Below is a list of questions that appeared on the salesperson licensing exam I took last week. I was surprised at how much I was able to remember. Feel free to send me questions and/or feedback. Good luck! Oh, and I passed!
1) In NYS, how old must one be to enter into contracts? -18
2) What other capability should they
possess? –Mental and emotional capability
3) What happens if one of the parties to
the contract is a minor? –The contract is voidable by the minor
4) What does the zoning board of appeals
do? –Grants variances
5) What regulates construction standards
in NYS? –Building codes
6) What does municipal engineer’s office
do? –Oversees planning and construction of major highways, sewer systems and
water connections
7) If a property ad states that the
property is near the vicinity of a geographical area, what else must the ad
include? –It must include the name of the geographical area where the property
is actually located
8) Who is usually exempt from property
taxes? –Disabled, veterans, farmers, elderly, gold star parents (whose kids
dies in war) and star program homeowners
9) Who is not usually exempt from
property taxes? –Second home owners
10) What covers fully for personal
property lost in a fire? –Replacement cost
11) Find the square footage of a
rectangular shaped floor plan. Note: learn how to find the area of squares and rectangles
12) What’s the cash on cash return on a
$2,000,000 property with a down payment of 500,000 and $15000 monthly rental
income?-36 percent
13) Who hires the agent? –Principal or
client
14) What is not a CMA(comparative market
analysis)? –An appraisal
15) What cannot a salesperson do? –Collect
money directly from the client or customer
16) When should the Agency disclosure form
be submitted? –At the first substantive contact
17) Which document describes the
agency(who he or she represents) of the salesperson? –Agency disclosure form
18) What’s another name for the slope of
the roof? –Pitch
19) What carcinogenic component was used
as insulation in electric transformers that contaminated soil and ground water?
–PCBs or polychlorinated biphenyls
20) What can brokers provide their
salespeople if they are independent contractors? –Office phone
21) What’s right to access water from a
river or stream called? –Riparian
22) What did the Civil Rights Act of 1866
protect, without exception? –Race
23) What did the 1988 amendment to the
civil rights act protect? –Disability and familial status
24) What is convincing owners to
sell/lease property by telling them a particular group of people are moving
into the area called? –Blockbusting
25) What is it called when
lenders/insurance agents refuse to do business in a certain area based on the
characteristics of the people living there? –Redlining
26) Unless specified a lesser estate,
transfer of title to real property in NYS creates what type of interest? -Fee
Simple
27) What is another name for transfer of
title to real property? –Conveyance
28) What is it called when the government
dictates how a property can be used? –Zoning
29) Who issues real estate licenses? –NY Department of State
30) Who oversees licensing and
registration of mortgage bankers and brokers? –NYS banking department
31) Which department oversees drinking
water safety? –NYS department of health
32) Who determines the commission?
–Principal/client and the broker
33) What occurs when the agent represents
the seller but also works in the best interests of the buyer? –Undisclosed dual
agency
34) A real estate salesperson is what type
of agent? –Special
35) What clause in the deed describes the
property? –Legal descriptions
36) What type of income is partnerships/investments?
–Portfolio
37) What’s the name of the policy that
provides additional liability coverage beyond the primary policy? –Umbrella
policy
38) What type of maintenance is fixing a
leaking faucet? –Corrective maintenance
39) What are property taxes based on?
–Assessed value
40) What is the market value? –What the
property will sell for in a competitive marketplace
41) What is a loft lease? –It’s a lease
for space that is not divided into rooms
42) Which types of commercial properties
use percentage lease? –Retail stores / shopping malls
43) Who is responsible for the terms in
the lease if the unit has been subleased? –Lessee
44) What is the taking of private property
by the government for public use called? –Eminent domain
45) How many years is a residential
investment property depreciable for? -27.5 years
46) How much profit can a single person
claim from the sale of a personal residence that’s tax free? -$250,000
47) What is the right to use another’s
land that falls short of ownership called? –Easement
48) Joe was not paid for the supplies and
labor he provided to homeowner Smith. What kind of lien will he file against
Smith? –Mechanics lien
49) What serves the same function as a
circuit breaker? –Fuse
50) What type of estate is created when
only one person holds title to real property? –Ownership in severalty
51) How much should the seller reimburse
the buyer for refusing to provide a property disclosure form? -$500
52) Seller tells the
listing agent he filed for bankruptcy the previous year. The seller ends
up not listing the property with the agent. Still, what fiduciary duty does the
agent owe the seller? -Confidentiality
53) What type of financing is used to purchase a new property when the old property hasn't been sold yet? –Swing loan or bridge loan
53) What type of financing is used to purchase a new property when the old property hasn't been sold yet? –Swing loan or bridge loan
54) Who is the borrower of a mortgage
loan? -Mortgagor
55) What does the Real Estate Settlement
Procedures Act (RESPA) require? –Good faith estimate of the closing costs for
federally funded loans
56) What is the right reserved for the
condo association that gives them the first opportunity to buy or lease a unit
when it becomes available? –Right of first refusal
57) A coop is what type of ownership?
–Leasehold
58) What is the summary of the
chronological history of title and related documents to that called? -Abstract of Title
59) What type of mortgage is when a new
mortgage that is higher in amount wraps around an existing first mortgage
that’s smaller in amount? –Wraparound mortgage
60) What document provides detailed
information on a condo or coop project? –Offering plan
61) What is the process called that
calculates the value of an asset in the past, present and future? –Time value
of money
62) What is it called when a building
loses its desirability because of an outdated design feature? –Obsolescence
63) What types of investment properties
are warehouses and distribution centers? –Manufacturing
64) What governs issues such as noises,
pets in a condo or coop? –House rules
65) What are homestead properties?
–Residential condos, 1-4 family homes, mobile homes & farm dwellings
66) What’s the area the tenant actually
occupies and uses? –Usable square footage or net square footage
67) Who signs the contract first?
–Purchaser
68) What is the budget that is set aside
for repairs and large improvements? –Capital reserve budget or replacement
reserve budget
69) What’s another name for land lease?
–Ground lease
70) What allows landlords to raise rents
during the term of the lease? –Escalation clause
71) What are tax advantages on investment
properties called? –Tax shelters
72) What type of listing agreement is it
where the listing broker gets commission for the sale of the property even if
the owners themselves sell the property? –Exclusive right to sell
73) What’s an implied clause in a deed?
–Grantor owns the property and has a right to convey it or right of quiet
enjoyment
74) What does Regulation Z (TILA) require
beside the disclosure of interest rates? –Down payment
75) What does the secondary mortgage market do? –Buys and sells mortgages