NY Real Estate Exam Content 5

Question 1

A homeowner grants an easement to a utility company to run power lines across their land. This is an example of a/an:

Accepted Answer

Easement in gross

Answer

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.

Question 2

Under RESPA, a lender must provide the borrower with a Loan Estimate within how many business days of receiving a complete loan application?

Accepted Answer

3 business days

Answer

RESPA (Regulation X) requires lenders to deliver or mail the Loan Estimate no later than three business days after receiving a complete application.

Question 3

Which appraisal approach is most appropriate for estimating the value of a special-purpose property like a church or school?

Accepted Answer

Cost approach

Answer

The cost approach — which estimates depreciated replacement or reproduction cost plus land value — is most reliable for special-use properties that rarely sell.

Question 4

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?

Accepted Answer

Purchased title insurance

Answer

Title insurance protects the buyer (and lender) against undiscovered title defects, including pre-existing liens such as judgments, that could cloud ownership.

Question 5

In New York, a broker operating as a transaction broker (facilitator) owes which level of representation to the parties?

Accepted Answer

Limited non-agency services without fiduciary duty

Answer

A transaction broker or facilitator assists both parties with the mechanics of the transaction but does not owe full fiduciary duties to either side.

(NY Real Estate Exam) New York Real Estate Exam Practice Test

(NY Real Estate Exam) New York Real Estate Exam Practice Test

NY Real Estate Exam Content 5