who,
for another, and for compensation of any kind, negotiates any form of real
estate transaction. Real estate brokers supervise and are responsible for the
activities of associate brokers and salespersons in their employ.
A salesperson or an associate broker cannot operate independently.
Duties That Require Licensure
Selling or purchasing real estate at an auction
Negotiating the sale of a business for which the values of the real
estate transferred is not merely incidental to the transaction (RE
value is worth more than the business
Salespersons must be 18 years of age.
Brokers must be 20 years old with 2 years experience
Points for Broker License work as salesperson & 3500 points or 3
years and 5250 points.
Licenses are renewed every two{2} years
Exemptions to Licensure
Building superintendents or maintenance workers who perform
tasks such as rent collecting for one owner, company or entity.
Classes of Licensure for Brokers
Each officer of a corporation or member of a co-partnership must
be licensed as a broker.
Salespersons licenses are not issued to officers of corporations or

members of co-partnerships.
Salespersons and associate brokers may not be principals in the
brokerage firm and may not own voting stock in the licensed
brokerage corporation.
License and Pocket Card
Pocket Cards must be carried at all times and shown on demand.
Fees, Office Requirements, and Terms of Licensure
Brokers must pay $150.00 and Salespersons $50.00 for each term.
Additional licenses for each branch office cost $150.00.
An apartment-sharing agent is an individual who, for a fee, arranges and
coordinates meetings between the current owners of real property, including
apartment housing who wish to share their housing with others.
A mortgage banker is an individual or entity licensed by the New York Banking
Department to engage in the business of making residential mortgage loans.
Licensed and lends.
Compensation and Fee Splitting
Salespersons may not accept compensation except from their
sponsoring brokers
If brokers improperly pay any part of compensation to anyone who is
not licensed or who is not exempt from the license law, they are in
violation of the license law, this payment is called a kickback.
Lawsuits for Commissions
An unlicensed person, co-partnership or corporation cannot bring
about a lawsuit to collect compensation for real estate services
rendered because only a licensed real estate broker or salesperson is
entitled to a judgment by the courts.
Violations of Real Estate License Law
Failing to provide adequate disclosure regarding any or all of the
following: a) if licensees purchase property listed by their firm, they
must make their position clear to the seller, the licensee must make
clear their position regarding the party for whom they are acting in a
residential real estate transaction-seller, buyer or both.
Receiving compensation from more than one party in a real estate
transaction without the knowledge and consent of all parties.
Being a party to an exclusive listing contract that contains an
automatic continuation of the listing beyond the specified
termination date. Listing contracts are renewed by the signing of a
written renewal agreement.
Drawing up legal documents such as deeds or mortgages, giving an
opinion as to the legal validity of any document, performing a title
examination. A licensee may not perform any service that is
performed by an attorney.
Brokers are prohibited from commingling or mixing the funds of others
with their business or personal funds and are required to maintain
adequate records regarding the deposit and disbursement of funds
from their accounts.
Entering into a net listing contract. A net listing contract occurs when a

seller authorizes a broker to procure a specified amount for the

property and then allows the broker to keep as a commission any
money above the specified amount from the sale.
Discrimination because of race, creed, color, national origin, age, sex, disability,
familial or marital status in the sale rental or advertisement of housing or
commercial space covered by law
All ads placed by a broker must indicate that the advertiser is a broker. Ads that
do not contain this are called BLIND ADS.
DOS Hearings and Appeals
Article 78 proceeding is the method for appeals against regulatory
agencies such as DOS.
DOS may impose a fine not to exceed $1000.
The revocation or suspension of a brokers license suspends the license of the
salespersons and associate brokers affiliated with the broker.
If license is revoked, must wait ONE YEAR for relicensure
- Law of Agency
When one person is hired to act on behalf of another person, an agency
relationship is created. The person hired on the other persons behalf is the
agent.
An agency relationship is consensual.
The person who selects the agent to act on his behalf is the principal or client.
The Customer of an agent is the party whom the agent brings to the principal as a
seller or buyer of the property.
A General agent represents the principal in a specific range of matters.
E.G. A Property Manager
A special agent is someone who has narrow authorization to act on behalf of the
principal.
EG: Real estate broker who has listing.
The term fiduciary means a position of trust.
Agents Responsibilities to Principals
Obedience- the agent must act with obedience and obey reasonable and
legal instructions from the principal.
Loyalty-An agent must demonstrate loyalty to the principal and must
work diligently to serve the best interests of the principal under the
terms of the employment contract
Confidentiality-information should not be given to prospective
purchasers without the sellers permission.
Agents Responsibilities to Third Parties
The basis for imposing liability in case of misrepresentation consists of:
a false representation of a material fact
the fact that the person making the false representation knew or should
have known it to be false
the fact that the misrepresentation was made with an intent to induce
the party to act or refrain from acting in reliance upon the
misrepresentation
the fact that the party relied upon the misrepresentation in acting or
failing to act
the fact that there was damage to the party who relied upon the

misrepresentation in acting or not acting

Brokerage refers to the business of bringing buyers and sellers together and
assisting in negotiations for the terms of sale of real estate.
Vicarious Liability means that one person is responsible for the actions of the
other.
With strict disclosure regulations in New York, real estate agents must clearly
define to buyers and sellers whom they represent in that real estate
transaction.
Determination of Compensation
The fee or rate of commission paid to a real estate broker is strictly
negotiable between the broker and the seller or buyer.
It is also illegal for two or more brokers to agree to charge certain
commission rates to listing sellers. This is called price fixing and is an
act in restraint of trade that violates the Sherman Antitrust Act.
Percentage of Final Sales Price
Real estate firms generally establish their own individual office policy
regarding the level of commission charged.
Net Listing This type of commission arrangement is illegal in New York.
Express Agency-an agency relationship created by an oral or written agreement
between the principal and agent.
An agency by estoppel exists when a principal does not stop an individual from
representing his interests, thus creating an agency relationship between the
two.
A buyer agent cannot be a subagent of the seller broker.
Brokers Agent
In the case of the subagent, the principal accepts vicarious liability for
the acts of the agents and subagents.
In the case of the brokers agent, the broker accepts vicarious liability
for the acts of the agents working for his principal through him.
A dual agency exists when a real estate firm or agent attempts to represent both
the buyer and seller in the same transaction.
Broker dual agency can occur if agents of the broker represent both the buyer
and seller in the same transaction, as stated above, or if the broker offers
services to a buyer, such as finding or negotiating a mortgage for the buyer,
when the broker already represents the seller.
An unintended dual agency occurs if the buyer believes by the agents actions
and/or representations that the buyer is being represented by that broker.
Illegal. Consensual Dual Agency
The law of agency in New York permits consensual dual agency with disclosure
and informed consent of all parties to the transaction. Informed consent
includes timely and complete disclosure of the nature and consequences of the
dual agency.
Obtaining Informed Consent of Both Parties
When the listing takes place, the licensee should give a full explanation
of dual agency although neither party should sign an acceptance of
dual agency at this time.
A buyers broker may perform a market analysis and advise the buyer on an
offer.

 Disclosure and Listing Forms

The form must be explained by the agent, and read, acknowledged, and
signed by the principal prior to signing the listing agreement.
Exclusive Right To Sell Agreement
Under the exclusive right to sell agreement, the property is listed with
only one broker as the agent. If anyone else sells the property during
the term of the listing, the broker is legally entitled to the
commission. 1 broker-commission no matter who sells
Exclusive Agency Agreement
In an exclusive agency listing, the property is listed with only one
broker as the agent, if the broker affects the sale of the property or
the listing is on MLS and any other broker sells it the broker is
legally entitled to the commission agreed upon, but if the owner sells
the property, the broker earns no commission.
1 broker, commission only if broker sells
New York prohibits automatic extensions of listings.
Agency Disclosure Section 443 requires that licensees present a written agency
disclosure form that details consumer choices about representation at the first
substantive contact with a prospective seller or buyer. The law does not cover
vacant land.
"A real estate broker shall make it clear for which party he is acting and he shall
not receive compensation from more than one party except with the full
knowledge and consent of all parties."
When the agency disclosure form should be used
At the first substantive contact and the buyer must sign and
acknowledge the form.
The agent must provide a copy of the disclosure form to the buyer or
seller and maintain a copy for a minimum of 3 years.
When disclosure should take place
Walk-ins-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.
Refusal to sign disclosure form
The agent should make notes in an appointment book of the names of
the prospective buyers, the time, the date and the reason for refusal.
At this point, the property may be shown.
Elements of an antitrust violation
Any business activity in which there is a monopoly, a contract, a
conspiracy or a combination that negatively impacts an individual or
companys ability to do business. This is called restraint of trade.
The Federal Trade Commission-The FTC has the authority to enforce compliance
with the Sherman Act and certain sections of the Clayton Act.
The antitrust division of the Department of Justice enforces the Sherman and
Clayton Antitrust Acts.
Price Fixing-occurs when competitors in a group conspire to charge a same or
similar price for services rendered.
- Liens and Easements
An encumbrance is anything that lessens the bundle of rights in real property.

 At execution and foreclosure of liens, priority is based upon the time [day and
hour] were recorded in office of county clerk.
In New York, liens for real property taxes and special assessments receive the
highest priority of all liens!!!!!.
Taxes levied by a local government constitute a specific lien against the real estate.
Mechanics lien is a specific lien filed by a person who provides labor to a
property.
Materialmens lien is a specific lien filed by a supplier of products required in the
construction.
New York law requires that a mechanic and materialmens lien for residential
property be filed with the county clerk where the property is situated within 4
months from the date when the labor or materials were furnished. The time
and date of filing determines the priority of the lien. In New York, mechanics
liens must be renewed annually.
Lis pendens means pending litigation. This filing is a legal notice that a lawsuit
has been filed concerning the specific property.
If one has a possessory interest in property, that individual cannot own an
easement. The common terminology for easement is right-of-way.[legal
trespass]
Easements in gross are also called commercial easements in gross. The category is
usually owned by the government, an agency of the government, or a public
utility.
Easement appurtenant category includes all easements that are no in gross. The
land that benefits from easement appurtenant is called the dominant
tenement. The land that must suffer and allows the use is called the servient
tenement.
A license is defined as permission to do a particular act or series of acts on
anothers land without possessing any estate or interest in the land. A license is
not assignable, not inheritable, and is a temporary privilege.
PROFIT legal term the right to take products of the soil from someone elses land.
- Deeds
Transfer of title to real property in law is called alienation.
A deed is the document used to convey title legality to real property, also known
as a conveyance.
The deed must contain an adequate formal legal description of the property.
Habendum Clause to have and to hold
A full covenant and warranty deed is the strongest and broadest form of title
guarantee.
The quitclaim deed contains no warranties whatsoever; it is simply a deed of
release.
Execution of a judicial deed results from a court order; examples are guardians
deed, referees deed, tax deed, and administrator or executors deed.
Metes are the distances from point to point;
Bounds are the directions from one point to another.
Intestate Descent
When a person dies and leaves no valid will, the laws of intestacy
determine the order in which the property is distributed to the heirs.
.

Title Closing and Costs

Title is the evidence of the right to possess property.
Deed is the instrument used to convey title.
The final survey document is a type of blueprint showing measurements,
boundaries and area of property.
Chain of title involves tracing the successive conveyances of title, starting with the
current deed and going back an appropriate time.
An abstract of title is a condensed history of the title, setting forth a summary of
all the links in the chain.
Real Estate Settlement Procedures Act (RESPA)
It regulates lending activities of lending institutions in making
mortgage loans for housing.
Regulation Z, which covers all residential mortgages, addresses all advertisement
of credit terms.
Co-op and Condo Fees
Cooperatives may have a flip tax imposed upon transfer, paid by the
seller.
New York State transfer tax is paid by SELLER
The transfer tax is $4.00per$1000.00
Proration, the division of expenses and income between buyer and seller at
closing.
Contracts
A contract is an agreement between competent legal parties to do or refrain from
doing some legal act in exchange for consideration.
Types of Agreements
Express Contract-the parties to the contract have definitely agreed on
all the terms in the contract
Bilateral Contract-two parties have made promises of some kind to
each other. The offer to purchase a home is bilateral because it is
based on the exchange of promises in which the seller will sell and the
buyer will buy.
Executory Contract-a contract that is not fully performed or completed
Competent Parties
Contracts entered into by parties lacking legal capacity are voidable by
the party lacking capacity. Individuals giving a person power of
authority allow that person to act for them in legal transactions such
as real estate contracts.
The Statute of Frauds, which in New York is codified in the General Obligations
Law, state that contracts involving the creation or conveyance of an interest in
real property must be written to be enforceable.
Oral testimony is not sufficient to create a contract involving the transfer of title
to real property.
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.
Assignment is when a new party to the contract agrees to satisfy the former
partys obligation.
Statute of Limitations

 If a party to a contract fails to bring a lawsuit against a defaulting

party within a time period set by statute, the injured party loses the
right of remedy. In New York, the time limit by statute to bring legal
action against a party in a real estate transaction is 6 years.
Specific performance means that the contract will be completed as originally
agreed.
Liquidated damages are an amount of money to be paid upon certain breaches of
the contract.
The time is of the essence rule means that the closing must take place on or before
the exact date stipulated in the contract.
Installment Sales Contract The buyer contracts to obtain legal title to the
property by paying the purchase price in installments, and the seller agrees to
transfer the legal title to the buyer by delivering a deed upon the buyers full
payment of the purchase price.
Lease With Option To Buy An option is an express unilateral contract.
- Leases
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.
The owner of the property is called the lessor, the tenant is the lessee.
Security deposit: The security deposit must be held in an escrow account.
Dwellings with 6 or more units, security deposit must be place in an interestbearing account. Interest belongs to the tenant.
The assignment of the lease involves the transfer of the lease contract from the
present tenant to the assignee.
In a sublease, the original tenant is still responsible to the owner for the lease
payments under the lease contract.
Actual eviction is the removal of the tenant from the premises without the aid or
control of the court system.
Lease agreement does not terminate when an owner sells, new owner is bound by
terms of lease
A gross lease provides for the owner to pay all expenses, such as real property
taxes, owners insurance, liability insurance, and maintenance.
In a net lease, the tenant pays some or all of the expenses.
A percentage lease has a base rent plus an additional rent that is a percentage of
the lessees gross sales. Commercial
A graduated lease is one in which the rent changes from period to period over the
term {escalates}
Human Rights and Fair Housing
The Civil Rights Act of 1866-first significant statute affecting equal housing
Has no exemptions
1968 case Jones v. Alfred H. Mayer Company-prohibited racial discrimination
Brown v. Board of Education-landmark decision-separate facilities were unequal
Federal Fair Housing Act of 1968-prohibits discrimination in housing on the
basis of race, color, religion or national origin
1988-provision added to prevent discrimination based on mental or physical
handicap or familial status
Owners must allow tenants with disabilities to make reasonable modifications to

apartment AT THE TENANTS EXPENSE

The exception to FAMILIAL STATUS is SENIOR HOUSING!!!
Blockbusting-illegal [scare tactic]
Steering-direct prospective purchasers from diverse backgrounds to presently
integrated areas to avoid integration of nonintegrated areas.
Redlining-refusing to make loans to purchase, construct or repair a dwelling by
discriminating
The Sexual Orientation Non-Discrimination Act (SONDA) (2002) added sexual
orientation as a protected class under the Human Rights Law.
In housing discrimination only, punitive damages not exceeding $10,000 may be
awarded to the complainant.
LAWFUL OCCUPATION is protected class only in NEW YORK CITY!!!!
Testers, either volunteers, employees of federal programs, or civil rights groups
visit real estate offices posing as prospective homebuyers to see if race
influences the information
Estates and Interests
Another name for "PERSONAL PROPERTY" is "CHATTEL"
Riparian rights belong to the owner of property bordering a flowing body of
water
(R-river)
Littoral rights apply to property bordering a stationary body of water (L-lake)
The real estate term for improvements both on and to the land is FIXTURE.
Trade fixtures-items of personal property that a business owner installs in rented
building space.
Fee Simple Absolute-provides the most complete form of ownership and bundle of
rights in real property.
The life estate is ownership, possession and control for someone lifetime.
With a life estate, two outcomes are possible upon death,
an estate in remainder,
An estate in reversion.
Remainder interest is a fee simple present interest.
An estate at sufferance describes a tenant who is originally in lawful possession of
anothers property but refuses to leave after his right to possession terminates.
A tenant who does not leave upon expiration of the lease is termed a holdover
tenant.
When title to real property is held in the name of only one person or entity, it is
called ownership in severalty. Example: a COOP owned by CORPORATION
Right of survivorship means that if one or more of the co-owners die, the
surviving co-owners automatically receive the interest of the deceased coowner.
A special characteristic of joint tenancy is the right of survivorship.
Join Tenancy must have 4 unities= time, title ,interest, possession.
By acquiring as a joint tenancy, each joint tenant gives up the right of inheritance.
Ownership as tenants by the entirety is limited to husband and wife.
A corporation is an artificial being-invisible, intangible, and existing only
pursuant to law.
Syndicates denote multiple joint participation in a real estate investment.
A joint venture is an organization formed by 2 or more parties for the purpose of

investing in real estate or any other type of investment.

The greatest form of ownership in real property is fee simple absolute.
Land Use Regulations
Individual owners have the right to place private controls on their own real estate.
Deed restrictions are in the form of covenants or conditions. These restrictions
run with the land.
The environmental impact statement (EIS) is the process that describes and
analyzes a proposed action that may significantly affect the environment. The
EIS is available to the public for review and comment.
Eminent domain is the power of the government or its agencies to acquire private
property for public use.
A "taking" occurs when private property is regulated by a government authority
to the economic detriment of the owner, without compensation.
POWER OF ESCHEAT: if an owner dies intestate no valid will decedents
property is distributed to heirs. If there are no heirs or creditors the state uses
the power of ESCHEAT the property goes to the state
The Zoning Board of Appeals It is a local administrative appeal agency and an
interpreter of the zoning ordinance. If the request is denied by the zoning
board of appeals, the property owner may petition the New York Supreme
Court through an
Article 78 proceeding- an appeal brought forth because of a ruling by a
government agency.
Certificate of Occupancy document issued by govt agency after satisfactory
inspection of structure
A variance is a permitted deviation from specific requirements of the zoning
ordinance.
Zoning Classifications [eg: residential, commercial, etc.]
Spot zoning-spot zoning is illegal in New York
Real Estate Finance (Mortgages)
A mortgage is a loan that constitutes a lien against the real property. The
mortgage is a two-party instrument between the lender and borrower.
The borrower who gives the mortgage is called the mortgagor.
The lender who receives the mortgage is called the mortgagee.
Acceleration clause - enables the lender to declare the entire balance remaining
immediately due and payable if the borrower is in default.
Alienation clause-entitles the lender to declare the principal balance immediately
due and payable if the borrower sells the property during the mortgage term
and makes the mortgage unassumable.
In making a mortgage, the lender requires the borrower to sign promissory noteproviding evidence that a valid debt exists.

 Equity of Redemption After default, and up to the time a foreclosure sale is held,
the borrower has an equitable right to redeem his property by paying the
principal amount of the debt, accrued interest, and lender costs incurred in
initiating the foreclosure.
A JUNIOR MORTGAGE REFERS TO ANY MORTGAGE THAT IS
SUBORDINATE TO ANOTHER MORTGAGE.
Negative amortization-when a loan payment amount is not sufficient to cover
interest due, the shortfall added back into the principal, causing the principal
to grow larger after payment is made.
Graduated payment mortgage-the monthly payments are lower in the early years
of the mortgage term and increase at specified intervals until the payment
amount is sufficient to amortize the loan over the remaining term.
Blanket mortgage-two or more parcels of real estate are pledged as security for
payment of the mortgage debt. The blanket mortgage usually contains a
release clause that allows certain parcels of property to be removed from the
mortgage lien if the loan balance is reduced by a specified amount.
Purchase Money Mortgage-another type of seller financing, is a mortgage given
by a buyer to a seller to cover part of the purchase price. Here the seller
becomes the mortgagee and the buyer becomes the mortgagor.
Conventional loans
In the uninsured conventional loan, the borrowers equity in the
property, the difference between the value of the property and its
liabilities, provides sufficient security for the lender to make the loan.
Therefore, insurance to protect the lender in case of the borrowers
default is not necessary.
The Federal Housing Administration (FHA) does not make mortgage loans,
instead, FHA-insured loans protect lenders against financial loss.
VA 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.
Secondary Mortgage Market-buys and sells mortgages created in the primary
mortgage market.
Truth-in-Lending Act (TILA) Requires 4 chief disclosures: annual percentage
rate, finance charge, amount financed, and total amount of money to be paid
toward the mortgage in both principal and interest payments.
Regulation Z does not regulate interest rates, but instead provides specific
consumer protections in mortgage loans for residential real estate, and

advertises credit terms available. The only specific thing that may be stated is
the annual percentage rate, and it must be spelled out in full.
USURY LAWS are used by New York State to fix a maximum allowable interest
rate.
BUY DOWN is an choice given to the borrower to volunteer to pay discount
points
Construction loan

The Valuation Process

An appraisal is an unbiased estimate of the nature, quality, value or utility based
on factual data, of an interest in or aspect of identified real estate and related
personality as of a certain date. (ESTIMATE OR OPINION OF VALUE)
Valuation is the process of estimating the market value of an identified interest in
a specific property as of a given date.
Insured value is the cost of replacing or reproducing the structure in the event of
a total loss because of an insured hazard.
Value in use is the value of the property based on its usefulness to an owner or
investor.
Mortgage value is whatever the lender believes the property will bring at a
foreclosure sale or subsequent resale.
Plottage value of land is the increase in value and utility when small plots of land
are combined to form a larger plot.
Market value-the most probable price, as of a specific date, in cash or in other
terms, for which the property should be sold after reasonable exposure in a
competitive market, under conditions requisite to a fair sale, with the buyer
and seller acting prudently, knowledgeably, and for self-interest, and assuming
that neither is under undue duress.
Price is the amount a particular purchaser agrees to pay and a seller agrees to
accept under the circumstances surrounding the transaction.
Direct costs include the cost of labor and materials [called HARD COST]
Indirect costs are costs that create and support the project. Surveyors, attorneys,

Real Estate Math

Where to start? You really dont remember anything, huh? Well, Ill give you the
benefit of the doubt with adding, subtracting, multiplying and dividing, at least
with a calculator.
One of the first things you should do is get to know your calculator. Not all
calculators are identical. I will try to give you the most common order the functions
should be entered, but make sure thats how your calculator works.
Lets start with a couple of tests on the calculator to make sure. Do these functions
in the

EXACT order given here.

7 x 10 =

You should have 70 on your calculator. Leave that in there and hit the divided by
button and then 5. Now, you should have 14. Next hit clear at least twice, and then:

50 x 70 %
DO NOT HIT THE EQUALS BUTTON! That will calculate the percentage
AGAIN, and throw your answer way off!

You should have 35 on your calculator. If you dont, your calculator may function
differently than most (or you may function differently than most). If so, you should
determine how to come up with these answers.
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*

Now we can move on to everyones favorite type of math calculating

commissions! The

Commission is normally based on the sale price, so thats how we will learn to
calculate commissions. Just multiply the sale price by the rate of commission. If a
house sells for

$100,000 and the commission rate is 7%, just multiply 100,000 X 7%. Remember
our lesson on how to use your calculator. You can also multiply 100,000 X .07 to get
the answer, which is $7,000 either way.

We can also work problems backwards again. If we know the seller is paying a 7%
commission and we know the total amount is $7,000, we can find the sale price by
dividing 7,000 by 7%.

Notice going forward the formula is:

100,000 X 7% = 7,000

Going backwards we start at the answer of 7,000 and work backwards step-by-step
and number-by-number. Going forward we multiplied by 7%, so going backward
we divide by 7%.
Dividing is the opposite of multiplying. So 7,000 divided by 7% = 100,000. Notice
its the same number that you started with.
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*

1. A seller wants to net 70,000 dollars, after paying off a $93,000 mortgage, a 10%
commission and $4000 in miscellaneous closing costs. What must the house sell
for in order to do this?

a) $183,700.00.
b) $185,555.55.
c) $174,000.00.
d) None of the above.

If you did this in the order that things really happen, you would start at the sale
price.
The commission gets paid first (thats the way it should be); THEN you subtract
the closing costs and the mortgage, which will net the seller $70,000. Also, the
commission percentage will tell us what the BROKER is getting (10% of the sale
price). That means the seller is getting 90% of the sale price before the other things
are taken out (100% - 10% = 90%).
In a formula it would appear as the following:
(Well call the sale price SP) SP x 90% - 4000 93,000 = 70,000. When you go in
reverse, you have to keep the same order and numbers, but do the opposite
function. The LAST thing we did was SUBTRACT 93,000 to get 70,000, so in
reverse we need to start at 70,000, and ADD the 93,000 back in FIRST. The full
formula would be:
70,000 + 93,000 + 4000 divided by 90% = SP (Which is $185,555.55

1. A tract of land measures 300 feet by 5280 feet. How many acres is this equivalent
to?

a) 36.36.
b) 300.
c) 792.
d) 1,584,000.
300 x 5280 = 1,584,000. 1,584,000 divided by 43,560 is 36.36 acres.
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2. What are the taxes on a $180,000.00 house if properties are assessed at 40% of
market value, and the tax rate is $2.80 per hundred dollars of assessed value?

a) $257.14.
a) $2016.00.
b) $5040.00.
c) None of the above.

$180,000 x 40% gives us an assessed value of $72,000. Since the rate is in dollars
per hundred, we have to divide that by 100, to get 720. 720 times the rate of $2.80
gives us a tax of $2016.

The interest payment on a loan this month is $420.00. The interest rate on the loan
is 8%.

3. What is the current balance of the loan?

a) $5250.00.
b) $40,320.00.
c) $52,500.00.
d) $63,000.00.

Interest rates are based on 1 year, so we first need to multiply our monthly interest
by 12 to get 1 years worth of interest, or $5040. 5040 divided by our rate of 8%
will give us our loan amount of $63,000.

***********************************************************************
*
4. A woman sells her property for $88,000.00, which was a 22% loss from her
original purchase price. What was the original purchase price?
a) $68,640.00.
b) $100,000.00.

c) $112,820.51.
d) $107,360.00.

If you knew the original purchase price, you could multiply that times 22%, and
subtract that amount from the purchase price, OR you could look at the FULL
original purchase price as being 100% of that amount, of which you lost 22% when
you resold it. You now have 78% of the original amount, so you could multiply the
original price by 78% and get the new amount, which is $88,000. If you are
STARTING at the 88,000, you have to do the OPPOSITE to get back to the original
amount, meaning you need to DIVIDE by 78%, which will give you $112,820.51

MATH ALWAYS GIVES TWO NUMBERS. THE ONE YOU NEED TO FIND IS
THE ANSWER. THE CALCULATION IS TO MULTIPLY. IF YOU ARE
GIVEN A NUMBER AND THE ANSWER THE CALCULATION IS DIVIDE
THE ANSWER BY THE NUMBER
100,000X6%=6000
? X6%=6000 DIVIDE 6000/6%=100,000

UNDERSTANDING THE T formula will help greatly.

Top is PART Left is PERCENT Right is WHOLE
CROSSLINE is DIVISON DOWN LINE IS MULTIPICATION

BASIC MORTGAGE QUALIFYING:

JOHN HAS A YEARLY INCOME OF $30,000. THE LENDER REQUIRES THE

DEBT TO INCOME 28:36 FOR HOUSING AND TOTAL EXPENSES. WHAT IS
THE MAXIMUM HOUSE PAYMENT HE WILL QUALIFY FOR ?
$30,000/12=2500X28%=$700.00

CAP RATE OR {IRV}

FOR EXAMPLE, NET MONTHLY INCOME OF OFFICE BUILDING IS $2,250.
THE CAP RATE THE LENDER USES IS 7%, WHAT IS THE VALUE?
USING IRV FORMULA
$2,250.X12= $27,000. YOU MUST BRING IT TO A YEARLY FIGURE!
$27,000./7%=$385714.00

A SMALL STORE APPRAISERS THE ANNUAL NET INCOME OF $97,500.

THE CAP RATE DETERMINED IS 13%. WHAT IS MARKET VALUE?

MARKET VALUE X RATE = NET INCOME

? 13% = $97,500.

NUMBER MISSING DIVIDE

$97,500. /13% = $750.000
+++++++++++++++++++++++++++++++++++++++++++++++++++

Introduction to Construction
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.
The New York State Department of Health (NYSDOH) has regulations for
sanitary and safe water that act as the guideline for well water.
Percolation is movement of water through soil.
The footing is the concrete base below the frost line that supports the foundation
of the structure.
Of the 3 types of foundations built in New York, full basements are the most
common (more than 80%), followed by slab-on-grade and crawl space.

 Slab-on-grade construction-concrete slab is poured directly on the ground and

therefore eliminates the crawl space or basement.
Floating slab-pouring the footing first and then pouring the slab.
Framing refers to the wooden skeleton of the house.
Studs-used vertically for the wall.
Joists-for floor and ceiling.
Rafters-roof framing system
The sill plate is the first wooden member of the house and is used as the nailing
surface for the floor system.
The girder is the main carrying beam, either a steel beam or several wooden
members fastened together.
The bearing walls support the ceiling and/or the roof and include the outside wall
frame.
Platform framing is the most common type of framing used in residential
construction.
The pitch is the slope of the roof.
Eaves are the overhangs, which are part of the sloped roof.
Flashing is a metallic material that is used in certain areas of the roof and walls to
prevent water seepage into the structure.
Sheathing is a plywood covering placed over the exterior framing members.
R-factor means the degree of resistance to heat transfer of the walls, the larger the
R-factor, the greater the degree of insulation
HEATING:
HOT WATER SYSTEM
FORCED WARM AIR SYSTEM. When hot air is blown through the
same ducts as air conditioning.
"BTU" is BRITISH THERMAL UNIT
A fuse is a device that will melt and open the circuit, causing electrical power to

stop when overheating occurs.

Circuit breakers will trip, or switch the electrical power for a given circuit off if
the current increases beyond the capacity of the system.

Environmental Issues

The Federal Safe Drinking Water Act of 1974 is the guideline for New Yorks
drinking water regulations. New York State Department of Health (NYSDOH)
is the regulatory agent that oversees the safety of drinking water.
One of the biggest concerns about the safety of water is that highly corrosive
water may contain dangerous amounts of lead.
The installation and approval of individual residential on-site wastewater
treatment systems of less than 1,000 gallons per day in NY are regulated by
NYSDOH.
1,000 gallons or more overseen by NYSDEC
Only an individual licensed by NYSDEC may apply pesticides.
NYSDEC oversees wetlands, and must be larger than 12.4 acres to be protected.
Asbestos is a fibrous material found in rocks and soil is a carcinogen
Friable refers to the crumbly or flaky texture of asbestos when hand pressure is
applied.
Asbestos has been identified as a carcinogen, and is dangerous when inhaled.
Lead is a metallic element found worldwide in rocks and soils. It can be present in
drinking water, interior and exterior paint and in soil.
The Residential Lead Based Paint Hazard Reduction Act of 1992 sets forth
procedures disclosing the presence of lead based pint for sales of properties
built prior to 1978. Penalties for noncompliance up to $10,000.
Many homes built prior to 1988 contain plumbing systems that use lead-based
solder in pipe connections.
Radon is a colorless, odorless, tasteless, radioactive gas found worldwide as a byproduct of the natural decay of uranium present in the earth. Radon from
surrounding soil enters a home through small spaces such as cracks in
basements To remove Radon VENT IT

 Under the State Environmental Quality Review Act (SEQRA) the state
environmental quality review is a process that requires government to assess
the environmental significance of actions for which they have discretion to
review, approve, fund, or undertake.
The environmental impact statement is a report that describes and analyzes a
proposed action that may have a significant effect on the environment.
The Superfund Amendments and Reauthorization Act (SARA) (1986) an
amendment to "CERCLA" expanded the definition of persons liable for
cleanup costs.
Underground storage tanks are utilized by business and industry because the
tanks are out of sight and are also protected against vandalism and fire.
Chlorofluorocarbons (CFCs) known as "freon"are manmade chemical substances
that were used in refrigerators, air conditioners, Styrofoam, aerosol, and
cleaning agents.
Hydro chlorofluorocarbons (HCFCs) are used in home air conditioners and are
nontoxic.
Federal law mandates that in the sale or lease of pre-1978 residential properties,
sellers or their agents must distribute a lead hazard pamphlet and disclose any
known information concerning lead paint. The parties must agree to a 10-day
period for a lead paint assessment.

Municipal agencies & property insurance

Everything is done at the local level

Real property tax based on assessed value [ad valorem]
Zoning board of appeals hears request for variance and special permits
Tax assessor determines the assessed value does not determine tax
Municipal Engineers office roadways
County Health Dept. responsible for septic and other sanitation systems
Planning Board and Planning Dept difference the Planning Dept carry out plans
Approved by board

Property insurance

Liability insurance covers for financial losses

Two most common policies dwelling and homeowners
Dwelling policy covers loss to property as well indirect
Flood insurance is purchased from national flood insurance program Controlled
by FEMA
Deductible helps control cost of insurance
Umbrella policy provide high limits of liability
Mortgage clause covers the lender
HO-1-Basic form [vandalism&theft
HO-4-RENTERS
HO-6-Condo
HO-8-MODIFIED-for older homes

Taxes & assessments

New york property tax are based on the value [assessed value or ad valorem]
Property tax liens have highest priority
Non-assessable improvements e.g. landscaping, storm windows
Exemptions: schools, federal govt, hospitals religious groups
Special assessments district [tax] areas designated for infrastructure cost for

specific projects e.g. sidewalks, curbs. Person that benefits pays taxes

Income tax

Second homes have deductions, property tax and mortgage interest if not rented
for more than 14 days
Gains & losses: short term holding less than a year
Exclusion couple filing joint returns $500,000 One spouse dies other has 500,000 if
Claimed within 2years and unmarried
Types of income: active: job portfolio: stocks passive: rent
Progressive tax is federal income tax
Depreciation classes residential 27.5 years non-residential 39 years LAND IS NOT
DEPRECIATED

Condo & coops

Condo is considered real property and you get a deed

Sponsor is developer
Offering plan provided by sponsor offers detailed info on condo or co-op
By-Laws rule govern association
CC&Rs general plan for subdivision
Cps1 is policy statement signed by attorney to test the market
COOP is considered person property[shares] and a lease
Share loan co-op loan buyer is purchasing shares in a corp.

House rules address common area noise pets etc.

Alteration agreement before any renovations are done.
Board package all info on buyers
Interview board sees all even children
CONDOP mixuse building apt& commercial

Commercial

No special license needed!!!!!!!!

Must be 18years old
Commissions: graduated percentage, fixed percentage, fixed fee, or retainer
Cash flow measure of cash inflow and outflow from investment
Market value is what a ready, willing and able buyer will pay. Remember market
price is what they pay. This may be in other chapters
Amenity purchaser values property on ability for his specific needs To operate a
business
Liquidity: ability to convert asset into cash quickly without loss
Leverage: use of borrowed funds to finance portion of purchase price.
Financial risk: results when debt is used to finance an investment
Legislative risk: risk that changes in law will affect e.g.: tax laws, land use, zoning.
Negative leverage occurs when borrowed funds are invested at rate of return
lower than cost of funds to the borrower.
Loss factor or load factor difference between rentable square footage and usable
footage.
Four classes of office buildings generally are: a, b, c, d.
Community shopping center main subject has area from 100,000 to 300,000

Ground leases also land leases tenants lease only land no improvements e.g. no
buildings or structures
Net operating income: income from property that remains after annual operating
costs are paid. NOI does not take into account any money used to Finance
Operating statement used by current owner shows total revenues for a given period
cash flow components
depreciation incentive for investors to buy real estate instead of stocks for tax
shelters. Depreciation is used in many chapters be careful
Residential property 27.5 years Commercial 39years
Land is not depreciated

Property management

Property manager is a general agent

Management agreement written agreement governs the relationship between
owner and manager.
Property Manager is in a AGENCY RELATIONSHIP Owner Client Property
manager Agent
Management proposal plan to oversee the property
Operating budget created to project income over one-year period
Stabilized budget is created for five-year period
Anchor tenant major chain or department store in shopping center to give
exposure to smaller stores.

REVIEW EXAM #1

1-A broker legitimately may pay all or part of Real estate

commission to a
a. seller
b. salesperson
c. buyer
d. friend who provides a listing lead

2-The minimum age for a New York real estate brokers license
is
a. 19.
b. 18.
c. 20.
d. 21.

3-Which of the following acts would require a real estate license

in New York
a. Sale of ones own property
b. Sale by the owners lawyer
c. Sale of land by an auctioneer
d. Foreclosure sale by court order

4-An associate broker may

a. sponsor a person for a salespersons license.
b. collect his or her own real estate fees.
c. act as a principal broker for another broker.
d. Work as a salesperson for a principal broker

5-Violation of the license law is a misdemeanor, Punishable by

up to a year in jail and a fine of
Up to
a. $500.
b. $2,000.
c. $1,000.
d. $1,500.

6-When salesperson Tom Jones left ABC Realty And went to

work with XYZ REALTORS,
Toms listings
a. became null and void.
b. Remained with ABC Realty.
c. Went with him to XYZ REALTORS.
d. Required the sellers signatures to remain in the local MLS.

7-A salespersons license must be

a. displayed on the firms wall.

b. kept in the salespersons wallet
c. retained by the principal broker.
d. d. sent to the local REALTORS association.

8-When does offering a clients business for sale Require a real

estate license?
a. Never
b. Always
c. When the business includes any real estate
d. When more than half the value is real estate

9- An apartment information vendor is licensed by:

a. Department of Law
b. New York Attorney Generals office
c. Department of State
d. Division of Housing and Community Rental

10-When a license is revoked, how long must a licensee wait before

applying to have the license reinstated?
a. 18 months
b. 1 year

c. 6 months
d. 2 years

11-The form of listing whereby an owner lists property for sale

with a number of brokers is known as a(n)
a. Exclusive agency.
b. Open listing.
c. Exclusive right to sell.
d. Net listing.

12-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
a. commission to the selling agent.
b. Subagency.
c. Cooperation with buyer brokers.
d. A written disclosure of property condition.

13-. An agent who has the authority to represent the principal in

specific matters is a(n):
a. specific agent
b. general agent
c. unlimited agent
d. special agent

14-Jan Lipson gave Sun City Realty an exclusive agency listing

on her property. If she sells the
Property herself without involving Sun City, She will owe Sun
City
a. Half of the commission.
b. All of the commission.
c. No commission.
d. Only reimbursement for Sun Citys expenses.

15-When selling a property in New York, the Licensee is

required to disclose to a potential
Buyer that
a. There is a group home 1 miles away.
b. The property lies in an agricultural district.
c. There is a fundamentalist church three blocks away.
d. The former owners were divorced

16-The commission to be paid in a written listing

Agreement is the
a. rate set by law
b. amount of money over the net listing amount.
c. Customary rate in the area.

d. Percentage of the sales price as negotiated and agreed or a flat

fee.

17-The relationship between an agent and his or her

Principal is
a. Fiduciary.
b. Alluvial.
c. Allodial.
d. Executory

18-If you are selling a house in New York, it is necessary to disclose

that
a. There is a utility surcharge.
b. The former owner committed suicide.
c. The train station is eight miles away.
d. A shopping center is the nearby town is closing.

19-Seller is legally required to reveal to a buyer anything seller

knows about
a. Crimes committed on the property in the past three years
b. How much seller paid for the house.

c. Repairs that have been made to a roof leak.

d. Lead paint hazards on the property.

20-To create an agency relationship, it is necessary that

a. A listing contract be registered with the DOS.
b. The principal and agent sign a written agreement.
c. The principal pay the agents fees.
d. The parties act as principal and agent.

21- If you are a salesperson working with a buyer, then the

buyer is your client:
a. if you are servicing the buyer
b. if the buyer has shared financial information with you
c. if you have an agency contract with the buyer
d. none of the above

22-The type of listing illegal in New York State is a (n)

a. Net listing.
b. Exclusive agency.
c. Exclusive right to sell.
d. Open listing.

23- . A licensed salesperson or broker associate acting as an independent

contractor must:
a. be paid based upon sales and output
b. execute a written independent contractor agreement yearly
with the broker
c. receive half of her health care premium paid by the broker
d. both a and b

24-A salesperson sells another firms 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
of her offices share. How much does she receive?
a. $1,619.75
b. $3,237.50
c. $9,712.50
d. $10,850.00

25-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.
b. Buyer.
c. Bank.
d. Title Company.

26-Big Apple Realty is concerned that its Commission on a sale will not be
paid.
Big Apple Realty may
a. file a lis pendens,
b. Request a de minimis gift.
c. File an affidavit of entitlement.
d. File a mechanics lien.

27-A real estate salespersons compensation is set by

a. The local realty association.
b. The Department of State, Division of Licensing Services.
c. Agreement between broker and salesperson.
d. The cooperating broker in a transaction.

28-The Duncan and Hill decision cautioned real estate licensees

against
a. Misrepresentation.
b. Consumer fraud.
c. The unauthorized practice of law.
d. Undisclosed dual agency.

29-When a buyer/client wants to see property listed by his or her

agents company, the possible conflict of interest can be solved
by the use of

a. Undisclosed dual agency.

b. Designated agents.
c. Exclusive/ right/ to/ sell
d. Fiduciary duties.

30-Buyers should be careful NOT to reveal the top price theyre

willing to pay to a (n)
a. Buyers agent.
b. Principal broker
c. Sellerss agent
d. Associate broker
31 Ads made by real estate brokers that do not indicate that the
advertiser is a broker are:
a. legal in New York
b. known as blind ads
c. acceptable as long as the phone number of the broker appears
in the ad
d. acceptable if the broker is doing business as an individual
broker in his own name

32- If a licensee becomes a partner in a real estate firm, he must

have a(n):
a. salesperson license
b. broker license
c. associate broker license

d. minimum of two years experience as a broker

.

33-Agency relationship in an in-house sale require

a. No notice to the principle broker.
b. Full discussion and disclosure in writing to all parties.
c. Notice to the title company.
d. Notice to the MLS.

34-In a buyer/agency relationship the broker owes the seller

a. Care.
b. Accounting
c. Obedience
d. Fair and honest dealing

35-. If you are a salesperson working with a buyer, then the

buyer is your client:
a. if you are servicing the buyer
b. if the buyer shared financial information with you
c. if you have an agency contract with the buyer
d. none of the above

36-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 sellers agent.
b. The broker was the buyers agent.
c. The broker is a dual agent.
d. The broker has violated New Yorks real Estate license laws
and may have his or her License suspended or revoked.

37-A broker signed a listing agreement with the Ghents 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 theyre in the market for a luxury
downtown condominium instead, and want to see the Ghents
property, what should the broker do?
a. Say nothing and collect a commission from
the sellers and a fee from the buyers
b. Disclose the intended dual agency and
obtain both parties written consent
c. Withdraw from representing one of the
Parties to avoid any appearance of self-dealing
d. Nothing, but accept compensation from
Only one of the parties

38-The DOS regulation 175.7: A real estate broker Shall make

it clear for which party he is acting..
... applies to
a. The sale or lease of one/to four/unit residential properties.
b. Only condominiums and cooperatives
c. The sale or lease of commercial space only.
d. All types of transactions, not just residential.

39- 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?
a. individuals walking through an open house who do not speak
to an agent
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

40-In which clause in a deed would you find metes and bounds
and monuments?
a. Demising
b. Defeasance
c. Description

d. Habendum

41-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.
c. Estate at will.
d. Leasehold.

42-The Goodmans purchased a cottage bounding on a stream.

They have rights to the stream known as
a. Reversionary.
b. Littoral.
c. Laches.
d. Riparian.

43-Which of the following would NOT be Considered chattel?

a. A tractor
b. The barn
c. The draperies
d. A trade fixture

44-The most complete type of ownership in real estate is

a. Fee on condition.

b. Life estate.
c. Qualified fee.
d. Fee simple

45-Deed restrictions may be established only by the

a. Grantor.
b. Local government.
c. Zoning board of appeals.
d. Grantee.

46-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
Nationality.
c. Further subdivision.
d. The total number of lots in a subdivision.

47-Any right to or interest in the land interfering with its use or

transfer is called an
a. Encumbrance.
b. Encroachment.
c. Easement.
d. Appurtenance.

48-A deed is valid when it is

a. delivered and accepted.
b. Recorded.
c. Signed.
d. Notarized

49-Which type of deed is used to convey title to a Parcel of land

through a foreclosure proceeding?
a. trust
b. quitclaim
c. referees
d. warranty

50-Title to real property is conveyed by a

a. contract.
b. Lien.
c. Lease.
d. Deed.

51-. 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. net lease
c. sale and leaseback
d. gross lease

52- 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
b. sublease
c. assignment
d. lis pendens

53-A contract transferring the rights to possession of real

property for a specified term is known as a
a. lis pendens.
b. Lien.
c. Lease.
d. Deed on condition.

54-Under the New York General Obligations Law, Security

deposits by a tenant
a. Become the property of the landlord.
b. Are held in escrow by the landlord.
c. May be commingled with the landlords funds.
d. Can be retained by the landlord after he or she sells the

property.

55-A tenant learns her building has been sold to a new landlord.
The sale of the property
a. Automatically terminates all preexisting leases.
b. Automatically renews the lease for an additional term,
although the tenant has the option of declining the renewal.
c. has no effect on existing leases, and the tenant must make
timely rent payments to the new owner.
d. terminates the lease, but the tenant is entitled to a legal
holdover tenancy for the remainder of the lease term.

56-A legally enforceable agreement between competent parties

in which each party acquires a right is called a
a. Certiorari.
b. Consideration.
c. Contract.
d. Clause.

57-The usual listing agreement between a seller and a real estate

agent is a (n)
a. Implied contract.
b. Breach of contract.
c. Express contract.
d. Discharge of contract.

58-When the agreement of the parties is demonstrated by their

acts and conduct, this is known as what type of contract?

a. express
b. voidable
c. implied
d. unilateral

59-When a new contract is substituted for an existing

agreement, the process is known as
a. Novation.
b. Innovation.
c. Assignment.
d. Default.

60-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.
b. 1 percent on a sale of less than $500,000
c. 10 percent where the consideration is more than $1 million.
d. $2 per $500 or fraction thereof of the Consideration paid.

61-. In the transfer of what type of property may a flip tax be

imposed?
a. condominium
b. cooperative
c. any fee simple interest

d. on all properties sold in New York City

a.

62-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.
b. The tax due n November.
c. Nothing.
d. The tax paid last January.

63-RESPA explicitly prohibits the payment of

a. Referral fee from an insurance agent.
b. Kickbacks.
c. Brokerage referral fee.
d. Fee to a moving company.

64-An instrument in writing that is the security for A debt with

specific property as a pledge is a
a. bond.
b. Mortgage
c. Deed
d. Lease

65-A Department of Veterans Affairs mortgage is

a. Insured
b. Guaranteed
c. Conventional
d. Prepaid

66-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.
b. Fannie Mae form.
c. Mortgage Reduction Certificate.
d. Affidavit of title.

67-. A blanket mortgage usually encumbers:

a. several mortgages
b. an underlying wraparound mortgage
c. several parcels of real property
d. household goods such as bedding, appliances, and other
chattel belongings

68-. Under a mortgage, the mortgagor is the party who:

a. lends the money
b. receives the payments on the note
c. holds the mortgage

d. is the borrower

69-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. insured
c. guaranteed by the federal government at no cost to the
borrower.
d. paid for by PMI premiums.

70-. 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
b. $68,000
c. $80,000
d. $125,000

71-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
b. shared equity
c. growing equity
d. ARM

72-Charging more than the legal interest rate is Known as

a. points
b. usury
c. discounting
d. novation

73 Deed restrictions are provisions that apply to current

property owners and
a. are regulated by a local jurisdiction.
b. can be altered by the owner at any time.
c. extinguish upon transfer.
d follow the chain of title in future transfers
74- Variances and special use permits are issued by a(n)
a. architectural review board.
b. building department.
c. planning department.
d. zoning board of appeals.

75- When the present usage of land is in legal conflict with an

enacted zoning ordinance the usage is called:
a. void
b. a variance
c. spot zoning

d. nonconforming

76-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
b. variance
c. accessory use
d. special/use permit

77-Among other methods, land use is controlled Or regulated by

a. the local assessor.
b. Subdivision regulations.
c. Demographics
d. The economic cycle.

78- Examples of private land use controls would NOT include:

a. restrictive covenants
b. restrictions placed in deed or wills
c. conditions in a deed
d. eminent domain

79-Even though a building permit is issued, new Construction

will still need
a. A certificate of occupancy.
b. A variance from the zoning board of appeals.

c. Approval by an architectural review board.

d. An environmental survey.

80- A detailed architectural rendering of a structure is known as

a(n):
a. site plan
b. blueprint
c. feasibility study
d. plat

81-Electrical systems are routed through a

a. Pier and beam.
b. Circuit box.
c. Stringer.
d. Muntin.

82-A lakefront home sold for $385,000. The Broker received

$27,912.50. What rate of Commission did this broker charge?
a. 7 %
b. 8.5%
c. 10%
d. 14%

83-The most commonly used insulation material is

a. rock wool.
b. Cellulose fiber.
c. Urea formaldehyde foam.
d. Fiberglass.

84- The amount a particular purchaser agrees to pay and a

seller agrees to accept is known as:
a. cost
b. price
c. market value
d. evaluation value

85-A comparative market analysis resembles which approach to

real estate evaluation?
a. income approach.
b. Direct sales comparison.
c. Cost approach.
d. Guesstimate.

86-The definition of market value includes

a. Most recent sale price.

b. Amount of owners equity in the building.
c. Potential income tax consequences of a sale.
d. Neither buyer nor seller under undue pressure.

87-It can be dangerous for a real estate broker to

a. discount the firms usual commission rates for a particular
client.
b. discuss commission rates with another broker
c. pay one salesperson 50 percent of earned commissions and
another salesperson 60
percent
d. charge more for selling vacant land than for selling
single/family houses

88- A protected class under New York City law and not under
state or federal law is which of the following?
a. age
b. marital status
c. lawful occupation
d. familial status

a. .

89-The civil rights act of 1866

a. prohibits any type of discrimination based on race.
b. Prohibits discrimination only in federally Funded housing.
c. allows an exception for an owner/occupied two/family house.
d. does not apply to nonlicensed persons.

90-Redlining is defined as
a. Steering home seekers to a particular neighborhood.
b. Drawing red lines on a local map indicating what areas to
look in for listings.
c. Denying or restricting loans in a certain area by a lending
institution.
d. A zoning procedure.

91-New York State law goes beyond federal human rights law
when it forbids discrimination based on
a. race.
b. Marital status.
c. Religion.
d. Children in a family.

92-PDQ Realty advertises that it specializes in areas suitable for

European immigrants. This is A fair housing violation called
a. redlining.
b. Steering.

c. Blockbusting.
d. Sexual bias.

93-Using scare tactics regarding the possible change in the

demographics of a neighborhood when soliciting listings in a
violation called
a. redlining.
b. Steering.
c. Blockbusting.
d. Harassment.

94-Altough a property owner may be exempted sometimes from

discrimination laws, a real estate licensee
a. Is exempt as an owner.
b. May list the property for sale noting the Exemption.
c. may advertise the noted exemption
d. may not participate in the transaction
in any way.
95-The Sherman Antitrust Law is intended to Promote
a. a uniform commission rate schedule in any given area.
b. cooperation among brokers for the benefit of consumers.
c. free competition in the open market
d. Protection for small independent firms.

96-The Underground Storage Tank Act in New York regulates

underground fuel storage tanks That are

a. 2,000 gallons or larger.
b. 550 gallons or larger.
c. 1,100 gallons or larger.
d. 750 gallons or larger.

97-. Underground storage tanks are utilized by business and

industry for all of the following reasons EXCEPT they are:
a. out of sight
b. protected against vandalism
c. protected against leakage
d. protected against fire

98- A salesperson who is an independent contractor

a. cannot be charged for office space or supplies provided by the
broker.
b. is not subject to any direction or control by the broker.
c. is paid commission based on sales results.
d. is paid for the number of hours worked.

99-An asbestos problem is sometimes best treated by

a. installing new distribution boxes.
b. Proper ventilation of the building.

c. Removal of chipping paint.

d. Leaving it alone.

100-The New York regulatory agency that oversees the safety of

drinking water in New York is the Department of:
a. Agricultureb. Healthc. Recreation, Parks and Historic
Preservationd. Environmental Conservation Law

101- A property manager or property management firm is

usually a _____ agent.
d. general
e. principal
f. special
g. universal

ANSWER KEY TO EXAM #1

1-B: Salesperson can accept compensation only from their sponsoring broker.
2-C: As of July 1,2008 to become a broker you must be 20 years old.
3-C: selling land at an auction.
4-D: Associate broker is a licensed broker but chooses to work under the
supervision of another broker.
5-C: DOS may impose a fine not to exceed $1000.

6-B: When a licensee terminates with a broker they must turn over all information.
7-C: Kept by the broker in a safe place.
8-D: selling a business where the real estate is greater than the business.
9-C: Department of State licenses apartment information vendors.
10-B: If a license is revoked licensee must wait one year before reapplying.
11-B: In an Open listing the seller allows the property to be shown by many
Brokers.
12-B: By accepting subagency the owner will have no vicarious liability for the
Acts of cooperating agents
13-B: A general agent has specific authority in representing owners.
14-C: With the Exclusive Agency the owner owes no commission.
15-B: If property is in an agricultural district buyer must be informed.
16-D: The brokers fee is specified in the listing agreement, management
agreement, or rental agreement with the principal and is always
subject
to negotiation.
17-A: The agency relationship is always consensual, meaning both parties enter
into it willingly. It is also a fiduciary
18-A: If a Utility surcharge is assessed shall provide written notice to the
prospective purchaser
19-D: Sellers and Landlords shall disclose any lead paint they have knowledge of
20-D: The person who selects the agent to act on his behalf is the principal or
client.
21-C: The obligations of a buyers agent are also subject to any specific
Provisions set forth in an agreement between the agent and the buyer
22-A: Net Listing This type of commission arrangement is illegal in New York.

23- D: Compensation is paid only for output. Law also requires a written
agreement, executed by both parties
24- C: $462500 x 7%=$32375. divided by 2 =$16187.50x60%agent=$9712.50
25-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
26-C: If a broker feels the commission will not be paid, they must file an
affidavit of entitlement for completed brokerage services.
27-C: The fee or rate of commission paid to a real estate broker is strictly
negotiable between the broker and the seller or buyer.
28-C: In Duncan & Hill, the court upheld the Department of States determination
that a real estate broker who was not a licensed attorney demonstrated
untrustworthiness 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
29-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
30-C: The agent because if the fiduciary must tell the seller.
31-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.
32-B: Each officer of a corporation or member of a co-partnership must be licensed
as a broker.
33-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
34-D: a buyers agent should deal honestly, fairly and in good faith.
35-C: This is done through a buyer brokerage agreement
36-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
37-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
38-D: Regulation 175.7 is not limited to residential transactions, but applies to all
real estate transactions.
39-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.
40-C: The types of legal descriptions are metes&bounds, block&lot, and
monuments
41-B: Fee Simple Absolute-provides the most complete form of ownership and
bundle of rights in real property
42-D: Riparian rights belong to the owner of property bordering a flowing body of
water
43- B: Barn is real property.
44-D: Fee Simple Absolute-provides the most complete form of ownership and
bundle of rights in real property
45-A: Deed restrictions are in the form of covenants or conditions. These
restrictions run with the land, they are put by the grantor
46-B: An illegal covenant cannot be enforced [e.g. excluding people of certain
religion, or color.
47-A: An encumbrance is anything that lessens the bundle of rights in real
property.
48- A: The deed is always signed by the grantor [seller] and must be delivered to
the grantee [buyer] to be valid.
49-C: Execution of a judicial deed results from a court order; examples are
guardians deed, referees deed, tax deed, and administrator or executors deed.
They can used for a foreclosure
50- D: A deed is the document used to convey title legally to real property, also
known as a conveyance.
51- B: In a net lease, the tenant pays some or all of the expenses.
52-C: The assignment of the lease involves the transfer of the lease contract from
the present tenant to the assignee.
53- 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.

54- B: The security deposit must be held in an escrow account.
55- C: Lease agreement does not terminate when an owner sells, new owner is
bound by terms of lease
56- C: A contract is an agreement between competent legal parties to do or refrain
from doing some legal act in exchange for consideration.
57- C: Express Contract-the parties to the contract have definitely agreed on all the
terms in the contract
58- C: Implied Contract has not been put into words but is implied by the action
and conduct of parties
59- 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.
60- D: New York State transfer tax is based on sale price is $4.00 per $1,000 or
$2.00 per $5.00
61- B: Cooperatives may have a flip tax imposed upon transfer, paid by the seller.
62- A: Property taxes are paid in advance so the buyer will pay the seller for the
balance of the year.
63-B: (RESPA) Prohibits kickbacks for services not performed
64- B: A mortgage is a type of security instrument pledging property to a lender.
65- 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.
66- A: RESPA requires a standard HUD-1 settlement statement for all federalrelated loans
67- C: Blanket mortgage-two or more parcels of real estate are pledged as security
for payment of the mortgage debt.
68- D: The borrower who gives the mortgage is called the mortgagor.
69- B: FHA-insured loans protect lenders against financial loss.
70- C: $5600 IS COMMISSION DIVIDED BY 7% IS $80,000
71- D: An adjustable rate mortgage permits a lender to adjust the interest rate
periodically so it reflects the economy.

72- B: USURY LAWS are used by New York State to fix a maximum allowable
interest rate.
73- D: Deed restrictions are in the form of covenants or conditions. These
restrictions run with the land, they are put by the grantor
74- 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
75- D: Nonconforming uses occur when land does not conform to current zoning
laws, but is legally allowed because it was there before new zoning.
76- A: Nonconforming uses occur when land does not conform to current zoning
laws, but is legally allowed because it was there before new zoning
77- B: Individual owners have the right to place private controls on their own real
estate. Which may effect a home or subdivision
78- D: Eminent domain is the power of the government or its agencies to acquire
private property for public use.
79- A: Permit issued to builder after all inspections are made and property is
deemed fit is a Certificate of Occupancy
80- 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.
81- 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
82- A: COMMISSION IS DIVIDED BY SALE PRICE:
$27,912.50 DIVIDED BY $385,000= 7.25%
83- D:R-factor, the greater the degree of insulation. Most common is fiberglass

84- B: Price is the amount a particular purchaser agrees to pay and a seller agrees
to accept under the circumstances surrounding the transaction.

85-B: The cma is closely related to the sales approach used by appraisers.

86- 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.
87-B: Price Fixing-occurs when competitors in a group conspire to charge a same
or similar price for services rendered.
88- C: LAWFUL OCCUPATION is protected class only in NEW YORK CITY!!!!

89-A: The Civil Rights Act of 1866-first significant statute affecting equal housing
Has no exemptions BASED ON RACE

90-C: Redlining-refusing to make loans to purchase, construct or repair a dwelling

by discriminating
91-B: New York State Helping to fight discrimination on the basis of...
Marital Status
92- B: Steering-direct prospective purchasers from diverse backgrounds to
presently integrated areas to avoid integration of nonintegrated areas.
93-C: Blockbusting-illegal [scare tactic
94- D: Fair Housing Exemptions no transaction involving a real estate licensee is
exempt
95- 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
96- C: Some types of tanks that are exempt Tanks on farms and residential store
less than 1100 gallons
97- 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.

98- C: Compensation is paid only for output without regard for the number of
hours worked
99- D- If the asbestos is in an area and is not disturbed it is best to leave it alone.
100-B: New York State Department of Health (NYSDOH) is the regulatory agent
that oversees the safety of drinking water.
101- D: A general agent is empowered to represent the principal in a specific range
of matters. An example is a property manager,
============

Review Test 2
ANSWER THE QUESTIONS BY WRITING ANSWER THEN CHECK!

CHAPTER 1- LICENSE LAW

1- the article containing most of the laws pertaining to salespersons and brokers is?

2- the method for judicial review of determinations by agencies such as dos is

3- the listing that is illegal in new york is

4- mortgage brokers and mortgage bankers do not need a license!

TRUE OR FALSE

5. Can a licensee hold more than one license at a time

6. In new york state authority to require licensure falls under its

7. Mixing of others funds with a brokers is called

8. A document in which a property owner employs a real estate firm To market

their property is called.

9. The fee for a salesperson license and a broker's license is

10. Attorneys must take the 45 qualifying course to hold a real estate License.

CHAPTER 2 LAW OF AGENCY

1.

The person hired on anothers behalf is the

2.

The person who selects the agent to act on his behalf is

3.

The party that the agent brings to the principal is

4.

A position of trust is called

5.

Fiduciary duties include.

6.

An agent authorized to handle all affairs of principal is

7.

A broker does not have to disclose any defects to the buyer

true or false

1.

An agency relationship created by an oral or written agreement between

principal and agent is called.

2.

Agency disclosure forms must be presented when

3.

The best form of listing to take is

4.

Agents have to disclose to buyers any stigmatized properties,

true or false

5.

An agency relationship is determined by nature of payment or

Who pays it. True or false

Chapter 3 estates and interests

1. A tenant that who is lawful possession but refuses to leave after his right
terminates is

2. Land and all improvements is

3. Real estate plus all legal rights in ownership is

4. A concept that illustrates interest in and title including air rights, water rights
mineral rights etc. Is called

5. Everything that is not real property is both names

6. The two types of water rights are.

7. The two types of estates are called, and explain each.

8. The most complete form of ownership and bundle of rights is

9. Tenancy by the entirety is

10. Two or more people holding title to property at same time is

Chapter 4 liens and easements

1. Anything that lessens the bundle of rights is a

2. The two types of liens are

3. The lien that has priority over all others is

4. A nonpossessory interest in land owned by another is

5. A lien creates an______________ on the property.

6. An easement appurtenant requires 2 land owners they are called

7. An easement of condemnation is created by the govt. Right of

8. Anything intruding across a boundary line is a

9. Restrictions placed on a private owner by nongovt. Is

10. A temporary privilege to use another's land is

Chapter 5 deeds

1. Transfer of real property is described in law as

2. The document used to convey title legally to real property is

3. The person conveying title is__ the person receiving title is___

4. To record a deed it must be

5. What must occur to transfer title by deed to effect it.

6. What deed contains the strongest and broadest for of guarantee

7. A deed that contains no warranties and is simply a release is

8. The property must have a legal description what are the three

9. When a person dies and leaves no will or heirs what occurs

10. When owners have the right to all that their land produces this is Called the

right of

Chapter 6 contracts

6.

A contract that is not fully performed is called

7.

According to the statue of frauds for a contract to be enforceable it must

8.

In new york the time period to bring legal action is and is called

9.

An agreement that termininates a contract or changes parties is called

10. The rule that states a contract must take place on or before is

11. In the purchase of a co-op you receive what

12. What contract has no legal force or effect

13. An agreement between 2 competent parties to do or not is called a

14. A written outline of the scope of the real estate transaction is a

15. The act of refraining from legal action to enforce payment is

16. In the purchase of a condo you receive a____ and tenancy in

Chapter 7

leases

1.

The lessor is____ the lessee is____

2.

A lease may not be recorded unless it is for a term exceeding

3.

If the term of the lease is for more than one year it must be

4.

Security deposits must be

5.

The wrongful use of self-help where the landlord removes the tenant is

6.

Constructive eviction is when

7.

A tenant who remains after his lease terminates is

8.

A lease where a tenant pays some or all of the expenses is

9.

Discrimination in rental housing is prohibited except when

10. A long term lease of unimproved land is

11. A lease that automatically renew itself is

Chapter 8 title closing and costs

1. Title to real estate is transferred how.

2. The evidence of the right to possess real property is called a

3. A condensed history of the title setting all links to chain of title

Is called.

4. The division of expenses between buyer and seller is known as.

5. A federal statue that regulates disclosure and closing statements relative to

mortgage loans on residential is known as

6. Recordation provides the owner with protection this is called

7. The difference between a condo and co-op closing are

8. A new york tax on the conveyance of title to real property is

9. Before title can be transferred evidence ?of should be provided

10. Private mortgage insurance is not a debit to who?

Chapter 9 real estate finance

1. A loan that constitutes a lien against real property is

2. The mortgagor is called and the mortgagee is called.

3. Having a larger payment due at the end of its term is called

4. A mortgage that is paid monthly of both principal & interest is

5. Up to the time of foreclosure a buyer may regain his property by paying all

outstanding debts is known as

6. Enabling a lender to declare the entire balance due if the borrower is in default is
called

7. In a court order stating the borrower still owes the lender is

8. A mortgage should always be.

9. The market that buys and sells mortgages to keep it liquid is

10. With a loan to value of less than 80% the purchaser must obtain.

11. Truth in lending act provides for disclosure and truth in ads is

Chapter 10- land use regulations

1. The loss of legal rights due to failure to assert them is

2. Owners who place private controls on their real estate is called

3. The process that describes and analyzes action that may affect the environment
is.

4.the power of the govt. to acquire property for public use is

4. When a permitted deviation from specific requirements of the zoning ordinance

is allowed this is a

5. When a property is used in a zoned area different than specified by zoning codes
this is called.

6. What occurs when private property is regulated by a gov't agency to the

economic detriment of the owner without compensation

7. The power of escheat occurs when

8. Accessory uses are basically defined as

9. What is the difference between police power and power of e.d.

10. Who oversees most land use decision in New York

Chapter 11 introduction to construction

1. The amount of electricity flowing through a wire is

2. The greater the degree of insulation the greater r-factor

3. The minimum electrical service installed must be what amps

4. The foundation walls of a home are composed of

5. The area under the roof extension is known as the

6. The most common type of framing is

7. The electric pressure that pushes through the wire is known as

8. The plumbing system in a home consist of how many

9. According to article 36-b n.y. general business law warranties on New housing is

10. Percolation is what

Chapter 12 the valuation process

1. The importance in real estate is that it is

2. Parties that are not related or business assoc. Is called a

3. The three types of appraisals used are

4. An appraisal is a

5. A propertys worth in terms of the most probable price is called

6. The amount that a purchaser agrees to pay is called.

7. Whatever the lender believes the property will bring at foreclosure is called.

8. The appraisal approach most closely related to a cma is

9. Nonhomogeneity means that

10. The principal of supply and demand states that

Chapter 13 human rights and fair housing

1.

The civil rights act of 1866 prohibits what

2.

An area where salespeople cannot solicit listings is called

3.

The federal agency through which civil rights action can be brought is

4.

Discriminatory type of advertisement that would be allowed is

5.

Refusing to make loans on basis of race, religion is

6.

The New York state human rights law and federal laws are same

True or false

7.

Federal and New York laws contain exceptions except

8.

New York has no exemptions for sale or rental of single family homes.

9.

Properties in middle or upper income areas decline allowing lower

incomes to purchase them is called.

10. If a prospective seller requests only certain people the liscensee must

11. Showing a couple homes in a certain area is

Chapter 14 environmental issues

1. Due diligence review is conducted to protect

2. Long-standing issues are.

3. Prior to changing or initiating a land use or development to ensure that the use
will not affect the environment what is required

4. The comprehensive environmental response, compensation, and liability act

[CERCLA] passed in 1980 was amended by

5. Lead paint disclosures must be produced on homes built prior to

6 the agency that oversees safe drinking water in New York is

7. One of the major dangers in corrosive water is it may contain

8. In a due diligence test there are how many phases

9. Electromagnetic fields are created when

10. Radon generally enters a home through

Chapter 15 independent contractor

1. In general most real estate agents are

2. Which is form does an independent contractor receive

3. How many years must a broker keep records

4. Commissions are paid with deductions

Chapter 16 mathematics

1. Your fee on a sale of $500,000 at 5%& is

2. A tract of land is 120 feet front, 250 feet one side 325 feet other side what is
square footage.

3. A home is listed for $339,990 the sale nets the seller $299,000 after paying a 8%
commission. What did the home sell for?

Answers

Chapter 1:
2

chapter

1: article 12-a
Agent

1.

2:article-78

2. Principal or client

3: net listing

3. Customer

4: false
5: yes

4. Fiduciary
5. oldcar

6: police power

6. General agent

7: commingling

7. False

8: listing contract

8. Express agency

9: $50. &$150.

9. First substantive meet

10: false

10. Exclusive right to sell

11. False
12. False

Chapter 3.

Chapter 4.

1. Tenant at sufferance

1. Encumbrance

2. Real estate

2. Voluntary & involuntary

3. Real property

3. Real property tax lien

4. Bundle of rights

4. Easement

5. Personal property or chattel

5. Encumbrance

6. Riparian & littoral

6. Dominant & serviant tenement

7. Fixture

7. Eminent domain

8. Freehold[own] leasehold [rent]

8. Encroachment

9. Fee simple absolute

10. Husband and wife

9. Restrictive covenant
`

10. License

11. Tenancy in common

Chapter 5

chapter 6

1. Alienation

1. Executory

2. Deed

2. Written

3. Grantor & grantee

limitations

3. 6yrs, statue of

4. Acknowledged

4. Novation

5. Delivery & acceptance

5. Time is of the essence

6. Full covenant & warranty

proprietary
7. Quitclaim
8. Mete & bounds, sec. Blk, lot & mon

6. Shares of stock,
7. Void contract
8. Contract

9. Escheat

9. Binder

10. Accession

10. Forbearance

11.
Deed &
commo
n

Chapter 7.

Chapter 8.

1. Landlord & tenant

delivery

1. Upon execution &

2. 3 years

2. Title

3. In writing

3. Abstract of title

4. Held in escrow

4. Proration

5. Actual eviction

5. RESPA

6. Tenant denied quiet

6. Constructive notice

7. Holdover

7. Condo-fee simple

8. Net

coop-is personalty

9. People 55 or older

8. Real property transfer tax

10. Ground lease

9. Marketable title

11. Periodic

10. Seller

Chapter 9.

Chapter 10.

1. Mortgage

1. Doctrine of laches

2. Borrower & lender

3. Balloon mortgage

2. Deed restrictions
3. EIS

4. Amortized mortgage

4. Eminent domain

5. Equity of redemption
use

5. Nonconforming

6. Acceleration clause

6. taking

7. Deficiency judgment

7. Person dies intestate

8. Recorded

8. Mother/son , home business

9. Secondary market

9. ed implies just & fair comp.

10. pmi
right

police power gov't

11. Regulation z

10. Courts

Chapter 11.

Chapter 12

1. Amperage

1. Immobility

2. True

2. Arms length

3. 100

3. Cost, income, sales

4. Concrete

4. Unbiased opinion of value

5. Soffit

5. Market value

6. Platform

6. Price

7. Voltage

7. Mortgage loan value

8. 3 water, drain, vent

8. Sales comparison

9. 1yrbuild,2plumb,6yrall

9. No two parcels identical

10. Flow of water thru soil

10. Greater supply lower value

Chapter 13.

Chapter 14.

1. Discrimination on race

1. Purchaser

2. Cease & desist zone

2. Clean water,

wastewater
3. Hud

termite infestation

4. adults only if 62 & older

3. EIS

80% 55

4. SARA

5. Redlining

5. 1978

6. False! N.y. more broader

6. Dept. Of health

7. Race

7. Lead

8. True

8. 4

9. Filtering down

9. Electricity flows

10. Explain law, if no good

10. Small cracks in foundation

Walk away, tell broker

11. Steering

Chapter 15.

1. Independent contractor
2. 1099
3. 3 years
4. False

Chapter 16
1. 500,000 x 5% = 25,000
2. 250 + 325 = 575/2 = 287.5x120 = 34500
3. 100%total less

Commission =

8%

Net to seller

299,000 is 92% to seller divide

answer is 325,000

A special thank you to Nanette "HG" Johnson class of 2012 who took the time
to reformat the guide.