State: New York | Category: Real Estate | All tests in this Category:
Practice Test 1 Practice Test 21. Who ensures the title is insurable and that the title search is completed prior to closing in NY?
The title company, often working with the attorneys, conducts the title search and issues the title commitment and final title policy.
2. Which of the following is primarily a residential mortgage lender in the U.S.?
Savings and loan associations (S&Ls) historically focus on residential mortgages, whereas commercial banks have broader lending portfolios.
3. In a New York residential lease, what tenancy type results when a fixed-term lease ends and the tenant remains in possession with the landlord accepting rent?
When the lease term ends and the tenant stays on while the landlord accepts rent, a periodic tenancy (often month-to-month) is created by operation of law.
4. A zoning action that benefits a single parcel at the expense of neighbors without a plan is called...
Spot zoning generally harms the surrounding area and is typically subject to challenge.
5. If a broker represents both the buyer and the seller in a NY transaction, what is required?
New York allows intermediary relationships with appointment of separate licensees to represent each party when a broker represents both sides.
6. Which adjustment is made when a comparable property is smaller than the subject?
If a comparable is smaller than the subject, its price is increased to make it comparable to the subject property.
7. In a gross (full-service) lease, who typically pays property taxes and building insurance?
In a gross lease, the landlord typically pays most operating expenses, including property taxes and building insurance, with the tenant paying a single rent amount.
8. A property’s highest and best use is defined as:
Highest and best use refers to the use that is legally permissible, physically possible, financially feasible, and most productive, producing the maximum value for the property.
9. Which deed wording creates a fee simple determinable?
A fee simple determinable is created with language such as 'during,' 'while,' or 'so long as' the stated condition is satisfied. If the condition ends, the property automatically reverts to the grantor.
10. How many hours of approved pre-licensing education are required for a New York real estate salesperson license?
New York requires 75 hours of approved pre-licensing education for a real estate salesperson.
11. In New York, a broker signs a counteroffer on behalf of the seller without explicit written authorization. This action violates which fiduciary duty owed by the broker to the seller?
Obedience requires the agent to follow lawful instructions of the principal. Signing a counteroffer without authorization exceeds the agent's authority.
12. Which agency administers the STAR (School Tax Relief) program in New York State?
STAR is a state-administered program that reduces school taxes; local assessors apply the exemption on the tax bill under guidelines from the NYS Department of Taxation and Finance.
13. Which New York law recognizes electronic signatures and records for real estate contracts?
New York's ESRA recognizes electronic signatures and records for real estate documents.
14. Which of the following tasks is typically allowed for a NY real estate unlicensed assistant?
Unlicensed assistants may perform clerical and administrative tasks under supervision but cannot engage in licensed activities like negotiating contracts or showing properties.
15. Which loan is paid first in a foreclosure sale?
In foreclosure, loans are paid in order of priority. The first trust deed (senior loan) is paid before junior liens or second trust deeds.
16. A mortgage loan where only interest is paid during the term and the principal is due at the end is called:
A straight note, also called an interest-only loan, requires the borrower to pay only interest during the term. The entire principal is due as a lump sum at maturity.
17. A Temporary Certificate of Occupancy (TCO) may be issued when:
A TCO allows occupancy of a portion of a project while ongoing work continues, provided life-safety and zoning requirements are met and inspections are pending.
18. A junior mortgage is usually:
A junior mortgage is secondary to the primary mortgage and is repaid after the first lien in case of default.
19. Effective gross income is calculated by:
Effective gross income = potential gross income – vacancy and collection losses, representing the actual expected income from the property.
20. Which adjustment is made when a comparable has fewer bathrooms than the subject?
Since the comparable is inferior (fewer bathrooms), value is added to it to equate it to the subject property's features.
21. In New York City, which entity generally issues variances from the Zoning Resolution?
New York City uses the Board of Standards and Appeals (BSA) to grant variances. Outside NYC, variances are typically issued by a ZBA.