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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. ___ 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.
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount
Errors & Omissions insurance
conforming loans
2. Common law does not always takes precedence over...
Statutory law
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
3
ostensible agency
3. Which of the following instruments is the promise to repay a debt?
straight assumption
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
rescission
Balloon loan
4. __ clause - states that the lien is defeated when the debt is repaid.
straight assumption
Blanket Loan
Defeasance
Package Loan
5. For what group of buyers would the ARM be the least desirable?
Zoning
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Those on a fixed income
Statutory law
6. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
tenancy in common
encumbrance
conforming loans
25%
7. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Redlining
a power of attorney
10%
Zoning
8. __ "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
estoppel
General Agency
Blanket
9. On income producing property land can never be depreciated for...
Mitigation
rescission
Special or limited agency
income tax purposes
10. An attorney-in-fact is the holder of...
encumbrance
Redlining
conomic obsolescence
a power of attorney
11. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Statutory law
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.
Mitigation
conomic obsolescence
12. Covers more than one piece of property. (several lots on one note)
Blanket Loan
Vendee's Lien
encumbrance
General Agency
13. IN Reg Z Advertising which states only __is permitted
conforming loans.
conomic obsolescence
a grante
the cash price or the APR
14. Advantages of FHA loans
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15. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
The trustee
EMFs
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
16. High tension wire should be disclosed
It is a right in land and should be created in writing and recorded.
EMFs
1. Release the lien when the note is paid. 2. Foreclose in the event of default
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
17. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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18. Property Manager ( which type of Agency)
Errors & Omissions insurance
Statutory law
Zoning
General Agency
19. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
alimony - child support or a pension plan.
straight assumption
General Agency
grow - stabilize - decline - revitalize
20. The deed of trust involves three parties...
Mitigation
by ratification.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Package Loan
21. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
conforming loans.
3
a grante
writ of execution
22. A person who has real property willed to her by a relative is said to acquire title by...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
devise
Zoning
General
23. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
straight assumption
The trustee
General Agency
rescission
24. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
The trustee
Statutory law
stigmatized
25. A property where there has been a murder or alleged haunting is called...
stigmatized
$4000.
Balloon loan
rescission
26. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
rescission
Balloon loan
devise
27. Broker- Salesperson - owner-property manager-> which agency?
conomic obsolescence
Reverse annuity
General Agency
a property exchange.
28. One who acquires property under a deed is....
a grante
General Agency
Errors & Omissions insurance
Deed Restrictions
29. Ownership by two or more without rights of survivorship is called
tenancy in common
a power of attorney
a property exchange.
Subordination clause
30. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
In a straight assumption - the new buyer is approved - and takes over payments and liability
a power of attorney
lower interest rate
31. Loans qualified to be purchased in the secondary market are called __
a grante
by ratification.
conforming loans.
tenancy in common
32. This lease survives death and/or the sale of the property. No notice is required to terminate.
General
In a straight assumption - the new buyer is approved - and takes over payments and liability
estate for years
stigmatized
33. The trustee has two functions in accordance with the Deed of Trust.
The secondary
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Blanket
Balloon loan
34. '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?
writ of execution
by ratification.
Alienation clause
devise
35. ___ 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
Zoning
estoppel
Those on a fixed income
36. Includes real property plus personal property
Statutory law
Package Loan
income tax purposes
husband and wife
37. ___ is created when a licensee acts like an agent and others respond to those actions.
estoppel
ostensible agency
conomic obsolescence
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
38. Partially amortized loan - benefit
MIP - mortgage insurance premium
lower interest rate
25%
the cash price or the APR
39. ___ are imposed to control land use - development and methods and materials for construction.
encumbrance
rescission
by ratification.
Deed Restrictions
40. Loans qualified to be purchased in the secondary market are called
Those on a fixed income
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conforming loans
the cash price or the APR
41. Must sign the Deed of Trust.
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
trustor
Reverse annuity
42. An agent's duties to his principal are...
income tax purposes
Those on a fixed income
$4000.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
43. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Package Loan
income tax purposes
Special or limited agency
The trustee
44. 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.
Defeasance
Trustee's Deed
Balloon loan
It is a right in land and should be created in writing and recorded.
45. 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.
Subordination clause
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
estoppel
EMFs
46. ___ is a limitation on your rights. It may also be a cloud on the title
Total amount - Certificate amount x 4 = approved maximum loan amount
An encumbrance
Alienation clause
General Agency
47. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Reverse annuity
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Tenancy by the Entirety
48. Lenders can deny credit if your sole source of income is__
Alienation clause
by ratification.
trustor
alimony - child support or a pension plan.
49. This will not impact of the seller's credit rating.
Zoning
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.
straight assumption
General
50. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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