NY REAL ESTATE EXAM QUESTIONS AND
ANSWERS
1. 80/20 Rule Rule
ANS that says in order for individual shareholders to continue to be able to write off yearly taxes and mortgage interest, no more
than 20 percent of a co-op's yearly income can come from non-shareholder sources.
2. Abandonment
ANS The failure to occupy and use property, which may result in a loss of rights. Absolute The complete bundle of
rights belongs to the owner.
3. Abutting Property
ANS Parcels of land directly contiguous, sharing at least one common boundary. Abstract The report of the chain of title
to a piece of land.
4. Abstract of Title
ANS A brief, chronological summary of the recorded documents affecting title to a particular parcel of real property.
5. Accelerate
ANS To make something go faster; in finance, making a loan come due faster by having all payments become due
immediately.
6. Acceleration Clause
ANS A contract clause giving the lender the right to declare the entire loan amount due immediately because of
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,borrower's default, or other reasons as stated in the contract.
7. Acceptance
ANS 1. Agreeing to the terms of an otter to enter into a contract, thereby creating a binding contract.
2. Taking delivery of a deed.
8. Accessibility
ANS Also referred to as ingress/egress; the relative ease with which customers can get to a retail establishment.
9. Accession
ANS The acquisition of title to land by its addition to real estate already owned, through human actions or natural processes. See;
Accretion; Annexation; Reliction.
10. Accessory Apartment
ANS An apartment within a primary residence.
11. Accessory Uses
ANS A use or occupancy incidental or subordinate to the principal use or occupancy.
12. Accord and Satisfaction
ANS An agreement to accept something different (usually less) than what the original contract required.
13. Accountability
ANS Duty recognizing that money received in an agency relationship belongs to the principal, not the agent. Agent has the
duty to account strictly to the principal for any amount received.
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, 14. Accretion
ANS A gradual addition to dry land by the forces of nature, as when the tide deposits water-borne sediment on shoreline
property. See Accession; Alluvion.
15. Accrued Items
ANS Expense items on a settlement statement for which the cost has been incurred, but the expense has not yet been
paid.
16. Acknowledgment
ANS When a person who has signed a document formally declares to an authorized official (usually a notary public) that he
or she signed voluntarily. The official certifies that the signature is voluntary and genuine. Compare
Attestation.
17. Acquisition Cost
ANS The purchase price of a property, plus (allowable) buyer paid closing costs.
18. Acre
ANS A measure of land area that is equal to 43,560 square feet. One square mile contains 640 acres.
19. Acre, Builder's
ANS An informal unit of measurement, usually 40,000 square feet, that may be used by devel- opers to describe lots for
new construction. A builder's acre is not a legal acre.
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ANSWERS
1. 80/20 Rule Rule
ANS that says in order for individual shareholders to continue to be able to write off yearly taxes and mortgage interest, no more
than 20 percent of a co-op's yearly income can come from non-shareholder sources.
2. Abandonment
ANS The failure to occupy and use property, which may result in a loss of rights. Absolute The complete bundle of
rights belongs to the owner.
3. Abutting Property
ANS Parcels of land directly contiguous, sharing at least one common boundary. Abstract The report of the chain of title
to a piece of land.
4. Abstract of Title
ANS A brief, chronological summary of the recorded documents affecting title to a particular parcel of real property.
5. Accelerate
ANS To make something go faster; in finance, making a loan come due faster by having all payments become due
immediately.
6. Acceleration Clause
ANS A contract clause giving the lender the right to declare the entire loan amount due immediately because of
1/
19
,borrower's default, or other reasons as stated in the contract.
7. Acceptance
ANS 1. Agreeing to the terms of an otter to enter into a contract, thereby creating a binding contract.
2. Taking delivery of a deed.
8. Accessibility
ANS Also referred to as ingress/egress; the relative ease with which customers can get to a retail establishment.
9. Accession
ANS The acquisition of title to land by its addition to real estate already owned, through human actions or natural processes. See;
Accretion; Annexation; Reliction.
10. Accessory Apartment
ANS An apartment within a primary residence.
11. Accessory Uses
ANS A use or occupancy incidental or subordinate to the principal use or occupancy.
12. Accord and Satisfaction
ANS An agreement to accept something different (usually less) than what the original contract required.
13. Accountability
ANS Duty recognizing that money received in an agency relationship belongs to the principal, not the agent. Agent has the
duty to account strictly to the principal for any amount received.
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19
, 14. Accretion
ANS A gradual addition to dry land by the forces of nature, as when the tide deposits water-borne sediment on shoreline
property. See Accession; Alluvion.
15. Accrued Items
ANS Expense items on a settlement statement for which the cost has been incurred, but the expense has not yet been
paid.
16. Acknowledgment
ANS When a person who has signed a document formally declares to an authorized official (usually a notary public) that he
or she signed voluntarily. The official certifies that the signature is voluntary and genuine. Compare
Attestation.
17. Acquisition Cost
ANS The purchase price of a property, plus (allowable) buyer paid closing costs.
18. Acre
ANS A measure of land area that is equal to 43,560 square feet. One square mile contains 640 acres.
19. Acre, Builder's
ANS An informal unit of measurement, usually 40,000 square feet, that may be used by devel- opers to describe lots for
new construction. A builder's acre is not a legal acre.
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