Real Estate Salesperson Practice Exam 1

Real Estate Salesperson Practice Exam 1

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Question 1
Which is the law that allows one to appeal a decision made by DOS?
A
Article 9A
B
Article 7B
C
Article 78
D
Article 12A
Question 2
Real estate professionals are required to take how many hours of continuing education every two years?
A
20
B
35
C
17.5
D
22.5
Question 3
What is the term when another state will recognize the qualifications and education held by a New York licensee when applying for a real estate license in that state?
A
exchange
B
reciprocal
C
novatel
D
escheat
Question 3 Explanation: 
The law of reciprocity allows you to use your real estate license education and qualifications in other states while applying for a license in that state.
Question 4
What is the license which allows one to deal with apartments and charge fees?
A
apartment showing vendor
B
apartment rental person
C
apartment exchange agent
D
apartment information vendor
Question 4 Explanation: 
These individuals pay a fee for licensing and they are only able to post information about available apartments.
Question 5
Who can sell real estate and charge a fee without a license?
A
auctioneer
B
property manager
C
for sale by owner
D
attorney
Question 5 Explanation: 
An Attorney has the right to act as a real estate broker by holding a law license. If an attorney chooses to hire agents, they must apply for a broker’s license.
Question 6
For a deed to be recorded, it must be in writing and:
A
signed by the grantee
B
delivered immediately to the court
C
signed by the grantor(s)
D
have at least 2 grantors
Question 6 Explanation: 
For a deed to be considered valid the Grantor (owner) must sign the deed. The Grantee does not have to sign the deed for it to be a valid transfer
Question 7
Which of the following is a choice for a broker license?
A
single
B
substitute
C
implied
D
associate
Question 7 Explanation: 
An associate broker is one that has the credentials to be a licensed broker but chooses to work under another broker
Question 8
Which of the following is the term for allowing a change to occur in a real estate transaction between two or more parties?
A
disclosure with informed consent
B
allowment in writing
C
statute of frauds
D
consent by agency
Question 8 Explanation: 
Changes can be made to any real estate transaction as long as all parties are informed and all parties agree to the change. We call this disclosure with informed consent
Question 9
A broker can charge commission from both the seller and buyer only if
A
the buyer is a friend
B
the seller gets an offer above the listing price
C
all parties are aware of the situation
D
it is paid in cash
Question 9 Explanation: 
A broker can charge both sides of the transaction as long as all parties to the transaction are aware and give consent.
Question 10
Another term for the transfer of real property is:
A
alienation
B
condemnation
C
escheat
D
implied
Question 10 Explanation: 
Alienation is the giving or transfer of real property to another.
Question 11
A deed must
A
show the legal usage of the structure
B
show the selling price of the house
C
be in writing
D
be recorded
Question 11 Explanation: 
All deeds must be in writing to be valid. A deed does not have to be recorded to be valid.
Question 12
Real estate plus the ____________ results in real property.
A
land
B
fixtures
C
trees
D
bundle of rights
Question 12 Explanation: 
Real property is more than just the land itself, it also includes the RIGHTS that come with ownership. These rights are possession, control, enjoyment, exclude and disposition.
Question 13
Another term for personal property is
A
mobile
B
trade
C
chattel
D
lally
Question 13 Explanation: 
Personal property is all that does not fit the definition of real property. Sometimes called chattel or personalty.
Question 14
Which of the following terms defines when one entity controls a certain market?
A
status
B
constitute
C
gross profit
D
monopoly
Question 14 Explanation: 
A monopoly is when one company controls the entire market in a specific industry i.e (DMV)
Question 15
A percentage lease usually occurs
A
in a parking lot
B
in an apartment building
C
in a shopping mall
D
in a house rental
Question 15 Explanation: 
A percentage lease is when a retailer pays a land owner a percentage of the earnings. This is most common in retail because the landlord is partially responsible for bringing the traffic to the store location.
Question 16
What is the term when no specific end date is defined in a lease, but there is a repeated agreed-upon interval?
A
estate for years
B
periodic estate
C
estate at will
D
estate at sufferance
Question 16 Explanation: 
A periodic estate would be a week to week, month to month or year to year tenancy.
Question 17
A freehold estate is
A
permanent ownership
B
temporary ownership
C
periodic ownership
D
some time ownership
Question 17 Explanation: 
A freehold estate is ownership in land for an indeterminate length of time.
Question 18
The Multiple Listing Service is a
A
government program
B
service for cooperating brokerages
C
service for elderly people
D
program for unemployed agents
Question 18 Explanation: 
The MLS is a data base of listings in a specific area for brokerages to cooperate in the sale of the listings.
Question 19
What type of listing is it, when a seller must pay commission to an agent, no matter who sells the property?
A
an open listing
B
an exclusive agency listing
C
an exclusive right to sell
D
all of the above
Question 19 Explanation: 
The listing brokerage will earn commission no matter who brings the buyer. The brokerage will earn commission even if the seller finds the buyer.
Question 20
Which listing is illegal to practice in New York?
A
net listing
B
gross listing
C
sub listing
D
contract listing
Question 20 Explanation: 
The broker will earn any amount of money over a set sales price as commission. This will pit the broker's commission against the seller's net proceeds.
Question 21
An owner who seeks a mortgage loan that includes 3 properties is what type of mortgage?
A
a blanket mortgage
B
an FHA mortgage
C
a wraparound mortgage
D
a chattel mortgage
Question 21 Explanation: 
A blanket mortgage will encumber more than one property. Sub-dividers commonly use this type of mortgage.
Question 22
A junior mortgage is
A
a lien on personal property
B
the first mortgage recorded
C
always made by the seller
D
a lien after the first mortgage (usually a second mortgage)
Question 22 Explanation: 
A junior mortgage is one that is subordinate to an existing lien on the same property. Priority is usually set by recording date.
Question 23
Which of the following is an attachment that gives a lender the right to seize the personal property of a borrower who has not fulfilled their obligations of a loan?
A
general lien
B
mechanic's lien
C
specific lien
D
acceleration lien
Question 23 Explanation: 
A general lien attaches to the person and all that they own.
Question 24
The lien that is paid first in a court auction is which of the following?
A
real estate tax
B
mortgage
C
mechanic's
D
materialmen's
Question 24 Explanation: 
Real estate taxes take priority over other liens.
Question 25
A deed is usually recorded at
A
the State Department
B
the New York State Banking Dept.
C
the county clerk courthouse
D
the lawyer's office
Question 25 Explanation: 
Properties are recorded in the county which they are physically located.
Question 26
Real estate appraisers are licensed by the
A
Association of Appraisers
B
Banking Department
C
Commerce Dept.
D
State
Question 26 Explanation: 
Appraisers have to be licensed for many federally related transactions and also are required to be licensed or certified by the state.
Question 27
Which of the following is seller financing?
A
sales financing
B
personal loan
C
primary mortgage
D
purchase money mortgage
Question 27 Explanation: 
A purchase money mortgage is seller financing.
Question 28
How old must one be to qualify for a reverse annuity mortgage?
A
65
B
62
C
60
D
55
Question 28 Explanation: 
To qualify for a reverse annuity mortgage the person must be 62 or older.
Question 29
What approach does an appraiser use to estimate the value of a 1 - 4 unit dwelling?
A
cost
B
income
C
sales comparison
D
investment
Question 29 Explanation: 
Up to a four unit dwelling is residential.
Question 30
The number of square feet in 1 square yard is
A
3
B
4
C
9
D
5
Question 30 Explanation: 
3 feet x 3 feet = 9 square feet
Question 31
An appraisal report must be
A
verbal with witnesses
B
in writing
C
on legal paper
D
sent to the seller and buyer
Question 31 Explanation: 
The appraisal report should be in writing to be used as an estimate of value with a loan.
Question 32
A mortgage is a
A
involuntary lien
B
voluntary lien
C
custom lien
D
purpose lien
Question 32 Explanation: 
The borrower would voluntarily give the lien to the lender as security for the loan.
Question 33
Assessed value is usually used by the
A
bank
B
lender
C
government
D
appraiser
Question 33 Explanation: 
Assessed value is usually used when calculating property tax.
Question 34
The process of combining adjacent parcels of land to form one larger parcel is
A
parcel
B
assemblage
C
sub-division
D
plot
Question 34 Explanation: 
Combined parcels for a greater value is plottage. The process is assemblage.
Question 35
The engineer that draws an aerial view of the lot is known as the
A
civil engineer
B
mechanical engineer
C
land surveyor
D
land engineer
Question 35 Explanation: 
The surveyor will outline the property boundaries.
Question 36
Which appraisal approach can be used for an apartment building?
A
Direct sales comparison
B
Cost approach
C
Income approach
D
Insured approach
Question 36 Explanation: 
An apartment building is an income producing building.
Question 37
The land owner that has the right to use an easement over another person's land is
A
servient
B
dominant
C
ownership rights
D
encroachment
Question 37 Explanation: 
The dominant estate benefits from the easement.
Question 38
A visual easement is called
A
affirmative
B
negative
C
subtract
D
relay
Question 39
Regulation Z does not cover which of the following properties?
A
1 unit family dwelling
B
2 unit family dwelling
C
commercial
D
residential
Question 39 Explanation: 
Regulation Z regulates residential transactions.
Question 40
Something of value in a contract is called
A
credit
B
consideration
C
deposit
D
prorations
Question 40 Explanation: 
Consideration maybe money, love and affection, nominal or something of value.
Question 41
The starting point in drawing a survey is called
A
metes & bounds
B
starting point
C
point of origin
D
point start
Question 41 Explanation: 
Sometimes called the point of beginning.
Question 42
A licensee can lose their license for
A
representing a client
B
qualifying a buyer before showing a property
C
doing a credit check on a potential tenant
D
commingling funds of clients
Question 42 Explanation: 
Commingling is mixing client funds with personal or brokerage operation funds.
Question 43
Which of the following is NOT realty?
A
Fee simple estate
B
Freehold estate
C
Timber
D
Life Estate
Question 43 Explanation: 
Timber is severed from the land, making it personal property.
Question 44
What is the term that describes the government's right to take private property for public use?
A
encroachment
B
easement
C
eminent domain
D
novation
Question 44 Explanation: 
Eminent Domain is the government's right to take private property for a public use.
Question 45
The landlord of a lease is called the
A
grantor
B
grantee
C
lessor
D
lessee
Question 45 Explanation: 
The lessor is the owner.
Question 46
Rent for a 50 by 80 feet office is $830 per month. What is the annual rent per square foot?
A
$2.49
B
$10.37
C
$4.00
D
$16.60
Question 46 Explanation: 
$830 x 12 = $9960 rent/year 50' x 80' = 4000 square feet $9960/4000 sq ft = $2.49 per sq ft
Question 47
Which of the following is an example of the bundle of rights?
A
mortgage
B
air rights
C
leases
D
all of the above
Question 47 Explanation: 
The bundle of rights consists of possession, enjoyment, disposition, control and exclusion.
Question 48
Which method of advertising is usually the most expensive?
A
newspapers
B
magazines
C
radio and TV
D
word of mouth
Question 49
In NYS, how many related exchange points are required to qualify for a Broker's License?
A
1750
B
3500
C
5250
D
5520
Question 50
Which fiduciary duty is involved when temporarily holding someone's money?
A
disclosure
B
loyalty
C
accountability
D
confidentiality
Question 50 Explanation: 
An agent must be able to account for all monies received from a client.
Question 51
Another type of exclusive listing other than an exclusive agency listing is called an
A
Exclusive Right to Sell
B
Exclusive Selling Listing
C
Exclusive Tenancy
D
Exclusive Open Listing
Question 51 Explanation: 
The exclusive right to sell listing provides maximum protection for the brokerage.
Question 52
The law agents follow when conducting real estate services is:
A
Article 98A
B
Article 78A
C
Article 12A
D
Article 62A
Question 52 Explanation: 
Article 12A is New York State Real Property Law
Question 53
A kickback is
A
allowable under certain instances
B
only allowable if the seller agrees
C
illegal to take
D
none of the above
Question 53 Explanation: 
A kickback is an unearned fee for services not provided.
Question 54
A severe crime is called a
A
Violation
B
Lien
C
Felony
D
Misdemeanor
Question 54 Explanation: 
A felony is a serious violation. More severe than a misdemeanor.
Question 55
A client should receive
A
client should receive a fiduciary relationship
B
Only Acknowledgment
C
Full Attention
D
Client Privileges
Question 55 Explanation: 
An agent should provide all fiduciary duties to a client.
Question 56
A trustee represents the
A
beneficiary
B
seller
C
buyer
D
sales agent
Question 56 Explanation: 
The beneficiary is the lender.
Question 57
The document that gives a person the authorization to act on behalf of another is
A
disclosure with informed consent
B
power of attorney
C
attorney in fact
D
agency acknowledgment
Question 57 Explanation: 
An attorney in fact may act on behalf of another.
Question 58
Which of the following is not considered a fiduciary duty?
A
Loyalty
B
Confidentiality
C
Accountability
D
Assumability
Question 58 Explanation: 
The fiduciary duties an agent owes to a client are care, obedience, loyalty, disclosure, accountability and confidentiality.
Question 59
A Subagent represents the
A
buyer
B
seller
C
government
D
none of the above
Question 59 Explanation: 
A subagent represents the broker's client.
Question 60
A Co-broke is where
A
an office lists and sells the same property
B
two offices are involved in the listing and selling of the same property
C
an office goes broke in the real estate business
D
company brokerage that does business
Question 60 Explanation: 
Both brokerages cooperate in the sale of the property.
Question 61
Which ownership contains the Right of Survivorship?
A
tenancy by Entirety
B
tenancy in Common
C
Joint Tenancy
D
both A and C
Question 61 Explanation: 
Tenancy in common does not include the right of survivorship, therefore ownership can be inherited.
Question 62
Which type of ownership has a condition of married at the time of purchase?
A
ownership in severalty
B
tenancy in common
C
joint tenancy
D
tenancy by entirety
Question 62 Explanation: 
The purchasers must be married to co-own as tenants by the entirety.
Question 63
Which is the best deed for the grantee?
A
Warranty Deed
B
Bargain and Sale Deed
C
Quitclaim Deed
D
Judicial Deed
Question 63 Explanation: 
The general warranty deed provides the grantee with the most guarantees.
Question 64
The engineer that draws the dimensions of the land is called a(n)
A
engineer of drawing
B
surveyor
C
blue-printer
D
appraiser
Question 64 Explanation: 
A survey will identify the boundaries and area of a parcel of land.
Question 65
An encumbrance is also known as
A
anything that lessens the bundle of rights to property
B
an inconvenience
C
a disturbance
D
a nuisance
Question 65 Explanation: 
An encumbrance is an imperfection on title to land.
Question 66
A lien is
A
a violation
B
evidence of a debt
C
lawsuit against someone
D
a foreclosure action
Question 66 Explanation: 
A lien is a charge against a property that provides security for a debt.
Question 67
Another term for transfer is
A
alliance
B
alienation
C
avoidance
D
attitude
Question 67 Explanation: 
Alienation is transferring property to another.
Question 68
A freehold estate is a
A
personal property interest
B
real property interest
C
temporary property interest
D
rental property interest
Question 68 Explanation: 
A freehold estate is ownership for an indeterminate length of time.
Question 69
A leasehold estate is a
A
possession without ownership
B
real property interest
C
forever property interest
D
rental property interest
Question 69 Explanation: 
A leasehold estate is a tenant's right to occupy real estate.
Question 70
The only time the grantee signs the deed is when
A
the grantee backs out of the sale
B
the grantee assumes the grantors mortgage
C
the grantee pays all cash for the property
D
the grantee purchases furniture along with the property
Question 70 Explanation: 
The grantee will assume all of the liabilities of the existing mortgage.
Question 71
Actual eviction means
A
the tenant evicts themselves
B
the landlord illegally changes the locks
C
the landlord evicts the tenant through the legal process
D
an eviction goes wrong
Question 71 Explanation: 
Actual eviction is a legal process that removes the tenant from the premises.
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