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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. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
husband and wife
grow - stabilize - decline - revitalize
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
2. ___market is where lenders go for money
Total amount - Certificate amount x 4 = approved maximum loan amount
The secondary
alimony - child support or a pension plan.
Those on a fixed income
3. ___ is a limitation on your rights. It may also be a cloud on the title
Zoning
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.
An encumbrance
estate for years
4. This will not impact of the seller's credit rating.
Defeasance
straight assumption
the cash price or the APR
General Agency
5. Property Manager ( which type of Agency)
$4000.
General Agency
straight assumption
ostensible agency
6. ___ 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.)
Package Loan
conomic obsolescence
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.
$4000.
7. An attorney-in-fact is the holder of...
a power of attorney
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
encumbrance
General Agency
8. ___ 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.
Errors & Omissions insurance
Reverse annuity
EMFs
Alienation clause
9. An ___ is a limitation on your rights
Alienation clause
Subordination clause
alimony - child support or a pension plan.
encumbrance
10. __ clause - states that the lien is defeated when the debt is repaid.
25%
trustor
Those on a fixed income
Defeasance
11. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
the cash price or the APR
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
lower interest rate
by ratification.
12. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
lower interest rate
Reverse annuity
by ratification.
13. Loan novation?
Balloon loan
grow - stabilize - decline - revitalize
devise
In a straight assumption - the new buyer is approved - and takes over payments and liability
14. The secondary market warehousing agencies are...
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.
Deed Restrictions
Fannie Mae - Freddie Mac and Ginnie Mae.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
15. This lease survives death and/or the sale of the property. No notice is required to terminate.
25%
estate for years
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.
16. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
lower interest rate
The trustee
Redlining
General
17. The minimum withdrawal from a home equity LOC is
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
$4000.
estoppel
a property exchange.
18. High tension wire should be disclosed
The trustee
EMFs
General Agency
ostensible agency
19. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
In a straight assumption - the new buyer is approved - and takes over payments and liability
writ of execution
10%
Special or limited agency
20. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
conforming loans.
rescission
straight assumption
Reverse annuity
21. The insurance on the FHA loan is referred to as___
income tax purposes
rescission
MIP - mortgage insurance premium
Trustee's Deed
22. One who acquires property under a deed is....
Total amount - Certificate amount x 4 = approved maximum loan amount
stigmatized
devise
a grante
23. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
stigmatized
25%
the cash price or the APR
24. 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
Redlining
Reverse annuity
Vendee's Lien
25. __ is a specific type of joint tenancy where the co-owners are husband and wife.
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.
3
Tenancy by the Entirety
It is a right in land and should be created in writing and recorded.
26. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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27. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
devise
the cash price or the APR
25%
Radon
28. ____ - the refusal to lend in a particular geographic area - is prohibited.
Balloon loan
Redlining
Those on a fixed income
Blanket Loan
29. A property where there has been a murder or alleged haunting is called...
3
grow - stabilize - decline - revitalize
stigmatized
estoppel
30. Covers more than one piece of property. (several lots on one note)
Blanket Loan
grow - stabilize - decline - revitalize
Reverse annuity
estate for years
31. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Statutory law
Errors & Omissions insurance
EMFs
Radon
32. ___ gives the agent the power to perform only specific acts and no others.
rescission
Special or limited agency
conforming loans
Trustee's Deed
33. ___loan - Covers more than one piece of property
encumbrance
Blanket
a power of attorney
conforming loans.
34. On income producing property land can never be depreciated for...
grow - stabilize - decline - revitalize
Zoning
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
income tax purposes
35. For what group of buyers would the ARM be the least desirable?
grow - stabilize - decline - revitalize
husband and wife
3
Those on a fixed income
36. The deed of trust involves three parties...
Redlining
An encumbrance
alimony - child support or a pension plan.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
37. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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38. Must sign the Deed of Trust.
estoppel
Tenancy by the Entirety
Mitigation
trustor
39. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
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.
conforming loans.
Tenancy by the Entirety
Subordination clause
40. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Special or limited agency
conforming loans.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
41. Real estate investors can defer taxation of capital gains by making ___
25%
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.
writ of execution
42. 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.
Alienation clause
Balloon loan
conforming loans.
income tax purposes
43. An agent's duties to his principal are...
10%
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General
44. What is easment?
It is a right in land and should be created in writing and recorded.
Subordination clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Balloon loan
45. __ "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.
grow - stabilize - decline - revitalize
Alienation clause
Redlining
a property exchange.
46. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
grow - stabilize - decline - revitalize
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
3
Zoning
47. The trustee has two functions in accordance with the Deed of Trust.
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
$4000.
48. 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.
Tenancy by the Entirety
Statutory law
Total amount - Certificate amount x 4 = approved maximum loan amount
estoppel
49. Includes real property plus personal property
An encumbrance
the cash price or the APR
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.
Package Loan
50. A person who has real property willed to her by a relative is said to acquire title by...
encumbrance
the cash price or the APR
writ of execution
devise