New York Real Estate Final ELABORATED EXAM 2026 QUESTIONS and ANSWERS GRADED A+ 100% VERIFIED LATEST!!!!

REAL ESTATE CLASSICS 2902 New York Real Estate Final ELABORATED EXAM 2026 QUESTIONS and ANSWERS GRADED A+ 100% VERIFIED LATEST!!!! Article 12-A of the NYS Real Property Law - - The section of the New York Real Property Law pertaining to real estate salespersons and brokers. - Primary purpose is to "Protect the Public" - Requires a salesperson to be at least 18 years of age - Requires a broker to be at least 20 years of age Sponsor - - A licensed real estate broker that holds the license of a salesperson. "Summary of Your Submission" - - Obtained after you register for the New York State Salesperson exam using eAccessNY. You must bring your "Summary of Your Submission" with you when taking the State exam. Misdemeanor - - A crime punishable by up to a year in prison and/or a $1,000 fine. Listing Agreement - - An employment contract between principal and agent, authorizing the agent to perform services for the principle involving the latter's property Pocket Card - - A card issued by the Department of State to each licensee which contains the photo, name and business address of the licensee, and, in the case of a real estate salesperson, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesperson. - Must be carried by the agent at all times when serving as a salesperson. Fiduciary - - A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence and trust. REAL ESTATE CLASSICS 2902 OLD CAR - - Obedience - Loyalty - Disclosure - Confidentiality - Accountability - Reasonable Care Obedience - - Agent must act in accordance to clients demands/instructions. Loyalty - - Agent must work in the best interest of the client. Disclosure of Information - - Agent must communicate with client/must present all offers. Confidentiality - - All confidential information as described by client must remain so unless given permission in writing. Accountability - - One of the more serious fiduciary responsibilities. Reasonable Care - - Agent may be liable for costly mistakes. Disclosure Regarding Real Estate Agency Relationships Form - - A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction. - First document to be submitted to all prospective clients Exclusive Agency - - An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding exclusive agency is entitled to commissions in addition to the commissions payable to the broker who effected the transaction - Made between a broker and a seller Principal - - The employer of an agent or broker; the broker's or agent's client. Price Fixing - - Conspiring to establish fixed fees or prices for services or products. Market Allocation - - An agreement between members of a trade conspiring to refrain from competition in specific market areas. Independent Contractor Relationship - - A person that provides services to another under REAL ESTATE CLASSICS 2902 terms specified in a contract or within a verbal agreement. An independent contractor is not an employee. - The agent does not have to work in a specific location - The broker cannot control the agent's work activities Bundle of Rights - - The premise that the ownership of real estate consists of the ownership of the various rights associated with it. These rights include the right to use and/or copy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing. - Includes the right to quiet enjoyment. Littoral Rights - - The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on. Riparian Rights - The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means "riverbank." Specific Lien - A lien that only binds to a specific asset or property. Ex: Mortgage. Voluntary Lien - A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate. Ex: Mortgage Tax Lien - A lien imposed by law upon a property to secure the payment of taxes. Easement - A right to cross or otherwise use someone else's property for a specified person. Encumbrance - Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation. Affirmative Easement Appurtenant - Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access. Full Covenant and Warranty Deed - A type of deed where the grantor guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee. This type of deed contains the strongest guarantee of title. Quitclaim Deed - A deed which conveys simply the grantor's rights or interest in real estate, without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title. REAL ESTATE CLASSICS 2902 Habendum Clause - A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Also known as the "to have and to hold" clause. Delivery and Acceptance - Legal policy mandates that a deed to real property be a matter of public record; therefore, subsequent to delivery and acceptance, a deed must be property recorded. Chain of Title - The sequence of historical transfers of title to a property. It runs from the present owner back to the original owner of the property. Title - Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. Closing Statement - A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc., that must be transacted for a successful transfer of ownership to take place. Essential Elements of a Contract – 1) Consideration 2) Must be in writing 3) Must have competent parties Estate for Years - A leasehold estate for any specific period of time. An estate for years is not automatically renewed. Express Contract - A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration) Attorney Review Clause - Clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason. Mortgage Contingency Clause - A clause in a contract that states a mortgage must be obtained in order for the contract to be binding. Eviction - Legal proceeding by a lessor landlord to recover possession of leased property after the expiration of the lease term. Triple Net Lease - A lease commonly found in a building with a single, long-term tenant. Mortgage - Legal Agreement by which a bank lends money in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon payment of the debt. APR - The actual interest rate charged, including loan fees and points. REAL ESTATE CLASSICS 2902 Secondary Mortgage Market - The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors. LTV (Loan-to-Value) - Financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased. - Determined by using the Purchase Price or the Appraised Value, whichever is LESS. Satisfaction of Mortgage - A document acknowledging the payment of a mortgage debt. Adjustable Rate Mortage (ARM) - A mortage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. Fixed Rate Mortgage - Accounts for the majority of mortgages. Amortization - The process by which a loan principal decreases over the life of a loan. Condemnation - Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain. Police Power - The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public. Variance - The authorization to improve or develop a particular property in a manner not authorized by zoning. Building Codes - Regulations established by state or local governments stating fully that structural requirements for building. -Building codes are enforced by the issuance of permits. Air rights - Rights in real property to use the space above the surface of the land. Certificate of Occupancy (CO) - A document issued by a governmental authority that a building is ready and fit for occupancy. Stud - Vertical framing members found in wall construction. Typically placed 12", 16" or 24" on center. Beam - Horizontal structural member that supports a floor. Beams are typically wood, cold formed metal framing or steel. Bearing walls - Structural walls that transfer building loads down to the foundations. Joists, beams, and roofs are typically supported by bearing walls. Bond beam - Concrete set in soil. REAL ESTATE CLASSICS 2902 Circuit breaker - The safety valves for electrical systems. Construction Drawings - Drawings produced by Architects that describe the QUANTITIES of a building. Specifications - A written document produced by an Architect that described the QUALITY of construction for a building. Mandated warranty for a new constructions according to NYS General Business Law 36-B: - 1) 1 year of workmanship 2) 6 years of material defects 3) 2 years for plumbing, electrical and HVAC systems Title X - A Federal law that makes real estate licensees liable for the disclosure of lead paint. Radon - A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country. Asbestos - A naturally occurring mineral fiber sometimes found in older homes. It is hazardous to health when a possibility exists of exposure to inhalable fibers. Homeowners should be alert for friable asbestos and always seek professional advice in dealing with it. Asbestosis - A chronic lung disease caused by inhaling asbestos fibers. Lead - A material used in pipes and paint of many older homes. Clean Air Act (CAA) - Federal law designed to control air pollution on a national level. Appraisal - An estimate of a property's value by an appraiser who is usually presumed to be expert in his work. Cost Approach - A method of estimating the value of real property by calculating a current construction cost, subtracting accrued depreciation and adding a land value obtained from the market. -Used for specialized properties that don't have many comparables. Income Approach - An appraisal technique whereby the value of an income producing property is estimated by capitalizing its net operating income using an appropriate capitalization rate. Value=Income/Rate -Commonly used in commercial properties. REAL ESTATE CLASSICS 2902 Sales Comparison Approach - Valuation method which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions. Red-lining - The refusal to lend money within a specific area for various reasons. -This practice is illegal. Blockbusting - The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market rates, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values. Fair Housing Act of 1968 - Federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability. Brown vs. Board of Education - Determined Separate is NOT Equal. Testers - Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers. Acre - 43,560 sq. ft Planning Board - Responsible for developing and controlling a municipality's comprehensive strategy for growth and development. Architectural Review Board - Oversees and upholds the quality and aesthetics of a neighborhood, town, or city. The Office of Receiver of Taxes - Responsible for collecting taxes. Building Department - A town or city that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances. Deductible - The amount of expenses that must be paid out of pocket before an insurer will pay any expenses. Umbrella Policy - Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Also called excess insurance. Tax Assessor - Responsible for determining a municipality's tax rate. Levy - An assessment of tax. REAL ESTATE CLASSICS 2902 Assessed value - A valuation placed upon property by a public officer or a board, as a basis for taxation. Share in a Cooperative Unit - Considered a proprietary lease and personal property (NOT real property.) The Offering Plan - A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser. Board package - A series of documents submitted for review by a cooperative board. By-laws - The owner's rights and obligations for a condominium. House rules - Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution. Condominium - Considered real property, which is conveyed by a deed. Maintenance - Monthly payments by a shareholder to a cooperative corporation. Common charges - Monthly payment by owner of a condominium. Sponsor - The developer or owner organizing and offering for sale a condominium or cooperative development. Leverage - The use of borrowed capital (mortgage) to increase the potential return of an investment. Pro-forma Statement - An accounting statement that forecasts income and expenses for a period of a time, typically five or more years. Cap Rate - NOI/Purchase Price Liquid - The ability to have cash readily available to support the demands of running and maintaining real property. Gross Income - The total amount collected from rents and other income producing opportunities. Capital Gain - A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price. Boot - Cash received in a tax-deferred exchange. Tax Shelter - Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. REAL ESTATE CLASSICS 2902 Straight-line depreciation - A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. - Residental property depreciated over 27.5 year period - Commercial property is depreciated over 39 year period 1031 Exchange - -45 days to identify a new property -180 days to close on a new property Mortgage Broker - An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. Mortgage Banker - A company, individual or institution that originates mortgages. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages. General Agent - Someone authorized to transact every kind of business for the principal. Ex: Property Manager Operating Budget - An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively. Management Agreement - A contract between the owner of a property and someone who agrees to manage it. Property Management Report - An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period. Special Agent - Ex: Real Estate Agent/Broker - Agent with limited authority to act on behalf of the principal, such as created by a lisiting. Exclusive Right to Sell - An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell if nevertheless ENTITLED TO COMPENSATION. Property Condition Disclosure Statement - The Property Condition Disclosure Statement Act requires the seller to submit to the buyer, a "PCDStatement" prior to signing the contract of sale. If statement is not signed the seller owes the buyers $500 credit against the purchase price of the property. -Most seller attorneys advise clients NOT to sign statement because opens up to vast amount of liability. Sub-agent - A person appointed by an agent with permission of the principal (seller) to assist in performing some or all of the tasks of the agency. REAL ESTATE CLASSICS 2902 -Typically occurs when properties listed on MLS. When seller's broker posts a listing on the MLS, he/she are essentially inviting other brokers to join as a subagent. Agent showing the property becomes subagents for the listing broker (and the seller.) Independent Contractor - Sales agents can be provided with Office Phones by their sponsoring broker. Ownership in Severalty - Title to real estate is in the name of only ONE person or entity, it is an estate ownership in severalty... i.e. single individual owns real estate, therefore is 'severed' from all others. Easement in Gross - Ex: Utility Company Right of use in land of another without the requirement that the holder of the right own adjoining land. A.K.A. Commercial Easement in Gross Mechanic's Lien - Security interest in the title to property for the benefit of those who have supplied labor or materials to improve the property. Mortgage Lien - Example of a specific lien. Fee Simple Estates - Absolute ownership of a real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's heirs or distributees. Conveyance - The transfer of the title from one to another. The means or medium by which title of real estate is transferred. A deed is a document used to convey title legally to real property. A.K.A. an instrument of conveyance. Legal Description - The deed must contain an adequate formal legal description. The legal description describes where the property is located and the size of the lot. There are 3 acceptable types of property descriptions: 1) Metes and bounds 2) Description by reference, lot and bloc 3) Monuments Full Covenant and Warranty Deed - Deed contains the broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee. Covenants: 1) Covenant of Seisin- assures the grantee that the grantor holds the title specified in the deed. 2) Covenant of right to convey- assures the grantee that the grantor has the legal capacity t convey title and has the title to convey. 3) Covenant against encumbrances- assures the grantee that no encumbrances against the title except those set forth in the deed itself exist. REAL ESTATE CLASSICS 2902 4) Covenant of quiet enjoyment- assures the grantee that they will have quiet enjoyment and possession of the property. 5) Covenant for further assurances 6) Covenant of warranty Abstract of Title - A summary of all of the recorded instruments and proceedings which affect the title to a property, arranged in the order in which they were recorded. Contract Requirements NYS - -Must be 18 years old, if younger it is voidable. -Must be mentally and emotionally capable to enter. -Purchaser signs the contract first. Proration - The division of certain settlement costs between buyer and seller. Items can include real estate taxes, fuel, a survey, water and sewer charges, rent, and security deposits. Ensures fair apportionment of expenses between buyer and seller. Down Payment - Anyone who holds down payment must place it in separate escrow account. Following people generally hold it: -Listing agent -Seller's attorney -Selling broker Earnest money deposit - Deposit that a buyer makes at the time of submitting an offer to demonstrate the true intent of the purchase, also referred to as a binder, good faith deposit, and escrow deposit. Loft lease - Lease for the rental of floor space that is not generally divided into rooms. Percentage Lease - Lease of property in which rental is based upon percentage of the volume of sales made upon the leased premises, usually provides for minimal rent. Retail stores and shopping malls are commercial properties that use %age leases. Escalation Clause - A clause that allows landlord to raise rents during the term of the lease. Call for the increased costs to the tenant for different reasons at specified times during the lease term. Clauses protect the property owner against increases during the lease term. Ground lease - Agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner. This long -term lease (also referred to as land lease) is commonly used for commercial property. Bridge Loan/Swing Loan - Type of SHORT-TERM loan, typically taken out for period 2 weeks to 3 years. REAL ESTATE CLASSICS 2902 -Type of gap mortgage in which funds are provided over and above an already existing loan until a more permanent financing is in place. -Allows a buyer to obtain a new property without having to sell his/her current property. Ex: What type of financing is used to purchase a new property when the old property hasn't been sold yet? Mortgagor = Borrower - Mortgagee = Lender. The bank or lender provides the loan but the mortgagor provides the mortgage RESPA (Real Estate Settlement Procedures Act) -- Consumer protection statute passed in 1974. - Purpose: 1) Help consumers become better shoppers for settlement services 2) Eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services. Requires: 1) Good Faith Estimate (GFE) of the closing costs for federally funded loans 2) HUD Booklet 3) HUD-1 Form Wraparound Mortgage - Form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around the existing in addition to any superior mortgages already secured by the property. Ex: A new mortgage that is higher in amount wraps around an existing first mortgage that's smaller in amount...? Primary Mortgage Market Secondary Mortgage Market - Primary mortgage market is lending institution where mortgage originates. Ex: Bank of America gives a loan to a homeowner. Secondary mortgage market is where loans originated in the primary mortgage market are bought and sold. Regulation Z/Truth in Lending Act of 1968 - U.S. Federal law designated to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed. TILA Requires four main disclosures: 1) Annual percentage rate 2) Finance charge 3) Amount financed 4) Total amt of money to be paid toward the mortgage in principal and interest payments. NYS Department of Financial Services - Registers and licenses all companies and individuals who conduct mortgage related services in New York. REAL ESTATE CLASSICS 2902 Negative Amortization - Occurs when the monthly payment is less than full interest and does not pay any principal. The interest that is unpaid accrues and the principal balance owed increases. Prepayment Penalty Clause - States that the borrower can pay off the loan at any time before expiration of the full mortgage term without a financial penalty for early payoff. Zoning - Determines the usage allowed for a building or subdivision. Also determines the 'bulk' of a house or a building, meaning the maximum size of the structure (height, square footage, size of floor plate). Non-conforming use - When pre-existing use of property in a zoned area is different from that specified zoning. The existing use is not as-of-right. Zoning Board of Appeals - Local appointed board that has the power to review administrative rulings made by the planning board or another legislative body. One main duty is to maintain the essential character of the neighborhoods. Interpreter of the zoning ordinance. The zoning board of appeals is also responsible for granting variances. Granting Variances - Responsibility of the Zoning Board of Appeals Building Codes - Primary purpose is to ensure a safe, properly functioning environment for the occupants. NY Code provides minimum standards for all buildings in NY. If Federal or City building code is more stringent on particular issue, the more stringent Code will supersede the State code. Building Codes - Regulates construction standards in NYS. Eminent domain - Right of the gov't to acquire property for necessary public use by condemnation; the owner must be fairly compensated. Roof Pitch - AKA Slope. Typically used in describing the slope of a roof, driveway, sidewalk, etc. Roof Components - Pitch- slope of roof. Eave- lowest part of the roof that project beyond wall of the structure Soffit- Area under the roof extension. Fascia- Area of material facing outer edge of the soffit. Sheathing- Placed over the roof rafters, used to enclose the roof and stiffen the roofing system. Typically of plywood or exterior grade gypsum board. Fuse - Device used in electrical systems to protect against excessive current. Fuse melts and opens the circuit, causing electrical power to stop when overheating occurs. Circuit breakers perform a similar function but are more convenient and safer than fuses. REAL ESTATE CLASSICS 2902 PCB's (Polychlorinated biphenyls) - PCBs widely used as dielectric and coolant fluids, in transformers, capacitors, and electric motors. PCBs known to leak into the ground from electrical transformers. Appear in groundwater and soil. Ex: What carcinogenic component was used as insulation in electrical transformers that contaminated soil and groundwater? PCB's Siding - Siding materials on buildings can be metal (such as aluminum), wood or vinyl. Behind the siding is a layer of sheathing. Specifications/Blueprints - Specifications- A document provided by Architects that describes the QUALITY of construction. Blueprints- Architectural drawings that describe the layout and construction of a house. These drawings describe the layout and construction of a house. These drawings describe the QUANTITIES used in construction. Market Value - Most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both buyer and seller aware of current market conditions, neither being under duress. Market value is driven by supply and demand in the competitive marketplace. Comparative Market Analysis (CMA) - Property evaluation that determines property value by comparing similar properties sold within the last year. I.E. Analysis of the competition in the marketplace that a property will face upon attempts. CMA is NOT an appraisal. Instead, it is an opinion of value. Obsolescence - One cause of depreciation. Loss of desirability and usefulness caused by new inventions, changes in design, and improved processes for production, or from the influence of external factors. Obsolescence may be either economic or functional. Functional obsolescence can be outdated design or floor plan. Civil Rights Act of 1866 - Has no exemptions and contains the blanket statements that 'citizens have the same rights to inherit, buy, sell, or lease real and personal property.' *Primarily interpreted to prohibit racial discrimination. 1988 Amendment to Civil Rights Act - Added 2 new protected classes: -Persons with mental or physical disabilities -Familial status Blockbusting - Practice of inducing homeowners in particular neighborhood to sell their homes quickly, often at below market prices, by creating the fear that the entry of a minority group or groups into the neighborhood will cause precipitous decline in property values. Redlining - Refusal to lend money within a specific area for various reasons. ILLEGAL. Before the Fair Housing Act, some lenders circled certain local areas with a red line on REAL ESTATE CLASSICS 2902 a map, refusing to make loans within the circled areas based on some characteristics of property owners in the area. Area of a square - 1 side x 1 side Area of a rectangle - width x depth Area of a triangle [triangle=1/2 of rectangle] - 1/2 base x height Area irregularly shaped lot - Break down lot into shapes, and add the areas of each together! 1 Hectare - 2.47 Acres Debt-to-Income ratio - Percentage of a consumer's monthly gross income that goes towards paying debts. Formula: Recurring monthly debt/Gross Monthly Income Municipal Engineer's Office - Perform basic functions: 1) Estimate costs of paving, sewers and sidewalks, and other public work projects. 2) Supervise streets and other public works activities 3) Issue permits to private contractors for street openings and curb and gutter construction. 4) Assume responsibility for sewage, water supply, distribution systems. i.e. Oversees planning and construction of major highways, sewer systems, and water connections NYS Department of Health - Performs: 1) Drinking water safety, including standards for private and community well construction and well water safety and regulation. 2) Septic tank approval. 3) Certain wastewater treatment approval Architectural Review Board - Oversees and upholds the quality and aesthetics of a neighborhood, town or city. 1) Approves new construction and remodeling following local zoning ordinance laws. 2) Promotes the orderly and harmonious development of the municipality. 3) Protects a municipality's cultural heritage. Historic Preservation/Landmark Commissions - Established to review proposed projects within historic districts for compliance with standards established for new development or alteration or improvement of historic buildings and landmarks. Functions: 1) Recommend to municipality the adoption of ordinances preserving historic districts, landmarks, and historic sites. REAL ESTATE CLASSICS 2902 2) Review and approve application for construction, alteration, demolition, and relocation of a historical property. 3) Recognize sub-districts within a preservation district. Allows the commission to adopt guidelines regulating properties in the sub-district. Planning Board - Local elected or appointed gov't board charged with recommending to the local town or city council the boundaries of the various zoning districts and appropriate regulations to be enforced therein. Functions: 1) Prepare and amend master plan for the community 2) Implement the master plan through site plan and subdivision ordinances and recommendations to other agencies. 3) Make investigations, maps and reports, and recommendations that relate to the planning and devlpmnt of the municipality 4) Recommend amendments to the zoning ordinance or map Umbrella Policy - Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Also called excess insurance. Replacement costs - Replacement costs means that the insured is covered and reimbursed for the actual cost of replacing the damaged property. Ex: If a fridge is destroyed in a fire, replacement cost will be the cost of buying another fridge. Article 12-A - Article in IRS Code section 3508 containing most of the laws pertaining to salespersons and brokers. Exemptions to Licensure - Building superintendents or maintenance workers who perform tasks such as rent collecting for one owner, entity or company. General Agent - Specific range of tasks, but multiple, not same as special agent who has narrow authorization like a real estate agent Agency by Estoppel - Exists when a principal does not stop an individual from representing them thus creating an agency relationship between the two. Encumbrance - Anything that lessens the bundle of rights. i.e. a lien or a mortgage. Execution and Foreclosure of a Lien - Lien= a claim or encumbrance on a property for payment of some debt, obligation or duty Qualified right that a creditor has in or over specific property of a debtor as security for the debt or for performance of some act. Right to retain property for payment of a debt. Priority is based upon the time [day and hour] liens were recorded in office of county clerk. REAL ESTATE CLASSICS 2902 Specific lien - Attach to one or more listed properties, secured by a particular parcel of real estate and affects only that property. Taxes, mortgages, mechanic's lien, etc. Mechanic and Materialmen's - Specific liens which if for residential property must be filed with the county clerk, within 4 months of when labor or materials was furnished. Mechanic's lien must be renewed annually. If one has a possessory interest in property, that individual cannot own...? - Easement Lis Pendens - Filing that gives legal notice that a lawsuit has been filed concerning the specific property. Right-of-way - Privilege operating as an easement upon land, whereby owner does by grant or agreement, give to another the right to pass over owner's land, t construct a roadway, or use as a roadway, a specific part of the land; OR the right to construct over or throough the land, telephone, telegraph, or electric power lines; OR the right to place underground water, gas mains or sewer mains. Metes and Bounds - Metes: distances from point to point. Bounds: directions from one point to another. Laws of Intestacy - When person dies and leaves no valid will, determines the order in which the property is distributed to the heirs. Quitclaim Deed - Contains no warranties whatsoever, its just a deed of release.