Term
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Definition
| The condensed history of the tittle to a particular parcel of real estate. |
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Term
| abstract of title with layer's opinion |
|
Definition
| An abstract of title that a lawyer has examined and has certified to be, in the lawyer's opinion, an accurate statement of fact. |
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Term
|
Definition
| lying immediately next to, as with two parcels of real estate with a common lot line. |
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Term
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Definition
| The clause in a note or mortgage that can be enforced to make the entire debt due immediately if the mortgagor defaults. |
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Term
|
Definition
| The acquisition of land by deposits from an adjoining stream; also the acquisition of fixtures or improvements built on one's land by another. |
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Term
| accessory (apartment) use |
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Definition
| An additional apartment, usually small, sometimes allowed in an area zoned for one family homes, which might be used for elderly grandparents; an accessory use would be something in addition to occupation of a home, possible a small home busines. |
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Term
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Definition
| The agent's fiduciary duty to account to the principal, particularly for any money involved in the transaction. |
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Term
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Definition
| The grantee's taking of a deed of transfer. |
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Term
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Definition
| The increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake or sea. |
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Term
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Definition
| On a closing statement, items of expense that have been incurred but are not yet payable, such as interest on a mortgage loan. |
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Term
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Definition
| A formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document. |
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Term
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Definition
| A measure of land equal to 43,560 square feet, 4840 square yards, 4047 square meters, 160 square rods, or 0.4047 hectare. |
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Term
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Definition
| Any income attributable to a direct activity of employment. |
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Term
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Definition
| When a claim is made under a policy insuring a building or other phyical object, either of two methods can determine the amount of the claim. One is the depreciated, or actual, cash value of the damaged property. The other is replacement cost. |
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Term
|
Definition
| Action whereby a defaulted tenant is physically ousted from rented property pursuant to a court order. |
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Term
|
Definition
| That which is know; actual knowledge. |
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Term
|
Definition
| Lying near to but not necessarily in actual contact with. |
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Term
|
Definition
| contiguous; attaching, in actual contact with. |
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Term
| adjustable-rate mortgage (ARM) |
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Definition
| A mortgage loan in which the interest rate may increase or decrease at specific intervals, following an economic indicator. |
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Term
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Definition
| The financial interest that the IRS attributes ot an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. |
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Term
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Definition
| Divisions of financial responsibility between a buyer and seller (also called prorations). |
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Term
| administrative discipline |
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Definition
| The Department of State's enforcement of license laws, rules and regulations through the use of reprimands and denial, suspension, or revocation of licenses. |
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Term
|
Definition
| Laws concerned with the conduct of government agencies. |
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Term
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Definition
| A person appointed by the court to administer the estate of a deceased person who left no will - that is, died intestate. |
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Term
|
Definition
| A tax levied according to value; generally used to refer to real estate tax. Also called the general tax. |
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Term
|
Definition
| The actual, visible, hostile, notorious, exclusive, and continuous possession of another's land under a claim of title. Possession for ten years may be a means of acquiring title. |
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Term
|
Definition
| A written statement sworn to before an officer who is authorized to administer an oath or affirmation. |
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Term
| affidavit of entitlement to commission |
|
Definition
| A document claiming commission that may be entered in the public records but does not become a lien against the property. |
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Term
|
Definition
| Program to inform all buyers in a minority community about housing opportunities available without descrimination. |
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Term
| A duly licensed salesperson may accept bonus compensation from |
|
Definition
| his/her own broker of record only. |
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Term
| A salesperson told the telephone company to print the following ad under "Real Estate" in the yellow pages: Alissa Jackson, Licensed Salesperson, Residential Property a Specialty, 473-4973. In order to have placed an appropriate ad, she should have included her |
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Definition
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|
Term
| An apartment information vendor's license is available to individuals who are able to |
|
Definition
| maintain a $5,000 interest-bearing escrow account. |
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Term
| Any business name used by a New York real estate broker must |
|
Definition
| be approved and registered by and with the DOS. |
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Term
| A fully qualified broker who chooses to act as a salesperson under the employ of another broker's sponsorship is licensed as a(n) |
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Definition
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Term
| In order to satisfy the education requirements for a broker's license, an applicant must have first completed how many hours of prescribed study? |
|
Definition
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Term
| The Department of State (DOS) has revoked an agent's license for fraud. How does the agent appeal? |
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Definition
| The agent has the right to appeal the revocation through an Article 78 proceeding. |
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Term
| In order to satisfy the education requirements for a real estate salesperson's license, how many hours of education must an applicant take? |
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Definition
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Term
| A homeowner lists his house with broker A. The homeowner offers a bonus commission of $500 to the agent who brings a good buyer before December. A salesperson who is associated with the cooperating firm of broker B effects the sale on November 1. The salesperson may collect that bonus from |
|
Definition
| broker B and from no other. |
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Term
| In the office of a broker, which licenses must be displayed? |
|
Definition
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|
Term
| After December 2008, the continuing education requirement for license renewal of home inspectors in NY will |
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Definition
|
|
Term
| How many years experience as a licensed salesperson must a person have to be eligible for a broker's license in NY State? |
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Definition
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|
Term
| To obtain a broker's license, you must reach the age of |
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Definition
|
|
Term
| Do you need a valid real estate license to accept a TV from a grateful neighbor in return for arranging a home equity loan? |
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Definition
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|
Term
| When dining in a restaurant, it is understood by the parties that if served, the patron will pay the check. This is and example of a(n) |
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Definition
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|
Term
| To successfully sue a broker for misrepresentation, the buyer must be able to prove that |
|
Definition
| the buyer was damaged from relying on the truth of the statement. |
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Term
| A seller who wishes to cancel a listing in NY |
|
Definition
| may be held liable for damages by the broker. |
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Term
| Commissions usually are earned when |
|
Definition
| the seller accepts the buyer's offer without conditions. |
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Term
| A heating system that does not work well is and example of |
|
Definition
| a material fact/defect that would affect the value of a property and must be disclosed to the buyer. |
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Term
| A seller's willingness to accept a buyer's offer for a lot only if the buyer will purchase homeowner's insurance from the seller's insurance brokerage is and example of |
|
Definition
| a tie-in arrangement and is illegal. |
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Term
|
Definition
| A general agent has broader authority than a special agent. He has the ability to bind his principal. As is usually prescribed in a managemnt agreement, a managing agent can perform emergency repairs without advance permission of the property owner. example: a property manager for an apartment complex |
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Term
| Acronym to help remember the fiduciary duties of a broker |
|
Definition
| CC-LOAD, care, confidentiality, loyalty, obedience, accountability and disclosure |
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Term
| What is a meeting of the minds |
|
Definition
| when a buyer and seller agree on the price and terms of the sale |
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Term
| A residential transaction is defined as |
|
Definition
| the sale or rental of a building that contains four or fewer units intended for dwelling purposes. |
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Term
| An after-the-fact acceptance of a relationship or previous agreement is BEST described as |
|
Definition
|
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Term
|
Definition
| a licensee representing both parties in the same transaction. |
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Term
| Even if a proposed transaction does not go through, the broker sometimes may collect a commission if the |
|
Definition
| seller commits willful default and backs out. |
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Term
| The Sherman Act prohibits any kind of contract, combination or conspiracy in |
|
Definition
|
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Term
|
Definition
| The amount of remaining cash flow after deductions are made from the before-tax cash flow for income taxes resulting from the property's income activities. |
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Term
|
Definition
| NY state's partial exemption of school tax for low-income elderly homeowners |
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Term
|
Definition
| that relationship wherein and agent is employed by a principal to do certain acts on the principal's behalf |
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Term
| agency coupled with interest |
|
Definition
| an agency relationship in which the agent has in interest in the property |
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Term
|
Definition
| one who undertakes to transact some business or to manage some affair for another by authority of the latter |
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Term
| agreement in writing and signed |
|
Definition
| NY's statute of frauds requirement for a valid sales contract, or a lease for more than one year |
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Term
|
Definition
| farms, timberland, pasture land, orchards |
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Term
|
Definition
| The right to use the open space above a property, generally allowing the surface to be used for another purpose |
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Term
|
Definition
| the act of transferring property to another |
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Term
|
Definition
| The clause in a mortgage stating that the balance of the secured debt becomes immediately due and payable at the mortgagee's option if the property is sold. |
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Term
|
Definition
| extra soil deposited on shore by the action of water |
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Term
|
Definition
| an agreement between the shareholder and the cooperative |
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Term
|
Definition
| a loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan |
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Term
|
Definition
| amount of electrical current |
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Term
|
Definition
| Annual Percentage Rate, rate of interest charged on a loan, calculated to take into account up-front loan fees and points. |
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Term
|
Definition
| Laws designed to preserve the free enterprise of the ope marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. |
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Term
| apartment information vendor |
|
Definition
| a person who, for a fee, brings landlords and tenants together. |
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Term
| Landlords receive the greatest economic benefit from rent control and rent stabilization. T or F |
|
Definition
| False. Tenants receive the greatest benefit. |
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Term
| High energy costs, wetlands and flood insurance are all concerns of downstate property owners. T or F |
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Definition
|
|
Term
| The Department of State administers |
|
Definition
| Real estate licenses, agency disclosure article 443, cease and desist Laws |
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Term
| Why concerned about Asbestos? |
|
Definition
| It poses a risk of cancer and other health threats. |
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Term
|
Definition
| An illegal practice which violates human rights laws and is regulated by Cease and Desist laws. |
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Term
| How do you compute a tax rate? |
|
Definition
| Divide the budget by the assessment roll. |
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Term
| Property tax liens are prioritized the same way as any other lien: First in time, first in right. T or F |
|
Definition
| False. Tax liens come before all other liens. |
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Term
|
Definition
| A tax rate, .001 and 1/1000 |
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|
Term
| If the equalization rate is 105% and the property assessment is $250,000, what is the equalized value? |
|
Definition
|
|
Term
| Value determines ad valorem taxes. T or F |
|
Definition
|
|
Term
| If a vacancy level is 2%, a property manager should consider |
|
Definition
|
|
Term
| Referrals are not considered an effective way to market property. T or F |
|
Definition
| False. They are the most effective way. |
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Term
| Maximizing income while maintaining property value is the job of a |
|
Definition
|
|
Term
| Rent stabilization is regulated under the |
|
Definition
| Emergency Tenant Protection Act |
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|
Term
| Rent increases are available ever 2 years under rent control. T or F |
|
Definition
|
|
Term
| A surety bond protects a property manager when |
|
Definition
|
|
Term
| Corrective maintenance would involve a property manager's replacing parts in the HVAC on a regular basis. T or F |
|
Definition
| False. That is preventative maintenance. |
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Term
| In an emergency, a landlord |
|
Definition
| may enter a tenant's apartment, may call the police for access, may ask super for access. |
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Term
| A landlord is responsible for keeping the property burglar proof. T or F |
|
Definition
|
|
Term
| Tenant's are entitled to receive all the interest earned on their security deposits. T or F |
|
Definition
|
|
Term
| Suppliers may pay a percentage of their profits back to the building manager. T or F |
|
Definition
| False. That is an illegal kickback. |
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Term
| Under the Statute, if a deceased has a spouse, no children, parents and siblings, the spouse will inherit the whole estate. T or F |
|
Definition
|
|
Term
|
Definition
| A process under the rules of adverse possession whereby several parties can possess a property during the required ten year period. |
|
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Term
| Involuntary alienation would concern |
|
Definition
| Erosion, foreclosure and/or condemnation |
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|
Term
| An acknowledged document may be recorded. T or F |
|
Definition
|
|
Term
| NY State transfer tax is collected on |
|
Definition
| The entire purchase price, less any assumed mortgage. $2/$500 |
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Term
| Title insurance can protect both the grantee and the bank. T or F |
|
Definition
|
|
Term
| Drainage into waterways would be the concern of the NY Executive Law. T or F |
|
Definition
| False. Army Corps of Engineers |
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|
Term
| Plaster is also called interior wallboard. T or F |
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Definition
|
|
Term
| Lintels would be found over a doorway or window. T or F. |
|
Definition
|
|
Term
| Steel frame construction is the most common in NY. T or F |
|
Definition
| False. It is wood frame construction. |
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Term
| Post and beam construction consists of extra long wall studs so that a builder can frame 2 stories at one time. T or F |
|
Definition
| False. Balloon frame construction. |
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Term
| Joists are sloping boards that determine the slant of the roof. T or F |
|
Definition
|
|
Term
| Furnace heat capacity is determined by what unit? |
|
Definition
|
|
Term
| The amount of insulation is shown in the R factor. T or F |
|
Definition
|
|
Term
| Corporations that are taxed as partnerships are |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Mortgages are not an example of commercial paper. T or F |
|
Definition
|
|
Term
| Chapter 7 wipes out most of the Debtors liabilities by liquidating all the assets. T or F |
|
Definition
|
|
Term
| Duty, breach, causation and damage are required to have a cause of action in |
|
Definition
|
|
Term
| The Court of Appeals is NY's |
|
Definition
|
|
Term
| Chapter 7 wipes out most of the debtors liabilities by liquidating all the assets. T or F |
|
Definition
|
|
Term
| The Court of Appeals is NY's |
|
Definition
|
|
Term
| Certificates of Incorporation are filed with the County Clerk. |
|
Definition
| False. Secretary of State |
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|
Term
| A blank endorsement states, "Pay ot he order of...." T or F |
|
Definition
| False. Special endorsement |
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|
Term
| "For Deposit Only" would be a restrictive endorsement. T or F |
|
Definition
|
|
Term
| An instrument that orders a third party to pay is known as a |
|
Definition
|
|
Term
| Legal principles based upon custom are known as |
|
Definition
|
|
Term
| Taxes on a sale are all due in the year of sale, even if the payments for the purchase are made in installments over several years. T or F |
|
Definition
| False. Taxes on installments are made in the year received. |
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|
Term
| A reduction of the tax due is known as a tax credit. T or F |
|
Definition
|
|
Term
| 45 days are given to identify a purchase when there is |
|
Definition
|
|
Term
| Cost plus improvements of a property constitute the |
|
Definition
|
|
Term
| 39 years is the cost recovery period for nonresidential property since the |
|
Definition
|
|
Term
| Calculating present value of future dollars is known as the internal rate of return. T or F |
|
Definition
|
|
Term
| A REIT must derive 100% of its income from real estate. T or F |
|
Definition
|
|
Term
|
Definition
|
|
Term
| The balance after deducting expenses is known as the net operating income. T or F |
|
Definition
|
|
Term
| A Statement that is based on current market rates instead of scheduled rents is the |
|
Definition
|
|
Term
| An investment formula might be called, "Risk equals rate of return." T or F |
|
Definition
|
|
Term
| A real estate investment would not be a good way to build an estate. T or F |
|
Definition
|
|
Term
| A short term commercial loan with a balloon payment ins known as a wraparound mortgage. T or F |
|
Definition
|
|
Term
| First mortgages are senior to second mortgages. T or F |
|
Definition
|
|
Term
| An example of a voluntary lien would be a |
|
Definition
|
|
Term
| If the Federal Reserve reduced the discount rate, |
|
Definition
| Interest rates would fall. |
|
|
Term
| A builder would get a release from the blanket mortgage in order to |
|
Definition
| sell a parcel included in the mortgage. |
|
|
Term
|
Definition
| short term, made in a series of draws, used by builders |
|
|
Term
| Commercial loans having floating rates with accrual are usually long term. T or F |
|
Definition
|
|
Term
| Most commercial loans are for 90% of property value. T or F |
|
Definition
|
|
Term
| A home equity second mortgage is a subordinate mortgage. T or F |
|
Definition
|
|
Term
| A purchase money mortgage is |
|
Definition
| the most common type of mortgage |
|
|
Term
| Most real estate in NY is purchased without bank financing. T or F |
|
Definition
|
|
Term
| Brokers do not have to disclose commission splits with other Brokers to the Principal. T or F |
|
Definition
|
|
Term
| A Broker may never purchase a property he has listed. T or F |
|
Definition
| False. He may purchase it after disclosure. |
|
|
Term
| NY's Truth in Heating Law applies to all property sales. T or F |
|
Definition
| False. One & two family homes |
|
|
Term
| Agents must keep all real estate transaction related documents for at least |
|
Definition
|
|
Term
| Before taking a listing, the real estate agent must |
|
Definition
| get the Seller's signature on the agency disclosure form. |
|
|
Term
| Agency disclosure is required for all real estate transactions. T or F |
|
Definition
| 1-4 family residential units |
|
|
Term
| Commission obligations are described in agency disclosure statements. T or F |
|
Definition
|
|
Term
| An example of an undisclosed dual agency is |
|
Definition
| telling a buyer customer the agent will get him the best deal possible. |
|
|
Term
| If a Broker only holds a customer or client's money for a short period of time, he may place it in his own business account. T or F |
|
Definition
|
|
Term
| A firm still has all the agency duties when there is a designated agency. T or F |
|
Definition
|
|
Term
| All NY licensees are Realtors. T or F |
|
Definition
|
|
Term
| Lead paint disclosures are mandated by |
|
Definition
|
|
Term
| A Broker's duty to supervise makes him responsible to the Department of State's disciplinary proceedings if |
|
Definition
| His agent violates license law. |
|
|
Term
| A Broker may not ask an applicant for a sales position if that person is married, has or plans to have children, how old that person is or whether that person has a disability. T or F |
|
Definition
|
|
Term
| Limited Liability Companies have fewer restrictions on business organization that S Corporations. T or F |
|
Definition
|
|
Term
| Corporations have no economic disadvantages as business entities. T or F |
|
Definition
|
|
Term
| When a Broker is a sole proprietor, his death releases all the listings. T or F |
|
Definition
|
|
Term
| An MLS may limit membership any way it chooses. T or F |
|
Definition
|
|
Term
| A buyer is required to use a particular mortgage bank if he wishes to have his offer presented to the seller. This would be an example of the ant-trust violation of |
|
Definition
|
|
Term
| Agreement by most of the Brokers in town to refuse to allow another Broker to show their listings would be an example of |
|
Definition
|
|
Term
| The Brokers in town agree to list at the same percent. This is an example of |
|
Definition
|
|
Term
| Additional financing details are required if an ad states any specific financial information. T or F |
|
Definition
|
|
Term
| if a Broker is licensed for 15 or more years, prior to June 2008, the continuing education requirement is waived. T or F |
|
Definition
|
|
Term
| A salesperson license renewal fee is $100 per year. T or F |
|
Definition
|
|
Term
| A salesperson applying for a Broker's license must have at least 3 years experience. T or F |
|
Definition
|
|
Term
| An associate Broker may operate individually in his own name as soon as he fills out the proper Department of State application and pays the required fee. T or F |
|
Definition
|
|
Term
| A D/B/A issued by the county clerk is required if a broker |
|
Definition
| wishes to do business in any other name than his own. |
|
|
Term
| An associate broker is not a licensed broker. T or F |
|
Definition
|
|
Term
| The total educational requirement to obtain a broker's license in NY State is |
|
Definition
|
|
Term
| The NY Banking Department registers Mortgage Brokers. T or F |
|
Definition
|
|
Term
| Purchasing, leasing and exchanging real property all require a real estate broker's license. T or F |
|
Definition
| False. Sales person or broker license. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Vacancy and collection loss |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Effective Gross Income (before operating expenses) |
|
|
Term
|
Definition
| Net operating income (cash flow before debt service) |
|
|
Term
|
Definition
| Reserves for replacements |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| How do you calculate Effective Gross income |
|
Definition
| Potential groos income - vacancy and collection loss + other income = Effective gross income (before operating expenses) |
|
|
Term
| How do you calculate net operating income |
|
Definition
| Effective gross income - operating expenses - reserves for replacements = net operating income (cash flow before debt service) |
|
|
Term
| How do you calculate before tax cash flow |
|
Definition
| Net operating income - debt service =BTCF |
|
|
Term
| How do you calculate after tax cash flow |
|
Definition
| Before tax cash flow - income tax = ATCF |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| retention of some assets with a payment plan |
|
|
Term
| What can you keep in bankruptcy? |
|
Definition
| $5k household stuff, $2400 car equity, $50K house equity, $100K husband & wife house equity |
|
|
Term
| Statue of Limitations for suing a government agency |
|
Definition
|
|
Term
| Statue of Limitations for recovering real property |
|
Definition
|
|
Term
| Statue of Limitations contracts, foreclosures, fraud |
|
Definition
|
|
Term
| Statue of Limitations for personal property and injury |
|
Definition
|
|
Term
| medical & dental malpractice |
|
Definition
|
|
Term
| Statue of Limitations assault, battery, imprisonment: libel slander |
|
Definition
|
|
Term
| Statue of Limitations for mechanics liens |
|
Definition
|
|
Term
| What is FNMA? Public or Private |
|
Definition
| Federal National Mortgage Assoc. (Fannie Mae), was government but now is private |
|
|
Term
| The Federal Reserve System divides the country into how many Federal Reserve Districts? |
|
Definition
|
|
Term
| Who controlled/controls rent regulation? |
|
Definition
| 1943-1950 Feds, 1950-1962 NYS, 1962-1984 NYS & Fed, 1984 NYS only. Rent Stabilization law 1969. |
|
|
Term
| How many municipalities in NY have rent control? |
|
Definition
|
|
Term
|
Definition
| Bullet loan or immediate financing. Bullet loan has term of 3-5 years, conduit loan is 7-10 years. always fixed rate loan and partially amoritized so balloon payment at end. |
|
|
Term
|
Definition
| Loss of a legal right through undue delay in asserting that right. |
|
|
Term
| How did gridiron patter evolve? |
|
Definition
| Government rectangular survey system. |
|
|
Term
| 4 parts of a marketing or management plan (property management) |
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Definition
| 1. Market analysis 2. Operating budget 3. Financing proposals 4. Recommendations for managing a property |
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Term
| Property management agreements should cover what 9 items? |
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Definition
| Identification of parties, Description of the property, Time the agreement will be in effect, Define manager's responsibilities, extent of manager's authority, owner's responsibilities, reporting, management fee, allocation of costs |
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