NY Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Bundle of Rights

The ownership rights of possession, control, enjoyment, exclusion, and disposition. A deed transfers only the interests the grantor actually holds unless a covenant or statute broadens the conveyance.

Tenancy by the Entirety

A New York co-ownership form available only to married spouses, giving equal undivided interests and the right of survivorship; neither spouse may convey an interest alone.

Easement Appurtenant

An easement that benefits a neighboring parcel of land and passes automatically with that parcel when it is sold; the benefited land is called the dominant tenement.

Gross Rent Multiplier

A screening tool for income property: sale price divided by gross annual rent. A lower multiplier indicates a faster payback relative to the purchase price.

Fixture

Personal property that has become real property through annexation, adaptation to the property's use, or the parties' intention. Fixtures transfer with the land in a sale.

Capitalization Rate

Net operating income divided by property value, expressed as a percentage. Dividing a property's net operating income by a market cap rate estimates its value.

Quitclaim Deed

A deed conveying whatever interest, if any, the grantor holds, with no warranties or covenants of title. It is common in family transfers and in clearing title defects.

Salesperson Sponsor

A licensed New York broker who supervises a salesperson. The salesperson's license is inactive without a sponsor on file, and all commissions must be paid through that broker.

RPL Section 443

New York's agency disclosure statute. It requires a broker to present and explain a written agency disclosure at the first substantive contact and to obtain the consumer's signature.

Property Condition Disclosure Statement

A New York form that sellers of one-to-four family residential property must deliver to buyers before the contract is signed, identifying known defects and property conditions.

Mansion Tax

An additional New York state transfer tax of one percent on residential sales of one million dollars or more, generally paid by the buyer at closing.

Mortgage Recording Tax

A New York tax imposed when a mortgage is recorded. It is calculated on the loan amount, and the applicable rate varies from county to county.

HSTPA 2019

New York's Housing Stability and Tenant Protection Act, which limits residential security deposits to one month's rent and caps application fees at twenty dollars per applicant.

Continuing Education Requirement

New York licensees must complete twenty-two and a half hours of approved coursework every two-year renewal term, including mandated hours in fair housing and ethical business practices.

Fiduciary Duties

The duties an agent owes a principal: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. Loyalty and confidentiality are the most frequently tested.

Dual Agency

A broker representing both buyer and seller in the same transaction. It requires the informed written consent of both parties, and the broker may not advocate for either side.

Designated Agency

An arrangement in which two salespeople from the same brokerage each represent one side of a transaction as single agents while the broker acts as a consented dual agent.

Exclusive Right to Sell

A listing agreement giving the broker a commission regardless of who procures the buyer, including a sale the seller makes personally during the listing term.

Ready Willing Able Buyer

A buyer who accepts the seller's price and terms, has the financial capacity to close, and is prepared to sign. Producing one earns the broker's commission.

Confidentiality

The agent's duty not to reveal a principal's financial position, motivation, or negotiating strategy. The duty survives the end of the agency relationship.

Statute of Frauds

The legal rule requiring real estate contracts, deeds, and leases longer than one year to be in writing and signed by the party to be charged.

Loan Estimate

A standardized CFPB disclosure of loan terms and estimated closing costs that must reach the borrower within three business days after a mortgage application is submitted.

Closing Disclosure

A CFPB form itemizing final loan terms and closing costs, delivered at least three business days before consummation so the borrower can compare it to the Loan Estimate.

PITI

Principal, interest, property taxes, and hazard insurance. These four components make up the monthly housing payment lenders use to calculate qualifying ratios.

Judicial Foreclosure

New York's court-supervised foreclosure process. The lender must file suit, obtain a judgment of foreclosure, and complete a referee's sale of the property.

Discount Point

A fee equal to one percent of the loan amount, paid at closing to permanently reduce the interest rate and therefore the monthly payment.

Familial Status

Fair housing protection covering households with children under eighteen, pregnant women, and anyone with legal custody. Housing qualifying for older persons is exempt.

Blockbusting

The illegal practice of inducing panic selling by telling homeowners that members of a protected class are moving into the neighborhood, implying that property values will fall.

Steering

Directing prospective buyers toward or away from particular neighborhoods based on race, religion, or another protected class rather than on the buyer's stated needs.

Reasonable Accommodation

A change to rules, policies, or practices that lets a person with a disability use and enjoy a dwelling, such as waiving a no-pet rule for a service animal.

RESPA Section 8

A federal prohibition on giving or receiving anything of value in exchange for referrals of settlement service business, including undisclosed fee splits and unearned fees.

Redlining

Refusing to make loans, issue insurance, or provide services in certain neighborhoods, historically based on the race or ethnicity of the residents living there.