SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. '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?
lower interest rate
the cash price or the APR
MIP - mortgage insurance premium
Alienation clause
2. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Errors & Omissions insurance
Alienation clause
stigmatized
3. Loans qualified to be purchased in the secondary market are called __
stigmatized
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Alienation clause
conforming loans.
4. An agent's duties to his principal are...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Mitigation
Redlining
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
5. ___ is a limitation on your rights. It may also be a cloud on the title
Subordination clause
General Agency
An encumbrance
$4000.
6. Property Manager ( which type of Agency)
Subordination clause
$4000.
General Agency
trustor
7. ___ 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.)
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Zoning
stigmatized
conomic obsolescence
8. On income producing property land can never be depreciated for...
Blanket
by ratification.
income tax purposes
MIP - mortgage insurance premium
9. This will not impact of the seller's credit rating.
MIP - mortgage insurance premium
straight assumption
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
conforming loans.
10. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
trustor
Mitigation
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
11. A property where there has been a murder or alleged haunting is called...
An encumbrance
Fannie Mae - Freddie Mac and Ginnie Mae.
stigmatized
devise
12. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Subordination clause
Blanket Loan
estoppel
13. ___ is created when a licensee acts like an agent and others respond to those actions.
straight assumption
ostensible agency
conforming loans
conforming loans.
14. 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.
Balloon loan
conforming loans.
ostensible agency
conomic obsolescence
15. Real estate investors can defer taxation of capital gains by making ___
3
estoppel
Subordination clause
a property exchange.
16. Ownership by two or more without rights of survivorship is called
Zoning
husband and wife
tenancy in common
Reverse annuity
17. ___loan - Covers more than one piece of property
Blanket
In a straight assumption - the new buyer is approved - and takes over payments and liability
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
18. What is easment?
tenancy in common
Special or limited agency
Alienation clause
It is a right in land and should be created in writing and recorded.
19. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
The secondary
rescission
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
20. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
21. __ clause - states that the lien is defeated when the debt is repaid.
Alienation clause
Defeasance
Vendee's Lien
Radon
22. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
Zoning
straight assumption
lower interest rate
23. Must sign the Deed of Trust.
trustor
Blanket
straight assumption
tenancy in common
24. An ___ is a limitation on your rights
encumbrance
Reverse annuity
a power of attorney
writ of execution
25. IRS Lein - Specific lein or general lein
devise
General
tenancy in common
Those on a fixed income
26. Loans qualified to be purchased in the secondary market are called
Statutory law
conforming loans
MIP - mortgage insurance premium
income tax purposes
27. A person who has real property willed to her by a relative is said to acquire title by...
Special or limited agency
Redlining
Fannie Mae - Freddie Mac and Ginnie Mae.
devise
28. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
General
income tax purposes
conforming loans.
29. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Special or limited agency
Radon
The trustee
Mitigation
30. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Reverse annuity
Tenancy by the Entirety
encumbrance
Trustee's Deed
31. ___ are imposed to control land use - development and methods and materials for construction.
General
Deed Restrictions
tenancy in common
ostensible agency
32. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
EMFs
Balloon loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
33. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
General Agency
tenancy in common
25%
income tax purposes
34. Common law does not always takes precedence over...
a property exchange.
income tax purposes
conforming loans
Statutory law
35. The insurance on the FHA loan is referred to as___
a grante
MIP - mortgage insurance premium
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.
General Agency
36. An attorney-in-fact is the holder of...
Alienation clause
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.
It is a right in land and should be created in writing and recorded.
a power of attorney
37. 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.
Zoning
lower interest rate
Reverse annuity
grow - stabilize - decline - revitalize
38. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
An encumbrance
Special or limited agency
conforming loans
Reverse annuity
39. ___ gives the agent the power to perform only specific acts and no others.
a grante
Total amount - Certificate amount x 4 = approved maximum loan amount
The trustee
Special or limited agency
40. The deed of trust involves three parties...
MIP - mortgage insurance premium
10%
An encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
41. ___market is where lenders go for money
stigmatized
The secondary
25%
rescission
42. There are four basic characteristics of value
Balloon loan
The trustee
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
writ of execution
43. The veteran must obtain a Certificate of Eligibility from the VA
encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
a grante
estoppel
44. 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.
Blanket Loan
The trustee
EMFs
estoppel
45. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Alienation clause
Zoning
husband and wife
Package Loan
46. Advantages of FHA loans
47. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
10%
a property exchange.
Radon
48. ___ 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.
Errors & Omissions insurance
10%
General Agency
25%
49. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
In a straight assumption - the new buyer is approved - and takes over payments and liability
Those on a fixed income
estoppel
by ratification.
50. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___