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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. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
conomic obsolescence
trustor
rescission
by ratification.
2. ___ 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.
Defeasance
Trustee's Deed
An encumbrance
Errors & Omissions insurance
3. ___loan - Covers more than one piece of property
MIP - mortgage insurance premium
Blanket
Errors & Omissions insurance
a grante
4. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
10%
3
Blanket Loan
EMFs
5. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
EMFs
devise
Mitigation
6. Loans qualified to be purchased in the secondary market are called
Fannie Mae - Freddie Mac and Ginnie Mae.
conforming loans
The trustee
encumbrance
7. The minimum withdrawal from a home equity LOC is
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Defeasance
$4000.
General Agency
8. 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.
Balloon loan
Defeasance
estoppel
$4000.
9. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
estate for years
writ of execution
stigmatized
10. ___ is created when a licensee acts like an agent and others respond to those actions.
Fannie Mae - Freddie Mac and Ginnie Mae.
ostensible agency
conforming loans.
husband and wife
11. __ is a specific type of joint tenancy where the co-owners are husband and wife.
husband and wife
Tenancy by the Entirety
Blanket
Trustee's Deed
12. Loans qualified to be purchased in the secondary market are called __
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
devise
conforming loans.
Reverse annuity
13. ___ 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
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
Defeasance
14. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
trustor
25%
a property exchange.
15. 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.
Vendee's Lien
income tax purposes
estoppel
Balloon loan
16. IN Reg Z Advertising which states only __is permitted
Errors & Omissions insurance
by ratification.
the cash price or the APR
Alienation clause
17. Must sign the Deed of Trust.
trustor
3
the cash price or the APR
stigmatized
18. Common law does not always takes precedence over...
trustor
conforming loans
Statutory law
husband and wife
19. ___market is where lenders go for money
The secondary
25%
EMFs
3
20. Which of the following instruments is the promise to repay a debt?
Balloon loan
income tax purposes
In a straight assumption - the new buyer is approved - and takes over payments and liability
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
21. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
stigmatized
General Agency
25%
22. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
In a straight assumption - the new buyer is approved - and takes over payments and liability
devise
estate for years
Radon
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.
3
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Radon
Zoning
24. IRS Lein - Specific lein or general lein
General
rescission
grow - stabilize - decline - revitalize
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
25. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
encumbrance
$4000.
10%
alimony - child support or a pension plan.
26. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
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
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.
alimony - child support or a pension plan.
27. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
estoppel
Balloon loan
28. The secondary market warehousing agencies are...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Fannie Mae - Freddie Mac and Ginnie Mae.
Those on a fixed income
An encumbrance
29. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
3
Redlining
Package Loan
Reverse annuity
30. Lenders can deny credit if your sole source of income is__
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
alimony - child support or a pension plan.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Vendee's Lien
31. __ "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.
Blanket
income tax purposes
devise
Alienation clause
32. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
An encumbrance
conforming loans.
Blanket
33. One who acquires property under a deed is....
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a grante
25%
Fannie Mae - Freddie Mac and Ginnie Mae.
34. There are four basic characteristics of value
Zoning
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
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
35. Broker- Salesperson - owner-property manager-> which agency?
devise
General Agency
10%
grow - stabilize - decline - revitalize
36. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
MIP - mortgage insurance premium
EMFs
Reverse annuity
Subordination clause
37. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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38. A person who has real property willed to her by a relative is said to acquire title by...
Balloon loan
Zoning
devise
MIP - mortgage insurance premium
39. Includes real property plus personal property
Blanket Loan
An encumbrance
Package Loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
40. An attorney-in-fact is the holder of...
conomic obsolescence
Package Loan
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.
a power of attorney
41. High tension wire should be disclosed
General Agency
Subordination clause
EMFs
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
42. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
estate for years
Blanket
Total amount - Certificate amount x 4 = approved maximum loan amount
43. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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44. An ___ is a limitation on your rights
EMFs
The secondary
Alienation clause
encumbrance
45. Property Manager ( which type of Agency)
trustor
General Agency
It is a right in land and should be created in writing and recorded.
The secondary
46. On income producing property land can never be depreciated for...
Deed Restrictions
income tax purposes
encumbrance
conforming loans.
47. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Defeasance
Alienation clause
writ of execution
conomic obsolescence
48. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
a power of attorney
Tenancy by the Entirety
49. Partially amortized loan - benefit
conomic obsolescence
estoppel
lower interest rate
conforming loans
50. A property where there has been a murder or alleged haunting is called...
stigmatized
lower interest rate
Blanket Loan
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