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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. IRS Lein - Specific lein or general lein
Package Loan
by ratification.
General
Trustee's Deed
2. Partially amortized loan - benefit
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
The trustee
Total amount - Certificate amount x 4 = approved maximum loan amount
lower interest rate
3. Property Manager ( which type of Agency)
10%
General Agency
Fannie Mae - Freddie Mac and Ginnie Mae.
Defeasance
4. Includes real property plus personal property
straight assumption
the cash price or the APR
Package Loan
Zoning
5. ____ - the refusal to lend in a particular geographic area - is prohibited.
Blanket Loan
writ of execution
General Agency
Redlining
6. Real estate investors can defer taxation of capital gains by making ___
It is a right in land and should be created in writing and recorded.
Alienation clause
a property exchange.
straight assumption
7. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Special or limited agency
10%
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Blanket
8. ___ gives the agent the power to perform only specific acts and no others.
EMFs
Statutory law
conforming loans.
Special or limited agency
9. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
a power of attorney
Mitigation
10. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
General Agency
grow - stabilize - decline - revitalize
Deed Restrictions
11. Loan novation?
estoppel
In a straight assumption - the new buyer is approved - and takes over payments and liability
25%
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
12. 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.
lower interest rate
estoppel
encumbrance
by ratification.
13. High tension wire should be disclosed
Total amount - Certificate amount x 4 = approved maximum loan amount
Mitigation
MIP - mortgage insurance premium
EMFs
14. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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15. The insurance on the FHA loan is referred to as___
Subordination clause
MIP - mortgage insurance premium
a grante
Blanket Loan
16. There are four basic characteristics of value
estoppel
Balloon loan
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
17. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Mitigation
rescission
Defeasance
Deed Restrictions
18. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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19. This lease survives death and/or the sale of the property. No notice is required to terminate.
Alienation clause
estate for years
The secondary
Statutory law
20. __ "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 a right in land and should be created in writing and recorded.
Alienation clause
straight assumption
General
21. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Tenancy by the Entirety
Redlining
grow - stabilize - decline - revitalize
conomic obsolescence
22. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
the cash price or the APR
lower interest rate
Tenancy by the Entirety
Reverse annuity
23. ___ 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.
Balloon loan
Radon
Errors & Omissions insurance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
24. __ clause - states that the lien is defeated when the debt is repaid.
a power of attorney
General
Defeasance
conforming loans.
25. An ___ is a limitation on your rights
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.
lower interest rate
encumbrance
General Agency
26. For what group of buyers would the ARM be the least desirable?
estate for years
Those on a fixed income
$4000.
Alienation clause
27. An attorney-in-fact is the holder of...
10%
trustor
General Agency
a power of attorney
28. The trustee has two functions in accordance with the Deed of Trust.
grow - stabilize - decline - revitalize
1. Release the lien when the note is paid. 2. Foreclose in the event of default
25%
General Agency
29. Covers more than one piece of property. (several lots on one note)
Those on a fixed income
estoppel
EMFs
Blanket Loan
30. 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.
ostensible agency
Balloon loan
An encumbrance
conforming loans
31. ___ is created when a licensee acts like an agent and others respond to those actions.
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
Radon
ostensible agency
Blanket Loan
32. The veteran must obtain a Certificate of Eligibility from the VA
The secondary
Those on a fixed income
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Total amount - Certificate amount x 4 = approved maximum loan amount
33. A person who has real property willed to her by a relative is said to acquire title by...
MIP - mortgage insurance premium
tenancy in common
devise
Blanket Loan
34. ___loan - Covers more than one piece of property
Blanket Loan
Blanket
EMFs
Alienation clause
35. An agent's duties to his principal are...
lower interest rate
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General Agency
Special or limited agency
36. 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.
Package Loan
alimony - child support or a pension plan.
It is a right in land and should be created in writing and recorded.
Zoning
37. Must sign the Deed of Trust.
MIP - mortgage insurance premium
trustor
Balloon loan
the cash price or the APR
38. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Trustee's Deed
straight assumption
EMFs
39. This will not impact of the seller's credit rating.
Tenancy by the Entirety
alimony - child support or a pension plan.
25%
straight assumption
40. What is easment?
It is a right in land and should be created in writing and recorded.
rescission
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Deed Restrictions
41. '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?
devise
General
Alienation clause
Statutory law
42. ___ 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.)
Total amount - Certificate amount x 4 = approved maximum loan amount
Zoning
conomic obsolescence
trustor
43. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Statutory law
writ of execution
Tenancy by the Entirety
Subordination clause
44. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
It is a right in land and should be created in writing and recorded.
by ratification.
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 property exchange.
45. Loans qualified to be purchased in the secondary market are called
conforming loans
encumbrance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
conforming loans.
46. Lenders can deny credit if your sole source of income is__
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
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
General Agency
alimony - child support or a pension plan.
47. Ownership by two or more without rights of survivorship is called
ostensible agency
tenancy in common
estate for years
husband and wife
48. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Vendee's Lien
Alienation clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
49. Broker- Salesperson - owner-property manager-> which agency?
An encumbrance
General Agency
10%
grow - stabilize - decline - revitalize
50. Advantages of FHA loans
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