NYREI Exam Prep
A leasehold estate that continues for a successive periods of equal length until terminated by
proper notice from either party is a - correct answer-Periodic tenancy
Physical land and everything attached to it is called - correct answer-Real Estate
Equipment a tenant installs for use in his or her business is called - correct answer-Trade
fixture
The illegal practice of inducing homeowners to sell their homes (Usually at a deflated price)
by suggesting the ethinic or racial composition of the neighborhood Is changing, with the
implication that property values will decline is called - correct answer-Blockbusting
Loans that follow the criteria set by secondary markets are called - correct
answer-Conforming loans
A "Rule" that says an informed buyer will not pay more for one home than a comparable one
is - correct answer-Substitution
Funds offered as an indication of good faith regarding a future performance of a purchase
agreement is called - correct answer-Earnest money
Possession of property by a holdover tenant is - correct answer-Tenancy at sufferance
An agent authorized to do everything that can be lawfully delegated to be a representative is
a - correct answer-Universal agent
The relationship between the cost of borrowing money and the total amount financed is -
correct answer-APR
A revocable, non assignable permission to enter another persons land for a particular
purpose is - correct answer-License
Lease for which a landlord pays all property taxed, insurance ect - correct answer-Gross
lease
Loan where the interest rate remains the same for the duration of the loan - correct
answer-Fixed rate loan
When something outside the control of a property makes it less desirable - correct
answer-Economic/External obsolescence
An acre is a measure of a land area that is equal to - correct answer-43,560 feet
,A title that is free and clear from undisclosed encumbrances or other defects that would
expose a purchaser to litigation or to impede a purchasers ability to enjoy the property or to
later sell the property - correct answer-Marketable title
A right that goes along with the ownership of real property - correct answer-Appurtenance
A financial encumbrance on the owners title is called a - correct answer-Lien
A written agency between a seller and broker is a - correct answer-Listing
The effect when a loan balance grows because of a differed interest when payments are not
covering the interest portion of the loan are called - correct answer-Negative Amortization
The agent who finds a buyer in a real estate transaction - correct answer-Sellers agent
Broker Bob uses money from the firms escrow account to pay the electrical bill. This could
be best described as - correct answer-Conversion (Conversion is another word for stealing)
A latent defect can be best described as - correct answer-Not plainly visible
A clause requiring commission to be paid even if the property is sold AFTER the listing
agreement expires is known as a - correct answer-Protection period clause
Rachel and Monica work for different brokers. One morning over coffee, Rachel mentions
that her broker has raised her commission to 7.5%. This can be considered what type of
violation? - correct answer-Antitrust
When is a broker/agent entitled to commission? - correct answer-When a ready, willing, and
able buyer is found on the terms accepted to the seller
Errors and omissions insurance cover all of the following except - correct answer-Fraud
(E&O) cover mistakes and negligence
What duties does an agent owe a customer? - correct answer-Fair dealing, Honesty, and
integrity
They only owe loyalty to their client
How long must a New York Broker maintain record of sales? - correct answer-3 years for one
too four family dwellings
What does an independent contractor receive at the end of the year that details his
compensation for the year? - correct answer-An independent contractor receives a 1099
MISC form detailing any commission based income
A common law independent contractor - correct answer-Is not subject to withholding
requirements (An independent contractor mus manage his taxes himself. His employee does
not withhold anything)
,A commercial property has a first year gross operating income of $64,000 and expenses of
$12,000. If the capitalization rate for similar properties in the same area is 8% what is the
estimate value? - correct answer-$650,000 (The formula for determining value is Net
Operating income 64,000-12,000=52,000 divded by the rate 8% 52,000/.08= 650,000
What would be considered external obsolescence? - correct answer-A home fronting on a
busy four-lane highway
(External Obsolescence is when something outside the control of the property makes it less
desirable. In this case, a high way.
When is the income approach best used? - correct answer-The income approach is a
valuable appraisal method when determining the value of an investment property
Paul is doing an appraisal for fannie mae. What is the minimum number of comps he needs
to consider when using the sales comparison approach? - correct answer-3
Which appraisal report is required when processing a VA loan application? - correct
answer-Certificate of reasonable value
The accepted standards of ethics and appraisals practice are known as - correct
answer-USPAP (Uniform Standards Of Professional Appraisal Practice)
The first step of the appraisal process is to - correct answer-Define the appraisal also known
as stating the problem
Market price is - correct answer-The amount in dollars actually paid for the property
A quitclaim deed - correct answer-Is often used to clear clouds on a title (Is often used to
clear clouds on a title, comes with no warranties and is not transferable or court ordered)
Equitable title is - correct answer-An interest in real property created by the execution of a
valid sales contract
Which is not a guarantee that comes with a warranty deed? - correct answer-Guardian
Authority
A deed contains a guarantee that the grantor really owns the property. This is an example of
which covenant" - correct answer-Seizen (Seizen is the grantors guarantee that he or she
does own the property)
A new connector road needs to be built to relieve congestion that is causing many accidents.
The city purchases 20 houses and tears them down to build that road. The act of taking the
houses and tearing them down is called? - correct answer-Condemnation (Condemnation or
Appropriation is the actual act of taking private property for public use. The right to take
private property is eminent domain.)
, What is not an example of the governments police power? - correct answer-Taxation (Police
power can take the form of land use controls, zoning laws, environmental protection laws,
eminent domain, and escheat. Taxation is a governmental revenue-generating power.)
Lyle dies intestate. According to NY law, who would be the first in line to get Lyle's estate? -
correct answer-His wife, his children, then his ex wife.
Taking occurs when: - correct answer-The government acquires private property for public
use by appropriation without compensation to the land owner. (Taking differs from eminent
domain in that the government acquisition of private property for public use by appropriation
is done without compensation to the land owner)
Intestate VS Testate- - correct answer-Intestate is when a person dies without leaving a valid
will and without heirs, whereas testate is when a person dies leaving a will
When a planning board temporarily suspends the rights of property owners to obtain
development approvals while the local legislature considers the impact of new or changing
circumstances not adequately dealt with by current laws. This is known as - correct answer-A
moratorium ( A moratorium may be imposed by a planning board to allow time to study a
situation that involves land use regulation or rules)
A provision in a deed that limits the use of the property is known as - correct
answer-Covenant ( A deed restriction also known as a restrictive covenant, is a provision
placed in the deed when the property is conveyed.)
Which is not a way in which zoning ordinances are typically enforced? - correct
answer-Federal government interventions ( Zoning is a local issue that is typically enforced
through building permits, zoning permits, occupancy, and use permits, or possibly through
the courts.)
Insurance coverage can be purchased by which of the following? - correct answer-Captive
agents, Direct writing companies, and independent agents
A temporary insurance contract formed by oral or written agreement between the customer
and the insurance company is called - correct answer-A binder
Homeowner insurance rates are not based on - correct answer-Premium Payments ( The
location, materials, and amount of insurance all impact homeowners insurance rates. The
rates determine how much the premiums will be.)
The dwelling policy is designed to cover a direct loss to physical property as well as an
indirect loss. It can be written for a 1,2, 3 or 4 family structure. There is no theft coverage and
no liability coverage. - correct answer-The dwelling policy is designed to cover a direct loss
to physical property as well as an indirect loss. It can be written for a 1,2, 3 or 4 family
structure. There is no theft coverage and no liability coverage.
Which policy provides the best coverage for the money? - correct answer-HO-3 Special ( Is
considered the "Best Buy" of all insurance policies)
A leasehold estate that continues for a successive periods of equal length until terminated by
proper notice from either party is a - correct answer-Periodic tenancy
Physical land and everything attached to it is called - correct answer-Real Estate
Equipment a tenant installs for use in his or her business is called - correct answer-Trade
fixture
The illegal practice of inducing homeowners to sell their homes (Usually at a deflated price)
by suggesting the ethinic or racial composition of the neighborhood Is changing, with the
implication that property values will decline is called - correct answer-Blockbusting
Loans that follow the criteria set by secondary markets are called - correct
answer-Conforming loans
A "Rule" that says an informed buyer will not pay more for one home than a comparable one
is - correct answer-Substitution
Funds offered as an indication of good faith regarding a future performance of a purchase
agreement is called - correct answer-Earnest money
Possession of property by a holdover tenant is - correct answer-Tenancy at sufferance
An agent authorized to do everything that can be lawfully delegated to be a representative is
a - correct answer-Universal agent
The relationship between the cost of borrowing money and the total amount financed is -
correct answer-APR
A revocable, non assignable permission to enter another persons land for a particular
purpose is - correct answer-License
Lease for which a landlord pays all property taxed, insurance ect - correct answer-Gross
lease
Loan where the interest rate remains the same for the duration of the loan - correct
answer-Fixed rate loan
When something outside the control of a property makes it less desirable - correct
answer-Economic/External obsolescence
An acre is a measure of a land area that is equal to - correct answer-43,560 feet
,A title that is free and clear from undisclosed encumbrances or other defects that would
expose a purchaser to litigation or to impede a purchasers ability to enjoy the property or to
later sell the property - correct answer-Marketable title
A right that goes along with the ownership of real property - correct answer-Appurtenance
A financial encumbrance on the owners title is called a - correct answer-Lien
A written agency between a seller and broker is a - correct answer-Listing
The effect when a loan balance grows because of a differed interest when payments are not
covering the interest portion of the loan are called - correct answer-Negative Amortization
The agent who finds a buyer in a real estate transaction - correct answer-Sellers agent
Broker Bob uses money from the firms escrow account to pay the electrical bill. This could
be best described as - correct answer-Conversion (Conversion is another word for stealing)
A latent defect can be best described as - correct answer-Not plainly visible
A clause requiring commission to be paid even if the property is sold AFTER the listing
agreement expires is known as a - correct answer-Protection period clause
Rachel and Monica work for different brokers. One morning over coffee, Rachel mentions
that her broker has raised her commission to 7.5%. This can be considered what type of
violation? - correct answer-Antitrust
When is a broker/agent entitled to commission? - correct answer-When a ready, willing, and
able buyer is found on the terms accepted to the seller
Errors and omissions insurance cover all of the following except - correct answer-Fraud
(E&O) cover mistakes and negligence
What duties does an agent owe a customer? - correct answer-Fair dealing, Honesty, and
integrity
They only owe loyalty to their client
How long must a New York Broker maintain record of sales? - correct answer-3 years for one
too four family dwellings
What does an independent contractor receive at the end of the year that details his
compensation for the year? - correct answer-An independent contractor receives a 1099
MISC form detailing any commission based income
A common law independent contractor - correct answer-Is not subject to withholding
requirements (An independent contractor mus manage his taxes himself. His employee does
not withhold anything)
,A commercial property has a first year gross operating income of $64,000 and expenses of
$12,000. If the capitalization rate for similar properties in the same area is 8% what is the
estimate value? - correct answer-$650,000 (The formula for determining value is Net
Operating income 64,000-12,000=52,000 divded by the rate 8% 52,000/.08= 650,000
What would be considered external obsolescence? - correct answer-A home fronting on a
busy four-lane highway
(External Obsolescence is when something outside the control of the property makes it less
desirable. In this case, a high way.
When is the income approach best used? - correct answer-The income approach is a
valuable appraisal method when determining the value of an investment property
Paul is doing an appraisal for fannie mae. What is the minimum number of comps he needs
to consider when using the sales comparison approach? - correct answer-3
Which appraisal report is required when processing a VA loan application? - correct
answer-Certificate of reasonable value
The accepted standards of ethics and appraisals practice are known as - correct
answer-USPAP (Uniform Standards Of Professional Appraisal Practice)
The first step of the appraisal process is to - correct answer-Define the appraisal also known
as stating the problem
Market price is - correct answer-The amount in dollars actually paid for the property
A quitclaim deed - correct answer-Is often used to clear clouds on a title (Is often used to
clear clouds on a title, comes with no warranties and is not transferable or court ordered)
Equitable title is - correct answer-An interest in real property created by the execution of a
valid sales contract
Which is not a guarantee that comes with a warranty deed? - correct answer-Guardian
Authority
A deed contains a guarantee that the grantor really owns the property. This is an example of
which covenant" - correct answer-Seizen (Seizen is the grantors guarantee that he or she
does own the property)
A new connector road needs to be built to relieve congestion that is causing many accidents.
The city purchases 20 houses and tears them down to build that road. The act of taking the
houses and tearing them down is called? - correct answer-Condemnation (Condemnation or
Appropriation is the actual act of taking private property for public use. The right to take
private property is eminent domain.)
, What is not an example of the governments police power? - correct answer-Taxation (Police
power can take the form of land use controls, zoning laws, environmental protection laws,
eminent domain, and escheat. Taxation is a governmental revenue-generating power.)
Lyle dies intestate. According to NY law, who would be the first in line to get Lyle's estate? -
correct answer-His wife, his children, then his ex wife.
Taking occurs when: - correct answer-The government acquires private property for public
use by appropriation without compensation to the land owner. (Taking differs from eminent
domain in that the government acquisition of private property for public use by appropriation
is done without compensation to the land owner)
Intestate VS Testate- - correct answer-Intestate is when a person dies without leaving a valid
will and without heirs, whereas testate is when a person dies leaving a will
When a planning board temporarily suspends the rights of property owners to obtain
development approvals while the local legislature considers the impact of new or changing
circumstances not adequately dealt with by current laws. This is known as - correct answer-A
moratorium ( A moratorium may be imposed by a planning board to allow time to study a
situation that involves land use regulation or rules)
A provision in a deed that limits the use of the property is known as - correct
answer-Covenant ( A deed restriction also known as a restrictive covenant, is a provision
placed in the deed when the property is conveyed.)
Which is not a way in which zoning ordinances are typically enforced? - correct
answer-Federal government interventions ( Zoning is a local issue that is typically enforced
through building permits, zoning permits, occupancy, and use permits, or possibly through
the courts.)
Insurance coverage can be purchased by which of the following? - correct answer-Captive
agents, Direct writing companies, and independent agents
A temporary insurance contract formed by oral or written agreement between the customer
and the insurance company is called - correct answer-A binder
Homeowner insurance rates are not based on - correct answer-Premium Payments ( The
location, materials, and amount of insurance all impact homeowners insurance rates. The
rates determine how much the premiums will be.)
The dwelling policy is designed to cover a direct loss to physical property as well as an
indirect loss. It can be written for a 1,2, 3 or 4 family structure. There is no theft coverage and
no liability coverage. - correct answer-The dwelling policy is designed to cover a direct loss
to physical property as well as an indirect loss. It can be written for a 1,2, 3 or 4 family
structure. There is no theft coverage and no liability coverage.
Which policy provides the best coverage for the money? - correct answer-HO-3 Special ( Is
considered the "Best Buy" of all insurance policies)
