Interactive Flashcards

Use these interactive flashcards to aid you in studying for the school exam and state exam.

Read the question and click the card to reveal the answer. Time yourself to improve your skill and try to beat your own score.


What agency issues real estate licenses?

The New York State Department of State
(NYDOS), Division of Licensing Services

At what age can you become a real estate


Do you need experience in the field to become a


What is the minimum age to become a real
estate broker?


Do you need experience in the field to become
a broker?

Yes, evidenced by two years in the business and
the buildup of 3,500 points.

If your license is revoked, how long do you have
to wait to re-apply for it?

One full year

As a licensed salesperson, I can receive
compensation from _________________.

Only from my sponsoring broker.

As a real estate licensee, you will more often than
not be an __________, will receive a _________
from your broker, and will leave ___________ on
your tax return to detail your earnings vs. your

Independent contractor, 1099, schedule C

Attorneys admitted to the bar in NYS are
__________ from the licensure law, unless they
take on salespeople.


If you mix your client’s money with the office
operating funds, it’s called _____ and you have
violated which of the duciary obligations?_____

Commingling, Accountability

For how long does a broker need to keep all of
his/her paperwork and records?

3 Years

If my license has expired, for how long can I
continue to practice real estate sales?
In other words, what is the grace period?

Thirty Days

Your real estate license with the pocket card
will be sent to your sponsoring broker.
Who holds the license?
Who holds the pocket card?

The Broker, Me

As a real estate salesperson, you have to
take continuing education every ________

Two Years

How many hours of CE are required?

22.5 Hours

There is also a three hour CE component of
________________ required every two years.

Fair Housing

Are real estate brokers also required to fulfill
the CE requirement?


If a seller decides not to provide the purchaser
with the ‘Property Condition Disclosure Form’,
how much of a reduction in price does he have
to give?


If you are truly an independent contractor, what
is it that your broker can provide for you?


As an independent contractor, are you paid for
the number of hours you put into a deal
or for your ‘production’?


What is the term of real estate licensure?

Two Years

I want to make application to become a
‘mortgage broker’. I can use my experience as a
real estate licensee on my application to the NYS
Department of Banking.
How many years of experience do I need?

Two Years

Violation of license law is a _____________.


Referring to the question just above, what is the
possible penalty? _______and/or _______.

Up to a fine of $1,000 and/or up to a jail
term of one year.

What is the very first document you should
fill out with a new client or customer?

Agency Disclosure Form

At what moment should you take out the
agency disclosure form?

At first substantive contact

Regarding the question above, define what it

In other words, when something of substance
happens, such as when the customer starts to
ask questions about the property.

What should you do if that client or customer
refuses to sign the agency disclosure form?

Fill out and affidavit or a declaration stating
the terms of the refusal to sign, then sign the
affidavit, and have the signature notarized.

As a real estate salesperson, I am practicing
__________________ agency.


As a property manager, I am practicing
_________ agency.


In estate planning, I am practicing ______ agency.


What would you call a situation where I
represent the seller as my client but then work in
the best interests of the buyer (my customer)?

Undisclosed Dual Agency

If I represent the buyer as a broker, this would
be called ______________________.

Buyer’s Broker

I owe all of the duciary obligations to my client
or to my customer?


I work _____ the client, and ______ the customer.

For, With

What does ‘fiduciary’ mean?

Position of Trust

The fiduciary obligations accrue only to my ____.


So, what do I owe to the ‘customer’?
________and __________.

Fairness, Honesty

If it is my intention to protect my client (usually
the seller) from the vicarious liability of another
licensee violating the laws of licensure, I should
always give out my listings to other licensees as
‘broker’s agents’ or ‘sub-agents’?

Broker’s Agency (BA)

If I share the listing on a property with your
broker and give you the opportunity to make the
sale, your broker just became my ____________.


If one broker is representing both the purchaser
and the seller in the same transaction,
you would call this______________________.

Dual Agency

What is the Department of State concerned
when a real estate licensee also embarks upon
the practice of writing mortgage applications
as a mortgage rep? They are concerned about
when __________________.

Possibility of Dual Agency

I hire you to sell my house. You are my broker
and l am your ____________ or _____________.

Client, Principal

It has been long-standing that my driveway
crosses over my neighbor’s property - you would
call that an ________________.

Easement Appurtenant

In the above question, which estate is
‘dominant’, mine or my neighbor’s?

Mine, because I benefit from the easement.

So, what would you call my neighbor’s estate?


What is it called if a utility company has an
easement over many properties?

Easement in gross or a utility easement

If someone uses the property of another in a way
that is open and notorious, exclusive, and
adverse to the best interests of the true owner,
you would call ___________________.

Squatters Rights

What are two other names for the situation in
the question above. _________ or _________.

Easement in gross or a utility easement

For how many years would you have to have use
of that person’s property to make a claim of

Ten Years

If a person has the right to cross over your
property, it’s an _______________________.


If a thing is crossing over your property line,
that’s an ______________________.


If you buy materials from a supply house and fail
to pay them, they can file a _______.
Unfortunately, this student is told
“materialmen’s lien” isn’t one of the choices.

Mechanic’s Lien

We talked about a formal legal description,
an FLD - what is one example of a formal legal

Section, Block and Lot Number

Which description would NOT be a formal legal

The street name and street address

Who determines what the real estate
commission will be on a particular deal?
_______________and _______________.

The Broker, Client

If someone dies without having a valid will, he
died ________.


If someone dies without having a valid will and
the state cannot locate any heirs or creditors,
that person’s property reverts to the state
through a process called ___________________.


What is the name of the standardized closing
statement or settlement statement, required by
RESPA (1974) called?


What is a synonym for ‘proration’? ________.


What’s the name of the deed which gives the
most legal promises (covenants and warranties)
to the buyer?

The Full Covenant and Warranty Deed

What is it called if I track back the successive owners
of a piece of real estate, starting with the current
deed and working my way backwards in time?

Chain of Title

Deed is a ___________________.

The Instrument that conveys a grantor’s
interest in real property

Generally speaking, who creates the real estate
‘Contract of Sale’? _______________________.

Seller’s Attorney

Who signs the contract first?


What does the buyer attach to the contract after
signing it?

Earnest Money Deposit, Down Payment

Who holds the earnest deposit x money from the buyer
from the signing of the contract until closing?

Seller’s Attorney in Escrow

Who signs the contract last?


The fullest interest I can have in my ownership
of real estate is called having a ______ interest.

Free Simple

Unlike residential leases where if you add a ‘fixture’
such as a ceiling lamp, it becomes part of the real
property, in a commercial environment it’s understood
that if you add cabinets, refrigerator units, etc, that
they are leaving when the lease is over.
You would call these _____________________.

Trade Fixtures

Tenants in common is characterized by _________.

Rights of Inheritance

Joint tenants is characterized by ______________.

Rights of Survivorship

In NYS, husband and wife takes ownership as_____.

Tenants by the Entirety

What would you call it when one person buys a
property all by himself/herself?

Ownership in Severalty Land Use Regulations

What would you call the power of the government to
acquire personally held real property for the benefit
of the public?

Eminent Domain, Condemnation

A zoning ordinance would N0T require ___________?

C- Material

When I go to the building department and I want to
put an extension on a house or modify something,
I’m making application for a ____________________.

Building Permit

If I’m turned, down because my application
doesn’t meet the letter of the building code, I’m
going to make an appeal to the ______________.

Zoning Board of Appeals (ZBA)

And if the ZBA approves my application, I’m
going to be granted a _____________________.


Roof rafters are ____________ in orientation and
establish the pitch or the ___________ of the roof.

Diagonal, Slope

What are the vertical wooden members inside
the walls?


Circuit breakers and ______________ both
serve the same function.
They are over-current protection devices.


What is put on the outside of the studs to begin
to weatherproof the house?


“A” for Amps, “A” for the ___________ of current
available in a structure.


What is the minimum amperage for new
construction in NYS?

100 A

‘”Voltage” is the __________ or ___________ of
the current in a particular electrical circuit.

Force, Pressure

What is the standard voltage in the United States?

110 V

What is the “R” factor?

‘Resistance’ to heat transfer

The lower part of the roof which includes the sofit
and fascia is called the __________ or __________.

Overhang, Eaves

Bent pieces of metal that serve to waterproof a
house are called ___________________.


You would call a BTU, British Thermal Unit, a
measure of _______________________.

Heat Energy

What is the name of the refrigerant that was
destroying the ozone layer of the atmosphere,
the layer that protects us from the ultra-violet
rays of the sun which give us skin cancer?


What is the law that regulates CFC’s (Freon)?

Clean Air Act

What would you call the first wooden member to
be laid down on the foundation wall? It serves to
connect the concrete foundation to the flooring

Sill Plate

When I build a house, I’m going to have an
architectural rendering of it - what is that called?


And I’m going to spell out how it is to be built
along the lines of the blueprints - what is that


What material was used for insulating heating
pipes, a naturally occurring mineral fiber, now
banned from use because it is a carcinogen
(cancer causing)?


What is the name of a colorless, odorless, radioactive
gas that is the byproduct of uranium in the soil?


Percolation rate is the rate ___________________.

Of water movement through soil

A CMA (comparative market analysis) is not a/an _____.


An estimation of how much a property will sell
for in a typical transaction is the _______________.

Market Value

The lowest price a seller will take, the highest price
a buyer will pay is called the __________________.

Market Value

An apartment building has a heating system
which although is in good repair, does not meet
the needs of its current tenants.
This is an example of _______________.

Functional Obsolescence

Which term best identies the most probable
price for which specied property rights should
sell to a knowledgeable buyer in a competitive

Market Value

What is a study of recently sold properties,
currently competing listings, monthly expired
listings, buyer appeal market position, assets and
drawbacks, area market conditions,recommended
terms and market value range?

Comparative Market Analysis (CMA)

What do you call people who get into real estate
offices to make sure that all people are being
treated the same way?


If I have a disabled tenant who wants to make a
modification, what do I do?

Let them make modification(s) at their own
expense and return it to its original condition
at their own expense prior to vacating unit.

What was the year of the first major federal fair
housing legislation?


What was the one protected class in that piece
of legislation?


What was the year of the first major legislation
to directly affect property ownership rights?


What would be an exception to the
discrimination laws?

A person renting out rooms in their own house,
which they actually live in, to members of the
same sex.

What was the year of the second major piece of
federal fair housing legislation?


classes were protected under that legislation?

Race, Religion, National Origin

In 1974, there was an amendment - what class
was added?


In 1988, there was an amendment - what classes
were added?

Disability and Familial Status

I’m taking ‘green’ customers only to ‘green’
people neighborhoods.


I’m going into a neighborhood and inducing
‘panic selling’. What is this called?

Block Busting

A banker decides not to lend in a community be-
cause of the infusion of people of a particular race,

religion, or nationality. What is this called?


What is exempt from federal fair housing laws?


There are NEVER any exemptions from fair housing
laws based on ______________.


Solicitation of the sale or lease of property,
due to a change in the ethnic structure of a
neighborhood is ________________.

Block Busting

What is the age of majority in NYS, in other
words, the minimum age to enter into a contract?


If you were to sell your house to someone under
the age of 18, how would you characterize the
contract of sale?

Voidable by the Minor

What is the name of the ‘regulation’ that requires
the lead paint disclosure?

Regulation X

I have to give the “protect your family from lead
paint in your home” and the lead paint disclosure
form to prospective tenants and buyers if the
building was constructed prior to what year?


Sometimes a condo association will reserve the
right to be the first buyer if you decide to sell.
You would call this a ________________.

Right of First Refusal

I’m going to rent an apartment from you for one
week - what type of leasehold estate is this?

An Estate for Years

Coop ownership is what type of an estate?


How would you best describes ones interest in a
co-op unit?


A mortgage that covers and includes more than a
single property is called a ____________________.


A mortgage that nances both the real property and
the personal property is called a _________ mortgage.


What would you call a loan that allows you to
move from one property to another?
For instance, you find a house you really want to
buy but your first house isn’t sold so you use this
type of loan to make the jump.

Bridge, Swing, Interim

What would you call a financing situation where the
buyer receives nancial assistance with the down
payment and closing costs, and in exchange gives up
some share of the equity buildup in the property?

Shared Equity Loan

There is a type of mortgage where the monthly
payment increases as your ability to pay more
improves, for instance for someone who doesn’t have
much income but has great income potential, for
instance someone just graduating from

Graduated Payment Mortgage (GPM)

When money is plentiful, what happens to interest rates?

Rate Lowers

A transaction that involves the sale of property to
free up the liquid assets that are trapped in the
real estate and a lease of that same property is
called a ________________.


You would call the borrower _________________.


You would call the lender the _________________.


What is the definition of a “wrap-around mortgage”?

Until I get more feedback on this question, look for an
answer that references an existing ‘first’ mortgage lumped
together with a new ‘second’ in the form of owner financing,
Also, one identifying characteristic of a wrap is that the
second mortgage component is significantly larger than the
first mortgage component. Normally, the first would be for
a greater amount than the second, because the interest rate
on a first mortgage is usually more preferable than for a
second mortgage.

What is the act of charging interest that is over
the legal limit?


What regulates the advertising of consumer loans,
or the terms of lending?

Regulation Z

A straight term mortgage consists of payments
that include ___________ only.


Which named ‘peril’ is not covered on an HO policy
(home owner) or a DP policy (dwelling policy)?


From the question above, from whom do you
purchase that insurance?


If I want higher limits of liability insurance on my
house and cars? I would buy an __________ policy.


If I were a renter, in order to protect my stuff
and also give me liability insurance, I would
buy an _____________ policy.


Which is the ‘lien of highest priority’?

Real Property Tax

What does the “Municipal Engineers” office do?

It plans, deigns and does the constructino of
New York’s public works facilities and projects.

What governmental authority oversees our fresh
water drinking supply?

Department of Health

Does the building department write the building
code or enforce it?

Enforces it

What governmental agency oversees how the
community is developed?

The Planning Board

Homeowner policies which provide content
coverage for apartment owners is the ________.


What governmental body overseas mortgage
brokers and mortgage bankers?

The NYS Department of Banking

The income that I earn from getting out of bed in
the morning and going to work, for example: salary,
bonuses, commissions, is called ______________ .


The income that I earn from rental income is
categorized by the IRS as __________________.


The income that I earn from my paper assets is ______.


FrontIf I have rental properties, the income that I derive
from renting out parking spaces, closets in the
basement, my coin op washer/dryer is ___________.


We are taxed on our real property according
to the value of the property, ‘ad valorum’, and
the question is which value?

Assessed Value

Over how many years can you depreciate a
residential property?

27.5 Years

Over how many years can you depreciate a
commercial property?

39 Years

MATH: Depreciation: If you see a depreciation
problem, you always have to deduct the cost of the
____________ from the acquisition cost of the property,
then divide by the appropriate number of years.


How much is the capital gains tax incentive for a
single person? Explanation: If a single person buys
a home as his/her owner-occupied residence, then
sells it after two or more years,

$250,000 / $250K

And for a married couple?

$500,000 / $500K

Husband and wife purchased a house in the 60’s
for $50,000. The husband passed on and the wife
sold it for $300,000. How much of the profit will
be subject to capital gains taxation?


And when the government gives tax incentives
such as the example in the above question /
or through depreciation,

Tax Shelter

MATH: Tax Assessment: What is the assessed value
of a property with a market value of $180,000 if the
rate of assessment is 20%?

$180,000 x .20 = $36,000

Property types which are exempt from real
property assessment are ________________.

No types are exempt

Property types which are exempt from real
property taxation are __________________.

Religious, Governmental

For purposes of property, tax valuation, a residential
condominium would be _________________ property.


Industrial and commercial parcels and most
vacant land are considered ___________ property.

Non - Homestead

Each discount point is or discount points are are
generally what percentage of the total loan amount?


A building that includes condominium and cooperative
ownership is called _______________.


Which group oversees management of a cooperative

Board of Directors

With what state agency is the offering plan for a
condominium or cooperative building submitted?

Attorney General

If a property manager is giving attention to a
potential problem before it really becomes a
problem, you would call that ____________________.

Preventative Maintenance

If a property owner is fixing a leaking faucet,
what kind of maintenance is this called?

Corrective Maintenance

What is a ‘proforma’ statement?

A schedule of the projected income and
expense for a real estate investment

What is the ‘use’ clause in a lease?

It details how you may ‘use’ the rented space, for
instance either for residential or commercial use

Commercial space is very often rented out using a
_______ lease.


Generally speaking, residential leases are
__________ - meaning that you pay your landlord
the gross amount (total) of rent and then the


A lease for large unfinished space would
be called a ______ lease.


In what type of rental environment would you find
a “percentage lease”?


In a sublease arrangement, who is ultimately always
responsible to be sure the lessor (the landlord) gets paid?


What determines the value of an asset in the

past, present, and future?

The time value of money

MATH: Net Operating Income:
What is the net operating income if the
property was acquired for $500,000 with
a 10% return-on-investment?

$500,000 x .10 = $50,000

MATH: Cash on Cash Return: Joe buys a

$2,000,000 building, laying $500,000 out of

pocket. The building generates $15,000 per

month. What is the cash on cash return?

[ ($15,000 x 12) / $500,000 ] = .36 = 36%

MATH: Loss factor: A building has 10,000

rentable square feet and 8,000 usable square

feet. What is the loss factor? Conversely,

what percentage of the total area is being

used ‘efficiently’?

10,000 - 8,000 = 2,000 -> 2,000 / 10,000 = .20 = 20%

MATH: Cap Rate Problem: ere is a building
with an NOI of $40,000 that Jim wants to buy
and his intended cap rate (rate of return he is
expecting) is 10%. How much should Jim pay
for the building?MATH: Cap Rate Problem: ere is a building
with an NOI of $40,000 that Jim wants to buy
and his intended cap rate (rate of return he is
expecting) is 10%. How much should Jim pay
for the building?

(X)(.10) = $40,000

MATH: Mortgage Qualication:
Joe earns $1000 per week. His local bank is
willing to give him mortgage nancing based
on a front end ratio of 28%. What does he
qualify for as a monthly mortgage payment?

[ ($1,000 x 52) / 12 ] x .28 = $1,213.33

MATH: If seller nets $180,000 from the sale of his
property after paying a broker fee of 10%, what
was the selling price of the property?

(X)(.90) = $180,000 -> (X) = $200,000

MATH: Net to Seller: If the seller wants to net
$250,000 after paying his broker a commission of
5%, calculate the actual sales price.

(X)(.95) = $250,000 -> (X) = $263,157.90

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