NYS REAL ESTATE EXAM QUESTIONS AND ANSWERS .Buy
Quality Materials
Usury
illegaly charging higher interest rates than the legal limit.
Continuing Education
A Real Estate license is valid for 2 years. To renew you have to take 22.5 hours within
the 2 years and report to Dept of State.
PITI
Stands for Principal, Interest, Tax, Insurance. The costs of owning a home.
Deed Restriction
A clause in a deed that limits what owner can do with property. "Cannot build house to
sidewalk"
Restrictive Covenant
A clause in a deed that limits what owner can do with property. "Cannot build house to
sidewalk"
CC&R's
Stands for Covenants, Conditions, and Restrictions. Rules in Condos, Neighborhood
Associations, Co-Ops. "All window blinds must be white so that building will look good
from street"
Equitable Right of Redemption
A foreclosed property may be bought back by owner by paying full amount due on
mortgage before it is sold at an auction.
Escheat
The state takes property upon an owners death if there is no will & no heirs exist.
"Cheats"
Steering
The illegal practice of only showing clients property in certain areas. channeling
homeseekers to or away from certain areas
Mechanics Lien
A lien placed against property by unpaid workmen or material suppliers.
Residential: 4 Months to place Lien
Commercial: 8 Months to place Lien
The Lien has to be renewed yearly.
Redlining
Denying or Restricting Loans in a certain area.
"Drawing red lines on a map where loans will be denied"
Capital Gains Tax Exemption
Single Person = $250,000 of Profit is Tax Free
Married Couple = $500,000 of Profit is Tax Free
Amount of Tax depends on Tax Bracket
Blockbusting
The practice of persuading owners to sell property cheaply because of the fear of
people of another race or class moving into the neighborhood.
What is a wraparound mortgage?
, A mortgage when seller keeps his mortgage, buyer pays seller, and seller pays bank.
Eminent Domain
the right of government to take private property for public use
Net Listing - "I want 1 million for my property, any amount above is your
commission."
Which type of listing is illegal in NY?
Comparative Market Analysis (CMA)
The study of similar properties that sold recently, as well as the ones that are on market
or didn't sell at all.
Predatory Lending
Any lending practice that imposes unfair or abusive loan terms on a borrower.
Wood Framing
Wall Studs = Vertical members that support the wall.
Joists = Floor or Ceiling Beams
Girder = A big beam that carries other beams.
Agency
Express = written or oral agreement of representation.
Implied = Always Oral!
Contract & Agency Disclosure Form
Seller or Landlord = Listing Agreement
Buyer or Tenant = Representation Agreement
If Dept. of State takes away a brokers license, how long until he can apply to get it
back?
After 1 Year.
What could happen to somebody who breaks Article 12A?
Violations are a misdemeanor, punishable by loss of license, $1000 fine, or even a year
in jail.
what is the penalty if the seller doesnt deliver the property condition disclosure
statement?
the seller must pay $500 at closing.
What is a blanket mortgage?
A mortgage that covers more than one property
what is a bridge mortgage?
A mortgage that uses one property to finance purchase of another (also known as swing
loan)
what is a package mortgage?
A mortgage for both real estate and personal property (such as house & a boat)
what is a straight term mortgage?
A mortgage instead of paying a combination of interest and principal, borrower pays
interest only until the interest is completely paid off then pays the principal.
what is Adjustable Rate Mortgage (ARM) ?
A mortgage where interest rate goes up and down with the market, this is the opposite
of a fixed rate mortgage in which the interest never changes.
Federal Fair Housing Act
IN 1968, the Fair Housing Act gave equal real estate rights to people regardless of
national origin or religion.
Quality Materials
Usury
illegaly charging higher interest rates than the legal limit.
Continuing Education
A Real Estate license is valid for 2 years. To renew you have to take 22.5 hours within
the 2 years and report to Dept of State.
PITI
Stands for Principal, Interest, Tax, Insurance. The costs of owning a home.
Deed Restriction
A clause in a deed that limits what owner can do with property. "Cannot build house to
sidewalk"
Restrictive Covenant
A clause in a deed that limits what owner can do with property. "Cannot build house to
sidewalk"
CC&R's
Stands for Covenants, Conditions, and Restrictions. Rules in Condos, Neighborhood
Associations, Co-Ops. "All window blinds must be white so that building will look good
from street"
Equitable Right of Redemption
A foreclosed property may be bought back by owner by paying full amount due on
mortgage before it is sold at an auction.
Escheat
The state takes property upon an owners death if there is no will & no heirs exist.
"Cheats"
Steering
The illegal practice of only showing clients property in certain areas. channeling
homeseekers to or away from certain areas
Mechanics Lien
A lien placed against property by unpaid workmen or material suppliers.
Residential: 4 Months to place Lien
Commercial: 8 Months to place Lien
The Lien has to be renewed yearly.
Redlining
Denying or Restricting Loans in a certain area.
"Drawing red lines on a map where loans will be denied"
Capital Gains Tax Exemption
Single Person = $250,000 of Profit is Tax Free
Married Couple = $500,000 of Profit is Tax Free
Amount of Tax depends on Tax Bracket
Blockbusting
The practice of persuading owners to sell property cheaply because of the fear of
people of another race or class moving into the neighborhood.
What is a wraparound mortgage?
, A mortgage when seller keeps his mortgage, buyer pays seller, and seller pays bank.
Eminent Domain
the right of government to take private property for public use
Net Listing - "I want 1 million for my property, any amount above is your
commission."
Which type of listing is illegal in NY?
Comparative Market Analysis (CMA)
The study of similar properties that sold recently, as well as the ones that are on market
or didn't sell at all.
Predatory Lending
Any lending practice that imposes unfair or abusive loan terms on a borrower.
Wood Framing
Wall Studs = Vertical members that support the wall.
Joists = Floor or Ceiling Beams
Girder = A big beam that carries other beams.
Agency
Express = written or oral agreement of representation.
Implied = Always Oral!
Contract & Agency Disclosure Form
Seller or Landlord = Listing Agreement
Buyer or Tenant = Representation Agreement
If Dept. of State takes away a brokers license, how long until he can apply to get it
back?
After 1 Year.
What could happen to somebody who breaks Article 12A?
Violations are a misdemeanor, punishable by loss of license, $1000 fine, or even a year
in jail.
what is the penalty if the seller doesnt deliver the property condition disclosure
statement?
the seller must pay $500 at closing.
What is a blanket mortgage?
A mortgage that covers more than one property
what is a bridge mortgage?
A mortgage that uses one property to finance purchase of another (also known as swing
loan)
what is a package mortgage?
A mortgage for both real estate and personal property (such as house & a boat)
what is a straight term mortgage?
A mortgage instead of paying a combination of interest and principal, borrower pays
interest only until the interest is completely paid off then pays the principal.
what is Adjustable Rate Mortgage (ARM) ?
A mortgage where interest rate goes up and down with the market, this is the opposite
of a fixed rate mortgage in which the interest never changes.
Federal Fair Housing Act
IN 1968, the Fair Housing Act gave equal real estate rights to people regardless of
national origin or religion.
