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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
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
straight assumption
10%
grow - stabilize - decline - revitalize
2. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
a power of attorney
Zoning
3
straight assumption
3. Covers more than one piece of property. (several lots on one note)
The trustee
income tax purposes
Blanket Loan
ostensible agency
4. ___ 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
Blanket
3
Total amount - Certificate amount x 4 = approved maximum loan amount
5. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
estate for years
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
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.
Alienation clause
Fannie Mae - Freddie Mac and Ginnie Mae.
trustor
lower interest rate
7. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Blanket Loan
by ratification.
tenancy in common
In a straight assumption - the new buyer is approved - and takes over payments and liability
8. One who acquires property under a deed is....
Special or limited agency
General
a grante
income tax purposes
9. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
husband and wife
MIP - mortgage insurance premium
conomic obsolescence
10. Includes real property plus personal property
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Radon
a grante
Package Loan
11. 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
1. Release the lien when the note is paid. 2. Foreclose in the event of default
writ of execution
Balloon loan
12. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
estoppel
husband and wife
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
13. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
$4000.
estoppel
EMFs
14. 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
a power of attorney
Reverse annuity
income tax purposes
15. 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.
husband and wife
EMFs
estoppel
stigmatized
16. A property where there has been a murder or alleged haunting is called...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
devise
stigmatized
Statutory law
17. Loans qualified to be purchased in the secondary market are called __
Redlining
conforming loans.
An encumbrance
lower interest rate
18. Must sign the Deed of Trust.
trustor
Reverse annuity
The trustee
Subordination clause
19. ___loan - Covers more than one piece of property
Subordination clause
Blanket Loan
Blanket
by ratification.
20. The secondary market warehousing agencies are...
10%
Fannie Mae - Freddie Mac and Ginnie Mae.
Blanket Loan
Alienation clause
21. The veteran must obtain a Certificate of Eligibility from the VA
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Deed Restrictions
Total amount - Certificate amount x 4 = approved maximum loan amount
22. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
Balloon loan
General Agency
Tenancy by the Entirety
23. An ___ is a limitation on your rights
Errors & Omissions insurance
conomic obsolescence
EMFs
encumbrance
24. The insurance on the FHA loan is referred to as___
income tax purposes
a property exchange.
MIP - mortgage insurance premium
1. Release the lien when the note is paid. 2. Foreclose in the event of default
25. ___ is created when a licensee acts like an agent and others respond to those actions.
Deed Restrictions
Blanket
ostensible agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
26. 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.
estate for years
MIP - mortgage insurance premium
Blanket Loan
Balloon loan
27. Which of the following instruments is the promise to repay a debt?
Deed Restrictions
The trustee
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Errors & Omissions insurance
28. An attorney-in-fact is the holder of...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a power of attorney
tenancy in common
Package Loan
29. ____ - the refusal to lend in a particular geographic area - is prohibited.
conforming loans.
Fannie Mae - Freddie Mac and Ginnie Mae.
Mitigation
Redlining
30. A person who has real property willed to her by a relative is said to acquire title by...
An encumbrance
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
devise
husband and wife
31. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
writ of execution
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Radon
Mitigation
32. There are four basic characteristics of value
straight assumption
Special or limited agency
estoppel
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
33. Ownership by two or more without rights of survivorship is called
EMFs
trustor
Fannie Mae - Freddie Mac and Ginnie Mae.
tenancy in common
34. ___ are imposed to control land use - development and methods and materials for construction.
Subordination clause
Package Loan
estate for years
Deed Restrictions
35. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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36. The minimum withdrawal from a home equity LOC is
Those on a fixed income
Special or limited agency
$4000.
tenancy in common
37. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
a power of attorney
writ of execution
MIP - mortgage insurance premium
Redlining
38. Common law does not always takes precedence over...
Tenancy by the Entirety
Statutory law
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
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
39. Partially amortized loan - benefit
Zoning
3
lower interest rate
Blanket Loan
40. This lease survives death and/or the sale of the property. No notice is required to terminate.
25%
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
estate for years
Mitigation
41. High tension wire should be disclosed
EMFs
MIP - mortgage insurance premium
straight assumption
writ of execution
42. ___ 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.)
Redlining
conomic obsolescence
Subordination clause
Statutory law
43. The deed of trust involves three parties...
a property exchange.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Radon
conomic obsolescence
44. Loans qualified to be purchased in the secondary market are called
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.
tenancy in common
conforming loans
Total amount - Certificate amount x 4 = approved maximum loan amount
45. ___ gives the agent the power to perform only specific acts and no others.
a power of attorney
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Special or limited agency
grow - stabilize - decline - revitalize
46. Property Manager ( which type of Agency)
stigmatized
MIP - mortgage insurance premium
General Agency
Trustee's Deed
47. __ clause - states that the lien is defeated when the debt is repaid.
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.
Defeasance
3
ostensible agency
48. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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49. On income producing property land can never be depreciated for...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Vendee's Lien
The secondary
income tax purposes
50. A principal's duties to an agent ar...
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
10%
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
straight assumption