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