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NYS REAL ESTATE EXAM/ REAL ESTATE EXAM/
NYS STUDY GUIDE 2023-2024 ALL QUESTIONS
ANSWERED CORRECTLY/ BEST GRADE A+
NYS Dept of State - ANSWER: agency that licenses real estate agents/brokers Property law name - ANSWER: Article 12A Types of real estate licenses (3) - ANSWER: salesperson, associate broker, broker An associate broker... - ANSWER: has no broker powers A broker... - ANSWER: sponsors salespeople and associate brokers The salesperson's license is kept by... - ANSWER: the broker for whom the salesperson is working for, kept in a secure place Pocket ID card - ANSWER: Kept with the agent, should be carried at all times Any changes to a salesperson's license - ANSWER: should be submitted to the Department of State with 5 days notice Fees for license - ANSWER: Salesperson: $50 every 2 years Broker/Associate broker: $150 every 2 years Education requirements - ANSWER: 22.5 hours of continuing education prior to license renewal
Total educational hours for broker's license - ANSWER: 120 hours (75 sales, 45 brokers) 3500 points sales experience, 2 yrs full time 5250 points for related experience, 3 years full time reciprocal states to NY - ANSWER: 9 Arkansas Colorado Connecticut Georgia Massachusetts Mississippi Oklahoma Pennsylvania West Virginia What are the other DOS Licenses? (5) - ANSWER: 1. Notary public
- Apartment Information Vendor
- Apartment Sharing Agent
- Appraiser 5 Home inspector Office regulations - ANSWER: 1. Must have appropriate office signage
- Kickbacks are illegal!
- Blind ads are illegal! (bait and switch)
Uncapped natural gas wells - ANSWER: must be disclosed by seller to buyer before entering into a contract of sale. Who can be an officer in a real estate company? - ANSWER: Only full broker. Not an associate broker, not a salesperson Who can show property? - ANSWER: Only licensed salespeople or brokers Agent - ANSWER: usually works for seller, but can also work for a buyer, representation, looks for best interest of party, for the buyer an agent usually services, goes through motions but no fiduciary responsibilty Customer - ANSWER: the party whom the agent brings to the pricipal as a seller or buyer of the property Client - ANSWER: the person who selects the agent to acts on his behalf dual agency - ANSWER: when agent acts for both buyer and seller (they only have fucidicary responsibilty to whom hired them) Fudiciary responsibilities - ANSWER: OLD CAR Obedience Loyalty Disclosure of Info Confidentiality Accountability Reasonable care, skill, dilligence
This is given to a client, never a customer Real estate agent is known as... - ANSWER: SPECIAL AGENT (one matter) special agent with specific authority Vicarious liability - ANSWER: the responsibility of one for the acts of another. In the real estate business, this would be the case when a listing or buyer broker is an "agent" of the seller or buyer. The client can be held responsible for the actions of the broker agent if they have knowledge of an improper or negligent act. Express Agency - ANSWER: Listing agreement, usually in writing (exclusive) Implied Agency - ANSWER: open listing, handshake deal All agency agreements whether express or implied are consensual. Commission payout scenarios (2): - ANSWER: 1. % of final price
- Flat fee NOTE: Next listing commission (aka: 'keep the change" is illegal in NY Forms for Representation - ANSWER: Buyer, seller or both, but can't exchange vital info if representing both Buyer agent - ANSWER: this is a CLIENT, not a customer
another firm. These agents work throug the usual system of offerings published through the MLS Dual Agent must have what from both parties in NYS - ANSWER: WRITTEN approval of both parties after the agent's informed disclosure. The buyer and seller each agree to relinquish the individual, undivided loyalty in the fiduciary relationship Undisclosed dial agency - ANSWER: can result in a violation of property law! NY real estate firms can provide consensual dual agency for in house sales All agents must disclose what party they represent in a real estate transaction 1Agency Disclosure forms (2 types) - ANSWER: 1. buyers and sellers
- landlords and tenants Salespersons and the IRS - ANSWER: Salespersons are independent contractors. To quality agent must be licensed and they must enter into a written contract with the broker. Salesperson's benefits - ANSWER: No sick pay, no medical benefits, must fill form 1099 and pay self employment taxes Real property - ANSWER: deed Land and structure Personal property - ANSWER: Bill of sale
objects Land rights - ANSWER: 1. surface rights (on ground, in house
- subsurface rights (underground)
- air rights (air) - dictated by government Riparian water rights - ANSWER: moving water (river) Littoral water rights - ANSWER: still water (pond, lake) Fixtures - ANSWER: personal- (lights, ceiling fans, certain appliances, etc) Trade Fixtures - ANSWER: Commercial tenant fixtures, belong to tenant (eg: pizza oven in a restaurant belongs to tenant b/c she installs it) Free hold estates - ANSWER: forever ownership Fee simple absolute - ANSWER: full ownership Fee simple defeasible - ANSWER: mortgage or lien Leasehold estates - ANSWER: temporary possession (rental) Life estates - ANSWER: ownership good for one person's lifetime (to keep in family name)
Joint Ventures Liens - ANSWER: Usually a bad thing Voluntary liens (good) it's accepted, mortgage lien, property is collatoral Involuntary lien (bad) forced Specific liens (against a property) General lien (against a person and all his/her property -- eg: a deadbeat dad Easements - ANSWER: GROSS (public) sidewalk, street, utility pole, cable lines APPURTENANT (private) driveway is common example Dominant (control) Servient (suffers) Negative (visual) -- in air, buy air rights Affirmative (physical) - solid Trespassing - ANSWER: living thing eg: dog, kid Encroachments - ANSWER: (objects trespassing) fence is encrouching tree branches
ChattelVoln - ANSWER: objects not connected to a piece of real property Deed - ANSWER: Document shows ownership and used to transfer real property Voluntary vs. Involuntary alientation - ANSWER: Voluntary- sale etc Involuntary - court action Essentials of a good deed - ANSWER: Must be in writing Grantor = seller ALL GRANTORS MUST SIGN DEED Grantee = usually the buyer Granting clauses - indicates its' the grantors intention to transfer the title to the named grantee Habendum clause Consideration (something of value, usually $1 in a deed) Legal description (metes and bounds/ monument) Acknowledgement = recording of a deed via a notary public) Constructive notice is recorded at courthouse Actual notice (not recorded at courthouse) Delivery an acceptance Habendum clause - ANSWER: to have and to hold Full Covenant and Warranty Deed - ANSWER: Only given upon new construction Bargain and Sale Deed - ANSWER: used house transfer
Title Closing - ANSWER: - Deeds, survey
- marketable title- title search goes 40 years back, TITLE INSURANCE RESPA - ANSWER: Real estate settlement procedures act Rules governing lenders procedure and disclosures have to disclose everything! Closing Costs - ANSWER: Expenses in selling and/or buying real propety Buyers' closing costs - ANSWER: attorneys credit reports application fees if coop or condo homeowners insurance mortgage expenses overpaid by seller taxes recording of deed recording of mortgage documents appraisal fee brokers fee if buyer broker exists Sellers Closing Costs - ANSWER: transfer taxes flip taxes attorneys fees brokers fees
deed preparation mortgage satisfaction, interest fees transfer tax Leasehold estate - ANSWER: rentals Lease - ANSWER: contract (short term) Lessor - ANSWER: landlord Lessee - ANSWER: tenant Estate for years - ANSWER: typical 1 year lease with definite expiration date Periodic estate - ANSWER: automatically renews if there is no termination on either side Estate at will - ANSWER: month to month, everything is assumed legal Estate at sufferance - ANSWER: squattor Rent control - ANSWER: since world war 2 (discount in RE taxes) Rent stabilized - ANSWER: market (discount in RE taxes) Free Market Rent - ANSWER: de-stabilized apartment
Bilateral contract - ANSWER: contract in which two parties have made promises of some kind to each other; because both parties make the promises, the contract binds the parties unilateral contract - ANSWER: One party makes a promise to induce a second party to do something Executed contract - ANSWER: fully performed and finished Executory contract - ANSWER: contract that is not fully performed or completed Valid contract - ANSWER: one that is binding and enforceable in all concerned parties Voidable contract - ANSWER: when the contracting parties do not meet some legal requirement in negotiating the agreement Usually one party is a victim of wrongdoing by the other party *parties can voluntarily perform a voidable contract Unenforceable contract - ANSWER: not enforceable in court. Examples are:
- verbal contracts where one of the parties reneges on the agreement
- Time to enforce the contract has run out
- one of the party has a voidable contract
- contracts that are vague in meaning and or poorly worded
Elements of a contract - ANSWER: 1. competent parties
- Mutual agreement
- Lawful objective
- Consideration (aka Money)
- Must be in writing (statute of frauds) Discharge of Contracts - ANSWER: Contracts can be discharged by:
- agreement of the parties
- full performance
- impossibility of performance
- operation of law Novation - ANSWER: substitution of a new contract for a prior contract Contract remedies: specific performance - ANSWER: force other party of finish contract Contract remedies: rescission - ANSWER: takes back, removes, annuls; court orders the parties placed back in their original positions as if the contract never existed contract remedies: compensatory damages - ANSWER: amount of money actually lost is the amount of compensatory damages the court awards contract remedies: liquidated damanges - ANSWER: parties to the contract can stipulate an amount of money to be paid upon certain breaches of the contract.
alienation clause - ANSWER: when title is transferred to someone else, payment is due defeasance clause - ANSWER: if you do default; full payment up to auction day Promissory note or bond - ANSWER: lender requires borrower to sign it, providing evidence that a valid debt exists. Note contains a promise that the borrrower is personally liable for paying the amount of money stated in the note. mortgage principal - ANSWER: amount of money borrowed on which interest is payed or received mortgage interest - ANSWER: money paid for using someone else's money Grace period - ANSWER: 15 days into the month, before a late fee. Foreclosure - ANSWER: bank suing for balance due Equity of redemption - ANSWER: if you default, you have the option to make full payment up to the date of auction Deed in lieu of foreclosure - ANSWER: sign deed over to bank in lie of foreclosure Deficiency judgement - ANSWER: if property auctions for less than is owed to the lender, the lender can go after the owner for the missing money
Discount points - ANSWER: commission to mortgage broker. Buy down interest rate buy buying points Sale subject to a mortgage - ANSWER: contingency-- contract is voidable pending mortgage approval Sale with assumption of mortgage - ANSWER: transfer of mortgage from seller to buyer Recording the mortgage - ANSWER: lender draws up document called a satisfaction of mortgage (paid off) Called a discharge of mortgage Failure to record may cloud the title to the property Conventional Loans - ANSWER: typically for 75 or 80% of property value and has equity of 20-25% Equity - ANSWER: difference between value of the property and the amount of the principal owed on a mortgage Amortized mortgage - ANSWER: Loan is installed in payments - payment is always the same Straight term loans - ANSWER: monthly payment only pays interest Adjustable rate mortgage - ANSWER: starts low and climbs over time
