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