However, senior citizen housing is exempt from the Fair Housing Act if it complies with the exemption requirements. By restricting tenants to people 55 and over, an exemption to the Fair Housing Act could apply. Trevor owns an apartment building that is 75 years old.
He has not performed much maintenance on the building, so the foundation and structural integrity are starting to crumble. What does that reduction in value refer to? Depreciation is the loss of value due to a building or property due to any cause, such as deterioration, damage and normal wear and tear. Functional obsolescence means that the property has become inferior to surrounding properties due to technological changes, such as obsolete equipment e. External obsolescence refers to changes occurring to land-use in the surrounding area, such as increased traffic, pollution, and zoning changes that affect the permitted use of the property.
For how long must a NYS real estate agent save any records related to home sales that the agent is involved with:. The Department of State requires that NYS real estate agents keep any records related to home sales that the agent was involved with for 3 years.
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All above information should be confirmed with licensing commission. Toggle navigation. Can't find the state test you are looking for? Find Your State's Tests. Your New York real estate exam results are also broken down by the actual NY real estate test topics to best prepare you to pass! You have already completed the quiz before. Hence you can not start it again. Quiz is loading You must sign in or sign up to start the quiz. Results Time has expired!
Your Score. You passed! We're sorry Start Now. Ownership of real property for an undetermined length of time is called:. Another name for an easement is:. What is another name for swamps, marshes and bogs? Which of the following is not a mixed-use property?
Which of the following in the online resource for NYS real estate professionals? The profit realized from the sale of real estate held for 3 years is:. Saving your progress Remember me. Forgot Password? Citizen or an alien lawfully admitted for permanent residence. Salespersons must take 75 hours of pre-license education with a qualifying course. Salespersons who completed the hour salesperson qualifying course prior to July 1, are only required to complete the 30 hour remedial course to get licensed.
Salespersons and Brokers must pass the state real estate exam. Salespersons must be sponsored by a New York State licensed real estate broker.
Mississippi Oklahoma Pennsylvania West Virginia. All Rights Reserved. A leasehold estate is for a limited time. A leasehold estate grants possession, but not title. A and B are true. Neither A nor B are true. Which of the following is not an essential element of a lease? A formal, legal description of the property. A lease term. A clause addressing when the tenant is takes possession of the property. Signatures of the lessee and lessor.
New York Real Estate Finance. If the loan-to-value ratio is. What is the amount the buyer is mortgaging? The impact of borrowed funds to purchase property when capital is not available is called:. Time value of money. Rate of return. A developer wants to build single family homes, a few groupings of townhomes and a small apartment building along with a small park with basketball courts and walking trails.
This is an example of what type of zoning? Cluster zoning. Incentive zoning. Residential zoning. Commercial zoning. In eminent domain, what value is the owner entitled to as compensation for the taking of real property? Actual cost. Appraised value. Market value. Fair market value. What is the difference between Assessed Value and Appraised Value?
One estimates the property value for insurance coverage and the other is used to compute property taxes. One is used to determine what a bank is willing to lend for the property and the other is used to determine a return on a certain dollar investment. One is used to determine a return on a certain dollar investment and the other is used to compute property taxes.
One is used to compute property taxes and the other is used to determine what a bank is willing to lend for the property. In an appraisal of commercial property, which of the following criteria is used to determine the properties highest and best use? Physically possible. Financially feasible. Maximally productive. All of the above. In , the Federal Fair Housing Act was amended to include the following protected class:. Familial status and mental and physical disability. Race or Color.
Religion and national origin. Active income, as defined by the IRS, includes:. Interest income. Gain from sale of assets. Dividend income. Real estate taxes are calculated based on:. An assessed value. An average value based on surrounding properties. The last sale price of the property. The square footage of the original blue print. To calculate realized gain, you must:. Add the selling expenses to the adjusted basis. Subtract the capital improvements from the sale price. Subtract the adjusted basis from the sale price, less selling expenses.
Add adjusted basis, sale price and selling expenses. When being compensated, the duties that require a real estate license include:. Listing or attempting to list real property. Negotiating terms of a real estate contract. Leasing or renting for more than one person. The intent to transfer is manifested by delivery of the deed. Deeds become valid upon delivery, acceptance and notification to the deliverer of the acceptance. In most states, delivery happens when the grantor seller signs the deed.
Notification to the deliverer that the deed has been accepted occurs when the deed is recorded. The method of legal acceptance of a deed varies by state. FHA mortgage insurance premiums MIPs can be paid at closing or included into the loan amount and paid monthly. FHA mortgage default insurance protects lenders in the event of borrower default. FHA is not a direct lender. FHA is not a joint lender, but provides borrower-paid insurance to protect lenders in the event the borrower defaults on the loan.
In fact, borrowers with an FHA loan may only need to make a 3. Test-Taking Tip: Examiners occasionally will try to confuse students by writing complicated test questions like: "All of the following are incorrect, except. For example, a simpler way of phrasing this question is: "Which answer choice is true?
A three-party security instrument that hypothecates real estate is called a Deed of Trust. The Deed of Trust aka a "Trust Deed" is one of the documents the borrower signs when getting a loan using real estate as collateral. A Deed of Trust creates a voluntary lien on the real estate of the borrower. The three parties to this legal instrument are the lender beneficiary , the borrower trustor and the trustee the third party to whom the borrower conveys bare legal title for the lifetime of the loan.
Test-Taking Tip: Make sure you memorize the information in your study materials related to Trust Deeds. Even if Deeds of Trust are uncommon in your state, you are very likely to be tested on this subject. Note: During the lifetime of the loan, the trustee under a Trust Deed will hold bare legal title to the property. When the loan is paid in full, the trustee must reconvey bare legal title back to the borrower, and does so using a document called a "Deed of Reconveyance.
A mortgagor is the name of the borrower in a two-party security instrument called a Mortgage. A mortgagee is the name of a lender in a Mortgage. However, in contrast to the Trust Deed, it is only a lien: No portion of title is conveyed by a mortgage.
The trustor is the name of the borrower in a Deed of Trust. Test-Taking Tip: Make sure you spend some study time going through the glossary in your licensing materials. Examiners frequently test knowledge of technical words and terms like "hypothecate" to pledge real estate without giving up possession. Regulation Z requires that lenders furnish an applicant for a real estate loan with a statement that discloses the finance charges associated with a loan.
The Truth in Lending Disclosure Statement shows the annual percentage, which is the borrower's cost of credit as an annual rate; and the total amount the borrower will repay to the lender in comparison with the amount financed.
Discrimination on the basis of race in the purchase or leasing of real estate is always illegal--even when the goal is racial diversity. Race is one of multiple protected classes in the Civil Rights Act of , as amended.
Lead-based paint warnings are required--for both sales and rentals--if construction began prior to January 1, Unless there is actual knowledge of lead-based paint on the premises, a warning is unnecessary for an improvement constructed in Test-Taking Tip: Make sure you know what is considered "target housing" for lead-based paint warnings i. If a complex complies with federal rules related to senior citizen housing, owners and property managers are legally permitted to exclude families with minor children.
Note: Per federal rules, a senior is someone who is years-old or older. One of the property manager's most important duties is to find well-qualified tenants who are financially able to rent the leasehold property. A property manager is obligated to stay informed about market rents in the area; and track vacancies in the building being managed.
However, the property manager has no obligation to the principal to stay informed on market value of the building. Fairness and honesty are always a part of a property manager's responsibilities as a party of the duty of agency.
The landlord breached the implied Warranty of Habitability. For many jurisdictions across the United States, this promise of a habitable living environment is implied by law in residential leases. It need not be discussed verbally or included in writing in the lease. The basic living and safety standards in this implied warranty include necessities such as heat, plumbing, electrical systems, and water.
By not responding in a timely manner to the tenant's repeated calls for help, the landlord was in breach of the implied Warranty of Habitability.
Therefore, the tenant's abandonment of the leasehold property--and subsequent refusal to pay rent--would most likely be found by a court to be justified, relieving the tenant from any further obligations under the lease. Note: A failure on the part of the landlord to make a residential rental property habitable is referred to as "constructive eviction.
This answer choice states the general rule. But, a breach of the implied Warranty of Habitability may relieve the residential tenant of any further contractual obligations, including payment of rent. In most jurisdictions, the landlord is responsible for keeping necessities such as heat, plumbing, water, and electrical systems in good repair. Another promise many jurisdictions imply into residential leases is the Covenant of Quiet Enjoyment, an implied promise that no one claiming superior title will disturb the tenant's possession of the leasehold property.
However, there is one important exception to the Covenant of Quiet Enjoyment: If there is an emergency situation on the leasehold property, the landlord has the right to enter the property--unannounced--to repair the emergency. The examinees will frequently use these somewhat technical terms in test questions rather than the words used in everyday speech.
The landlord or property owner is the lessor; or the person giving the lease rights. The tenant is the lessee; or the person receiving the lease rights. In comparison to the single-family residence being appraised frequently referred to as the "subject property" , the second comparable is missing a bathroom. The value of a bathroom must be added to the sales price of the second comparable so that it more accurately reflects the market value of the subject property.
Although appraisers look for comparables that are as close as possible to the subject property, the comparables do not have to have the exact same number of bedrooms and bathrooms.
The appraiser will adjust the sales prices of the comparables to account for differences between a recently-sold comparable and the subject property. It is the job of the appraiser to know, for example, what a bedroom or a bathroom is worth in a particular neighborhood. Adjustments are made to the recent sales prices of the comparables, not to the subject property. The third comparable has only 3 bedrooms, while the subject property has 4 bedrooms. The value of a bedroom must be added to--not subtracted from--the sales price of the third comparable.
Note: The market data approach is also called the "sales comparison approach. The principle of supply and demand is the oldest principle of economics; and it is also the most predictable principle. When demand for homes increase because of national economic influences such as lower interest rates , values tend to increase. Also, when demand increases because of local changes, such as a new business coming to the area; or an influx of new residents, values will increase.
The Gross Rent Multiplier aka the "Gross Income Multiplier" is a simpler, less accurate alternative to capitalization takes into account the income generated by a parcel of real estate, but not the expenses charged to the property. This alternative to capitalization is most widely used with single-family residences. Jordan's other properties have a Gross Rent Multiplier of If Jordan's 4 other properties in the neighborhood have a Gross Rent Multiplier of , it is unlikely that the seller will accept this low an offer.
C and D are incorrect. These offers would result in a Gross Rent Multiplier that would be too high for this particular neighborhood and Jordan's 4 other properties e. Investing in real estate is the act of giving up money that could be spent elsewhere in exchange for the potential for profit in the future. The likelihood of a profit is called the risk. As a rule, the greater the risk, the lower the investment.
Investment in vacant land is a low-risk investment because vacant land does not tend to depreciate as much or as fast as improved land; and the cost to purchase vacant land is usually lower than the cost to purchase improved land. With regard to federal lead-based paint disclosure rules, "target housing" includes residential dwellings built before January 1, This is the difference that one day can make.
If construction started on December 31, , then the residential dwelling is target housing, and lead-based paint warnings must be given to prospective buyers and tenants. If construction started on January 1, , then the dwelling is not target housing, and the lead-based paint disclosure requirements do not apply.
However, even if construction of the house commenced on or after January 1, , a seller or landlord with actual knowledge of lead-based paint on the property is under a duty to disclose this to prospective purchasers and tenants. Answer choice "A" misstates the rule. If construction started on January 1, then the house would not be considered target housing, and, absent actual knowledge of lead-based paint on the property, there would be no federal lead-based paint disclosure requirements.
The seller or landlord is responsible for compliance with lead-based paint disclosures: Compliance is not waived if there is no licensee involved in the transaction. A licensee, however, if involved with the transaction is responsible for advising the client as to proper disclosure and compliance. Sellers and licensees are under no obligation to order an inspection to have the house tested for lead-based paint, or to pay for repairs if lead-based paint is discovered.
Prospective buyers must be given a day window to have the property inspected for lead-based paint, but even prospective buyers are free to waive testing. Landfills and the toxins and chemical by-products of the refuse are a major cause of groundwater contamination because rainwater and snowmelt can filter through the refuse and dissolve a wide range of water soluble pollutants, which then seeps into the ground.
The process of capping mitigates this process because the clay-like soil forms a barrier so that most of the water stays above the level of the refuse and less water filters through the refuse. The seller will be reimbursed for the prepaid property taxes for those four months of the remaining tax year when the Buyer will own the property.
The other answer choices are all considered debits to the seller. Test-Taking Tip: A good way to remember this is that, for the Settlement Officer, a "credit" increases what a party can take from the closing, while a "debit" decreases what a party takes from the closing.
In this test question, the prepaid property taxes will be a credit to the seller and a debit to the buyer. However, debits and credits on the closing statement are not always balanced equally between the two parties. Here, for example, the seller must pay off the outstanding mortgage lien, the mechanic's lien, and the brokerage fee, but these are not considered credits to the buyer.
The HUD -1 Settlement Statement is a standard form in used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan. A final HUD -1 statement must be given to buyers one day prior to the signing of the documents. In the government survey system aka "rectangular survey system" , an entire section of land is one square mile. One square mile contains acres. Here, the legal description states that the purchased property is a quarter of a quarter of a section, thus, 40 acres.
This would be the correct purchase price for a 30 acre parcel. This would be the correct purchase price for a 60 acre parcel. This would be the correct price for a acre parcel. Prev Next Finish. Bookmark Page. Real Property Characteristics. Which of the following lists correctly describes the physical and economic characteristics of real estate? Immovable, indestructible, unique, scarce. Depreciable, indestructible, scarce, unique.
Unique, immovable, abundant, indestructible. Moveable, indestructible, scarce, unique. Freehold Estates. If a person has complete control over their property, and the ownership in the property is not defeasible, what interest does the person have in the property? Ulyanna and Daniel own two contiguous properties situated on the shores of a fast-moving river. Ulyanna's parcel is situated upstream from Daniel's parcel. Over time, the action of the river's water has moved some silt and dirt from the shores of Ursula's property and deposited it downstream on the shores of Daniel's property.
Based upon this fact pattern, which of the following lists best describes what has occurred on Daniel's property? Alienation, attachment, alluvium. Accession, littoral, standing water.
Assemblage, plottage, increased value. Accession, accretion, alluvium. Real Estate Ownership. Which of the following is the difference between the value of a property and the total amount of liens against the property? A parcel of residential real estate is held in a life estate. The life tenancy is held by a woman, and she is the measuring life. Her nephew is the remainderman. The life tenant wants to take out a loan using the property as collateral. Which of the following statements is correct?
No lender will lend money when the collateral is real estate held in a life estate. The remainderman's signature on the loan documents is irrelevant to the lender's security interest in the realty. Because she is merely a life tenant, the woman holds a nonfreehold estate. Both the life tenant and the remainderman will need to sign the loan documents to protect the lender's security interest in the property. There are four separate, recently-sold parcels of real estate on Main Street.
Parcel 1 was owned by a Real Estate Investment Trust and was voluntarily conveyed to the City where the property is situated. Parcel 2 was owned by four unmarried brothers and was voluntarily conveyed to their father. Parcel 3 was owned by two corporations, until one corporation recently sold its ownership interest in the property to the other corporation. Parcel 4 was owned by Mr. What do all of these buyers have in common? Concurrent ownership. Ownership in severalty.
Fractional, but undivided ownership. Right of survivorship. Land Description. Non-monetary Encumbrances. Your neighbors use a portion of your property to reach their guest apartment, which is on their property. As far as you can recall, you never gave them permission to use your property, and you discuss with your attorney the possibility of preventing the neighbors from using your property. Your attorney explains that the ownership of the neighbors' real estate includes an easement appurtenant giving them the right to use that portion of your property.
The owner of a large parcel of real estate legally divided it into two smaller parcels. Parcel North was directly to the north of Parcel South. The only road in the area bordered Parcel South. The owner intended to keep Parcel North, and wanted to prevent it from becoming landlocked. In the deed to the buyer of Parcel South, the owner reserved a non-exclusive easement for ingress and egress purposes over the westerly 8 feet of Parcel South. After both parcels were sold to two new owners, the new owner of Parcel South fenced in the entire parcel, making ingress and egress over the westerly 8 feet impossible for the new owner of Parcel North.
In a lawsuit between the new owner of Parcel North and the new owner of Parcel South, who will most likely win? The owner of Parcel North. An easement appurtenant cannot unilaterally be terminated by the servient tenement.
An easement in gross cannot unilaterally be terminated by the servient tenement. Because there is no other access to a road, this is an easement by necessity.
The owner of Parcel South. The right to exclude non-owners is a fundamental right of property ownership. Government Restrictions. A county government was widening a highway. Prior to construction, the county had to demolish certain dwelling houses and commercial retail properties bordering the old highway. After the legal proceedings were complete, several residential property owners refused to leave their former homes.
The sheriff removed several individuals forcibly. In one case, the sheriff was forced to drag an elderly, protesting woman out of a house she had owned for decades. What is the name of the governmental power? Police Power. Eminent Domain.
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