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.

What is a component of the definition of market value?

An arms-length transaction

An appraiser who estimates the value of a particular property by studying its similarity to properties that were recently sold is using which approach to value?

Sales comparison

What law was the first attempt by congress to guarantee equal housing opportunities to all Unites States citizens?

Civil Rights Act of 1866.

There are no exemptions from fair housing laws based on?


What percentage of market value should a homeowner’s building be insured for?


A lovely old theater, which local residents want to remain in its present state, is being sold. Which agency should the residents appeal to preserve the theater?

Landmark Preservation Commission.

What is the name of the insurance policy that providers for excess coverage beyond the primary policy provisions?


What property type is exempt from real property assessment?

No properties are exempt from assessment.

What is the term given for a building that includes co-operative and condominium ownership in one?


What clause in a contract of sale would allow a condominium association the right to purchase a unit when it goes up for sale?

Right of first refusal.

What group oversees the management of a cooperative corporation?

Board of directors.

Clauses in a lease that call for increased costs to the tenant over a specified time during the lease term are known as?

Escalation clauses

A warehouse and distribution center would be classified under this type of investment property


The return, expressed as a percentage, derived by dividing the before-tax cash-flow by the down payment or amount invested

Cash-on-cash return

The lease clause where a tenant can find the type of occupancy allowed and any restrictions

Use clause

The difference between the gross income and net income of an investment property is that gross income

Is income received without deducting expenses

What is a financial principle based on the assumption that money received today is more valuable than money received in the future?

Time value of money

What type of income is derived from salary, bonus, and commission?

Active income

What yearly paid homeowner expenses can a taxpayer deduct from their taxable income on their federal income tax return?

Mortgage interest and property taxes

A listing broker who also acts as a mortgage broker for the buyer in the same transaction is what type of agent?

Dual agent

The type of property manager’s budget that includes income and expenses for week-to-week property analysis

Operating budget

The type of credential must a person have if they own a property management company and manage properties for several different owners

Real Estate Broker’s license

The statement used by an investor to estimate and project a property’s future profit

Pro forma

The name for income tax advantages given to homeowners and investors

Tax shelters

The type of transaction that allows individuals to postpone the payment of capital gains tax for certain classifications of property

1031 Like-Kind Tax Deferred Exchange

How are mortgage bankers different from mortgage brokers?

Mortgage brokers do not loan money and mortgage bankers do

A service that a Mortgage Loan Originator can not provide

Lending money

A property management activity that requires a real estate license

Marketing / Selling the property

The document that sets forth the Attorney General’s approval of a new co-op or condominium

CPS-1 (Cooperative Policy Statement)

A document that must be submitted to the cooperative board before any renovations or modifications can be made to a cooperative unit:

Alteration agreement

The document(s) that validate the conveyance of a proprietary lease

Shares of stock in the corporation

According to the New York State Real Property Law, who is required to hold a real estate broker or salesperson license?

Attorney’s if they hire salespersons

If a licensed real estate broker is selling a six-unit apartment building and does not disclose to the buyers that he represents the sellers, the broker would be violating which one acts or laws?

New York State Real Property Law.

When an agent is representing one party in a transaction but also acts in the best interest of another party in the same transaction without approval, the agent’s action is known as a/an?

Undisclosed dual agency

The type of lease that requires the tenant to pay some or all of the expenses of the property, such as taxes or maintenance, in addition to the rent

Net Lease

The deposit money paid to the seller upon the signing of an agreement to purchase property is known as

Earnest money

The individual that generally holds the down payment (Earnest money deposit)

Seller’s attorney

The type of loans/mortgages that would be used to cover a number of lots in a subdivision?

Blanket mortgage

When then monthly mortgage payments don't cover the interest that is due, this occurs:

Negative amortization

Before any construction can begin, a governmental authority must issue a

Building permit

An existing improvement, that was lawfully established, but would not be allowed under current zoning regulations is referred to as


Local government laws which regulate the use of land and structures in a specific area for the benefit of the community are known as?

Zoning Ordinance

The written document that describes the types of materials to be used and other features of a building to be constructed?


The type of insurance policy that would be purchased by renters


The type of insurance policy that would ensure that the full amount needed to cover the loss of belongings from a fire is paid

Replacement cost

When a property owner appeals an assessment, who is the burden of proof?

The property owner.

What would the purchaser receive to convey ownership of a condominium?

A deed

Rent for commercial space is calculated based on which of the following

Rentable (gross) square footage

The federal laws expanse the definition of persons liable for environmental clean-up costs:


Tenants enter into what type of arrangement when they lease all or part of their leasehold interest


What type of maintenance plan would a property manager create to schedule the replacement of air conditioning filters in an office building?


What individual would a real property owner hire to administer, market, merchandise, and maintain a number of rental properties?


The record of ownership of property from the original owner to the present owner is known as?

Chain of title

Residential condominiums would be considered what type of property?


What type of property is categorized as non-homestead?

Commercial and industrial property.

A mortgagor with a 30-year mortgage who makes lower payments early in the loan and larger payments later in the loan, has what type of mortgage?

GPM (graduated-payment mortgage).

A salesperson pocket card must be?

Shown on demand

When a commission is earned and not paid the salesperson's remedy is?

Seek recovery from the broker.

Architectural drafting’s that show details of a building?


A large increase in the amount of money in circulation without corresponding expansion of goods and services to be purchased results in?


Revocation of a license means the license is taken back by NYS DOS and the applicant can’t reapply for a minimum of:

One year

What clause in the contract of sale allows sellers to pursue other buyers if the buyer's offer contains a prior sale or mortgage contingency

Escape clause

The truth and lending act does not cover

Commercial loans

An object crossing over another property owners boundary line


What goes under a foundation to keep it from settling?


Brokers, who are in collusion to fix commission rates are in violation of what antitrust law?

Price fixing

Which is not an appraisal approach for estimating market value?

Market value approach

What is the purpose of the secondary mortgage market?

Buy closed loans from the primary mortgage market lenders

What is a true statement regarding all liens?

All liens relate to debt.

Which group is not eligible for a reduction or exemption in real property taxes?

Secondary residence (vacation home)

A lease given to a co-op owner, who will live in their co-op unit, is known as a(n)

Proprietary lease

Before the renewal of a real estate license, the Department of State requires that a real estate licensee complete at least

22.5 hours of continuing education courses every two years

A blanket mortgage usually encumbers

several parcels of real property

The landlord of a lease is called the


A violation of license law is legally classified as a(n):


Real Estate Flash Cards