Question 1

Co-op

Accepted Answer

A type of real estate where the buyer purchases shares in a corporation that owns the building, rather than owning the unit itself.

Question 2

Condo

Accepted Answer

A type of real estate where the buyer owns the unit outright, along with a proportionate share of the building's common areas.

Question 3

Brownstone

Accepted Answer

A particular type of residential building, commonly found in New York, made from brown sandstone.

Question 4

Rent Stabilization

Accepted Answer

A form of rent regulation that limits the amount landlords can increase rent for tenants in eligible units.

Question 5

Rent Control

Accepted Answer

A stricter form of rent regulation, where rent is set by law and cannot be raised, typically applying to buildings built before 1947.

Question 6

Mansion Tax

Accepted Answer

A tax imposed on residential properties sold for over $1 million in New York State.

Question 7

421a Tax Abatement

Accepted Answer

A property tax abatement provided to developers who build multi-unit residential buildings.

Question 8

Air Rights

Accepted Answer

The right to control, occupy, or use the vertical space (air) above a property.

Question 9

Closing Costs

Accepted Answer

The expenses, over and above the price of the property, incurred by buyers and sellers when transferring ownership of a property.

Question 10

Escrow

Accepted Answer

A neutral third party or account that holds funds during the transaction process.

Question 11

Title Insurance

Accepted Answer

Insurance to protect real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances, or defects in the title to the property.

Question 12

Easement

Accepted Answer

A right to cross or otherwise use someone else's land for a specified purpose.

Question 13

Real Estate Board of New York (REBNY)

Accepted Answer

The influential city trade association for commercial and residential real estate brokers and managers.

Question 14

Exclusive Right to Sell

Accepted Answer

An agreement where the broker has the sole right to sell the property and receives a commission, regardless of who sells the property.

Question 15

Comparative Market Analysis (CMA)

Accepted Answer

An estimate of a home's value based on the recent sales of similar properties in the area.

Question 16

Dual Agency

Accepted Answer

A situation where a real estate agent represents both the buyer and the seller in the same transaction.

Question 17

Loft Law

Accepted Answer

Legislation designed to protect artists living illegally in commercial loft buildings by bringing these spaces up to residential code.

Question 18

Certificate of Occupancy (CO)

Accepted Answer

A document issued by a local government agency or building department certifying a building's compliance with applicable building codes and other laws.

Question 19

Land Lease

Accepted Answer

A long-term lease agreement that allows the tenant to use a piece of land owned by the landlord.

Question 20

Zoning

Accepted Answer

The legislative process for dividing land into zones for different purposes such as residential, commercial, and industrial.

Question 21

Floor Area Ratio (FAR)

Accepted Answer

The total square feet of a building divided by the total square feet of the lot that the building is located on.

Question 22

Triple Net Lease (NNN)

Accepted Answer

A lease agreement where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance on the property in addition to any normal fees.

Question 23

Tenant in Common (TIC)

Accepted Answer

A type of ownership in which two or more people have an undivided fractional interest in property.

Question 24

Joint Tenancy

Accepted Answer

A legal arrangement in which two or more people own a property together, each with equal rights and obligations.

Question 25

Listing Agreement

Accepted Answer

A contract between a real estate broker and a seller of real property granting the broker the authority to act as the seller's agent in the sale of the property.

Question 26

Capital Gains Tax

Accepted Answer

The tax on the profit from the sale of a property or an investment.

Question 27

Depreciation

Accepted Answer

An income tax deduction that allows a taxpayer to recover the cost of property over time.

Question 28

Appraisal

Accepted Answer

An estimation of a property's value by a licensed professional appraiser.

Question 29

Contingency

Accepted Answer

A clause in a real estate contract specifying conditions that must be met for the contract to be executed.

Question 30

Lien

Accepted Answer

A legal claim or a "hold" on a property, as security for a debt or charge.

Question 31

Property Tax

Accepted Answer

A tax on the value of a property, levied by the local government.

Question 32

Transfer Tax

Accepted Answer

A tax on the passing of title to property from one person (or entity) to another.

Question 33

Mortgage

Accepted Answer

A legal agreement by which a bank lends money at interest in exchange for taking the title of the debtor's property.

Question 34

Adjustable-Rate Mortgage (ARM)

Accepted Answer

A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.

Question 35

Fixed-Rate Mortgage

Accepted Answer

A type of mortgage where the interest rate does not change over the term of the loan.

Question 36

Homeowners Association (HOA)

Accepted Answer

An organization in a planned community that makes and enforces rules for the properties and their residents.

Question 37

Fiduciary Duty

Accepted Answer

A legal duty to act solely in another party's interests, which applies to agents towards their clients in a real estate transaction.

Question 38

Broker's Price Opinion (BPO)

Accepted Answer

An estimate of the probable selling price of a property, as performed by a real estate broker.

Question 39

Walk-through

Accepted Answer

The final inspection of a property before closing on a sale, to ensure that all agreed-upon repairs or improvements have been completed.

Question 40

Equity

Accepted Answer

The difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

Question 41

Deed

Accepted Answer

A legal document that transfers ownership of a property from one party to another.

Question 42

Underwriting

Accepted Answer

The process by which a lender evaluates the risk of a potential loan and decides whether to move forward with the loan and under what terms.

Advanced New York Real Estate Terminology Flashcards