Study Guide 2.pdf 3x4o55

Real Estate Exam Guide and Review Tests Complied by Bill Plunkett and Students THIS IS A BRIEF OVERVIEW OF CHAPTERS THAT MAYBE HELPFUL!!!

- Independent Contractor or Employee · Independent contractor must pay his own expenses. · According to IRS code section 3508[A, B], real estate agents are statutory nonemployees and are therefore independent contractors. The code also states that there must be a written contract between the broker and the sales associate, also reviewed every 12-15 months · All records must be kept for 3years · If sales associate not deemed independent then they will not be able to file "SCHEDULE C' of the federal return · The Independent Contractor Relationship Ø Salespersons are free to engage in outside employment Ø Either party may terminate the relationship at any time - License Law & Regulations · The New York Department of State, Division of licensing Services is the regulatory agency that oversees and isters the licensure process. Most of the law pertaining to salespersons and brokers is contained in Article 12-A of the real property law. · A real estate broker is any person, partnership, association or corporation who, for another, and for compensation of any kind, negotiates any form of real estate transaction. Real estate brokers supervise and are responsible for the activities of associate brokers and salespersons in their employ. · A salesperson or an associate broker cannot operate independently. · Duties That Require Licensure Ø Selling or purchasing real estate at an auction Ø Negotiating the sale of a business for which the values of the real estate transferred is not merely incidental to the transaction (RE value is worth more than the business Ø Salespersons must be 18 years of age. Ø Brokers must be 20 years old with 2 years experience Ø Points for Broker License work as salesperson & 3500 points or 3 years and 5250 points. Ø Licenses are renewed every two{2} years · Exemptions to Licensure Ø Building superintendents or maintenance workers who perform tasks such as rent collecting for one owner, company or entity. · Classes of Licensure for Brokers Ø Each officer of a corporation or member of a co-partnership must be licensed as a broker. Ø Salespersons licenses are not issued to officers of corporations or

of co-partnerships. Ø Salespersons and associate brokers may not be principals in the brokerage firm and may not own voting stock in the licensed brokerage corporation. · License and Pocket Card Ø Pocket Cards must be carried at all times and shown on demand. · Fees, Office Requirements, and of Licensure Ø Brokers must pay $150.00 and Salespersons $50.00 for each term. Ø Additional licenses for each branch office cost $150.00. · An apartment-sharing agent is an individual who, for a fee, arranges and coordinates meetings between the current owners of real property, including apartment housing who wish to share their housing with others. · A mortgage banker is an individual or entity licensed by the New York Banking Department to engage in the business of making residential mortgage loans. Licensed and lends. · Compensation and Fee Splitting Ø Salespersons may not accept compensation except from their sponsoring brokers Ø If brokers improperly pay any part of compensation to anyone who is not licensed or who is not exempt from the license law, they are in violation of the license law, this payment is called a kickback. · Lawsuits for Commissions Ø An unlicensed person, co-partnership or corporation cannot bring about a lawsuit to collect compensation for real estate services rendered because only a licensed real estate broker or salesperson is entitled to a judgment by the courts. · Violations of Real Estate License Law Ø Failing to provide adequate disclosure regarding any or all of the following: a) if licensees purchase property listed by their firm, they must make their position clear to the seller, the licensee must make clear their position regarding the party for whom they are acting in a residential real estate transaction-seller, buyer or both. Ø Receiving compensation from more than one party in a real estate transaction without the knowledge and consent of all parties. Ø Being a party to an exclusive listing contract that contains an automatic continuation of the listing beyond the specified termination date. Listing contracts are renewed by the g of a written renewal agreement. Ø Drawing up legal documents such as deeds or mortgages, giving an opinion as to the legal validity of any document, performing a title examination. A licensee may not perform any service that is performed by an attorney. Ø Brokers are prohibited from commingling or mixing the funds of others with their business or personal funds and are required to maintain adequate records regarding the deposit and disbursement of funds from their s. Ø Entering into a net listing contract. A net listing contract occurs when a

seller authorizes a broker to procure a specified amount for the property and then allows the broker to keep as a commission any money above the specified amount from the sale. · Discrimination because of race, creed, color, national origin, age, sex, disability, familial or marital status in the sale rental or ment of housing or commercial space covered by law · All ads placed by a broker must indicate that the r is a broker. Ads that do not contain this are called BLIND ADS. · DOS Hearings and Appeals Ø Article 78 proceeding is the method for appeals against regulatory agencies such as DOS. Ø DOS may impose a fine not to exceed $1000. · The revocation or suspension of a broker’s license suspends the license of the salespersons and associate brokers d with the broker. · If license is revoked, must wait ONE YEAR for relicensure - Law of Agency · When one person is hired to act on behalf of another person, an agency relationship is created. The person hired on the other person’s behalf is the agent. · An agency relationship is consensual. · The person who selects the agent to act on his behalf is the principal or client. · The Customer of an agent is the party whom the agent brings to the principal as a seller or buyer of the property. · A General agent represents the principal in a specific range of matters. · E.G. A Property Manager · A special agent is someone who has narrow authorization to act on behalf of the principal. · EG: Real estate broker who has listing. · The term fiduciary means a position of trust. · Agent’s Responsibilities to Principals Ø Obedience- the agent must act with obedience and obey reasonable and legal instructions from the principal. Ø Loyalty-An agent must demonstrate loyalty to the principal and must work diligently to serve the best interests of the principal under the of the employment contract Ø Confidentiality-information should not be given to prospective purchasers without the seller’s permission. · Agent’s Responsibilities to Third Parties · The basis for imposing liability in case of misrepresentation consists of: Ø a false representation of a material fact Ø the fact that the person making the false representation knew or should have known it to be false Ø the fact that the misrepresentation was made with an intent to induce the party to act or refrain from acting in reliance upon the misrepresentation Ø the fact that the party relied upon the misrepresentation in acting or failing to act Ø the fact that there was damage to the party who relied upon the

misrepresentation in acting or not acting · Brokerage refers to the business of bringing buyers and sellers together and assisting in negotiations for the of sale of real estate. · Vicarious Liability means that one person is responsible for the actions of the other. · With strict disclosure regulations in New York, real estate agents must clearly define to buyers and sellers whom they represent in that real estate transaction. · Determination of Compensation Ø The fee or rate of commission paid to a real estate broker is strictly negotiable between the broker and the seller or buyer. Ø It is also illegal for two or more brokers to agree to charge certain commission rates to listing sellers. This is called price fixing and is an act in restraint of trade that violates the Sherman Antitrust Act. Percentage of Final Sales Price Ø Real estate firms generally establish their own individual office policy regarding the level of commission charged. · Net Listing This type of commission arrangement is illegal in New York. · Express Agency-an agency relationship created by an oral or written agreement between the principal and agent. · An agency by estoppel exists when a principal does not stop an individual from representing his interests, thus creating an agency relationship between the two. · A buyer agent cannot be a subagent of the seller broker. · Broker’s Agent Ø In the case of the subagent, the principal accepts vicarious liability for the acts of the agents and subagents. Ø In the case of the broker’s agent, the broker accepts vicarious liability for the acts of the agents working for his principal through him. · A dual agency exists when a real estate firm or agent attempts to represent both the buyer and seller in the same transaction. · Broker dual agency can occur if agents of the broker represent both the buyer and seller in the same transaction, as stated above, or if the broker offers services to a buyer, such as finding or negotiating a mortgage for the buyer, when the broker already represents the seller. · An unintended dual agency occurs if the buyer believes by the agent’s actions and/or representations that the buyer is being represented by that broker. Illegal. Consensual Dual Agency · The law of agency in New York permits consensual dual agency with disclosure and informed consent of all parties to the transaction. Informed consent includes timely and complete disclosure of the nature and consequences of the dual agency. · Obtaining Informed Consent of Both Parties Ø When the listing takes place, the licensee should give a full explanation of dual agency although neither party should sign an acceptance of dual agency at this time. · A buyer’s broker may perform a market analysis and advise the buyer on an offer.

· Disclosure and Listing Forms Ø The form must be explained by the agent, and read, acknowledged, and signed by the principal prior to g the listing agreement. · Exclusive Right To Sell Agreement Ø Under the exclusive right to sell agreement, the property is listed with only one broker as the agent. If anyone else sells the property during the term of the listing, the broker is legally entitled to the commission. 1 broker-commission no matter who sells · Exclusive Agency Agreement Ø In an exclusive agency listing, the property is listed with only one broker as the agent, if the broker affects the sale of the property or the listing is on MLS and any other broker sells it the broker is legally entitled to the commission agreed upon, but if the owner sells the property, the broker earns no commission. Ø 1 broker, commission only if broker sells · New York prohibits automatic extensions of listings. · Agency Disclosure Section 443 requires that licensees present a written agency disclosure form that details consumer choices about representation at the first substantive with a prospective seller or buyer. The law does not cover vacant land. · "A real estate broker shall make it clear for which party he is acting and he shall not receive compensation from more than one party except with the full knowledge and consent of all parties." · When the agency disclosure form should be used Ø At the first substantive and the buyer must sign and acknowledge the form. Ø The agent must provide a copy of the disclosure form to the buyer or seller and maintain a copy for a minimum of 3 years. · When disclosure should take place Ø Walk-ins-a prospective buyer or seller may walk into a real estate office and want to discuss listing or purchasing a property, at this point, disclosure must be made. · Refusal to sign disclosure form Ø The agent should make notes in an appointment book of the names of the prospective buyers, the time, the date and the reason for refusal. At this point, the property may be shown. · Elements of an antitrust violation Ø Any business activity in which there is a monopoly, a contract, a conspiracy or a combination that negatively impacts an individual or company’s ability to do business. This is called restraint of trade. · The Federal Trade Commission-The FTC has the authority to enforce compliance with the Sherman Act and certain sections of the Clayton Act. · The antitrust division of the Department of Justice enforces the Sherman and Clayton Antitrust Acts. · Price Fixing-occurs when competitors in a group conspire to charge a same or similar price for services rendered. - Liens and Easements · An encumbrance is anything that lessens the bundle of rights in real property.

· At execution and foreclosure of liens, priority is based upon the time [day and hour] were recorded in office of county clerk. · In New York, liens for real property taxes and special assessments receive the highest priority of all liens!!!!!. · Taxes levied by a local government constitute a specific lien against the real estate. · Mechanic’s lien is a specific lien filed by a person who provides labor to a property. · Materialmen’s lien is a specific lien filed by a supplier of products required in the construction. · New York law requires that a mechanic and materialmen’s lien for residential property be filed with the county clerk where the property is situated within 4 months from the date when the labor or materials were furnished. The time and date of filing determines the priority of the lien. In New York, mechanic’s liens must be renewed annually. · Lis pendens means pending litigation. This filing is a legal notice that a lawsuit has been filed concerning the specific property. · If one has a possessory interest in property, that individual cannot own an easement. The common terminology for easement is right-of-way.[legal tres] · Easements in gross are also called commercial easements in gross. The category is usually owned by the government, an agency of the government, or a public utility. · Easement appurtenant category includes all easements that are no in gross. The land that benefits from easement appurtenant is called the dominant tenement. The land that must suffer and allows the use is called the servient tenement. · A license is defined as permission to do a particular act or series of acts on another’s land without possessing any estate or interest in the land. A license is not assignable, not inheritable, and is a temporary privilege. · PROFIT legal term the right to take products of the soil from someone else’s land. - Deeds · Transfer of title to real property in law is called alienation. · A deed is the document used to convey title legality to real property, also known as a conveyance. · The deed must contain an adequate formal legal description of the property. · Habendum Clause “to have and to hold” · A full covenant and warranty deed is the strongest and broadest form of title guarantee. · The quitclaim deed contains no warranties whatsoever; it is simply a deed of release. · Execution of a judicial deed results from a court order; examples are guardian’s deed, referee’s deed, tax deed, and or executor’s deed. · Metes are the distances from point to point; · Bounds are the directions from one point to another. · Intestate Descent Ø When a person dies and leaves no valid will, the laws of intestacy determine the order in which the property is distributed to the heirs. .

Title Closing and Costs · Title is the evidence of the right to possess property. · Deed is the instrument used to convey title. · The final survey document is a type of blueprint showing measurements, boundaries and area of property. · Chain of title involves tracing the successive conveyances of title, starting with the current deed and going back an appropriate time. · An abstract of title is a condensed history of the title, setting forth a summary of all the links in the chain. · Real Estate Settlement Procedures Act (RESPA) Ø It regulates lending activities of lending institutions in making mortgage loans for housing. · Regulation Z, which covers all residential mortgages, addresses all ment of credit . · Co-op and Condo Fees Ø Cooperatives may have a flip tax imposed upon transfer, paid by the seller. New York State transfer tax is paid by “SELLER” The transfer tax is $4.00per$1000.00 · Proration, the division of expenses and income between buyer and seller at closing. – Contracts · A contract is an agreement between competent legal parties to do or refrain from doing some legal act in exchange for consideration. · Types of Agreements Ø Express Contract-the parties to the contract have definitely agreed on all the in the contract Ø Bilateral Contract-two parties have made promises of some kind to each other. The offer to purchase a home is bilateral because it is based on the exchange of promises in which the seller will sell and the buyer will buy. Ø Executory Contract-a contract that is not fully performed or completed · Competent Parties Ø Contracts entered into by parties lacking legal capacity are voidable by the party lacking capacity. Individuals giving a person power of authority allow that person to act for them in legal transactions such as real estate contracts. · The Statute of Frauds, which in New York is codified in the General Obligations Law, state that contracts involving the creation or conveyance of an interest in real property must be written to be enforceable. · Oral testimony is not sufficient to create a contract involving the transfer of title to real property. · A form of agreement that terminates contracts is novation-the substitution of a new contract for a prior contract or the substitution of a new party for an old party. · Assignment is when a new party to the contract agrees to satisfy the former party’s obligation. · Statute of Limitations

Ø If a party to a contract fails to bring a lawsuit against a defaulting party within a time period set by statute, the injured party loses the right of remedy. In New York, the time limit by statute to bring legal action against a party in a real estate transaction is 6 years. · Specific performance means that the contract will be completed as originally agreed. · Liquidated damages are an amount of money to be paid upon certain breaches of the contract. · The time is of the essence rule means that the closing must take place on or before the exact date stipulated in the contract. · Installment Sales Contract The buyer contracts to obtain legal title to the property by paying the purchase price in installments, and the seller agrees to transfer the legal title to the buyer by delivering a deed upon the buyer’s full payment of the purchase price. · Lease With Option To Buy An option is an express unilateral contract. - Leases · A lease is a contract, in which, for a consideration, an owner of property transfers a property interest to the tenant for a prescribed period of time. · The owner of the property is called the lessor, the tenant is the lessee. · Security deposit: The security deposit must be held in an escrow . · Dwellings with 6 or more units, security deposit must be place in an interestbearing . Interest belongs to the tenant. · The assignment of the lease involves the transfer of the lease contract from the present tenant to the assignee. · In a sublease, the original tenant is still responsible to the owner for the lease payments under the lease contract. · Actual eviction is the removal of the tenant from the premises without the aid or control of the court system. · Lease agreement does not terminate when an owner sells, new owner is bound by of lease · A gross lease provides for the owner to pay all expenses, such as real property taxes, owner’s insurance, liability insurance, and maintenance. · In a net lease, the tenant pays some or all of the expenses. · A percentage lease has a base rent plus an additional rent that is a percentage of the lessee’s gross sales. Commercial · A graduated lease is one in which the rent changes from period to period over the term {escalates} Human Rights and Fair Housing · The Civil Rights Act of 1866-first significant statute affecting equal housing · Has no exemptions · 1968 case Jones v. Alfred H. Mayer Company-prohibited racial discrimination · Brown v. Board of Education-landmark decision-separate facilities were unequal Federal Fair Housing Act of 1968-prohibits discrimination in housing on the basis of race, color, religion or national origin · 1988-provision added to prevent discrimination based on mental or physical handicap or familial status · Owners must allow tenants with disabilities to make reasonable modifications to

apartment AT THE TENANTS EXPENSE · The exception to FAMILIAL STATUS is SENIOR HOUSING!!! · Blockbusting-illegal [scare tactic] · Steering-direct prospective purchasers from diverse backgrounds to presently integrated areas to avoid integration of nonintegrated areas. · Redlining-refusing to make loans to purchase, construct or repair a dwelling by discriminating · The Sexual Orientation Non-Discrimination Act (SONDA) (2002) added sexual orientation as a protected class under the Human Rights Law. · In housing discrimination only, punitive damages not exceeding $10,000 may be awarded to the complainant. · LAWFUL OCCUPATION is protected class only in NEW YORK CITY!!!! · Testers, either volunteers, employees of federal programs, or civil rights groups visit real estate offices posing as prospective homebuyers to see if race influences the information – Estates and Interests · Another name for "PERSONAL PROPERTY" is "CHATTEL" · Riparian rights belong to the owner of property bordering a flowing body of water (R-river) · Littoral rights apply to property bordering a stationary body of water (L-lake) · The real estate term for improvements both on and to the land is FIXTURE. · Trade fixtures-items of personal property that a business owner installs in rented building space. · Fee Simple Absolute-provides the most complete form of ownership and bundle of rights in real property. · The life estate is ownership, possession and control for someone lifetime. · With a life estate, two outcomes are possible upon death, Ø an estate in remainder, Ø An estate in reversion. · Remainder interest is a fee simple present interest. · An estate at sufferance describes a tenant who is originally in lawful possession of another’s property but refuses to leave after his right to possession terminates. · A tenant who does not leave upon expiration of the lease is termed a holdover tenant. · When title to real property is held in the name of only one person or entity, it is called ownership in severalty. Example: a COOP owned by CORPORATION · Right of survivorship means that if one or more of the co-owners die, the surviving co-owners automatically receive the interest of the deceased coowner. · A special characteristic of t tenancy is the right of survivorship. · Tenancy must have 4 unities= time, title ,interest, possession. · By acquiring as a t tenancy, each t tenant gives up the right of inheritance. · Ownership as tenants by the entirety is limited to husband and wife. · A corporation is an artificial being-invisible, intangible, and existing only pursuant to law. · Syndicates denote multiple t participation in a real estate investment. · A t venture is an organization formed by 2 or more parties for the purpose of

investing in real estate or any other type of investment. · The greatest form of ownership in real property is fee simple absolute. Land Use Regulations · Individual owners have the right to place private controls on their own real estate. · Deed restrictions are in the form of covenants or conditions. These restrictions run with the land. · The environmental impact statement (EIS) is the process that describes and analyzes a proposed action that may significantly affect the environment. The EIS is available to the public for review and comment. · Eminent domain is the power of the government or its agencies to acquire private property for public use. · A "taking" occurs when private property is regulated by a government authority to the economic detriment of the owner, without compensation. · POWER OF ESCHEAT: if an owner dies intestate no valid will decedents property is distributed to heirs. If there are no heirs or creditors the state uses the power of ESCHEAT the property goes to the state · The Zoning Board of Appeals It is a local istrative appeal agency and an interpreter of the zoning ordinance. If the request is denied by the zoning board of appeals, the property owner may petition the New York Supreme Court through an · Article 78 proceeding- an appeal brought forth because of a ruling by a government agency. · Certificate of Occupancy document issued by gov’t agency after satisfactory inspection of structure · A variance is a permitted deviation from specific requirements of the zoning ordinance. · Zoning Classifications [eg: residential, commercial, etc.] · Spot zoning-spot zoning is illegal in New York Real Estate Finance (Mortgages) · A mortgage is a loan that constitutes a lien against the real property. The mortgage is a two-party instrument between the lender and borrower. · The borrower who gives the mortgage is called the mortgagor. · The lender who receives the mortgage is called the mortgagee. · Acceleration clause - enables the lender to declare the entire balance remaining immediately due and payable if the borrower is in default. · Alienation clause-entitles the lender to declare the principal balance immediately due and payable if the borrower sells the property during the mortgage term and makes the mortgage unassumable. · In making a mortgage, the lender requires the borrower to sign promissory noteproviding evidence that a valid debt exists.

· Equity of Redemption After default, and up to the time a foreclosure sale is held, the borrower has an equitable right to redeem his property by paying the principal amount of the debt, accrued interest, and lender costs incurred in initiating the foreclosure. · A JUNIOR MORTGAGE REFERS TO ANY MORTGAGE THAT IS SUBORDINATE TO ANOTHER MORTGAGE. · Negative amortization-when a loan payment amount is not sufficient to cover interest due, the shortfall added back into the principal, causing the principal to grow larger after payment is made. · Graduated payment mortgage-the monthly payments are lower in the early years of the mortgage term and increase at specified intervals until the payment amount is sufficient to amortize the loan over the remaining term. · Blanket mortgage-two or more parcels of real estate are pledged as security for payment of the mortgage debt. The blanket mortgage usually contains a release clause that allows certain parcels of property to be removed from the mortgage lien if the loan balance is reduced by a specified amount. · Purchase Money Mortgage-another type of seller financing, is a mortgage given by a buyer to a seller to cover part of the purchase price. Here the seller becomes the mortgagee and the buyer becomes the mortgagor. · Conventional loans Ø In the uninsured conventional loan, the borrower’s equity in the property, the difference between the value of the property and its liabilities, provides sufficient security for the lender to make the loan. Therefore, insurance to protect the lender in case of the borrower’s default is not necessary. · The Federal Housing istration (FHA) does not make mortgage loans, instead, FHA-insured loans protect lenders against financial loss. · VA Guaranteed Loan Program -offers a loan that guarantees repayment of the top portion of the loan to the lender in the event the borrower defaults. · Secondary Mortgage Market-buys and sells mortgages created in the primary mortgage market. · Truth-in-Lending Act (TILA) – Requires 4 chief disclosures: annual percentage rate, finance charge, amount financed, and total amount of money to be paid toward the mortgage in both principal and interest payments. · Regulation Z does not regulate interest rates, but instead provides specific consumer protections in mortgage loans for residential real estate, and

s credit available. The only specific thing that may be stated is the annual percentage rate, and it must be spelled out in full. · USURY LAWS are used by New York State to fix a maximum allowable interest rate. · BUY DOWN is an choice given to the borrower to volunteer to pay discount points · Construction loan

The Valuation Process · An appraisal is an unbiased estimate of the nature, quality, value or utility based on factual data, of an interest in or aspect of identified real estate and related personality as of a certain date. (ESTIMATE OR OPINION OF VALUE) · Valuation is the process of estimating the market value of an identified interest in a specific property as of a given date. · Insured value is the cost of replacing or reproducing the structure in the event of a total loss because of an insured hazard. · Value in use is the value of the property based on its usefulness to an owner or investor. · Mortgage value is whatever the lender believes the property will bring at a foreclosure sale or subsequent resale. · Plottage value of land is the increase in value and utility when small plots of land are combined to form a larger plot. · Market value-the most probable price, as of a specific date, in cash or in other , for which the property should be sold after reasonable exposure in a competitive market, under conditions requisite to a fair sale, with the buyer and seller acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. · Price is the amount a particular purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding the transaction. · Direct costs include the cost of labor and materials [called HARD COST] · Indirect costs are costs that create and the project. Surveyors, attorneys,

Real Estate Math Where to start? You really don’t anything, huh? Well, I’ll give you the benefit of the doubt with adding, subtracting, multiplying and dividing, at least with a calculator. One of the first things you should do is get to know your calculator. Not all calculators are identical. I will try to give you the most common order the functions should be entered, but make sure that’s how your calculator works. Let’s start with a couple of tests on the calculator to make sure. Do these functions in the

EXACT order given here.

7 x 10 =

You should have 70 on your calculator. Leave that in there and hit the divided by button and then 5. Now, you should have 14. Next hit clear at least twice, and then:

50 x 70 % DO NOT HIT THE EQUALS BUTTON! That will calculate the percentage AGAIN, and throw your answer way off!

You should have 35 on your calculator. If you don’t, your calculator may function differently than most (or you may function differently than most). If so, you should determine how to come up with these answers. *********************************************************************** *

Now we can move on to everyone’s favorite type of math – calculating commissions! The

Commission is normally based on the sale price, so that’s how we will learn to calculate commissions. Just multiply the sale price by the rate of commission. If a house sells for

$100,000 and the commission rate is 7%, just multiply 100,000 X 7%. our lesson on how to use your calculator. You can also multiply 100,000 X .07 to get the answer, which is $7,000 either way.

We can also work problems backwards again. If we know the seller is paying a 7% commission and we know the total amount is $7,000, we can find the sale price by dividing 7,000 by 7%.

Notice going forward the formula is: 100,000 X 7% = 7,000

Going backwards we start at the answer of 7,000 and work backwards step-by-step and number-by-number. Going forward we multiplied by 7%, so going backward we divide by 7%. Dividing is the opposite of multiplying. So 7,000 divided by 7% = 100,000. Notice it’s the same number that you started with. *********************************************************************** *

1. A seller wants to net 70,000 dollars, after paying off a $93,000 mortgage, a 10% commission and $4000 in miscellaneous closing costs. What must the house sell for in order to do this?

a) $183,700.00. b) $185,555.55. c) $174,000.00. d) None of the above.

If you did this in the order that things really happen, you would start at the sale price. The commission gets paid first (that’s the way it should be); THEN you subtract the closing costs and the mortgage, which will net the seller $70,000. Also, the commission percentage will tell us what the BROKER is getting (10% of the sale price). That means the seller is getting 90% of the sale price before the other things are taken out (100% - 10% = 90%). In a formula it would appear as the following: (We’ll call the sale price “SP”) SP x 90% - 4000 – 93,000 = 70,000. When you go in reverse, you have to keep the same order and numbers, but do the opposite function. The LAST thing we did was SUBTRACT 93,000 to get 70,000, so in reverse we need to start at 70,000, and ADD the 93,000 back in FIRST. The full formula would be: 70,000 + 93,000 + 4000 divided by 90% = SP (Which is $185,555.55

1. A tract of land measures 300 feet by 5280 feet. How many acres is this equivalent to?

a) 36.36. b) 300. c) 792. d) 1,584,000. 300 x 5280 = 1,584,000. 1,584,000 divided by 43,560 is 36.36 acres. *********************************************************************** *

2. What are the taxes on a $180,000.00 house if properties are assessed at 40% of market value, and the tax rate is $2.80 per hundred dollars of assessed value?

a) $257.14. a) $2016.00. b) $5040.00. c) None of the above.

$180,000 x 40% gives us an assessed value of $72,000. Since the rate is in dollars per hundred, we have to divide that by 100, to get 720. 720 times the rate of $2.80 gives us a tax of $2016.

The interest payment on a loan this month is $420.00. The interest rate on the loan is 8%.

3. What is the current balance of the loan? a) $5250.00. b) $40,320.00. c) $52,500.00. d) $63,000.00.

Interest rates are based on 1 year, so we first need to multiply our monthly interest by 12 to get 1 year’s worth of interest, or $5040. 5040 divided by our rate of 8% will give us our loan amount of $63,000.

*********************************************************************** * 4. A woman sells her property for $88,000.00, which was a 22% loss from her original purchase price. What was the original purchase price? a) $68,640.00. b) $100,000.00.

c) $112,820.51. d) $107,360.00.

If you knew the original purchase price, you could multiply that times 22%, and subtract that amount from the purchase price, OR you could look at the FULL original purchase price as being 100% of that amount, of which you lost 22% when you resold it. You now have 78% of the original amount, so you could multiply the original price by 78% and get the new amount, which is $88,000. If you are STARTING at the 88,000, you have to do the OPPOSITE to get back to the original amount, meaning you need to DIVIDE by 78%, which will give you $112,820.51

MATH ALWAYS GIVES TWO NUMBERS. THE ONE YOU NEED TO FIND IS THE “ANSWER”. THE CALCULATION IS TO MULTIPLY. IF YOU ARE GIVEN A “NUMBER” AND THE “ANSWER” THE CALCULATION IS DIVIDE THE ANSWER BY THE NUMBER 100,000X6%=6000 ? X6%=6000 DIVIDE 6000/6%=100,000

UNDERSTANDING THE “T” formula will help greatly. Top is PART Left is PERCENT Right is WHOLE CROSSLINE is DIVISON DOWN LINE IS MULTIPICATION

BASIC MORTGAGE QUALIFYING:

JOHN HAS A YEARLY INCOME OF $30,000. THE LENDER REQUIRES THE DEBT TO INCOME 28:36 FOR HOUSING AND TOTAL EXPENSES. WHAT IS THE MAXIMUM HOUSE PAYMENT HE WILL QUALIFY FOR ? $30,000/12=2500X28%=$700.00

CAP RATE OR {IRV} FOR EXAMPLE, NET MONTHLY INCOME OF OFFICE BUILDING IS $2,250. THE CAP RATE THE LENDER USES IS 7%, WHAT IS THE VALUE? USING “IRV” FORMULA $2,250.X12= $27,000. YOU MUST BRING IT TO A YEARLY FIGURE! $27,000./7%=$385714.00

A SMALL STORE APPRAISERS THE ANNUAL NET INCOME OF $97,500. THE CAP RATE DETERMINED IS 13%. WHAT IS MARKET VALUE?

MARKET VALUE X RATE = NET INCOME ? 13% = $97,500.

NUMBER MISSING DIVIDE $97,500. /13% = $750.000 +++++++++++++++++++++++++++++++++++++++++++++++++++

Introduction to Construction · The building plan, also known as the blueprint, is a detailed architectural rendering of the structure that usually includes the plans for the mechanical systems. · The New York State Department of Health (NYSDOH) has regulations for sanitary and safe water that act as the guideline for well water. · Percolation is movement of water through soil. · The footing is the concrete base below the frost line that s the foundation of the structure. · Of the 3 types of foundations built in New York, full basements are the most common (more than 80%), followed by slab-on-grade and crawl space.

· Slab-on-grade construction-concrete slab is poured directly on the ground and therefore eliminates the crawl space or basement. · Floating slab-pouring the footing first and then pouring the slab. · Framing refers to the wooden skeleton of the house. · Studs-used vertically for the wall. · Joists-for floor and ceiling. · Rafters-roof framing system · The sill plate is the first wooden member of the house and is used as the nailing surface for the floor system. · The girder is the main carrying beam, either a steel beam or several wooden fastened together. · The bearing walls the ceiling and/or the roof and include the outside wall frame. · Platform framing is the most common type of framing used in residential construction. · The pitch is the slope of the roof. · Eaves are the overhangs, which are part of the sloped roof. · Flashing is a metallic material that is used in certain areas of the roof and walls to prevent water seepage into the structure. · Sheathing is a plywood covering placed over the exterior framing . · R-factor means the degree of resistance to heat transfer of the walls, the larger the R-factor, the greater the degree of insulation · HEATING: Ø HOT WATER SYSTEM Ø FORCED WARM AIR SYSTEM. When hot air is blown through the same ducts as air conditioning. · "BTU" is BRITISH THERMAL UNIT · A fuse is a device that will melt and open the circuit, causing electrical power to

stop when overheating occurs. · Circuit breakers will trip, or switch the electrical power for a given circuit off if the current increases beyond the capacity of the system.

Environmental Issues

· The Federal Safe Drinking Water Act of 1974 is the guideline for New York’s drinking water regulations. New York State Department of Health (NYSDOH) is the regulatory agent that oversees the safety of drinking water. · One of the biggest concerns about the safety of water is that highly corrosive water may contain dangerous amounts of lead. · The installation and approval of individual residential on-site wastewater treatment systems of less than 1,000 gallons per day in NY are regulated by NYSDOH. · 1,000 gallons or more overseen by NYSDEC · Only an individual licensed by NYSDEC may apply pesticides. · NYSDEC oversees wetlands, and must be larger than 12.4 acres to be protected. · Asbestos is a fibrous material found in rocks and soil is a carcinogen · Friable refers to the crumbly or flaky texture of asbestos when hand pressure is applied. · Asbestos has been identified as a carcinogen, and is dangerous when inhaled. · Lead is a metallic element found worldwide in rocks and soils. It can be present in drinking water, interior and exterior paint and in soil. · The Residential Lead Based Paint Hazard Reduction Act of 1992 sets forth procedures disclosing the presence of lead based pint for sales of properties built prior to 1978. Penalties for noncompliance up to $10,000. · Many homes built prior to 1988 contain plumbing systems that use lead-based solder in pipe connections. · Radon is a colorless, odorless, tasteless, radioactive gas found worldwide as a byproduct of the natural decay of uranium present in the earth. Radon from surrounding soil enters a home through small spaces such as cracks in basements To remove Radon “VENT IT”

· Under the State Environmental Quality Review Act (SEQRA) the state environmental quality review is a process that requires government to assess the environmental significance of actions for which they have discretion to review, approve, fund, or undertake. · The environmental impact statement is a report that describes and analyzes a proposed action that may have a significant effect on the environment. · The Superfund Amendments and Reauthorization Act (SARA) (1986) an amendment to "CERCLA" expanded the definition of persons liable for cleanup costs. · Underground storage tanks are utilized by business and industry because the tanks are out of sight and are also protected against vandalism and fire. · Chlorofluorocarbons (CFCs) known as "freon"are manmade chemical substances that were used in refrigerators, air conditioners, Styrofoam, aerosol, and cleaning agents. · Hydro chlorofluorocarbons (HCFCs) are used in home air conditioners and are nontoxic. · Federal law mandates that in the sale or lease of pre-1978 residential properties, sellers or their agents must distribute a lead hazard pamphlet and disclose any known information concerning lead paint. The parties must agree to a 10-day period for a lead paint assessment.

Municipal agencies & property insurance

Everything is done at the local level Real property tax based on assessed value [ad valorem] Zoning board of appeals hears request for variance and special permits Tax assessor determines the assessed value does not determine tax Municipal Engineers office –roadways County Health Dept. responsible for septic and other sanitation systems Planning Board and Planning Dept difference the Planning Dept carry out plans Approved by board

Property insurance

Liability insurance covers for financial losses Two most common policies dwelling and homeowners Dwelling policy covers loss to property as well indirect Flood insurance is purchased from “national flood insurance program” Controlled by “FEMA” Deductible helps control cost of insurance Umbrella policy provide high limits of liability Mortgage clause covers the lender HO-1-Basic form [vandalism&theft HO-4-RENTERS HO-6-Condo HO-8-MODIFIED-for older homes

Taxes & assessments

New york property tax are based on the value [assessed value or ad valorem] Property tax liens have highest priority Non-assessable improvements e.g. landscaping, storm windows Exemptions: schools, federal gov’t, hospitals religious groups Special assessments district [tax] areas designated for infrastructure cost for

specific projects e.g. sidewalks, curbs. Person that benefits pays taxes

Income tax

Second homes have deductions, property tax and mortgage interest if not rented for more than 14 days Gains & losses: short term holding less than a year Exclusion couple filing t returns $500,000 One spouse dies other has 500,000 if Claimed within 2years and unmarried Types of income: active: job portfolio: stocks ive: rent Progressive tax is federal income tax Depreciation classes residential 27.5 years non-residential 39 years LAND IS NOT DEPRECIATED

Condo & coops

Condo is considered real property and you get a deed Sponsor is developer Offering plan provided by sponsor offers detailed info on condo or co-op By-Laws rule govern association CC&R’s general plan for subdivision s1 is policy statement signed by attorney to test the market COOP is considered person property[shares] and a lease Share loan co-op loan buyer is purchasing shares in a corp.

House rules address common area noise pets etc. Alteration agreement before any renovations are done. Board package all info on buyers Interview board sees all even children CONDOP mixuse building apt& commercial

Commercial

No special license needed!!!!!!!! Must be 18years old Commissions: graduated percentage, fixed percentage, fixed fee, or retainer Cash flow measure of cash inflow and outflow from investment Market value is what a ready, willing and able buyer will pay. market price is what they pay. This may be in other chapters Amenity purchaser values property on ability for his specific needs To operate a business Liquidity: ability to convert asset into cash quickly without loss Leverage: use of borrowed funds to finance portion of purchase price. Financial risk: results when debt is used to finance an investment Legislative risk: risk that changes in law will affect e.g.: tax laws, land use, zoning. Negative leverage occurs when borrowed funds are invested at rate of return “lower” than cost of funds to the borrower. Loss factor or “load factor” difference between rentable square footage and usable footage. Four classes of office buildings generally are: a, b, c, d. Community shopping center main subject has area from 100,000 to 300,000

Ground leases also land leases tenants lease only “land” no improvements e.g. no buildings or structures Net operating income: income from property that remains after annual operating costs are paid. NOI does not take into any money used to Finance Operating statement used by current owner shows total revenues for a given period “cash flow components” “depreciation” incentive for investors to buy real estate instead of stocks for tax shelters. Depreciation is used in many chapters “be careful Residential property 27.5 years Commercial 39years Land is not depreciated

Property management

Property manager is a “general agent” Management agreement written agreement governs the relationship between owner and manager. Property Manager is in a “AGENCY RELATIONSHIP” Owner “Client” Property manager “Agent” Management proposal plan to oversee the property Operating budget created to project income over “one-year period” Stabilized budget is created for “five-year period” Anchor tenant major chain or department store in shopping center to give exposure to smaller stores.

REVIEW EXAM #1

1-A broker legitimately may pay all or part of Real estate commission to a a. seller b. salesperson c. buyer d. friend who provides a listing lead

2-The minimum age for a New York real estate broker’s license is a. 19. b. 18. c. 20. d. 21.

3-Which of the following acts would require a real estate license in New York a. Sale of one’s own property b. Sale by the owner’s lawyer c. Sale of land by an auctioneer d. Foreclosure sale by court order

4-An associate broker may a. sponsor a person for a salesperson’s license. b. collect his or her own real estate fees. c. act as a principal broker for another broker. d. Work as a salesperson for a principal broker

5-Violation of the license law is a misdemeanor, Punishable by up to a year in jail and a fine of Up to a. $500. b. $2,000. c. $1,000. d. $1,500.

6-When salesperson Tom Jones left ABC Realty And went to work with XYZ REALTORS, Tom’s listings a. became null and void. b. Remained with ABC Realty. c. Went with him to XYZ REALTORS. d. Required the sellers’ signatures to remain in the local MLS.

7-A salesperson’s license must be

a. displayed on the firm’s wall. b. kept in the salesperson’s wallet c. retained by the principal broker. d. d. sent to the local REALTORS association.

8-When does offering a client’s business for sale Require a real estate license? a. Never b. Always c. When the business includes any real estate d. When more than half the value is real estate

9- An apartment information vendor is licensed by: a. Department of Law b. New York Attorney General’s office c. Department of State d. Division of Housing and Community Rental

10-When a license is revoked, how long must a licensee wait before applying to have the license reinstated? a. 18 months b. 1 year

c. 6 months d. 2 years

11-The form of listing whereby an owner lists property for sale with a number of brokers is known as a(n) a. Exclusive agency. b. Open listing. c. Exclusive right to sell. d. Net listing.

12-To avoid possible liability for the actions of c cooperating of a multiple-listing system, the owner who lists property for sale may decline to offer a. commission to the selling agent. b. Subagency. c. Cooperation with buyer brokers. d. A written disclosure of property condition.

13-. An agent who has the authority to represent the principal in specific matters is a(n): a. specific agent b. general agent c. unlimited agent d. special agent

14-Jan Lipson gave Sun City Realty an exclusive agency listing on her property. If she sells the Property herself without involving Sun City, She will owe Sun City a. Half of the commission. b. All of the commission. c. No commission. d. Only reimbursement for Sun City’s expenses.

15-When selling a property in New York, the Licensee is required to disclose to a potential Buyer that a. There is a group home 1 ½ miles away. b. The property lies in an agricultural district. c. There is a fundamentalist church three blocks away. d. The former owners were divorced

16-The commission to be paid in a written listing Agreement is the a. rate set by law b. amount of money over the net listing amount. c. Customary rate in the area.

d. Percentage of the sales price as negotiated and agreed or a flat fee.

17-The relationship between an agent and his or her Principal is a. Fiduciary. b. Alluvial. c. Allodial. d. Executory

18-If you are selling a house in New York, it is necessary to disclose that a. There is a utility surcharge. b. The former owner committed suicide. c. The train station is eight miles away. d. A shopping center is the nearby town is closing.

19-Seller is legally required to reveal to a buyer anything seller knows about a. Crimes committed on the property in the past three years b. How much seller paid for the house.

c. Repairs that have been made to a roof leak. d. Lead paint hazards on the property.

20-To create an agency relationship, it is necessary that a. A listing contract be ed with the DOS. b. The principal and agent sign a written agreement. c. The principal pay the agent’s fees. d. The parties act as principal and agent.

21- If you are a salesperson working with a buyer, then the buyer is your client: a. if you are servicing the buyer b. if the buyer has shared financial information with you c. if you have an agency contract with the buyer d. none of the above

22-The type of listing illegal in New York State is a (n) a. Net listing. b. Exclusive agency. c. Exclusive right to sell. d. Open listing.

23- . A licensed salesperson or broker associate acting as an independent

contractor must: a. be paid based upon sales and output b. execute a written independent contractor agreement yearly with the broker c. receive half of her health care paid by the broker d. both a and b

24-A salesperson sells another firm’s listing of a commercial building for $462,500. The 7 percent commission is split 50/50 between the two companies. The salesperson received 60 percent of her office’s share. How much does she receive? a. $1,619.75 b. $3,237.50 c. $9,712.50 d. $10,850.00

25-A broker may be entitled to a commission in the event that the sale does not close if the problem was caused by the a. Seller. b. Buyer. c. Bank. d. Title Company.

26-Big Apple Realty is concerned that its Commission on a sale will not be paid. Big Apple Realty may a. file a lis pendens, b. Request a de minimis gift. c. File an affidavit of entitlement. d. File a mechanic’s lien.

27-A real estate salesperson’s compensation is set by a. The local realty association. b. The Department of State, Division of Licensing Services. c. Agreement between broker and salesperson. d. The cooperating broker in a transaction.

28-The Duncan and Hill decision cautioned real estate licensees against a. Misrepresentation. b. Consumer fraud. c. The unauthorized practice of law. d. Undisclosed dual agency.

29-When a buyer/client wants to see property listed by his or her agent’s company, the possible conflict of interest can be solved by the use of

a. Undisclosed dual agency. b. Designated agents. c. Exclusive/ right/ to/ sell d. Fiduciary duties.

30-Buyers should be careful NOT to reveal the top price they’re willing to pay to a (n) a. Buyer’s agent. b. Principal broker c. Sellers’s agent d. Associate broker 31 Ads made by real estate brokers that do not indicate that the r is a broker are: a. legal in New York b. known as blind ads c. acceptable as long as the phone number of the broker appears in the ad d. acceptable if the broker is doing business as an individual broker in his own name

32- If a licensee becomes a partner in a real estate firm, he must have a(n): a. salesperson license b. broker license c. associate broker license

d. minimum of two year’s experience as a broker .

33-Agency relationship in an in-house sale require a. No notice to the principle broker. b. Full discussion and disclosure in writing to all parties. c. Notice to the title company. d. Notice to the MLS.

34-In a buyer/agency relationship the broker owes the seller a. Care. b. ing c. Obedience d. Fair and honest dealing

35-. If you are a salesperson working with a buyer, then the buyer is your client: a. if you are servicing the buyer b. if the buyer shared financial information with you c. if you have an agency contract with the buyer d. none of the above

36-In a real estate transaction, a broker had a written representation agreement with the buyer but was paid 6 percent of the selling price at the closing by the seller. Under these facts, whose agent was this broker? a. The broker was the seller’s agent. b. The broker was the buyer’s agent. c. The broker is a dual agent. d. The broker has violated New York’s real Estate license laws and may have his or her License suspended or revoked.

37-A broker signed a listing agreement with the Ghent’s to market their luxury downtown condominium. A few days later, the broker Signed a buyer representation agreement with The Smiths, who were looking for a modest suburban single-family home. If the buyers decide they’re in the market for a luxury downtown condominium instead, and want to see the Ghent’s property, what should the broker do? a. Say nothing and collect a commission from the sellers and a fee from the buyers b. Disclose the intended dual agency and obtain both parties written consent c. Withdraw from representing one of the Parties to avoid any appearance of self-dealing d. Nothing, but accept compensation from Only one of the parties

38-The DOS regulation 175.7: “A real estate broker Shall make it clear for which party he is acting.. ...” applies to a. The sale or lease of one/to four/unit residential properties. b. Only condominiums and cooperatives c. The sale or lease of commercial space only. d. All types of transactions, not just residential.

39- A licensee should use the disclosure form with prospective sellers or buyers at the first substantive . Which of the following illustrates the first substantive ? a. individuals walking through an open house who do not speak to an agent b. individuals who call the real estate office asking about the location of a property for a drive-by on their own c. a prospective purchaser walking into a real estate office, meeting with an agent, and discussing the purchase of a specific property d. an agent giving a seminar on home buying to a group of prospective purchasers

40-In which clause in a deed would you find metes and bounds and monuments? a. Demising b. Defeasance c. Description

d. Habendum

41-If Mr. Jones owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a (n) a. Life estate. b. Fee simple. c. Estate at will. d. Leasehold.

42-The Goodman’s purchased a cottage bounding on a stream. They have rights to the stream known as a. Reversionary. b. Littoral. c. Laches. d. Riparian.

43-Which of the following would NOT be Considered chattel? a. A tractor b. The barn c. The draperies d. A trade fixture

44-The most complete type of ownership in real estate is a. Fee on condition.

b. Life estate. c. Qualified fee. d. Fee simple

45-Deed restrictions may be established only by the a. Grantor. b. Local government. c. Zoning board of appeals. d. Grantee.

46-One future action that may NOT be limited by a deed restriction is a. The free transfer of the property. b. The illegal covenant against religion. or Nationality. c. Further subdivision. d. The total number of lots in a subdivision.

47-Any right to or interest in the land interfering with its use or transfer is called an a. Encumbrance. b. Encroachment. c. Easement. d. Appurtenance.

48-A deed is valid when it is a. delivered and accepted. b. Recorded. c. Signed. d. Notarized

49-Which type of deed is used to convey title to a Parcel of land through a foreclosure proceeding? a. trust b. quitclaim c. referee’s d. warranty

50-Title to real property is conveyed by a a. contract. b. Lien. c. Lease. d. Deed.

51-. 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

52- 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

53-A contract transferring the rights to possession of real property for a specified term is known as a a. lis pendens. b. Lien. c. Lease. d. Deed on condition.

54-Under the New York General Obligations Law, Security deposits by a tenant a. Become the property of the landlord. b. Are held in escrow by the landlord. c. May be commingled with the landlord’s funds. d. Can be retained by the landlord after he or she sells the

property.

55-A tenant learns her building has been sold to a new landlord. The sale of the property a. Automatically terminates all preexisting leases. b. Automatically renews the lease for an additional term, although the tenant has the option of declining the renewal. c. has no effect on existing leases, and the tenant must make timely rent payments to the new owner. d. terminates the lease, but the tenant is entitled to a legal holdover tenancy for the remainder of the lease term.

56-A legally enforceable agreement between competent parties in which each party acquires a right is called a a. Certiorari. b. Consideration. c. Contract. d. Clause.

57-The usual listing agreement between a seller and a real estate agent is a (n) a. Implied contract. b. Breach of contract. c. Express contract. d. Discharge of contract.

58-When the agreement of the parties is demonstrated by their

acts and conduct, this is known as what type of contract? a. express b. voidable c. implied d. unilateral

59-When a new contract is substituted for an existing agreement, the process is known as a. Novation. b. Innovation. c. Assignment. d. Default.

60-Except for the amount of mortgage that may be assumed, as sale in New York State is subject to a transfer tax of a. $0.55 per $500 or fraction thereof of the consideration paid. b. 1 percent on a sale of less than $500,000 c. 10 percent where the consideration is more than $1 million. d. $2 per $500 or fraction thereof of the Consideration paid.

61-. In the transfer of what type of property may a flip tax be imposed? a. condominium b. cooperative c. any fee simple interest

d. on all properties sold in New York City a.

62-The Flintstones sold their house to the Simpsons and are to close on July 1. The Flintstones paid their annual town taxes in January. At the closing, the Simpsons will Reimburse the Flintstones for a. the tax for the balance of the year. b. The tax due n November. c. Nothing. d. The tax paid last January.

63-RESPA explicitly prohibits the payment of a. Referral fee from an insurance agent. b. Kickbacks. c. Brokerage referral fee. d. Fee to a moving company.

64-An instrument in writing that is the security for A debt with specific property as a pledge is a a. bond. b. Mortgage c. Deed d. Lease

65-A Department of Veterans Affairs mortgage is a. Insured b. Guaranteed c. Conventional d. Prepaid

66-When a house purchase is financed by a Federally related mortgage loan. RESPA Requires that loan closing information be Prepared on the a. uniform settlement statement. b. Fannie Mae form. c. Mortgage Reduction Certificate. d. Affidavit of title.

67-. A blanket mortgage usually encumbers: a. several mortgages b. an underlying wraparound mortgage c. several parcels of real property d. household goods such as bedding, appliances, and other chattel belongings

68-. Under a mortgage, the mortgagor is the party who: a. lends the money b. receives the payments on the note c. holds the mortgage

d. is the borrower

69-Margo and Clarence Stilton have applied for An FHA/insured loan. The mortgage will be a. backed by the full faith and credit of the U.S. Government. b. insured c. guaranteed by the federal government at no cost to the borrower. d. paid for by PMI s.

70-. If a real estate broker earned a commission of $5,600 at a commission rate of 7%, at what price was the property sold? a. $39,200 b. $68,000 c. $80,000 d. $125,000

71-What type of mortgage loan has an interest rate That may become higher or lower at specified Intervals, keyed to an economic indicator? a. pledged b. shared equity c. growing equity d. ARM

72-Charging more than the legal interest rate is Known as a. points b. usury c. discounting d. novation

73 Deed restrictions are provisions that apply to current property owners and a. are regulated by a local jurisdiction. b. can be altered by the owner at any time. c. extinguish upon transfer. d follow the chain of title in future transfers 74- Variances and special use permits are issued by a(n) a. architectural review board. b. building department. c. planning department. d. zoning board of appeals.

75- When the present usage of land is in legal conflict with an enacted zoning ordinance the usage is called: a. void b. a variance c. spot zoning

d. nonconforming

76-The owner whose five/unit apartment Building would not be allowed by a new zoning Law may be entitled to a (n) a. nonconforming use b. variance c. accessory use d. special/use permit

77-Among other methods, land use is controlled Or regulated by a. the local assessor. b. Subdivision regulations. c. Demographics d. The economic cycle.

78- Examples of private land use controls would NOT include: a. restrictive covenants b. restrictions placed in deed or wills c. conditions in a deed d. eminent domain

79-Even though a building permit is issued, new Construction will still need a. A certificate of occupancy. b. A variance from the zoning board of appeals.

c. Approval by an architectural review board. d. An environmental survey.

80- A detailed architectural rendering of a structure is known as a(n): a. site plan b. blueprint c. feasibility study d. plat

81-Electrical systems are routed through a a. Pier and beam. b. Circuit box. c. Stringer. d. Muntin.

82-A lakefront home sold for $385,000. The Broker received $27,912.50. What rate of Commission did this broker charge? a. 7 ¼ % b. 8.5% c. 10% d. 14%

83-The most commonly used insulation material is a. rock wool. b. Cellulose fiber. c. Urea formaldehyde foam. d. Fiberglass.

84- The amount a particular purchaser agrees to pay and a seller agrees to accept is known as: a. cost b. price c. market value d. evaluation value

85-A comparative market analysis resembles which approach to real estate evaluation? a. income approach. b. Direct sales comparison. c. Cost approach. d. Guesstimate.

86-The definition of market value includes

a. Most recent sale price. b. Amount of owner’s equity in the building. c. Potential income tax consequences of a sale. d. Neither buyer nor seller under undue pressure.

87-It can be dangerous for a real estate broker to a. discount the firm’s usual commission rates for a particular client. b. discuss commission rates with another broker c. pay one salesperson 50 percent of earned commissions and another salesperson 60 percent d. charge more for selling vacant land than for selling single/family houses

88- A protected class under New York City law and not under state or federal law is which of the following? a. age b. marital status c. lawful occupation d. familial status

a. .

89-The civil rights act of 1866 a. prohibits any type of discrimination based on race. b. Prohibits discrimination only in federally Funded housing. c. allows an exception for an owner/occupied two/family house. d. does not apply to nonlicensed persons.

90-Redlining is defined as a. Steering home seekers to a particular neighborhood. b. Drawing red lines on a local map indicating what areas to look in for listings. c. Denying or restricting loans in a certain area by a lending institution. d. A zoning procedure.

91-New York State law goes beyond federal human rights law when it forbids discrimination based on a. race. b. Marital status. c. Religion. d. Children in a family.

92-PDQ Realty s that it specializes in areas suitable for European immigrants. This is A fair housing violation called a. redlining. b. Steering.

c. Blockbusting. d. Sexual bias.

93-Using “scare tactics” regarding the possible change in the demographics of a neighborhood when soliciting listings in a violation called a. redlining. b. Steering. c. Blockbusting. d. Harassment.

94-Altough a property owner may be exempted sometimes from discrimination laws, a real estate licensee a. Is exempt as an owner. b. May list the property for sale noting the Exemption. c. may the noted exemption d. may not participate in the transaction in any way. 95-The Sherman Antitrust Law is intended to Promote a. a uniform commission rate schedule in any given area. b. cooperation among brokers for the benefit of consumers. c. free competition in the open market d. Protection for small independent firms.

96-The Underground Storage Tank Act in New York regulates

underground fuel storage tanks That are a. 2,000 gallons or larger. b. 550 gallons or larger. c. 1,100 gallons or larger. d. 750 gallons or larger.

97-. Underground storage tanks are utilized by business and industry for all of the following reasons EXCEPT they are: a. out of sight b. protected against vandalism c. protected against leakage d. protected against fire

98- A salesperson who is an independent contractor a. cannot be charged for office space or supplies provided by the broker. b. is not subject to any direction or control by the broker. c. is paid commission based on sales results. d. is paid for the number of hours worked.

99-An asbestos problem is sometimes best treated by a. installing new distribution boxes. b. Proper ventilation of the building.

c. Removal of chipping paint. d. Leaving it alone.

100-The New York regulatory agency that oversees the safety of drinking water in New York is the Department of: a. Agricultureb. Healthc. Recreation, Parks and Historic Preservationd. Environmental Conservation Law

101- A property manager or property management firm is usually a _____ agent. d. general e. principal f. special g. universal

ANSWER KEY TO EXAM #1

1-B: Salesperson can accept compensation only from their sponsoring broker. 2-C: As of July 1,2008 to become a broker you must be 20 years old. 3-C: selling land at an auction. 4-D: Associate broker is a licensed broker but chooses to work under the supervision of another broker. 5-C: DOS may impose a fine not to exceed $1000.

6-B: When a licensee terminates with a broker they must turn over all information. 7-C: Kept by the broker in a safe place. 8-D: selling a business where the real estate is greater than the business. 9-C: Department of State licenses apartment information vendors. 10-B: If a license is revoked licensee must wait one year before reapplying. 11-B: In an Open listing the seller allows the property to be shown by many Brokers. 12-B: By accepting subagency the owner will have no vicarious liability for the Acts of cooperating agents 13-B: A general agent has specific authority in representing owners. 14-C: With the Exclusive Agency the owner owes no commission. 15-B: If property is in an agricultural district buyer must be informed. 16-D: The broker’s fee is specified in the listing agreement, management agreement, or rental agreement with the principal and is always subject to negotiation. 17-A: The agency relationship is always consensual, meaning both parties enter into it willingly. It is also a fiduciary 18-A: If a Utility surcharge is assessed shall provide written notice to the prospective purchaser 19-D: Sellers and Landlords shall disclose any lead paint they have knowledge of 20-D: The person who selects the agent to act on his behalf is the principal or client. 21-C: The obligations of a buyer’s agent are also subject to any specific Provisions set forth in an agreement between the agent and the buyer 22-A: Net Listing This type of commission arrangement is illegal in New York.

23- D: Compensation is paid only for output. Law also requires a written agreement, executed by both parties 24- C: $462500 x 7%=$32375. divided by 2 =$16187.50x60%agent=$9712.50 25-A: The commission is usually considered earned when a broker brings a ready, willing, and able buyer to the seller, or the seller should accept an offer from the buyer 26-C: If a broker feels the commission will not be paid, they must file an affidavit of entitlement for completed brokerage services. 27-C: The fee or rate of commission paid to a real estate broker is strictly negotiable between the broker and the seller or buyer. 28-C: In Duncan & Hill, the court upheld the Department of State’s determination that a real estate broker who was not a licensed attorney demonstrated untrustworthiness and incompetence in violation of Real Property Law sect;441-c, finding that, when he prepared documents that included detailed mortgage he had devised, he engaged in the unauthorized practice of law 29-B: If the buyer and the seller or tenant and the landlord provide their informed consent in writing, the principals and the real estate broker who represents both parties as a dual agent may designate a sales agent to represent the buyer and another sales agent to represent the seller 30-C: The agent because if the fiduciary must tell the seller. 31-B: All ads placed by a broker must indicate that the r is a broker. Ads that do not contain this are called BLIND ADS. 32-B: Each officer of a corporation or member of a co-partnership must be licensed as a broker. 33-B: Broker dual agency can occur if agents of the broker represent both the buyer and seller in the same transaction, Full discussion and disclosure in writing to all parties must be made 34-D: a buyer’s agent should deal honestly, fairly and in good faith. 35-C: This is done through a buyer brokerage agreement 36-B: Other means of payment can be through multiple listing services when the listing broker offers cooperating compensation to the buyer broker. The buyer broker will then be paid by the seller 37-B: In New York dual agency is legal and permissible with timely and informed

consent of both parties. In this case the agent must have the signed disclosure from both parties 38-D: Regulation 175.7 is not limited to residential transactions, but applies to all real estate transactions. 39-C: When a prospective buyer or seller may walk into a real estate office and want to discuss listing or purchasing a property, at this point, disclosure must be made. 40-C: The types of legal descriptions are metes&bounds, block&lot, and monuments 41-B: Fee Simple Absolute-provides the most complete form of ownership and bundle of rights in real property 42-D: Riparian rights belong to the owner of property bordering a flowing body of water 43- B: Barn is real property. 44-D: Fee Simple Absolute-provides the most complete form of ownership and bundle of rights in real property 45-A: Deed restrictions are in the form of covenants or conditions. These restrictions run with the land, they are put by the “grantor” 46-B: An illegal covenant cannot be enforced [e.g. excluding people of certain religion, or color. 47-A: An encumbrance is anything that lessens the bundle of rights in real property. 48- A: The deed is always signed by the grantor [seller] and must be delivered to the grantee [buyer] to be valid. 49-C: Execution of a judicial deed results from a court order; examples are guardian’s deed, referee’s deed, tax deed, and or executor’s deed. They can used for a foreclosure 50- D: A deed is the document used to convey title legally to real property, also known as a conveyance. 51- B: In a net lease, the tenant pays some or all of the expenses. 52-C: The assignment of the lease involves the transfer of the lease contract from the present tenant to the assignee. 53- C: A lease is a contract, in which, for a consideration, an owner of property

transfers a property interest to the tenant for a prescribed period of time. 54- B: The security deposit must be held in an escrow . 55- C: Lease agreement does not terminate when an owner sells, new owner is bound by of lease 56- C: A contract is an agreement between competent legal parties to do or refrain from doing some legal act in exchange for consideration. 57- C: Express Contract-the parties to the contract have definitely agreed on all the in the contract 58- C: Implied Contract has not been put into words but is implied by the action and conduct of parties 59- A: A form of agreement that terminates contracts is novation the substitution of a new contract for a prior contract or the substitution of a new party for an old party. 60- D: New York State transfer tax is based on sale price is $4.00 per $1,000 or $2.00 per $5.00 61- B: Cooperatives may have a flip tax imposed upon transfer, paid by the seller. 62- A: Property taxes are paid in advance so the buyer will pay the seller for the balance of the year. 63-B: (RESPA) Prohibits kickbacks for services not performed 64- B: A mortgage is a type of security instrument pledging property to a lender. 65- B: Guaranteed Loan Program -offers a loan that guarantees repayment of the top portion of the loan to the lender in the event the borrower defaults. 66- A: RESPA requires a standard HUD-1 settlement statement for all federalrelated loans 67- C: Blanket mortgage-two or more parcels of real estate are pledged as security for payment of the mortgage debt. 68- D: The borrower who gives the mortgage is called the mortgagor. 69- B: FHA-insured loans protect lenders against financial loss. 70- C: $5600 IS COMMISSION DIVIDED BY 7% IS $80,000 71- D: An adjustable rate mortgage permits a lender to adjust the interest rate periodically so it reflects the economy.

72- B: USURY LAWS are used by New York State to fix a maximum allowable interest rate. 73- D: Deed restrictions are in the form of covenants or conditions. These restrictions run with the land, they are put by the “grantor” 74- D: The Zoning Board of Appeals It is a local istrative appeal agency and an interpreter of the zoning ordinance. They also issue Variances and special use permits 75- D: Nonconforming uses occur when land does not conform to current zoning laws, but is legally allowed because it was there before new zoning. 76- A: Nonconforming uses occur when land does not conform to current zoning laws, but is legally allowed because it was there before new zoning 77- B: Individual owners have the right to place private controls on their own real estate. Which may effect a home or subdivision 78- D: Eminent domain is the power of the government or its agencies to acquire private property for public use. 79- A: Permit issued to builder after all inspections are made and property is deemed fit is a Certificate of Occupancy 80- B: The building plan, also known as the blueprint, is a detailed architectural rendering of the structure that usually includes the plans for the mechanical systems. 81- B: Circuit breakers will trip, or switch the electrical power for a given circuit off if the current increases beyond the capacity of the system 82- A: COMMISSION IS DIVIDED BY SALE PRICE: $27,912.50 DIVIDED BY $385,000= 7.25% 83- D:R-factor, the greater the degree of insulation. Most common is fiberglass

84- B: Price is the amount a particular purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding the transaction.

85-B: The “cma” is closely related to the sales approach used by appraisers.

86- D: Market value-the most probable price, for which the property should be sold with the buyer and seller acting prudently, neither is under undue duress. 87-B: Price Fixing-occurs when competitors in a group conspire to charge a same or similar price for services rendered. 88- C: LAWFUL OCCUPATION is protected class only in NEW YORK CITY!!!!

89-A: The Civil Rights Act of 1866-first significant statute affecting equal housing Has no exemptions BASED ON RACE

90-C: Redlining-refusing to make loans to purchase, construct or repair a dwelling by discriminating 91-B: New York State Helping to fight discrimination on the basis of... Marital Status 92- B: Steering-direct prospective purchasers from diverse backgrounds to presently integrated areas to avoid integration of nonintegrated areas. 93-C: Blockbusting-illegal [scare tactic 94- D: Fair Housing Exemptions no transaction involving a real estate licensee is exempt 95- C: Congress ed the first antitrust law, the Sherman Act, in 1890 as a "comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade 96- C: Some types of tanks that are exempt Tanks on farms and residential store less than 1100 gallons 97- A: Underground storage tanks are utilized by business and industry because the tanks are out of sight and are also protected against vandalism and fire.

98- C: Compensation is paid only for output without regard for the number of hours worked 99- D- If the asbestos is in an area and is not disturbed it is best to leave it alone. 100-B: New York State Department of Health (NYSDOH) is the regulatory agent that oversees the safety of drinking water. 101- D: A general agent is empowered to represent the principal in a specific range of matters. An example is a property manager, ============

Review Test 2 ANSWER THE QUESTIONS BY WRITING ANSWER THEN CHECK!

CHAPTER 1- LICENSE LAW

1- the article containing most of the laws pertaining to salespersons and brokers is?

2- the method for judicial review of determinations by agencies such as dos is

3- the listing that is illegal in new york is

4- mortgage brokers and mortgage bankers do not need a license!

TRUE OR FALSE

5. Can a licensee hold more than one license at a time

6. In new york state authority to require licensure falls under its

7. Mixing of others’ funds with a brokers is called

8. A document in which a property owner employs a real estate firm To market their property is called.

9. The fee for a salesperson license and a broker's license is

.

10. Attorneys must take the 45 qualifying course to hold a real estate License.

CHAPTER 2 LAW OF AGENCY

1.

The person hired on another’s behalf is the

2.

The person who selects the agent to act on his behalf is

3.

The party that the agent brings to the principal is

4.

A position of trust is called

5.

Fiduciary duties include.

6.

An agent authorized to handle all affairs of principal is

7.

A broker does not have to disclose any defects to the buyer

“true or false”

1.

An agency relationship created by an oral or written agreement between principal and agent is called.

2.

Agency disclosure forms must be presented when

3.

The best form of listing to take is

4.

Agents have to disclose to buyers any stigmatized properties, “true or false”

5.

An agency relationship is determined by nature of payment or

Who pays it.” True or false”

Chapter 3 estates and interests

1. A tenant that who is lawful possession but refuses to leave after his right terminates is

2. Land and all improvements is

3. Real estate plus all legal rights in ownership is

4. A concept that illustrates interest in and title including air rights, water rights mineral rights etc. Is called

5. Everything that is not real property is both “names”

6. The two types of water rights are.

7. The two types of estates are called, and explain each.

8. The most complete form of ownership and bundle of rights is

9. Tenancy by the entirety is

10. Two or more people holding title to property at same time is

Chapter 4 liens and easements

1. Anything that lessens the bundle of rights is a

2. The two types of liens are

3. The lien that has priority over all others is

4. A nonpossessory interest in land owned by another is

5. A lien creates an______________ on the property.

6. An easement appurtenant requires 2 land owners they are called

7. An easement of condemnation is created by the govt. Right of

8. Anything intruding across a boundary line is a

9. Restrictions placed on a private owner by nongovt. Is

10. A temporary privilege to use another's land is

Chapter 5 deeds

1. Transfer of real property is described in law as

2. The document used to convey title legally to real property is

3. The person conveying title is__ the person receiving title is___

4. To record a deed it must be

5. What must occur to transfer title by deed to effect it.

6. What deed contains the strongest and broadest for of guarantee

7. A deed that contains no warranties and is simply a release is

8. The property must have a legal description what are the three

9. When a person dies and leaves no will or heirs what occurs

10. When owners have the right to all that their land produces this is Called the

right of

Chapter 6 contracts

6.

A contract that is not fully performed is called

7.

According to the statue of frauds for a contract to be enforceable it must

8.

In new york the time period to bring legal action is and is called

9.

An agreement that termininates a contract or changes parties is called

10. The rule that states a contract must take place on or before is

11. In the purchase of a co-op you receive what

12. What contract has no legal force or effect

13. An agreement between 2 competent parties to do or not is called a

14. A written outline of the scope of the real estate transaction is a

15. The act of refraining from legal action to enforce payment is

16. In the purchase of a condo you receive a____ and tenancy in

Chapter 7

leases

1.

The lessor is____ the lessee is____

2.

A lease may not be recorded unless it is for a term exceeding

3.

If the term of the lease is for more than one year it must be

4.

Security deposits must be

5.

The wrongful use of self-help where the landlord removes the tenant is

6.

Constructive eviction is when

7.

A tenant who remains after his lease terminates is

8.

A lease where a tenant pays some or all of the expenses is

9.

Discrimination in rental housing is prohibited except when

10. A long term lease of unimproved land is

11. A lease that automatically renew itself is

Chapter 8 title closing and costs

1. Title to real estate is transferred how.

2. The evidence of the right to possess real property is called a

3. A condensed history of the title setting all links to chain of title Is called.

4. The division of expenses between buyer and seller is known as.

5. A federal statue that regulates disclosure and closing statements relative to mortgage loans on residential is known as

6. Recordation provides the owner with protection this is called

7. The difference between a condo and co-op closing are

8. A new york tax on the conveyance of title to real property is

9. Before title can be transferred evidence ?of should be provided

10. Private mortgage insurance is not a debit to who?

Chapter 9 real estate finance

1. A loan that constitutes a lien against real property is

2. The mortgagor is called and the mortgagee is called.

3. Having a larger payment due at the end of its term is called

4. A mortgage that is paid monthly of both principal & interest is

5. Up to the time of foreclosure a buyer may regain his property by paying all

outstanding debts is known as

6. Enabling a lender to declare the entire balance due if the borrower is in default is called

7. In a court order stating the borrower still owes the lender is

8. A mortgage should always be.

9. The market that buys and sells mortgages to keep it liquid is

10. With a loan to value of less than 80% the purchaser must obtain.

11. Truth in lending act provides for disclosure and truth in ads is

Chapter 10- land use regulations

1. The loss of legal rights due to failure to assert them is

2. Owners who place private controls on their real estate is called

3. The process that describes and analyzes action that may affect the environment is.

4.the power of the govt. to acquire property for public use is

4. When a permitted deviation from specific requirements of the zoning ordinance is allowed this is a

5. When a property is used in a zoned area different than specified by zoning codes this is called.

6. What occurs when private property is regulated by a gov't agency to the economic detriment of the owner without compensation

7. The power of escheat occurs when

8. Accessory uses are basically defined as

9. What is the difference between police power and power of e.d.

10. Who oversees most land use decision in New York

Chapter 11 introduction to construction

1. The amount of electricity flowing through a wire is

2. The greater the degree of insulation the greater r-factor

3. The minimum electrical service installed must be what amps

4. The foundation walls of a home are composed of

5. The area under the roof extension is known as the

6. The most common type of framing is

7. The electric pressure that pushes through the wire is known as

8. The plumbing system in a home consist of how many

9. According to article 36-b n.y. general business law warranties on New housing is

.

10. Percolation is what

Chapter 12 the valuation process

1. The importance in real estate is that it is

2. Parties that are not related or business assoc. Is called a

3. The three types of appraisals used are

4. An appraisal is a

5. A property’s worth in of the most probable price is called

6. The amount that a purchaser agrees to pay is called.

7. Whatever the lender believes the property will bring at foreclosure is called.

8. The appraisal approach most closely related to a cma is

9. Nonhomogeneity means that

10. The principal of supply and demand states that

Chapter 13 human rights and fair housing

1.

The civil rights act of 1866 prohibits what

2.

An area where salespeople cannot solicit listings is called

3.

The federal agency through which civil rights action can be brought is

4.

Discriminatory type of ment that would be allowed is

5.

Refusing to make loans on basis of race, religion is

6.

The New York state human rights law and federal laws are same

True or false

7.

Federal and New York laws contain exceptions except

8.

New York has no exemptions for sale or rental of single family homes.

9.

Properties in middle or upper income areas decline allowing lower incomes to purchase them is called.

10. If a prospective seller requests only certain people the liscensee must

11. Showing a couple homes in a certain area is

Chapter 14 environmental issues

1. Due diligence review is conducted to protect

2. Long-standing issues are.

3. Prior to changing or initiating a land use or development to ensure that the use will not affect the environment what is required

4. The comprehensive environmental response, compensation, and liability act [CERCLA] ed in 1980 was amended by

5. Lead paint disclosures must be produced on homes built prior to

6 the agency that oversees safe drinking water in New York is

7. One of the major dangers in corrosive water is it may contain

8. In a due diligence test there are how many phases

9. Electromagnetic fields are created when

10. Radon generally enters a home through

Chapter 15 independent contractor

1. In general most real estate agents are

.

2. Which is form does an independent contractor receive

3. How many years must a broker keep records

4. Commissions are paid with deductions

Chapter 16 mathematics

1. Your fee on a sale of $500,000 at 5%& is

2. A tract of land is 120 feet front, 250 feet one side 325 feet other side what is square footage.

3. A home is listed for $339,990 the sale nets the seller $299,000 after paying a 8% commission. What did the home sell for?

Answers

Chapter 1: 2

chapter

1: article 12-a Agent

1.

2:article-78

2. Principal or client

3: net listing

3. Customer

4: false 5: yes

4. Fiduciary 5. “oldcar”

6: police power

6. General agent

7: commingling

7. False

8: listing contract

8. Express agency

9: $50. &$150.

9. First substantive meet

10: false

10. Exclusive right to sell 11. False 12. False

Chapter 3.

Chapter 4.

1. Tenant at sufferance

1. Encumbrance

2. Real estate

2. Voluntary & involuntary

3. Real property

3. Real property tax lien

4. Bundle of rights

4. Easement

5. Personal property or chattel

5. Encumbrance

6. Riparian & littoral

6. Dominant & serviant tenement

7. Fixture

7. Eminent domain

8. Freehold[own] leasehold [rent]

8. Encroachment

9. Fee simple absolute 10. Husband and wife

9. Restrictive covenant `

10. License

11. Tenancy in common

Chapter 5

chapter 6

1. Alienation

1. Executory

2. Deed

2. Written

3. Grantor & grantee limitations

3. 6yrs, statue of

4. Acknowledged

4. Novation

5. Delivery & acceptance

5. Time is of the essence

6. Full covenant & warranty proprietary 7. Quitclaim 8. Mete & bounds, sec. Blk, lot & mon

6. Shares of stock, 7. Void contract 8. Contract

9. Escheat

9. Binder

10. Accession

10. Forbearance

11. Deed & commo n

Chapter 7.

Chapter 8.

1. Landlord & tenant delivery

1. Upon execution &

2. 3 years

2. Title

3. In writing

3. Abstract of title

4. Held in escrow

4. Proration

5. Actual eviction

5. “RESPA”

6. Tenant denied quiet

6. Constructive notice

7. Holdover

7. Condo-fee simple

8. Net

coop-is personalty

9. People 55 or older

8. Real property transfer tax

10. Ground lease

9. Marketable title

11. Periodic

10. Seller

Chapter 9.

Chapter 10.

1. Mortgage

1. Doctrine of laches

2. Borrower & lender 3. Balloon mortgage

2. Deed restrictions 3. “EIS”

4. Amortized mortgage

4. Eminent domain

5. Equity of redemption use

5. Nonconforming

6. Acceleration clause

6. “taking”

7. Deficiency judgment

7. Person dies intestate

8. Recorded

8. Mother/son , home business

9. Secondary market

9. “ed” implies just & fair comp.

10. “pmi” right

police power gov't

11. Regulation “z”

10. Courts

Chapter 11.

Chapter 12

1. Amperage

1. Immobility

2. True

2. Arms length

3. 100

3. Cost, income, sales

4. Concrete

4. Unbiased opinion of value

5. Soffit

5. Market value

6. Platform

6. Price

7. Voltage

7. Mortgage loan value

8. “3” water, drain, vent

8. Sales comparison

9. 1yrbuild,2plumb,6yrall

9. No two parcels identical

10. Flow of water thru soil

10. Greater supply lower value

Chapter 13.

Chapter 14.

1. Discrimination on race

1. Purchaser

2. Cease & desist zone

2. Clean water,

wastewater 3. Hud

termite infestation

4. “adults only” if 62 & older

3. “EIS”

80% 55

4. “SARA”

5. Redlining

5. 1978

6. False! N.y. more broader

6. Dept. Of health

7. Race

7. Lead

8. True

8. 4

9. Filtering down

9. Electricity flows

10. Explain law, if no good

10. Small cracks in foundation

Walk away, tell broker 11. Steering

Chapter 15.

1. Independent contractor 2. 1099 3. 3 years 4. False

Chapter 16 1. 500,000 x 5% = 25,000 2. 250 + 325 = 575/2 = 287.5x120 = 34500 3. 100%total less

Commission =

8%

Net to seller

299,000 is 92% to seller divide answer is 325,000

A special thank you to Nanette "HG" Johnson class of 2012 who took the time to reformat the guide.