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