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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 trustee has two functions in accordance with the Deed of Trust.
lower interest rate
Statutory law
a grante
1. Release the lien when the note is paid. 2. Foreclose in the event of default
2. This will not impact of the seller's credit rating.
stigmatized
An encumbrance
straight assumption
EMFs
3. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
3
General
EMFs
4. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Tenancy by the Entirety
estate for years
Mitigation
a grante
5. 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.
Deed Restrictions
lower interest rate
rescission
Balloon loan
6. __ "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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
conforming loans.
The trustee
7. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
EMFs
The trustee
encumbrance
a grante
8. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
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
tenancy in common
by ratification.
9. One who acquires property under a deed is....
a grante
Blanket Loan
Fannie Mae - Freddie Mac and Ginnie Mae.
The trustee
10. Advantages of FHA loans
11. What is easment?
conomic obsolescence
Tenancy by the Entirety
encumbrance
It is a right in land and should be created in writing and recorded.
12. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Errors & Omissions insurance
3
rescission
conomic obsolescence
13. The secondary market warehousing agencies are...
MIP - mortgage insurance premium
stigmatized
Package Loan
Fannie Mae - Freddie Mac and Ginnie Mae.
14. ___loan - Covers more than one piece of property
Those on a fixed income
An encumbrance
Blanket
The secondary
15. __ clause - states that the lien is defeated when the debt is repaid.
husband and wife
estoppel
Radon
Defeasance
16. ___ 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
Reverse annuity
Mitigation
conomic obsolescence
17. Property Manager ( which type of Agency)
General Agency
rescission
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
Package Loan
18. An agent's duties to his principal are...
Vendee's Lien
In a straight assumption - the new buyer is approved - and takes over payments and liability
An encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
19. Ownership by two or more without rights of survivorship is called
Trustee's Deed
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Fannie Mae - Freddie Mac and Ginnie Mae.
tenancy in common
20. High tension wire should be disclosed
EMFs
Vendee's Lien
The trustee
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
21. 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.
Alienation clause
rescission
Tenancy by the Entirety
estoppel
22. Broker- Salesperson - owner-property manager-> which agency?
ostensible agency
conomic obsolescence
It is a right in land and should be created in writing and recorded.
General Agency
23. Loans qualified to be purchased in the secondary market are called __
The trustee
conforming loans.
Alienation clause
income tax purposes
24. An ___ is a limitation on your rights
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.
Reverse annuity
Vendee's Lien
encumbrance
25. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
10%
Errors & Omissions insurance
Reverse annuity
26. Includes real property plus personal property
Package Loan
The trustee
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Defeasance
27. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
An encumbrance
3
General Agency
28. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
estoppel
alimony - child support or a pension plan.
MIP - mortgage insurance premium
29. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
a property exchange.
rescission
25%
$4000.
30. Covers more than one piece of property. (several lots on one note)
devise
income tax purposes
10%
Blanket Loan
31. ___ are imposed to control land use - development and methods and materials for construction.
grow - stabilize - decline - revitalize
Zoning
Deed Restrictions
It is a right in land and should be created in writing and recorded.
32. Partially amortized loan - benefit
lower interest rate
Special or limited agency
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
income tax purposes
33. Real estate investors can defer taxation of capital gains by making ___
Alienation clause
lower interest rate
a property exchange.
3
34. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
An encumbrance
Package Loan
husband and wife
Trustee's Deed
35. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Alienation clause
Redlining
The trustee
36. A property where there has been a murder or alleged haunting is called...
rescission
encumbrance
It is a right in land and should be created in writing and recorded.
stigmatized
37. The deed of trust involves three parties...
Redlining
Total amount - Certificate amount x 4 = approved maximum loan amount
tenancy in common
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
38. IN Reg Z Advertising which states only __is permitted
Subordination clause
Deed Restrictions
the cash price or the APR
Package Loan
39. 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.
encumbrance
Radon
Zoning
Alienation clause
40. ___ 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.
estate for years
Errors & Omissions insurance
25%
straight assumption
41. A person who has real property willed to her by a relative is said to acquire title by...
devise
tenancy in common
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
ostensible agency
42. Lenders can deny credit if your sole source of income is__
Vendee's Lien
a property exchange.
alimony - child support or a pension plan.
It is a right in land and should be created in writing and recorded.
43. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
44. An attorney-in-fact is the holder of...
General Agency
a power of attorney
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.
encumbrance
45. ___ is a limitation on your rights. It may also be a cloud on the title
The secondary
An encumbrance
lower interest rate
Alienation clause
46. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
MIP - mortgage insurance premium
grow - stabilize - decline - revitalize
It is a right in land and should be created in writing and recorded.
47. A principal's duties to an agent ar...
Package Loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Mitigation
estate for years
48. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
49. '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?
straight assumption
Defeasance
Alienation clause
General Agency
50. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Redlining
Total amount - Certificate amount x 4 = approved maximum loan amount
husband and wife
Reverse annuity