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