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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. An ___ is a limitation on your rights
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Package Loan
encumbrance
tenancy in common
2. 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.
Balloon loan
Zoning
General Agency
encumbrance
3. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
estoppel
Reverse annuity
The secondary
conforming loans.
4. One who acquires property under a deed is....
a grante
Blanket Loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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
5. ___ 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.
Vendee's Lien
An encumbrance
writ of execution
Errors & Omissions insurance
6. Common law does not always takes precedence over...
Statutory law
a property exchange.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Balloon loan
7. On income producing property land can never be depreciated for...
income tax purposes
Radon
Alienation clause
Defeasance
8. Property Manager ( which type of Agency)
Blanket
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General Agency
EMFs
9. Partially amortized loan - benefit
encumbrance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
lower interest rate
the cash price or the APR
10. ___market is where lenders go for money
Tenancy by the Entirety
Balloon loan
Fannie Mae - Freddie Mac and Ginnie Mae.
The secondary
11. Includes real property plus personal property
Package Loan
the cash price or the APR
conforming loans.
3
12. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Zoning
rescission
stigmatized
grow - stabilize - decline - revitalize
13. 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.
Defeasance
Mitigation
estoppel
Total amount - Certificate amount x 4 = approved maximum loan amount
14. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
encumbrance
ostensible agency
25%
writ of execution
15. ___ gives the agent the power to perform only specific acts and no others.
$4000.
Special or limited agency
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Statutory law
16. The insurance on the FHA loan is referred to as___
The trustee
MIP - mortgage insurance premium
trustor
writ of execution
17. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
estoppel
Subordination clause
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
18. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
a property exchange.
25%
trustor
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
19. ___loan - Covers more than one piece of property
Total amount - Certificate amount x 4 = approved maximum loan amount
Blanket
alimony - child support or a pension plan.
Radon
20. This will not impact of the seller's credit rating.
General
straight assumption
estoppel
The trustee
21. Loans qualified to be purchased in the secondary market are called __
conforming loans.
Blanket Loan
25%
General Agency
22. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
An encumbrance
Radon
Statutory law
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
23. __ clause - states that the lien is defeated when the debt is repaid.
trustor
the cash price or the APR
It is a right in land and should be created in writing and recorded.
Defeasance
24. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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25. Ownership by two or more without rights of survivorship is called
estoppel
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
25%
tenancy in common
26. '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?
stigmatized
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
EMFs
27. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
writ of execution
grow - stabilize - decline - revitalize
Those on a fixed income
General Agency
28. The minimum withdrawal from a home equity LOC is
$4000.
alimony - child support or a pension plan.
estoppel
General Agency
29. Which of the following instruments is the promise to repay a debt?
General Agency
Alienation clause
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Blanket Loan
30. 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.
writ of execution
the cash price or the APR
Zoning
Statutory law
31. Advantages of FHA loans
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32. IN Reg Z Advertising which states only __is permitted
Zoning
the cash price or the APR
General Agency
grow - stabilize - decline - revitalize
33. An agent's duties to his principal are...
Defeasance
husband and wife
Statutory law
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
34. IRS Lein - Specific lein or general lein
rescission
General
Tenancy by the Entirety
$4000.
35. The veteran must obtain a Certificate of Eligibility from the VA
conforming loans.
An encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
36. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
a power of attorney
alimony - child support or a pension plan.
EMFs
37. Lenders can deny credit if your sole source of income is__
Alienation clause
alimony - child support or a pension plan.
EMFs
husband and wife
38. The deed of trust involves three parties...
conomic obsolescence
Redlining
a power of attorney
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
39. ___ is a loss of value due to outside factors. This is also called external obsolescence. It is incurable. (zoning - air pollution - noise - traffic - jobs - etc.)
Mitigation
conforming loans.
General
conomic obsolescence
40. An attorney-in-fact is the holder of...
a power of attorney
EMFs
Subordination clause
conforming loans.
41. Must sign the Deed of Trust.
trustor
Subordination clause
Balloon loan
3
42. __ "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.
An encumbrance
Alienation clause
lower interest rate
ostensible agency
43. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
conforming loans
Trustee's Deed
Zoning
44. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
General
Radon
a grante
45. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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46. A person who has real property willed to her by a relative is said to acquire title by...
stigmatized
devise
10%
a grante
47. High tension wire should be disclosed
EMFs
a property exchange.
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
48. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
It is a right in land and should be created in writing and recorded.
trustor
a property exchange.
3
49. Broker- Salesperson - owner-property manager-> which agency?
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.
General Agency
grow - stabilize - decline - revitalize
stigmatized
50. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Vendee's Lien
Statutory law
Radon
Tenancy by the Entirety