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Test your basic knowledge |
Brokers License
Start Test
Study First
Subject
:
certifications
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. ___ gives the agent the power to perform only specific acts and no others.
estate for years
Special or limited agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Zoning
2. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
tenancy in common
a power of attorney
alimony - child support or a pension plan.
3. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
grow - stabilize - decline - revitalize
by ratification.
estoppel
$4000.
4. Includes real property plus personal property
Package Loan
T: (DUST) Demand - there must be a demand for the item and purchasing power to acquire it - Utility - the item must be needed or wanted - Scarcity - there must be a limited supply - Transferability - the item must be able to be sold - ownership right
conforming loans
Those on a fixed income
5. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Errors & Omissions insurance
25%
Qualifying ratios are slightly more lenient and LTV's (Loan to value ratios) are very high - allowing buyers with little money for a down payment to purchase a property.
straight assumption
6. The veteran must obtain a Certificate of Eligibility from the VA
lower interest rate
Errors & Omissions insurance
Total amount - Certificate amount x 4 = approved maximum loan amount
the cash price or the APR
7. Must sign the Deed of Trust.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Alienation clause
trustor
It is a right in land and should be created in writing and recorded.
8. When a principal fails to maintain due diligence over his agent and as a result the court prevents the principal from denying that agency - agency by __ is created.
estoppel
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
husband and wife
alimony - child support or a pension plan.
9. One who acquires property under a deed is....
Tenancy by the Entirety
An encumbrance
It is a right in land and should be created in writing and recorded.
a grante
10. Covers more than one piece of property. (several lots on one note)
In a straight assumption - the new buyer is approved - and takes over payments and liability
Blanket Loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
trustor
11. A principal's duties to an agent ar...
Tenancy by the Entirety
a power of attorney
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
12. IN Reg Z Advertising which states only __is permitted
The secondary
the cash price or the APR
Errors & Omissions insurance
ostensible agency
13. Loans qualified to be purchased in the secondary market are called __
25%
ostensible agency
It is a right in land and should be created in writing and recorded.
conforming loans.
14. The deed of trust involves three parties...
income tax purposes
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
It is a right in land and should be created in writing and recorded.
15. ___loan - Covers more than one piece of property
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Reverse annuity
Blanket
Qualifying ratios are slightly more lenient and LTV's (Loan to value ratios) are very high - allowing buyers with little money for a down payment to purchase a property.
16. Common law does not always takes precedence over...
In a straight assumption - the new buyer is approved - and takes over payments and liability
Statutory law
Those on a fixed income
Defeasance
17. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Blanket
In a straight assumption - the new buyer is approved - and takes over payments and liability
writ of execution
conomic obsolescence
18. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
a property exchange.
alimony - child support or a pension plan.
It is a right in land and should be created in writing and recorded.
10%
19. Ownership by two or more without rights of survivorship is called
a power of attorney
tenancy in common
ostensible agency
devise
20. Power given to a municipality to regulate and control the character and use of property for the health - safety and general welfare of the public.
Zoning
trustor
the cash price or the APR
3
21. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
General
Package Loan
estoppel
22. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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23. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
estoppel
alimony - child support or a pension plan.
conforming loans
24. This is a partially amortized loan with a final payment substantially larger than the others. The benefit of this type of loan is a lower interest rate.
The trustee
General Agency
Balloon loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
25. ___ is created when a licensee acts like an agent and others respond to those actions.
trustor
stigmatized
EMFs
ostensible agency
26. ___market is where lenders go for money
3
Statutory law
devise
The secondary
27. 'Due on sale' clause states that the balance of the secured debt becomes due if the property is sold by the mortgagor without the mortgagee's approval. It is called?
Alienation clause
estoppel
Vendee's Lien
devise
28. Real estate investors can defer taxation of capital gains by making ___
devise
a property exchange.
rescission
In a straight assumption - the new buyer is approved - and takes over payments and liability
29. An agent's duties to his principal are...
Errors & Omissions insurance
Blanket Loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
30. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Reverse annuity
husband and wife
tenancy in common
Redlining
31. What is easment?
estate for years
10%
It is a right in land and should be created in writing and recorded.
Alienation clause
32. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Errors & Omissions insurance
Mitigation
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
estoppel
33. This lease survives death and/or the sale of the property. No notice is required to terminate.
husband and wife
MIP - mortgage insurance premium
conomic obsolescence
estate for years
34. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
3
Blanket
Fannie Mae - Freddie Mac and Ginnie Mae.
The trustee
35. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
conforming loans.
a power of attorney
Radon
estoppel
36. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Package Loan
Special or limited agency
Blanket Loan
37. Broker- Salesperson - owner-property manager-> which agency?
General Agency
The secondary
Tenancy by the Entirety
Blanket
38. There are four basic characteristics of value
Reverse annuity
T: (DUST) Demand - there must be a demand for the item and purchasing power to acquire it - Utility - the item must be needed or wanted - Scarcity - there must be a limited supply - Transferability - the item must be able to be sold - ownership right
income tax purposes
Blanket Loan
39. ___ is a limitation on your rights. It may also be a cloud on the title
Radon
General Agency
An encumbrance
lower interest rate
40. The insurance on the FHA loan is referred to as___
3
MIP - mortgage insurance premium
General
10%
41. __ is a specific type of joint tenancy where the co-owners are husband and wife.
encumbrance
General Agency
Tenancy by the Entirety
Reverse annuity
42. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
the cash price or the APR
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
straight assumption
43. A property where there has been a murder or alleged haunting is called...
lower interest rate
Radon
stigmatized
conforming loans.
44. ___ can protect a broker if the seller misrepresents property condition - the broker is unaware of the misrepresentation - and could not have detected it by visual inspection.
Zoning
Defeasance
Alienation clause
Errors & Omissions insurance
45. The trustee has two functions in accordance with the Deed of Trust.
lower interest rate
General Agency
EMFs
1. Release the lien when the note is paid. 2. Foreclose in the event of default
46. A person who has real property willed to her by a relative is said to acquire title by...
rescission
General
devise
Reverse annuity
47. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Redlining
Fannie Mae - Freddie Mac and Ginnie Mae.
writ of execution
rescission
48. The secondary market warehousing agencies are...
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
Zoning
Fannie Mae - Freddie Mac and Ginnie Mae.
49. An ___ is a limitation on your rights
Vendee's Lien
conforming loans
encumbrance
ostensible agency
50. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
General Agency
Trustee's Deed
encumbrance