REVIEW QUESTIONS FOR NY REAL ESTATE EXAM

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 broker's 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 one's own property b. Sale by the owner's 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 salesperson's 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, Tom's 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.

A salesperson's license must be a. displayed on the firm's wall. b. kept in the salesperson's wallet c. retained by the principal broker. d. d. sent to the local REALTORS association.

8-When does offering a client's 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

An apartment information vendor is licensed by: a. Department of Law b. New York Attorney General's office c. Department of State d. Division of Housing and Community Rental

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

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.

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.

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

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 City's 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 ½ 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

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.

The relationship between an agent and his or her Principal is a. Fiduciary. b. Alluvial. c. Allodial. d. Executory

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.

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.

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 agent's fees. d. The parties act as principal and agent.

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

-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.

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

A salesperson sells another firm's listing of a commercial building for $462,500. The 7 percent commission is split 50/50 between the two companies. The salesperson received 60 percent of her office's share. How much does she receive? a. $1,619.75 b. $3,237.50 c. $9,712.50 d. $10,850.00

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.

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 mechanic's lien.

-A real estate salesperson's 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.

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.

When a buyer/client wants to see property listed by his or her agent's company, the possible conflict of interest can be solved by the use of a. Undisclosed dual agency. b. Designated agents. c. Exclusive/ right/ to/ sell d. Fiduciary duties.

Buyers should be careful NOT to reveal the top price they're willing to pay to a (n) a. Buyer's agent. b. Principal broker c. Sellers's agent d. Associate broker

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

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 year's experience as a broker

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.

In a buyer/agency relationship the broker owes the seller a. Care. b. Accounting c. Obedience d. Fair and honest dealing

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

-In a real estate transaction, a broker had a written representation agreement with the buyer but was paid 6 percent of the selling price at the closing by the seller. Under these facts, whose agent was this broker? a. The broker was the seller's agent. b. The broker was the buyer's agent. c. The broker is a dual agent. d. The broker has violated New York's real Estate license laws and may have his or her License suspended or revoked.

-A broker signed a listing agreement with the Ghent's to market their luxury downtown condominium. A few days later, the broker Signed a buyer representation agreement with The Smiths, who were looking for a modest suburban single-family home. If the buyers decide they're in the market for a luxury downtown condominium instead, and want to see the Ghent's property, what should the broker do? a. Say nothing and collect a commission from 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

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.

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

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

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.

The Goodman's purchased a cottage bounding on a stream. They have rights to the stream known as a. Reversionary. b. Littoral. c. Laches. d. Riparian.

-Which of the following would NOT be Considered chattel? a. A tractor b. The barn c. The draperies d. A trade fixture

The most complete type of ownership in real estate is a. Fee on condition. b. Life estate. c. Qualified fee. d. Fee simple

-Deed restrictions may be established only by the a. Grantor. b. Local government. c. Zoning board of appeals. d. Grantee.

-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.

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.

A deed is valid when it is a. delivered and accepted. b. Recorded. c. Signed. d. Notarized

Which type of deed is used to convey title to a Parcel of land through a foreclosure proceeding? a. trust b. quitclaim c. referee's d. warranty

Title to real property is conveyed by a a. contract. b. Lien. c. Lease. d. Deed.

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

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

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.

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 landlord's funds. d. Can be retained by the landlord after he or she sells the property.

-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.

-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.

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.

-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

When a new contract is substituted for an existing agreement, the process is known as a. Novation. b. Innovation. c. Assignment. d. Default.

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.

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

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.

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.

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

A Department of Veterans Affairs mortgage is a. Insured b. Guaranteed c. Conventional d. Prepaid

-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.

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

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

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.

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

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

-Charging more than the legal interest rate is Known as a. points b. usury c. discounting d. novation

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

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.

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

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

Among other methods, land use is controlled Or regulated by a. the local assessor. b. Subdivision regulations. c. Demographics d. The economic cycle.

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

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.

A detailed architectural rendering of a structure is known as a(n): a. site plan b. blueprint c. feasibility study d. plat

Electrical systems are routed through a a. Pier and beam. b. Circuit box. c. Stringer. d. Muntin.

A lakefront home sold for $385,000. The Broker received $27,912.50. What rate of Commission did this broker charge? a. 7 ¼ % b. 8.5% c. 10% d. 14%

-The most commonly used insulation material is a. rock wool. b. Cellulose fiber. c. Urea formaldehyde foam. d. Fiberglass.

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

A comparative market analysis resembles which approach to real estate evaluation? a. income approach. b. Direct sales comparison. c. Cost approach. d. Guesstimate.

The definition of market value includes a. Most recent sale price. b. Amount of owner's equity in the building. c. Potential income tax consequences of a sale. d. Neither buyer nor seller under undue pressure.

It can be dangerous for a real estate broker to a. discount the firm's usual commission rates for a particular client. b. discuss commission rates with another broker 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

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

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.

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.

-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.

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.

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.

Although 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.

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.

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.

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

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.

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.

The New York regulatory agency that oversees the safety of drinking water in New York is the Department of: a. Agriculture b. Health c. Recreation, Parks and Historic Preservation d. Environmental Conservation Law

A property manager or property management firm is usually a _____ agent. d. general e. principal f. special g. universal