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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. A principal's duties to an agent ar...
Statutory law
a grante
An encumbrance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
2. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
25%
conforming loans
Reverse annuity
by ratification.
3. __ "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
Errors & Omissions insurance
Defeasance
25%
4. Loans qualified to be purchased in the secondary market are called
conforming loans
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.
grow - stabilize - decline - revitalize
1. Release the lien when the note is paid. 2. Foreclose in the event of default
5. 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.
Balloon loan
Tenancy by the Entirety
lower interest rate
$4000.
6. ___ 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
husband and wife
Deed Restrictions
Trustee's Deed
7. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
$4000.
Redlining
writ of execution
General
8. Which of the following instruments is the promise to repay a debt?
encumbrance
estate for years
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Blanket Loan
9. This lease survives death and/or the sale of the property. No notice is required to terminate.
MIP - mortgage insurance premium
Those on a fixed income
General Agency
estate for years
10. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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11. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Total amount - Certificate amount x 4 = approved maximum loan amount
encumbrance
tenancy in common
Tenancy by the Entirety
12. Covers more than one piece of property. (several lots on one note)
EMFs
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
In a straight assumption - the new buyer is approved - and takes over payments and liability
Blanket Loan
13. What is easment?
It is a right in land and should be created in writing and recorded.
ostensible agency
Alienation clause
Total amount - Certificate amount x 4 = approved maximum loan amount
14. ___ are imposed to control land use - development and methods and materials for construction.
10%
Deed Restrictions
EMFs
Fannie Mae - Freddie Mac and Ginnie Mae.
15. Real estate investors can defer taxation of capital gains by making ___
writ of execution
devise
10%
a property exchange.
16. ___ gives the agent the power to perform only specific acts and no others.
EMFs
Special or limited agency
General Agency
Balloon loan
17. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Zoning
husband and wife
trustor
The secondary
18. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
rescission
Those on a fixed income
Reverse annuity
Subordination clause
19. The secondary market warehousing agencies are...
tenancy in common
the cash price or the APR
Fannie Mae - Freddie Mac and Ginnie Mae.
Defeasance
20. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
a grante
3
Deed Restrictions
EMFs
21. This will not impact of the seller's credit rating.
Redlining
Balloon loan
straight assumption
EMFs
22. The minimum withdrawal from a home equity LOC is
grow - stabilize - decline - revitalize
Deed Restrictions
straight assumption
$4000.
23. An attorney-in-fact is the holder of...
Those on a fixed income
income tax purposes
a power of attorney
General
24. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
General Agency
Special or limited agency
Mitigation
conforming loans.
25. A person who has real property willed to her by a relative is said to acquire title by...
Errors & Omissions insurance
a power of attorney
devise
the cash price or the APR
26. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
rescission
The trustee
by ratification.
Deed Restrictions
27. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Reverse annuity
conforming loans
husband and wife
Radon
28. Lenders can deny credit if your sole source of income is__
Alienation clause
Defeasance
husband and wife
alimony - child support or a pension plan.
29. There are four basic characteristics of value
a grante
Blanket
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
30. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Tenancy by the Entirety
Blanket
The trustee
31. ___market is where lenders go for money
Radon
Errors & Omissions insurance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The secondary
32. Ownership by two or more without rights of survivorship is called
MIP - mortgage insurance premium
tenancy in common
Fannie Mae - Freddie Mac and Ginnie Mae.
3
33. The veteran must obtain a Certificate of Eligibility from the VA
ostensible agency
grow - stabilize - decline - revitalize
Redlining
Total amount - Certificate amount x 4 = approved maximum loan amount
34. Includes real property plus personal property
1. Release the lien when the note is paid. 2. Foreclose in the event of default
rescission
Vendee's Lien
Package Loan
35. Broker- Salesperson - owner-property manager-> which agency?
Zoning
General 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
36. Advantages of FHA loans
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37. ____ - the refusal to lend in a particular geographic area - is prohibited.
Tenancy by the Entirety
In a straight assumption - the new buyer is approved - and takes over payments and liability
estoppel
Redlining
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.
EMFs
a property exchange.
Errors & Omissions insurance
Defeasance
39. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Tenancy by the Entirety
writ of execution
General
10%
40. ___loan - Covers more than one piece of property
$4000.
stigmatized
rescission
Blanket
41. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Statutory law
grow - stabilize - decline - revitalize
stigmatized
trustor
42. High tension wire should be disclosed
EMFs
Package Loan
a property exchange.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
43. ___ is a limitation on your rights. It may also be a cloud on the title
writ of execution
An encumbrance
trustor
Fannie Mae - Freddie Mac and Ginnie Mae.
44. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
An encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
25%
estate for years
45. Partially amortized loan - benefit
lower interest rate
General
An encumbrance
writ of execution
46. The trustee has two functions in accordance with the Deed of Trust.
alimony - child support or a pension plan.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
tenancy in common
conforming loans
47. Property Manager ( which type of Agency)
stigmatized
General 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.
Deed Restrictions
48. IRS Lein - Specific lein or general lein
MIP - mortgage insurance premium
trustor
General
Total amount - Certificate amount x 4 = approved maximum loan amount
49. ___ is created when a licensee acts like an agent and others respond to those actions.
Deed Restrictions
10%
An encumbrance
ostensible agency
50. Common law does not always takes precedence over...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Tenancy by the Entirety
Vendee's Lien
Statutory law