New York University

NYU Adult and Elder 1 Midterm exam with answers

A broker has listed a seller's property. The seller travels extensively and would like the broker to have the authority to accept a full price offer if he receives one. The seller's layers prepare a limited power of attorney authorizing the broker to accept any offer for at least list price. Once the broker has the authority to accept a full price or better offer for the seller, what is his agency role with that seller? (Ans- He is a General Agent A signed employment agreement is ne...

Which type of insurance coverage protects against claims alleging negligence resulting in bodily injury or property damage? (Ans- Liability Insurance Which type of home insurance policy covers condominium unit owners? (Ans- HO-6 A real property tax is what type of encumbrance on a property? (Ans- Appurtenance Which group is not eligible for a reduction or exemption in real property taxes? (Ans- Second home (Vacation) Owners If a property's market value is $180,000 and the community...

Alienation (Ans- The transfer of ownership or an interest in property from one person to another, by any means. Alienation Clause (Ans- A contract clause that gives the lender certain stated rights when there's a transfer of ownership in the property. Upon sale of, or even a transfer of, significant interest in the property, the lender will often have the right to accelerate the debt (here called a due on sale clause), change the interest rate, or charge a hefty assumption fee (FHA an...

Property Condition Disclosure Statement (Ansrequires the seller to submit to the buyer, a Property Condition Disclosure Statement, prior to signing the contract of sale If the property condition disclosure statement is not signed, the buyer shall (Ans- receive a $500 credit against the purchase price of the property. Real property (Ans- the land and improvements, and all legal rights, powers, and privileges of real estate ownership. Personal property is also known as (Ans- Chattel Fix...

Who determines what the commission will be on a real estate sale? (Ans- Client and Broker If someone dies without having a valid will, this is called? (Ans- Intestate If someone dies without having a valid will or heirs or creditors, that persons property reverts to the state through a process called? (Ans- Escheat What is the name of the standardized closing statement or settlement statement, required by RESPA? (Ans- HUD-1 What is a synonym for proration? (Ans- Adjustment What is th...

A lease that provides for the lessee to pay all or part of the expenses of the property in addition to rent is called a(n): a. estate at sufferance b. net lease c. sale and leaseback d. gross lease (Ans- B: In a net lease, the tenant pays some or all of the expenses. When a lessee transfers the entire remaining interest of his lease to another party who then must pay the owner, is called a(n): a. novation b. sublease c. assignment d. lis pendens (Ans- C: The assignment of the lease ...

A buyer wanted to use a promissory note for consideration on the purchase of a property. Can he do this? (Ans- Yes. This is acceptable as long as the seller agrees. If advertised alone, which would be in violation of Truth in Lending? (Ans- "No down payment required." Why would a mortgagee have an appraisal on the property? (Ans- To assure the property value is sufficient to cover the loan Seller Jolita lists her house with Broker Fred. Fred then buys Jolita's house and collects...

What happens if any of the principals in a transaction refuse to grant consent to dual agency...? A. The buyer must find a new agent B. The parties cannot proceed with dual agency C. The seller must find a new agent D. The transaction can close nonetheless (Ans- B. The parties cannot proceed with dual agency According to an Exclusive Right to Sell agreement, what price is listed in the agreement...? A. The Sale Price B. The Listing Price C. The Fair Market Value Price D. The price as...

Which of the following building components is primarily used to prevent water from entering a structure at a joint, corner, or bend? (Ans- Flashing Which of the following structural members is set in the soil and supports the building's foundation wall? (Ans- Footing Building contractors use which of the following detailed building plans to build a house? (Ans- Blueprints Which of the following is a chemical compound used in refrigerants? (Ans- CFC's Which of the following build...