Exam (elaborations)
New York Real Estate Exam Prep
- Course
- Institution
New York Real Estate Exam Prep
[Show more]
Content preview
New York Real Estate ExamWhere is the license law written? - ANSWER Article 12-A
Who is responsible for administrative discipline of real estate licensees? - ANSWER
Department of State or Secretary of State
Under NYS Real Property Law, when Department of State revokes a salesperson's
license, how much time must past before the salesperson can be relicensed? -
ANSWER One year
If a broker's licensed is revoked, what happens to the salesperson's who work under
him/her? - ANSWER Their licenses are suspended until they find another broker to
supervise them/work under.
What could happen to somebody who breaks Article 12-A? - ANSWER Lose their
license, fined $1,000, a year in jail.
Is a violation of 12-A a misdemeanor or a felony? - ANSWER A misdemeanor
What dollar amount of capital gains is tax-exempt for a single person? - ANSWER
$250,000
If a married couple sells their house for a profit of $300,000, on what amount of
capital gains do they pay tax? - ANSWER They only pay if the profit is over
$500,000
If a married couple bought a house for $50,000 and sold it for $400,000, what
amount do they pay in capital gains tax? - ANSWER They don't pay any capital
gains.
If a seller fails to deliver a property condition disclosure statement before the buyer
signs the contract of sale, how much credit does the buyer receive? - ANSWER
$500
Which properties do not need a property condition disclosure statement? - ANSWER
Residential new constructions, foreclosures, condos and co-ops
When does a seller have to deliver a property condition statement to the buyer? -
ANSWER Before the buyer signs the sales contract.
What liquid carcinogen can get into water or soil? - ANSWER PCBs (poly-
chlorinated bhiphenyls)
What substance depletes the ozone layer? - ANSWER CFCs (Chlor-fluor-carbons)
What federal law curtailed use of CFCs? - ANSWER Clean Air Act
,What gas that leaks out of air conditioners is covered by Clean Air Act? - ANSWER
CFCs
What is Freon? - ANSWER A brand that used to contain CFCs but no longer does.
It's a cooling agent in older air conditioners
What type of UST (underground storage tank) is not regulated? - ANSWER Any
tank under 1100 gallons that holds gas or diesel are not regulated.
What NYS Dept. regulates USTs? - ANSWER NYS Dept. of Environmental
Conservation
What kind of insulation has cancer-causing substance in it? - ANSWER UFFI, a
kind of insulation sprayed into the wall that contains formaldehyde.
What info must a real estate ad tell? - ANSWER Must provide the name of the real
estate broker or brokerage and either the full address of broker or the phone
number, and the specific location of the property.
What is a blind ad? - ANSWER Ads that don't have legally required information,
such as the name and address or phone number of the broker and the specific
location of the property.
Unless it is a lesser estate, what kind of freehold is it? - ANSWER Fee Simple
What kind of ownership includes the full bundle of rights? - ANSWER Fee Simple
What kind of real estate has the fullest freehold interest? - ANSWER Fee Simple
What rights are included in any deed or lease? - ANSWER Possession, quiet
enjoyment and exclusion.
Does the landlord have the right to enter a tenant's apartment in a non-emergency
situation? - ANSWER No.
What do you call a tenant's right to uninterrupted use of a leased premise? -
ANSWER Possession
Compared to fee simple owners, tenants have which rights? - ANSWER
Possession, Quiet Enjoyment and Exclusion
What is it called when title is transferred by deed? - ANSWER Conveyance
What are the essential elements of a deed? - ANSWER Competent grantor (sound
mind), identifiable grantee, habendum clause (to have and to hold), consideration
(payment) and words of conveyance, legal description, signatures of all grantors,
delivery and acceptance.
,When is title officially transferred? - ANSWER At delivery and acceptance of the
deed.
Why is the old deed needed at closing? - ANSWER The lawyer needs it to prepare
the new deed for the sale.
Who must sign a deed? - ANSWER ALL grantors.
What do you call a person who acquires title to property through a deed? - ANSWER
A grantee
What do you call an arrangement where a tenant leases their leasehold interest to
someone else? - ANSWER Sublease
Who is responsible for rent in a sublease? - ANSWER The lessee or primary tenant
What is the difference between assignment and sublease? - ANSWER An
assignment is when the leasehold is assigned to a new tenant under the same terms
(rent, time, etc), the new tenant is responsible for the lease. A sublease is when a
tenant (lessee) rents their leasehold interest - which has value - to someone else,
but remains responsible for the lease terms.
What is it called when a new contract substitutes one party for another, relieving the
original party of their obligations? - ANSWER Novation
What law creates requirements for waste sites? - ANSWER CERCLA/Superfund -
Comprehensive Response, Compensation & Liability Act
What law is also called Superfund? - ANSWER CERCLA - Comprehensive
Response, Compensation & Liability Act
What law covers PCBs? - ANSWER Clean Water Act
What law reduced use of CFCs? - ANSWER Clean Air Act
CERCLA imposes liability for hazardous waste sites on individuals who are called
what? - ANSWER Potentially responsible parties
What panels do they put on a building envelope to keep rain out? - ANSWER
Sheathing
What is attached to a vertical framing member on the outside of a house? -
ANSWER Sheathing
What do they use on a roof to cover cracks and prevent leaks? - ANSWER
Flashing
If one roommate dies and the other automatically inherits, what kind of ownership
was it? - ANSWER Ownership by Entirety and Joint Tenants have survivorship.
, How many points does it take to be a broker? - ANSWER 3500
How old does a broker have to be? - ANSWER 20
How many total hours of class does a broker need? - ANSWER 75 hours
salesperson + 45 hours broker = 120 hours
How much do salesperson and broker licenses cost? - ANSWER Salesperson is
$55 and Broker is $155
Over how many years is commercial investment property depreciable on a straight-
line basis? - ANSWER 39 years
Over how many years is an apartment building depreciable on a straight-line basis? -
ANSWER 27.5 years
What kind of real estate can never be depreciated for tax? - ANSWER Land
How do you figure out what the depreciation deduction is? - ANSWER Total value -
land = building total, divided by the number of years of depreciation (39 or 27.5 for
apartments)
If an apartment property is worth $300,000 and land is worth $50,000, what is the tax
deduction amount this year? - ANSWER $250,000 x 3.636% = $9,900
What do you call gradual repayment of a mortgage debt in equal installments over
time? - ANSWER Amortization
What is the most common mortgage? - ANSWER Fixed-rate
What is the most common mortgage in which the interest rate never changes and a
borrower pays the same amount of interest each month for 30 years? - ANSWER
30 Year Fixed-Rate Mortgage
What kind of mortgage has a large principal payment at the end? - ANSWER A
non-amortized mortgage aka Balloon
What groups do federal laws protect? - ANSWER Race, national origin, religion,
sex, disability and family status (kids).
What groups do state laws protect? - ANSWER Race, national origin, religion, sex,
disability, family status (kids), age, marital status, sexual orientation as well as
military status.
Do the Feds and NYS protect citizenship, legal source of income and lawful
occupation? - ANSWER No.
What is the difference between pre-qualification and pre-approval? - ANSWER Pre-
qualification is the first step, the lender looks at your income and how much you can
afford. In pre-approval, the next step, they do research on your financial status and
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller leonardmuriithi061. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now