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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. Property Manager ( which type of Agency)
General Agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
It is a right in land and should be created in writing and recorded.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
2. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
tenancy in common
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Total amount - Certificate amount x 4 = approved maximum loan amount
3. Must sign the Deed of Trust.
Package Loan
conforming loans.
Zoning
trustor
4. __ clause - states that the lien is defeated when the debt is repaid.
estate for years
devise
Defeasance
estoppel
5. A principal's duties to an agent ar...
Errors & Omissions insurance
a grante
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
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
6. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Mitigation
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.
25%
Defeasance
7. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
8. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
straight assumption
tenancy in common
In a straight assumption - the new buyer is approved - and takes over payments and liability
9. ___loan - Covers more than one piece of property
It is a right in land and should be created in writing and recorded.
Blanket
MIP - mortgage insurance premium
Redlining
10. One who acquires property under a deed is....
Those on a fixed income
a grante
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Defeasance
11. Lenders can deny credit if your sole source of income is__
writ of execution
Redlining
alimony - child support or a pension plan.
Those on a fixed income
12. Real estate investors can defer taxation of capital gains by making ___
Errors & Omissions insurance
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
a property exchange.
13. Covers more than one piece of property. (several lots on one note)
10%
Errors & Omissions insurance
Redlining
Blanket Loan
14. Loans qualified to be purchased in the secondary market are called
Radon
Those on a fixed income
Alienation clause
conforming loans
15. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
conomic obsolescence
rescission
Balloon loan
Those on a fixed income
16. ___ gives the agent the power to perform only specific acts and no others.
The secondary
Special or limited agency
devise
income tax purposes
17. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
a property exchange.
General Agency
Those on a fixed income
Radon
18. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
General Agency
Blanket
lower interest rate
Subordination clause
19. Loan novation?
Blanket Loan
In a straight assumption - the new buyer is approved - and takes over payments and liability
Subordination clause
devise
20. 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.
25%
conforming loans.
Reverse annuity
Zoning
21. ___ is created when a licensee acts like an agent and others respond to those actions.
MIP - mortgage insurance premium
ostensible agency
Deed Restrictions
Trustee's Deed
22. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
It is a right in land and should be created in writing and recorded.
stigmatized
23. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
24. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
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
income tax purposes
Reverse annuity
tenancy in common
25. ___ 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.)
conomic obsolescence
25%
General Agency
straight assumption
26. A person who has real property willed to her by a relative is said to acquire title by...
rescission
devise
Statutory law
Blanket
27. A property where there has been a murder or alleged haunting is called...
An encumbrance
stigmatized
General Agency
tenancy in common
28. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
by ratification.
writ of execution
Those on a fixed income
Balloon loan
29. On income producing property land can never be depreciated for...
Special or limited agency
In a straight assumption - the new buyer is approved - and takes over payments and liability
income tax purposes
Those on a fixed income
30. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Deed Restrictions
encumbrance
The secondary
31. This will not impact of the seller's credit rating.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conomic obsolescence
straight assumption
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
32. There are four basic characteristics of value
husband and wife
Vendee's Lien
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
Zoning
33. 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.
lower interest rate
3
Statutory law
Balloon loan
34. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
the cash price or the APR
General
Package Loan
The trustee
35. The trustee has two functions in accordance with the Deed of Trust.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Radon
$4000.
MIP - mortgage insurance premium
36. Broker- Salesperson - owner-property manager-> which agency?
Balloon loan
encumbrance
income tax purposes
General Agency
37. Includes real property plus personal property
Vendee's Lien
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Those on a fixed income
Package Loan
38. ____ - the refusal to lend in a particular geographic area - is prohibited.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Redlining
The secondary
39. For what group of buyers would the ARM be the least desirable?
10%
ostensible agency
Those on a fixed income
Reverse annuity
40. What is easment?
The trustee
Subordination clause
It is a right in land and should be created in writing and recorded.
General Agency
41. The secondary market warehousing agencies are...
Blanket Loan
In a straight assumption - the new buyer is approved - and takes over payments and liability
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Fannie Mae - Freddie Mac and Ginnie Mae.
42. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Special or limited agency
3
$4000.
43. An attorney-in-fact is the holder of...
straight assumption
tenancy in common
MIP - mortgage insurance premium
a power of attorney
44. High tension wire should be disclosed
a property exchange.
income tax purposes
EMFs
alimony - child support or a pension plan.
45. ___market is where lenders go for money
conomic obsolescence
Alienation clause
The secondary
writ of execution
46. '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?
Those on a fixed income
$4000.
It is a right in land and should be created in writing and recorded.
Alienation clause
47. The veteran must obtain a Certificate of Eligibility from the VA
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
Total amount - Certificate amount x 4 = approved maximum loan amount
Mitigation
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
48. The deed of trust involves three parties...
rescission
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Special or limited agency
Alienation clause
49. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
the cash price or the APR
Statutory law
devise
50. An agent's duties to his principal are...
EMFs
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Tenancy by the Entirety
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4