New York Salesperson Flash Cards

Study a variety of 100 key questions and answers, and quickly memorize terms, phrases, and definitions on our flash cards. The material covered on the flash cards will help you prepare to ace the Maryland real estate exam. With a mixture of national and state specific related topics you will gain the knowledge to pass the big test. Start now by clicking on a flash card.

If a condominium owner wants to sell their unit, the condominium owner's association may have the right of

First refusal to buy the unit

Before a building may be converted into a condominium, this documents must be issued by the attorney general’s office

A CPS-1

Rules that govern condominium homeowners associations are called

Bylaws

An estimation of how much income an investment property will generate in the future is known as a

Pro forma schedule

Debt service refers to

the Principal and interest payment on a commercial loan

When calculating NOI, what item is NOT included?

Mortgage payments

An inherent conflict of interest exists when a broker acts as a(n)

Dual agent

The New York Human Rights Law differs from federal law in that it

Includes commercial real estate transactions

When HUD investigates a broker for discriminatory practices, it considers the failure to

Evidence of discrimination

Designated agency can be used

Only when the broker is the dual agent

The type of financing a developer of a large parcel of land would get if they plan to sell off individual lots is a(n)

Blanket mortgage

The amount of money borrowed as a percentage of property value is called

The loan-to-value ratio

One percent of a new mortgage loan in extra prepaid interest is called

discount Points (lower the note rate and thus the monthly payment)

The truth in Lending Act is implemented by

Regulation Z (residential loans only)

When a down payment on the purchase of a home is less than 20% of the purchase price, a conventional mortgage loan MUST include

PMI

An investor looking for a tax-advantaged real estate investment similar to a mutual fund may consider investing in a

Real estate investment trust

A real estate broker can share a commission with all of the following EXCEPT a(n):

Buyer or seller

A real estate agent obtained an exclusive-right-to-sell listing. The relationship of the agent to the principal is

Special agent

A property owner’s agent, without specific authorization, may disclose to a buyer that

There are hazardous conditions on the property.

A listing given to several real estate agents at the same time is a(n)

Open listing

Rate of return is directly related to

Risk

A leasehold estate that continues for an indefinite period of time is known as a(n)

Periodic estate (start date with no end date, example: a month to month lease)

For a deed to be valid, it must include

A legal description of the property being conveyed.

A deed that may convey little or no rights, ownership, or protection is a(n)

Quitclaim deed

The use of scare tactics to cause people to sell their homes and leave a neighborhood is called

Blockbusting

What type of residential real property transfer requires a property condition disclosure statement?

A resale

A broker’s compensation is determined in an agreement between:

Broker and client

If clients sign an exclusive right to sell listing agreement with a broker and then find a buyer on their own

The broker is entitled to a full commission

A real estate broker is responsible for a chain of events leading to the sale of a listed property also known as:

Procuring cause

What type of real estate agent is authorized to represent a principal in one specific transaction.

Special agent

The broker's principal is always

The client

The legal right allowing an owner of land bordering a river or stream to use that water for recreational purposes

Riparian

What deed provision would prohibit an owner from putting up a fence taller than 4 feet?

Restrictive covenants

What do lenders require as protection against title defects?

Title insurance

Name for dividing financial responsibility for real estate taxes and rents between the buyer and seller on a closing statement

Proration

A percentage lease is based on the retail tenants

dollar volume of business

Which party to a real estate contract signs first?

Buyer

A purchaser receives financial help towards the down payment and interest rate and promises to share the profit with the lender when the property is later sold this is known as

Shared equity mortgage

Mortgages that are paid in equal monthly installments to pay the principal in full are known as

Fully amortising

The process by which the government may take private property for public use.

Condemnation

The legal right by which the government may take private property for public use

Eminent domain

This document regulates construction standards

Building permits

A document issued by the local building department that indicates the structure complies with building code

Certificate of occupancy

Federal law that deals with lead based paint disclosure

Title X

Real estate agents must provide a lead-based paint disclosure pamphlet to all buyers and tenants if the building was built prior to

1978

When a property loses value due to outdated style, the value loss is said to be the result of?

Obsolescence

The type of insurance coverage that protects against claims alleging negligence resulting in bodily injury and/or property damage

Liability insurance

The type of home insurance policy that covers condominium unit owners

HO-6

A real property tax is what type of encumbrance on a property?

Lean

What situation would be exempt from most fair housing laws?

Renting a bedroom in owners home

What is the illegal practice of refusing to grant mortgage loans or issue insurance policies based solely on the demographic makeup of a property’s location?

redlining

What is a function of a planning board?

Comprehensive plan

A completed and signed copy of the property condition disclosure statement should be delivered by the seller to the buyer prior to the?

Prior to the buyer signing a contract of sale

According to New York State Real Property Law, when a real estate salesperson’s license is revoked by the Department of State, the salesperson is ineligible to be relicensed until after the expiration of what period of time?

1 year

If a seller fails to deliver a property condition disclosure statement prior to the buyer signing the contract of sale, the buyer shall receive a credit in what amount upon transfer of title?

$500

Under what type of listing will a couple owe a commission to their agent, even if they find a buyer on their own?

Exclusive right to sell listing

The formula for calculating square feet for real estate situations

length X width

A licensee as an independent contractor can file Schedule C on her federal income tax return because she is?

Statutory nonemployees (self-employed)

What fiduciary duty is violated when a broker commingles the money of a principal with their own money?

Accountability

In the sale of 1-4 unit residential property, a dual agency with designated sales agents is disclosed on which document?

Agency disclosure

What type of deed gives the right of survivorship to unmarried property owners in New York State?

Joint tenants

What is the name of an individual who acquires title to real property by deed?

Grantee.

What kind of notice does a seller give to a buyer by recording an easement in the County Clerk’s office?

Constructive.

An example of a trade fixture in a retail store

A display cabinet

A contract of sale is fully executed when the?

The closing takes place.

What is the purpose of the earnest money deposit on a contract of sale?

Assures the seller that the buyer is serious.

The term “amortization” refers to the?

Gradual repayment of debt on an installment basis over a period of time.

What is the term for the person who borrows money in a mortgage loan transaction?

Mortgagor.

A wrap-around mortgage is best described as?

A second mortgage that has within it the amount owed on an existing first mortgage

What is the right of government to acquire private property for necessary public use?

Eminent domain

If a deceased has no will or heirs, his or her property may revert to New York State because of the state’s right of?

Escheat.

What would a resident apply for in order to be given permission to deviate from the use prescribed by an existing zoning ordinance?

Variance.

The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), also known as the superfund, covers?

Potentially responsible party.

What New York State agency regulates the safety of drinking water in New York?

Department of Health.

What is the amount paid to the lender at the time of loan origination to account for the difference between the market interest rate and the lower contract rate of the note?

Discount points.