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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. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Reverse annuity
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Tenancy by the Entirety
2. This lease survives death and/or the sale of the property. No notice is required to terminate.
Defeasance
Balloon loan
estate for years
ostensible agency
3. Lenders can deny credit if your sole source of income is__
The secondary
stigmatized
Subordination clause
alimony - child support or a pension plan.
4. Property Manager ( which type of Agency)
encumbrance
The trustee
General Agency
conforming loans
5. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
devise
General
Those on a fixed income
6. Broker- Salesperson - owner-property manager-> which agency?
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
General Agency
Package Loan
7. ___ gives the agent the power to perform only specific acts and no others.
by ratification.
Special or limited agency
Radon
income tax purposes
8. A person who has real property willed to her by a relative is said to acquire title by...
devise
the cash price or the APR
estate for years
rescission
9. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
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.
estoppel
It is a right in land and should be created in writing and recorded.
10. __ "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.
$4000.
Alienation clause
encumbrance
a property exchange.
11. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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12. Loan novation?
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
Special or limited agency
Alienation clause
13. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Statutory law
the cash price or the APR
Package Loan
grow - stabilize - decline - revitalize
14. '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?
Alienation clause
Defeasance
conomic obsolescence
husband and wife
15. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
straight assumption
writ of execution
Blanket Loan
16. Loans qualified to be purchased in the secondary market are called __
Package Loan
General Agency
husband and wife
conforming loans.
17. IRS Lein - Specific lein or general lein
conforming loans
ostensible agency
General
Blanket
18. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Blanket Loan
conomic obsolescence
Mitigation
Blanket
19. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
conforming loans
10%
Alienation clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
20. Includes real property plus personal property
Defeasance
Package Loan
stigmatized
Total amount - Certificate amount x 4 = approved maximum loan amount
21. The insurance on the FHA loan is referred to as___
devise
a property exchange.
MIP - mortgage insurance premium
Defeasance
22. 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.
10%
Zoning
General Agency
Alienation clause
23. An ___ is a limitation on your rights
In a straight assumption - the new buyer is approved - and takes over payments and liability
encumbrance
conforming loans
EMFs
24. ___ 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.
conforming loans
lower interest rate
a property exchange.
Errors & Omissions insurance
25. Loans qualified to be purchased in the secondary market are called
Balloon loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conforming loans
conforming loans.
26. Must sign the Deed of Trust.
trustor
In a straight assumption - the new buyer is approved - and takes over payments and liability
rescission
encumbrance
27. Partially amortized loan - benefit
stigmatized
General
lower interest rate
25%
28. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
income tax purposes
stigmatized
EMFs
29. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
Those on a fixed income
Vendee's Lien
Subordination clause
30. ____ - the refusal to lend in a particular geographic area - is prohibited.
encumbrance
grow - stabilize - decline - revitalize
ostensible agency
Redlining
31. What is easment?
estate for years
income tax purposes
It is a right in land and should be created in writing and recorded.
conomic obsolescence
32. __ is a specific type of joint tenancy where the co-owners are husband and wife.
a power of attorney
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
Subordination clause
Tenancy by the Entirety
33. ___ are imposed to control land use - development and methods and materials for construction.
Alienation clause
Deed Restrictions
conforming loans.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
34. This will not impact of the seller's credit rating.
straight assumption
income tax purposes
Radon
estate for years
35. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
Special or limited agency
EMFs
1. Release the lien when the note is paid. 2. Foreclose in the event of default
36. 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.
Package Loan
estoppel
trustor
It is a right in land and should be created in writing and recorded.
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
ostensible agency
lower interest rate
writ of execution
38. High tension wire should be disclosed
EMFs
Redlining
Statutory law
Balloon loan
39. A property where there has been a murder or alleged haunting is called...
10%
conomic obsolescence
3
stigmatized
40. A principal's duties to an agent ar...
Statutory law
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Subordination clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
41. The minimum withdrawal from a home equity LOC is
25%
$4000.
Total amount - Certificate amount x 4 = approved maximum loan amount
tenancy in common
42. IN Reg Z Advertising which states only __is permitted
Deed Restrictions
It is a right in land and should be created in writing and recorded.
the cash price or the APR
Total amount - Certificate amount x 4 = approved maximum loan amount
43. Covers more than one piece of property. (several lots on one note)
The trustee
Tenancy by the Entirety
Blanket Loan
Reverse annuity
44. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
trustor
3
ostensible agency
General
45. ___ 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.)
Vendee's Lien
Defeasance
conomic obsolescence
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
46. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
a property exchange.
rescission
Package Loan
Errors & Omissions insurance
47. The deed of trust involves three parties...
Fannie Mae - Freddie Mac and Ginnie Mae.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Zoning
conforming loans
48. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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49. 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
10%
Vendee's Lien
trustor
50. ___loan - Covers more than one piece of property
Blanket
Those on a fixed income
conforming loans
Mitigation