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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. This lease survives death and/or the sale of the property. No notice is required to terminate.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Radon
estate for years
An encumbrance
2. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Alienation clause
husband and wife
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Radon
3. ____ - the refusal to lend in a particular geographic area - is prohibited.
It is a right in land and should be created in writing and recorded.
Redlining
the cash price or the APR
Total amount - Certificate amount x 4 = approved maximum loan amount
4. High tension wire should be disclosed
EMFs
estoppel
a property exchange.
Balloon loan
5. __ clause - states that the lien is defeated when the debt is repaid.
a grante
The trustee
Defeasance
An encumbrance
6. Loans qualified to be purchased in the secondary market are called
In a straight assumption - the new buyer is approved - and takes over payments and liability
Tenancy by the Entirety
Trustee's Deed
conforming loans
7. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
ostensible agency
Subordination clause
25%
8. A principal's duties to an agent ar...
ostensible agency
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
9. Which of the following instruments is the promise to repay a debt?
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Alienation clause
devise
10. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
straight assumption
grow - stabilize - decline - revitalize
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
11. IN Reg Z Advertising which states only __is permitted
3
the cash price or the APR
husband and wife
Subordination clause
12. The minimum withdrawal from a home equity LOC is
$4000.
Reverse annuity
10%
25%
13. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
grow - stabilize - decline - revitalize
3
Special or limited agency
14. ___loan - Covers more than one piece of property
General Agency
grow - stabilize - decline - revitalize
devise
Blanket
15. ___market is where lenders go for money
Errors & Omissions insurance
Mitigation
The secondary
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
16. 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.
The trustee
Zoning
straight assumption
Deed Restrictions
17. 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.
straight assumption
estoppel
stigmatized
MIP - mortgage insurance premium
18. An attorney-in-fact is the holder of...
a power of attorney
alimony - child support or a pension plan.
It is a right in land and should be created in writing and recorded.
Errors & Omissions insurance
19. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
An encumbrance
rescission
Trustee's Deed
Deed Restrictions
20. Advantages of FHA loans
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21. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Blanket
Subordination clause
Balloon loan
22. What is easment?
by ratification.
It is a right in land and should be created in writing and recorded.
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
23. Common law does not always takes precedence over...
Zoning
Statutory law
The trustee
The secondary
24. An ___ is a limitation on your rights
writ of execution
a power of attorney
rescission
encumbrance
25. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
alimony - child support or a pension plan.
writ of execution
Those on a fixed income
26. ___ 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.)
3
conomic obsolescence
Those on a fixed income
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
27. ___ is a limitation on your rights. It may also be a cloud on the title
devise
Mitigation
An encumbrance
Balloon loan
28. Must sign the Deed of Trust.
Trustee's Deed
devise
lower interest rate
trustor
29. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
General Agency
Fannie Mae - Freddie Mac and Ginnie Mae.
General
Reverse annuity
30. __ "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.
Package Loan
Alienation clause
Errors & Omissions insurance
by ratification.
31. There are four basic characteristics of value
Zoning
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
MIP - mortgage insurance premium
conforming loans.
32. Partially amortized loan - benefit
trustor
Statutory law
devise
lower interest rate
33. Ownership by two or more without rights of survivorship is called
grow - stabilize - decline - revitalize
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
tenancy in common
Zoning
34. 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.
It is a right in land and should be created in writing and recorded.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
alimony - child support or a pension plan.
Balloon loan
35. A property where there has been a murder or alleged haunting is called...
Redlining
General Agency
encumbrance
stigmatized
36. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
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.
Errors & Omissions insurance
Reverse annuity
37. '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
Those on a fixed income
estate for years
1. Release the lien when the note is paid. 2. Foreclose in the event of default
38. IRS Lein - Specific lein or general lein
An encumbrance
Reverse annuity
General
3
39. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Vendee's Lien
It is a right in land and should be created in writing and recorded.
alimony - child support or a pension plan.
The trustee
40. The secondary market warehousing agencies are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Redlining
General Agency
Fannie Mae - Freddie Mac and Ginnie Mae.
41. Lenders can deny credit if your sole source of income is__
General Agency
Blanket
Blanket Loan
alimony - child support or a pension plan.
42. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
a power of attorney
3
income tax purposes
43. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
The secondary
Radon
writ of execution
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
44. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Those on a fixed income
Special or limited agency
Radon
45. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
10%
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.
46. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
by ratification.
a property exchange.
In a straight assumption - the new buyer is approved - and takes over payments and liability
47. A person who has real property willed to her by a relative is said to acquire title by...
devise
Trustee's Deed
encumbrance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
48. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Redlining
Reverse annuity
by ratification.
husband and wife
49. Real estate investors can defer taxation of capital gains by making ___
a grante
conomic obsolescence
a property exchange.
conforming loans
50. Covers more than one piece of property. (several lots on one note)
conforming loans.
Blanket Loan
writ of execution
MIP - mortgage insurance premium