Download New York Real Estate 101 Exam Review Questions and more Exams Real Estate Management in PDF only on Docsity!
REVIEW QUESTIONS FOR NY REAL
ESTATE 101 EXAM
A protected class under New York City law and not under state or federal law is which of the following? a. age b. marital status c. lawful occupation d. familial status - โ โ C: LAWFUL OCCUPATION is protected class only in NEW YORK CITY!!!! The civil rights act of 1866
a. prohibits any type of discrimination based on race. b. Prohibits discrimination only in federally Funded housing. c. allows an exception for an owner/occupied two/family house. d. does not apply to nonlicensed persons. - โ โ A: The Civil Rights Act of 1866-first significant statute affecting equal housing Has no exemptions BASED ON RACE Redlining is defined as
a. Steering home seekers to a particular neighborhood.
b. Drawing red lines on a local map indicating what areas to look in for listings. c. Denying or restricting loans in a certain area by a lending institution. d. A zoning procedure. - โ โ C: Redlining-refusing to make loans to purchase, construct or repair a dwelling by discriminating -New York State law goes beyond federal human rights law when it forbids discrimination based on
a. race. b. Marital status. c. Religion. d. Children in a family. - โ โ B: New York State Helping to fight discrimination on the basis of... Marital Status PDQ Realty advertises that it specializes in areas suitable for European immigrants. This is A fair housing violation called
a. redlining. b. Steering. c. Blockbusting.
a. a uniform commission rate schedule in any given area. b. cooperation among brokers for the benefit of consumers. c. free competition in the open market d. Protection for small independent firms. - โ โ C: Congress passed the first antitrust law, the Sherman Act, in 1890 as a "comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade The Underground Storage Tank Act in New York regulates underground fuel storage tanks That are
a. 2,000 gallons or larger. b. 550 gallons or larger. c. 1,100 gallons or larger. d. 750 gallons or larger. - โ โ C: Some types of tanks that are exempt Tanks on farms and residential store less than 1100 gallons Underground storage tanks are utilized by business and industry for all of the following reasons EXCEPT they are:
a. out of sight
b. protected against vandalism c. protected against leakage d. protected against fire - โ โ A: Underground storage tanks are utilized by business and industry because the tanks are out of sight and are also protected against vandalism and fire. A salesperson who is an independent contractor
a. cannot be charged for office space or supplies provided by the broker. b. is not subject to any direction or control by the broker. c. is paid commission based on sales results. d. is paid for the number of hours worked. - โ โ C: Compensation is paid only for output without regard for the number of hours worked An asbestos problem is sometimes best treated by
a. installing new distribution boxes. b. Proper ventilation of the building. c. Removal of chipping paint. d. Leaving it alone. - โ โ D- If the asbestos is in an area and is not disturbed it is best to leave it alone.
d. Foreclosure sale by court order - โ โ C: selling land at an auction. 4-An associate broker may
a. sponsor a person for a salesperson's license. b. collect his or her own real estate fees. c. act as a principal broker for another broker. d. Work as a salesperson for a principal broker - โ โ D: Associate broker is a licensed broker but chooses to work under the supervision of another broker. 5-Violation of the license law is a misdemeanor, Punishable by up to a year in jail and a fine of Up to a. $500. b. $2,000. c. $1,000. d. $1,500. - โ โ C: DOS may impose a fine not to exceed $1000. 6-When salesperson Tom Jones left ABC Realty And went to work with XYZ REALTORS, Tom's listings a. became null and void.
b. Remained with ABC Realty. c. Went with him to XYZ REALTORS. d. Required the sellers' signatures to remain in the local MLS.
- โ โ B: When a licensee terminates with a broker they must turn over all information. A salesperson's license must be
a. displayed on the firm's wall. b. kept in the salesperson's wallet c. retained by the principal broker. d. d. sent to the local REALTORS association. - โ โ C: Kept by the broker in a safe place. 8-When does offering a client's business for sale Require a real estate license? a. Never b. Always c. When the business includes any real estate d. When more than half the value is real estate - โ โ -D: selling a business where the real estate is greater than the business. An apartment information vendor is licensed by:
To avoid possible liability for the actions of c cooperating members of a multiple-listing system, the owner who lists property for sale may decline to offer a. commission to the selling agent. b. Subagency. c. Cooperation with buyer brokers. d. A written disclosure of property condition. - โ โ B: By accepting subagency the owner will have no vicarious liability for the Acts of cooperating agents An agent who has the authority to represent the principal in specific matters is a(n): a. specific agent b. general agent c. unlimited agent d. special agent - โ โ -B: A general agent has specific authority in representing owners. Jan Lipson gave Sun City Realty an exclusive agency listing on her property. If she sells the Property herself without involving Sun City, She will owe Sun City a. Half of the commission. b. All of the commission.
c. No commission. d. Only reimbursement for Sun City's expenses. - โ โ C: With the Exclusive Agency the owner owes no commission. 15-When selling a property in New York, the Licensee is required to disclose to a potential Buyer that a. There is a group home 1 ยฝ miles away. b. The property lies in an agricultural district. c. There is a fundamentalist church three blocks away. d. The former owners were divorced - โ โ B: If property is in an agricultural district buyer must be informed. The commission to be paid in a written listing Agreement is the a. rate set by law b. amount of money over the net listing amount. c. Customary rate in the area. d. Percentage of the sales price as negotiated and agreed or a flat fee. - โ โ D: The broker's fee is specified in the listing agreement, management agreement, or rental agreement with the principal and is always subject to negotiation.
a. The local realty association. b. The Department of State, Division of Licensing Services. c. Agreement between broker and salesperson. d. The cooperating broker in a transaction. - โ โ C: The fee or rate of commission paid to a real estate broker is strictly negotiable between the broker and the seller or buyer. The Duncan and Hill decision cautioned real estate licensees against a. Misrepresentation. b. Consumer fraud. c. The unauthorized practice of law. d. Undisclosed dual agency. - โ โ C: In Duncan & Hill, the court upheld the Department of State's determination that a real estate broker who was not a licensed attorney demonstrated untrust worthiness and incompetence in violation of Real Property Law sect;441-c, finding that, when he prepared documents that included detailed mortgage terms he had devised, he engaged in the unauthorized practice of law When a buyer/client wants to see property listed by his or her agent's company, the possible conflict of interest can be solved by the use of a. Undisclosed dual agency.
b. Designated agents. c. Exclusive/ right/ to/ sell d. Fiduciary duties. - โ โ -B: If the buyer and the seller or tenant and the landlord provide their informed consent in writing, the principals and the real estate broker who represents both parties as a dual agent may designate a sales agent to represent the buyer and another sales agent to represent the seller Buyers should be careful NOT to reveal the top price they're willing to pay to a (n)
a. Buyer's agent. b. Principal broker c. Sellers's agent d. Associate broker - โ โ C: The seller's agent because if the fiduciary must tell the seller. Ads made by real estate brokers that do not indicate that the advertiser is a broker are:
a. legal in New York b. known as blind ads
If you are selling a house in New York, it is necessary to disclose that
a. There is a utility surcharge. b. The former owner committed suicide. c. The train station is eight miles away. d. A shopping center is the nearby town is closing. - โ โ A: If a Utility surcharge is assessed shall provide written notice to the prospective purchaser Seller is legally required to reveal to a buyer anything seller knows about
a. Crimes committed on the property in the past three years b. How much seller paid for the house. c. Repairs that have been made to a roof leak d. Lead paint hazards on the property. - โ โ D: Sellers and Landlords shall disclose any lead paint they have knowledge of To create an agency relationship, it is necessary that
a. A listing contract be registered with the DOS. b. The principal and agent sign a written agreement.
c. The principal pay the agent's fees. d. The parties act as principal and agent. - โ โ D: The person who selects the agent to act on his behalf is the principal or client. If you are a salesperson working with a buyer, then the buyer is your client: a. if you are servicing the buyer b. if the buyer has shared financial information with you c. if you have an agency contract with the buyer d. none of the above - โ โ C: The obligations of a buyer's agent are also subject to any specific Provisions set forth in an agreement between the agent and the buyer -The type of listing illegal in New York State is a (n) a. Net listing. b. Exclusive agency. c. Exclusive right to sell. d. Open listing. - โ โ A: Net Listing This type of commission arrangement is illegal in New York. A licensed salesperson or broker associate acting as an independent contractor must:
a. be paid based upon sales and output
b. Full discussion and disclosure in writing to all parties. c. Notice to the title company. d. Notice to the MLS. - โ โ -B: Broker dual agency can occur if agents of the broker represent both the buyer and seller in the same transaction, Full discussion and disclosure in writing to all parties must be made In a buyer/agency relationship the broker owes the seller
a. Care. b. Accounting c. Obedience d. Fair and honest dealing - โ โ D: a buyer's agent should deal honestly, fairly and in good faith. -In which clause in a deed would you find metes and bounds and monuments?
a. Demising b. Defeasance c. Description d. Habendum - โ โ C: The types of legal descriptions are metes&bounds, block&lot, and monuments
If Mr. Jones owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a (n)
a. Life estate. b. Fee simple. c. Estate at will. d. Leasehold. - โ โ B: Fee Simple Absolute-provides the most complete form of ownership and bundle of rights in real property The Goodman's purchased a cottage bounding on a stream. They have rights to the stream known as
a. Reversionary. b. Littoral. c. Laches. d. Riparian. - โ โ D: Riparian rights belong to the owner of property bordering a flowing body of water -Which of the following would NOT be Considered chattel?
a. A tractor b. The barn
