REAL ESTATE U FINAL EXAM TEST BANK AND
STUDYGUIDE | ALL EXAM VERSIONS 1 , 2 AND 3
QUESTIONS AND ANSWERS | GRADED A in 2025
Forced warm air system
A building system that can provide both heating and cooling through the same ducts.
Record maintenance duration
Brokers must maintain records of all real estate transactions for at least 4 years.
Broker commission calculation
If a broker earns a total commission of 5% from the sale of a house and received
$14,250 in commissions, the final sales price of the house was 285,000 Dollars ($).
Non-conforming use
A property that has been used as a manufacturing facility for 40 years but is now in a
residentially zoned area.
Assessed value calculation
If a property is assessed at 40% of market value, the assessed value of a property
with
a market value of $250,000 would be 100,000 Dollars ($).
Non-homestead property example
An industrial warehouse is an example of a non-homestead property.
Tenancy by the entirety
A type of ownership where when one spouse passes away, the other spouse gains
full
ownership, and upon the remaining spouse's death, the children inherit the property.
Buydown
A method that allows a borrower to obtain a lower interest rate by paying additional
points upfront to the lender.
Percentage lease
A lease most commonly used by retail tenants.
Operating budget
A budget that forecasts income and expenses as may be reasonably projected over a
short term.
Capital gains tax exemption
Upon selling their home, married couples are exempt from paying taxes on capital
gains
up to 500,000 Dollars ($).
Prosecutor of Real Property Law violations
The Attorney General is responsible for prosecuting criminal actions for violations of
the
Real Property Law.
Actual eviction
This occurs when a landlord takes matters into their own hands and removes a
tenant
from the property.
, Insurance for rental properties
Landlords may purchase Commercial general liability insurance for their rental
properties.
Periodic estate
A leasehold estate that automatically renews for another fixed period of time.
Property address in deed
The property's address is listed under the granting clause of a deed.
Commercial property depreciation
For tax purposes, commercial properties depreciate over 39 years using the straight-
line
depreciation method.
Civil Rights Act of 1866
The Act made race the only protected class.
Exclusive Agency Agreement commission
In an Exclusive Agency Agreement, if the seller finds the buyer themselves, a
commission is not paid to anyone.
Loss factor
The difference between the rentable and usable area in a commercial space is
known
as the loss factor.
Form 1099-MISC requirement
A real estate salesperson working under a sponsoring broker is required to file a
Form
1099-MISC with the IRS.
Effective gross income
The cash flow from a commercial property (before paying any debt service) is known
as
effective gross income.
Mortgage Broker Disclosure Form
If the seller's broker also serves as the mortgage broker to the buyer, this form must
be
signed by both the seller and buyer.
Sub-lease rent responsibility
In a sub-lease, the original tenant is responsible for paying rent to the landlord.
Fee simple absolute estates
This interest in real property offers the most complete form of ownership.
Encroachment
If a property owner builds a fence that partially crosses the neighbor's property line,
encroachment has been created.
Liability insurance
This type of insurance protects against claims alleging that one's negligence or
inappropriate action resulted in bodily injury or property damage.
Interest-only loan
A straight-term loan is considered an interest-only loan.
Agency relationship termination
If a homeowner's property is destroyed by fire, the agency relationship between the
owner and their listing broker is terminated.
STUDYGUIDE | ALL EXAM VERSIONS 1 , 2 AND 3
QUESTIONS AND ANSWERS | GRADED A in 2025
Forced warm air system
A building system that can provide both heating and cooling through the same ducts.
Record maintenance duration
Brokers must maintain records of all real estate transactions for at least 4 years.
Broker commission calculation
If a broker earns a total commission of 5% from the sale of a house and received
$14,250 in commissions, the final sales price of the house was 285,000 Dollars ($).
Non-conforming use
A property that has been used as a manufacturing facility for 40 years but is now in a
residentially zoned area.
Assessed value calculation
If a property is assessed at 40% of market value, the assessed value of a property
with
a market value of $250,000 would be 100,000 Dollars ($).
Non-homestead property example
An industrial warehouse is an example of a non-homestead property.
Tenancy by the entirety
A type of ownership where when one spouse passes away, the other spouse gains
full
ownership, and upon the remaining spouse's death, the children inherit the property.
Buydown
A method that allows a borrower to obtain a lower interest rate by paying additional
points upfront to the lender.
Percentage lease
A lease most commonly used by retail tenants.
Operating budget
A budget that forecasts income and expenses as may be reasonably projected over a
short term.
Capital gains tax exemption
Upon selling their home, married couples are exempt from paying taxes on capital
gains
up to 500,000 Dollars ($).
Prosecutor of Real Property Law violations
The Attorney General is responsible for prosecuting criminal actions for violations of
the
Real Property Law.
Actual eviction
This occurs when a landlord takes matters into their own hands and removes a
tenant
from the property.
, Insurance for rental properties
Landlords may purchase Commercial general liability insurance for their rental
properties.
Periodic estate
A leasehold estate that automatically renews for another fixed period of time.
Property address in deed
The property's address is listed under the granting clause of a deed.
Commercial property depreciation
For tax purposes, commercial properties depreciate over 39 years using the straight-
line
depreciation method.
Civil Rights Act of 1866
The Act made race the only protected class.
Exclusive Agency Agreement commission
In an Exclusive Agency Agreement, if the seller finds the buyer themselves, a
commission is not paid to anyone.
Loss factor
The difference between the rentable and usable area in a commercial space is
known
as the loss factor.
Form 1099-MISC requirement
A real estate salesperson working under a sponsoring broker is required to file a
Form
1099-MISC with the IRS.
Effective gross income
The cash flow from a commercial property (before paying any debt service) is known
as
effective gross income.
Mortgage Broker Disclosure Form
If the seller's broker also serves as the mortgage broker to the buyer, this form must
be
signed by both the seller and buyer.
Sub-lease rent responsibility
In a sub-lease, the original tenant is responsible for paying rent to the landlord.
Fee simple absolute estates
This interest in real property offers the most complete form of ownership.
Encroachment
If a property owner builds a fence that partially crosses the neighbor's property line,
encroachment has been created.
Liability insurance
This type of insurance protects against claims alleging that one's negligence or
inappropriate action resulted in bodily injury or property damage.
Interest-only loan
A straight-term loan is considered an interest-only loan.
Agency relationship termination
If a homeowner's property is destroyed by fire, the agency relationship between the
owner and their listing broker is terminated.
