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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. Covers more than one piece of property. (several lots on one note)
Alienation clause
trustor
$4000.
Blanket Loan
2. '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?
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Alienation clause
An encumbrance
a property exchange.
3. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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4. 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.
It is a right in land and should be created in writing and recorded.
Zoning
Alienation clause
lower interest rate
5. Lenders can deny credit if your sole source of income is__
Defeasance
a power of attorney
husband and wife
alimony - child support or a pension plan.
6. ___ 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
Errors & Omissions insurance
conforming loans
Deed Restrictions
7. Common law does not always takes precedence over...
It is a right in land and should be created in writing and recorded.
General Agency
Statutory law
General
8. The trustee has two functions in accordance with the Deed of Trust.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a power of attorney
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Alienation clause
9. High tension wire should be disclosed
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conforming loans.
Tenancy by the Entirety
EMFs
10. What is easment?
It is a right in land and should be created in writing and recorded.
Alienation clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Total amount - Certificate amount x 4 = approved maximum loan amount
11. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
1. Release the lien when the note is paid. 2. Foreclose in the event of default
10%
conforming loans
income tax purposes
12. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
lower interest rate
writ of execution
devise
Blanket Loan
13. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
It is a right in land and should be created in writing and recorded.
General Agency
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
14. ___ is created when a licensee acts like an agent and others respond to those actions.
Tenancy by the Entirety
a property exchange.
3
ostensible agency
15. For what group of buyers would the ARM be the least desirable?
Trustee's Deed
Subordination clause
Reverse annuity
Those on a fixed income
16. The deed of trust involves three parties...
MIP - mortgage insurance premium
encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Reverse annuity
17. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Vendee's Lien
conforming loans.
grow - stabilize - decline - revitalize
writ of execution
18. The insurance on the FHA loan is referred to as___
General Agency
MIP - mortgage insurance premium
EMFs
a power of attorney
19. This lease survives death and/or the sale of the property. No notice is required to terminate.
Alienation clause
estate for years
encumbrance
rescission
20. A person who has real property willed to her by a relative is said to acquire title by...
An encumbrance
ostensible agency
devise
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
21. On income producing property land can never be depreciated for...
estoppel
by ratification.
Package Loan
income tax purposes
22. __ "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
tenancy in common
grow - stabilize - decline - revitalize
writ of execution
23. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
trustor
Vendee's Lien
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
24. IN Reg Z Advertising which states only __is permitted
Zoning
EMFs
a property exchange.
the cash price or the APR
25. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
Radon
tenancy in common
grow - stabilize - decline - revitalize
26. Loan novation?
Blanket
a grante
Package Loan
In a straight assumption - the new buyer is approved - and takes over payments and liability
27. The minimum withdrawal from a home equity LOC is
Package Loan
a property exchange.
Alienation clause
$4000.
28. Ownership by two or more without rights of survivorship is called
estoppel
Tenancy by the Entirety
tenancy in common
Trustee's Deed
29. Loans qualified to be purchased in the secondary market are called __
Defeasance
25%
tenancy in common
conforming loans.
30. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
The secondary
$4000.
3
conomic obsolescence
31. Property Manager ( which type of Agency)
Radon
writ of execution
General Agency
An encumbrance
32. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
ostensible 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.
writ of execution
33. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
by ratification.
General Agency
General Agency
34. ___ gives the agent the power to perform only specific acts and no others.
the cash price or the APR
25%
Special or limited agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
35. ____ - the refusal to lend in a particular geographic area - is prohibited.
tenancy in common
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
by ratification.
Redlining
36. Includes real property plus personal property
Package Loan
$4000.
An encumbrance
25%
37. __ clause - states that the lien is defeated when the debt is repaid.
The secondary
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
estoppel
Defeasance
38. Real estate investors can defer taxation of capital gains by making ___
General Agency
by ratification.
Tenancy by the Entirety
a property exchange.
39. ___market is where lenders go for money
The secondary
Blanket Loan
Total amount - Certificate amount x 4 = approved maximum loan amount
Radon
40. Broker- Salesperson - owner-property manager-> which agency?
Reverse annuity
25%
by ratification.
General Agency
41. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
a grante
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
42. Partially amortized loan - benefit
Statutory law
conforming loans.
lower interest rate
General
43. ___ 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.)
a grante
conomic obsolescence
Alienation clause
a power of attorney
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.
10%
rescission
ostensible agency
Balloon loan
45. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Subordination clause
by ratification.
a property exchange.
Mitigation
46. ___ is a limitation on your rights. It may also be a cloud on the title
Trustee's Deed
Alienation clause
An encumbrance
MIP - mortgage insurance premium
47. Which of the following instruments is the promise to repay a debt?
Reverse annuity
Special or limited agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Balloon loan
48. The secondary market warehousing agencies are...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
It is a right in land and should be created in writing and recorded.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Fannie Mae - Freddie Mac and Ginnie Mae.
49. __ is a specific type of joint tenancy where the co-owners are husband and wife.
25%
An encumbrance
Tenancy by the Entirety
a power of attorney
50. 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.
the cash price or the APR
conforming loans
a grante
estoppel