NYSTCE 211 questions with correct verified answers.
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Terms in this set (87)
a broker's price opinion (BPO).
A divorce attorney hires a broker to
determine the value of the property (The answer is a broker's price opinion (BPO). A BPO is a broker's
the couple owns. The broker will opinion of the value of a particular property, often in the form of a
MOST likely prepare: comparative market analysis (CMA).
The BPO may not be labeled an appraisal, which may only be conducted by
a state licensed or certified appraiser. The sales comparison approach
is used in both the BPO and an appraisal. The cost approach is used
when conducting an appraisal.)
void.
A broker took a listing and later
discovered that the client had been (The answer is void. A contract made by a person who has been adjudicated
declared legally incompetent is void because the judgment of sanity is a matter of
incompetent before signing the public record. The contract is not valid or voidable because it is
listing. The listing is now: missing the essential element of
competency or competent parties.)
,A couple enters a real estate office an implied agency relationship with the buyers.
asking to see a property listed
with another (The answer is an implied agency relationship with the buyers. The
brokerage office. A real estate salesperson has unintentionally created an agency relationship with
salesperson calls the listing agent the buyers. There is no formal oral or written agency contract with the
and makes an buyers. Express agency occurs when two parties enter into an oral or
appointment to show the property. written formal agency agreement. Universal agency empowers the
Without having the couple sign a agent to do anything the principal could do personally, such as that
written buyer agency contract, the authorized by a power of attorney. General agency allows the agent to
salesperson drives the couple to act for the principal in a wide range of matters, as authorized, for
the house, and even recommends example, in a property
that before they buy the house, management contract.)
they secure an independent
property inspection. He also
confides to the couple that he
knows the owners are getting a
divorce and want to sell the house
quickly. In this case, the
salesperson has created:
If the closing date passes and no closing takes place, the party who
failed to close is considered to be in default.
A buyer and a seller agree on a
purchase price of $200,000 for a
(The answer is if the closing date passes and no closing takes place,
house. The contract contains a
the party who failed to close is considered to in default. The
clause stating that "time is of the
nondefaulting party may have remedies to retain the earnest money
essence." Which statement is
(liquidated damages) or to sue the defaulting party to perform the
TRUE?
contract terms (specific performance).)
Equitable
A buyer and a seller have entered into
a
binding contract for the sale of real (The answer is equitable. The buyer has equitable title, which
estate. During this phase and until recognizes that he has an interest but has not received legal title.
closing, the buyer has which type of Legal title will pass at closing when the
title? seller gives the buyer the deed.)
chain of title.
(The answer is the chain of title. A chain of title is the historical
The historical records of all owners record of a property's ownership and encumbrances. Each owner is
and linked to the next so that a chain is formed. A title search is the
encumbrances of a specific parcel of process of examining the chain of title for defects or
real estate is known as: errors. A title commitment lists current encumbrances and any defects found in the
title upon completing the search. An abstract of title is a historical
summary report of what the title search found in the public record;
only when coupled with a title opinion can the buyer know if there
are title issues.)
uses descriptions moving in a set direction.
(The answer is uses descriptions moving in a set direction. A metes-
and-bounds description starts at a point of beginning (POB) and
A metes-and-bounds legal description: moves clockwise around the boundaries, always ending back at the
POB so that the described tract is completely enclosed. The metes-
and-bounds, government survey, and lot and block are all
accepted in courts. The method may be used in areas included in the rectangular
survey system. The metes-and-bounds method is often used to
survey large parcels of land before the parcels are broken into
subdivision plats.)
An investment property was $42,000.
purchased for
$250,000. The owner added a The answer is $42,000.
, tennis court at a cost of $10,000. $250,000 + 10,000 = $260,000
Two years later, the $325,000 - 22,750 (7%) = $302,250 - 250 = $302,000
property sold for $325,000 and the $302,000 - 260,000 = $42,000
seller paid a 7% commission plus
$250 in attorney fees. If he
purchases another property for
$350,000, how much capital gains will
he exclude?
Latest update!
Terms in this set (87)
a broker's price opinion (BPO).
A divorce attorney hires a broker to
determine the value of the property (The answer is a broker's price opinion (BPO). A BPO is a broker's
the couple owns. The broker will opinion of the value of a particular property, often in the form of a
MOST likely prepare: comparative market analysis (CMA).
The BPO may not be labeled an appraisal, which may only be conducted by
a state licensed or certified appraiser. The sales comparison approach
is used in both the BPO and an appraisal. The cost approach is used
when conducting an appraisal.)
void.
A broker took a listing and later
discovered that the client had been (The answer is void. A contract made by a person who has been adjudicated
declared legally incompetent is void because the judgment of sanity is a matter of
incompetent before signing the public record. The contract is not valid or voidable because it is
listing. The listing is now: missing the essential element of
competency or competent parties.)
,A couple enters a real estate office an implied agency relationship with the buyers.
asking to see a property listed
with another (The answer is an implied agency relationship with the buyers. The
brokerage office. A real estate salesperson has unintentionally created an agency relationship with
salesperson calls the listing agent the buyers. There is no formal oral or written agency contract with the
and makes an buyers. Express agency occurs when two parties enter into an oral or
appointment to show the property. written formal agency agreement. Universal agency empowers the
Without having the couple sign a agent to do anything the principal could do personally, such as that
written buyer agency contract, the authorized by a power of attorney. General agency allows the agent to
salesperson drives the couple to act for the principal in a wide range of matters, as authorized, for
the house, and even recommends example, in a property
that before they buy the house, management contract.)
they secure an independent
property inspection. He also
confides to the couple that he
knows the owners are getting a
divorce and want to sell the house
quickly. In this case, the
salesperson has created:
If the closing date passes and no closing takes place, the party who
failed to close is considered to be in default.
A buyer and a seller agree on a
purchase price of $200,000 for a
(The answer is if the closing date passes and no closing takes place,
house. The contract contains a
the party who failed to close is considered to in default. The
clause stating that "time is of the
nondefaulting party may have remedies to retain the earnest money
essence." Which statement is
(liquidated damages) or to sue the defaulting party to perform the
TRUE?
contract terms (specific performance).)
Equitable
A buyer and a seller have entered into
a
binding contract for the sale of real (The answer is equitable. The buyer has equitable title, which
estate. During this phase and until recognizes that he has an interest but has not received legal title.
closing, the buyer has which type of Legal title will pass at closing when the
title? seller gives the buyer the deed.)
chain of title.
(The answer is the chain of title. A chain of title is the historical
The historical records of all owners record of a property's ownership and encumbrances. Each owner is
and linked to the next so that a chain is formed. A title search is the
encumbrances of a specific parcel of process of examining the chain of title for defects or
real estate is known as: errors. A title commitment lists current encumbrances and any defects found in the
title upon completing the search. An abstract of title is a historical
summary report of what the title search found in the public record;
only when coupled with a title opinion can the buyer know if there
are title issues.)
uses descriptions moving in a set direction.
(The answer is uses descriptions moving in a set direction. A metes-
and-bounds description starts at a point of beginning (POB) and
A metes-and-bounds legal description: moves clockwise around the boundaries, always ending back at the
POB so that the described tract is completely enclosed. The metes-
and-bounds, government survey, and lot and block are all
accepted in courts. The method may be used in areas included in the rectangular
survey system. The metes-and-bounds method is often used to
survey large parcels of land before the parcels are broken into
subdivision plats.)
An investment property was $42,000.
purchased for
$250,000. The owner added a The answer is $42,000.
, tennis court at a cost of $10,000. $250,000 + 10,000 = $260,000
Two years later, the $325,000 - 22,750 (7%) = $302,250 - 250 = $302,000
property sold for $325,000 and the $302,000 - 260,000 = $42,000
seller paid a 7% commission plus
$250 in attorney fees. If he
purchases another property for
$350,000, how much capital gains will
he exclude?
