FREE New York Real Estate MCQ Question and Answers

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Which of the following does a real estate agent not owe a client as a fiduciary duty?

Correct! Wrong!

Explanation:
Obedience (following reasonable and legal instructions), Loyalty (working diligently to serve the client's best interests), Disclosure (promptly providing all relevant information about the transaction), Confidentiality (not disclosing information given in good faith and trust without the client's permission), Accountability (financial accountability, including accurate record keeping), and Reasonable Skill and Care are just a few of the obligations that fall under the definition of a fiduciary (agents possess the necessary skills and training to perform the requested services). A principal is someone who has an obligation to represent their client in an agency arrangement.

When capital is not accessible, the effect of borrowing money to purchase property is referred to as:

Correct! Wrong!

Explanation:
The impact of borrowed money on investing results is known as leverage. An investor's return may be higher or lower with leverage than it would be with solely cash payments. The investor borrows money to make a purchase in the hope that the investment will provide a profit greater than the cost of the loan.

What distinguishes assessed value from appraised value?

Correct! Wrong!

Explanation:
Real property tax is calculated by adding the assessed value to the local tax rate. The assessed value is a sum of money that is valued by a town, city, or village assessor. The assessed value is recorded in local tax records and evaluated by the municipality every one to two years. A property's appraised value is an estimation of its value at a specific point in time for the purpose of determining whether it is sufficient to guarantee repayment of a mortgage loan. A Uniform Residential Appraisal Report details the appraised value (URAR).

The following is permitted for a special agent to do:

Correct! Wrong!

Explanation:
A real estate agent or broker is an example of a special agent, also known as a limited agent, who has limited authority to carry out a certain task or conduct a specific transaction. This is typically a transient connection, and duties like marketing, presenting properties, identifying properties, and other transaction-related services are typically its only scope.

If a home costs $200,000 to buy and the loan-to-value ratio is.85, the loan will be approved. What is the buyer's mortgage amount?

Correct! Wrong!

Explanation:
$250,000 x .85 = $212,500.
The mortgage amount is equal to the purchase price multiplied by the loan-to-value ratio.
The deposit is $37,500.

What amount is the owner entitled to in eminent domain as compensation for the taking of real property?

Correct! Wrong!

Explanation:
The legal or constitutional right of the government to seize private property for public use is known as eminent domain. The fair market value (FMV) of the asset is paid to the property owner. FMV is essentially the amount that a buyer acting in his or her own self-interest, free from undue influence, and with enough time to complete the transaction would pay if the buyer had reasonable understanding of the item. Market value does not consider other market factors; it is merely the price stated in a listing. Only one appraiser's viewpoint contributes to the appraised value. Normally, the owner and the government will bargain and try to come to a selling agreement in order to ascertain FMV. The parties will typically call expert witnesses at trial to testify to the FMV based on a number of factors, such as the size of the property, the accessibility of the property, the zoning, the level of development, and the current or potential use, in the event that a value is not agreed upon. FMV can be calculated using a variety of valuation methods, including the market approach, the income approach, and the cost approach.

Which of the following does not constitute a lease's fundamental components?

Correct! Wrong!

Explanation:
A legal description is not necessary for a lease. As long as all parties are in agreement and are aware of the property's location, a street address or other informal reference to its location may be utilized. Additionally, if more than one unit shares the same street address, apartment or building numbers should be utilized. The components of a lease are the lease period, the agreed-upon rent, the date of possession, and the signatures of the parties.

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