Content Flashcards
7 cards from real NY REAL ESTATE EXAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Content flashcards as text
A homeowner grants an easement to a utility company to run power lines across their land. This is an example of a/an:
Answer: Easement in gross
An easement in gross benefits a person or entity (here, the utility) rather than an adjacent parcel of land and is not attached to any dominant estate.
Under RESPA, a lender must provide the borrower with a Loan Estimate within how many business days of receiving a complete loan application?
Answer: 3 business days
RESPA (Regulation X) requires lenders to deliver or mail the Loan Estimate no later than three business days after receiving a complete application.
Which appraisal approach is most appropriate for estimating the value of a special-purpose property like a church or school?
Answer: Cost approach
The cost approach — which estimates depreciated replacement or reproduction cost plus land value — is most reliable for special-use properties that rarely sell.
A New York buyer purchases a property where the previous owner had an unpaid judgment. The buyer later discovers the judgment is still a lien on the property. What should the buyer have done to prevent this?
Answer: Purchased title insurance
Title insurance protects the buyer (and lender) against undiscovered title defects, including pre-existing liens such as judgments, that could cloud ownership.
In New York, a broker operating as a transaction broker (facilitator) owes which level of representation to the parties?
Answer: Limited non-agency services without fiduciary duty
A transaction broker or facilitator assists both parties with the mechanics of the transaction but does not owe full fiduciary duties to either side.
Which form of co-ownership includes the right of survivorship so that a deceased owner's share automatically passes to the surviving co-owners?
Answer: Tenancy by the entirety
Tenancy by the entirety is a form of joint ownership available only to married couples in New York, and it includes the right of survivorship.
A property's gross rent multiplier (GRM) is 120 and the monthly rent is $2,500. What is the estimated market value?
Answer: $300,000
$2,500 monthly rent × 120 GRM = $300,000 estimated market value.