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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. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
writ of execution
Redlining
Blanket Loan
husband and wife
2. Common law does not always takes precedence over...
Special or limited agency
Package Loan
MIP - mortgage insurance premium
Statutory law
3. There are four basic characteristics of value
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
trustor
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
4. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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5. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Subordination clause
Reverse annuity
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.
6. IN Reg Z Advertising which states only __is permitted
Package Loan
The trustee
Balloon loan
the cash price or the APR
7. The deed of trust involves three parties...
Package Loan
grow - stabilize - decline - revitalize
ostensible agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
8. Ownership by two or more without rights of survivorship is called
tenancy in common
the cash price or the APR
Mitigation
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.
9. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Radon
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Alienation clause
The trustee
10. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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11. 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
a power of attorney
EMFs
In a straight assumption - the new buyer is approved - and takes over payments and liability
12. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
estate for years
trustor
grow - stabilize - decline - revitalize
13. Must sign the Deed of Trust.
Fannie Mae - Freddie Mac and Ginnie Mae.
It is a right in land and should be created in writing and recorded.
stigmatized
trustor
14. ___loan - Covers more than one piece of property
straight assumption
The trustee
husband and wife
Blanket
15. Covers more than one piece of property. (several lots on one note)
Blanket Loan
Those on a fixed income
Tenancy by the Entirety
1. Release the lien when the note is paid. 2. Foreclose in the event of default
16. An attorney-in-fact is the holder of...
General
a power of attorney
EMFs
The secondary
17. High tension wire should be disclosed
MIP - mortgage insurance premium
1. Release the lien when the note is paid. 2. Foreclose in the event of default
stigmatized
EMFs
18. ___ is created when a licensee acts like an agent and others respond to those actions.
a property exchange.
ostensible agency
by ratification.
10%
19. Loans qualified to be purchased in the secondary market are called __
Tenancy by the Entirety
by ratification.
conforming loans.
estate for years
20. Which of the following instruments is the promise to repay a debt?
Trustee's Deed
Defeasance
25%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
21. __ clause - states that the lien is defeated when the debt is repaid.
husband and wife
estoppel
Defeasance
10%
22. The trustee has two functions in accordance with the Deed of Trust.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
3
The trustee
Those on a fixed income
23. The minimum withdrawal from a home equity LOC is
estoppel
Reverse annuity
$4000.
writ of execution
24. ___ 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.
encumbrance
An encumbrance
Errors & Omissions insurance
a grante
25. An ___ is a limitation on your rights
Deed Restrictions
encumbrance
EMFs
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
26. Advantages of FHA loans
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27. Property Manager ( which type of Agency)
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
estate for years
General Agency
the cash price or the APR
28. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
Trustee's Deed
Reverse annuity
by ratification.
29. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
It is a right in land and should be created in writing and recorded.
encumbrance
Deed Restrictions
30. ___ 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.)
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
conomic obsolescence
Alienation clause
Subordination clause
31. Lenders can deny credit if your sole source of income is__
Trustee's Deed
alimony - child support or a pension plan.
The trustee
Fannie Mae - Freddie Mac and Ginnie Mae.
32. IRS Lein - Specific lein or general lein
$4000.
a power of attorney
General
Alienation clause
33. On income producing property land can never be depreciated for...
The trustee
Balloon loan
Redlining
income tax purposes
34. What is easment?
Balloon loan
Radon
Errors & Omissions insurance
It is a right in land and should be created in writing and recorded.
35. Includes real property plus personal property
Package Loan
Fannie Mae - Freddie Mac and Ginnie Mae.
Total amount - Certificate amount x 4 = approved maximum loan amount
grow - stabilize - decline - revitalize
36. For what group of buyers would the ARM be the least desirable?
Defeasance
Those on a fixed income
tenancy in common
grow - stabilize - decline - revitalize
37. ___market is where lenders go for money
Those on a fixed income
Package Loan
The secondary
Blanket Loan
38. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Zoning
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.
encumbrance
39. ____ - the refusal to lend in a particular geographic area - is prohibited.
by ratification.
Trustee's Deed
Subordination clause
Redlining
40. An agent's duties to his principal are...
Tenancy by the Entirety
3
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
41. A property where there has been a murder or alleged haunting is called...
stigmatized
conforming loans.
Radon
Vendee's Lien
42. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
trustor
10%
devise
Zoning
43. ___ gives the agent the power to perform only specific acts and no others.
by ratification.
Package Loan
Special or limited agency
a power of attorney
44. 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.
trustor
Balloon loan
Zoning
alimony - child support or a pension plan.
45. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Those on a fixed income
grow - stabilize - decline - revitalize
by ratification.
Fannie Mae - Freddie Mac and Ginnie Mae.
46. One who acquires property under a deed is....
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a grante
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
47. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Subordination clause
3
alimony - child support or a pension plan.
writ of execution
48. Partially amortized loan - benefit
General Agency
10%
lower interest rate
The secondary
49. The secondary market warehousing agencies are...
Balloon loan
rescission
Fannie Mae - Freddie Mac and Ginnie Mae.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
50. 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.
General
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
3