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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
a grante
Radon
Defeasance
grow - stabilize - decline - revitalize
2. Real estate investors can defer taxation of capital gains by making ___
estoppel
husband and wife
It is a right in land and should be created in writing and recorded.
a property exchange.
3. 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.
income tax purposes
Reverse annuity
trustor
Balloon loan
4. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
It is a right in land and should be created in writing and recorded.
straight assumption
Tenancy by the Entirety
5. __ is a specific type of joint tenancy where the co-owners are husband and wife.
trustor
$4000.
Tenancy by the Entirety
The secondary
6. A person who has real property willed to her by a relative is said to acquire title by...
Those on a fixed income
devise
The trustee
Zoning
7. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
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
conforming loans.
8. Must sign the Deed of Trust.
trustor
General Agency
husband and wife
devise
9. Partially amortized loan - benefit
Zoning
lower interest rate
Defeasance
a power of attorney
10. Loans qualified to be purchased in the secondary market are called
straight assumption
General Agency
conforming loans
It is a right in land and should be created in writing and recorded.
11. IRS Lein - Specific lein or general lein
Reverse annuity
lower interest rate
General
Radon
12. ___ gives the agent the power to perform only specific acts and no others.
devise
Reverse annuity
Special or limited agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
13. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
lower interest rate
encumbrance
Mitigation
tenancy in common
14. __ clause - states that the lien is defeated when the debt is repaid.
tenancy in common
Total amount - Certificate amount x 4 = approved maximum loan amount
Defeasance
Mitigation
15. Covers more than one piece of property. (several lots on one note)
Fannie Mae - Freddie Mac and Ginnie Mae.
Blanket Loan
Alienation clause
trustor
16. An agent's duties to his principal are...
Vendee's Lien
3
estate for years
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
17. Broker- Salesperson - owner-property manager-> which agency?
In a straight assumption - the new buyer is approved - and takes over payments and liability
It is a right in land and should be created in writing and recorded.
General Agency
25%
18. Which of the following instruments is the promise to repay a debt?
tenancy in common
estoppel
devise
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
19. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
a power of attorney
trustor
Reverse annuity
income tax purposes
20. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
encumbrance
husband and wife
General Agency
tenancy in common
21. 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.
tenancy in common
Zoning
EMFs
Special or limited agency
22. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Zoning
a grante
Subordination clause
23. ___ is created when a licensee acts like an agent and others respond to those actions.
encumbrance
ostensible agency
tenancy in common
Special or limited agency
24. This will not impact of the seller's credit rating.
Alienation clause
Radon
straight assumption
writ of execution
25. ___ 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.
a property exchange.
It is a right in land and should be created in writing and recorded.
tenancy in common
Errors & Omissions insurance
26. The deed of trust involves three parties...
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 (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Trustee's Deed
encumbrance
27. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
Trustee's Deed
a power of attorney
Special or limited agency
28. Common law does not always takes precedence over...
Statutory law
conomic obsolescence
Fannie Mae - Freddie Mac and Ginnie Mae.
writ of execution
29. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Reverse annuity
the cash price or the APR
Trustee's Deed
30. One who acquires property under a deed is....
a grante
conomic obsolescence
Balloon loan
$4000.
31. Advantages of FHA loans
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32. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Vendee's Lien
conforming loans.
Radon
encumbrance
33. An attorney-in-fact is the holder of...
Subordination clause
devise
income tax purposes
a power of attorney
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?
Alienation clause
Subordination clause
Blanket
conforming loans.
35. 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.
Redlining
Fannie Mae - Freddie Mac and Ginnie Mae.
estoppel
Zoning
36. On income producing property land can never be depreciated for...
Reverse annuity
conforming loans
devise
income tax purposes
37. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Alienation clause
10%
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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
38. The secondary market warehousing agencies are...
Trustee's Deed
General Agency
Blanket
Fannie Mae - Freddie Mac and Ginnie Mae.
39. Includes real property plus personal property
Package Loan
lower interest rate
devise
husband and wife
40. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Trustee's Deed
writ of execution
3
Reverse annuity
41. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Blanket
In a straight assumption - the new buyer is approved - and takes over payments and liability
Subordination clause
Balloon loan
42. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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43. High tension wire should be disclosed
lower interest rate
rescission
Vendee's Lien
EMFs
44. Lenders can deny credit if your sole source of income is__
In a straight assumption - the new buyer is approved - and takes over payments and liability
lower interest rate
Statutory law
alimony - child support or a pension plan.
45. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
devise
a property exchange.
lower interest rate
46. An ___ is a limitation on your rights
ostensible agency
by ratification.
encumbrance
Balloon loan
47. The trustee has two functions in accordance with the Deed of Trust.
a grante
1. Release the lien when the note is paid. 2. Foreclose in the event of default
The trustee
General Agency
48. ___market is where lenders go for money
Blanket
estoppel
The secondary
conforming loans.
49. Loans qualified to be purchased in the secondary market are called __
conforming loans.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
income tax purposes
50. __ "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.
grow - stabilize - decline - revitalize
Blanket
Alienation clause
trustor