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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. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
Alienation clause
estoppel
stigmatized
2. __ clause - states that the lien is defeated when the debt is repaid.
tenancy in common
10%
Defeasance
$4000.
3. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Blanket Loan
Alienation clause
3
husband and wife
4. A property where there has been a murder or alleged haunting is called...
estoppel
by ratification.
stigmatized
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.
5. Includes real property plus personal property
MIP - mortgage insurance premium
Subordination clause
Package Loan
Tenancy by the Entirety
6. Advantages of FHA loans
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7. 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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Zoning
a property exchange.
8. One who acquires property under a deed is....
Subordination clause
10%
grow - stabilize - decline - revitalize
a grante
9. The deed of trust involves three parties...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Total amount - Certificate amount x 4 = approved maximum loan amount
10. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
grow - stabilize - decline - revitalize
encumbrance
conomic obsolescence
11. IRS Lein - Specific lein or general lein
the cash price or the APR
Blanket Loan
General
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
12. '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?
straight assumption
estate for years
Alienation clause
10%
13. Covers more than one piece of property. (several lots on one note)
General Agency
alimony - child support or a pension plan.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Blanket Loan
14. High tension wire should be disclosed
EMFs
3
Subordination clause
General Agency
15. ___ are imposed to control land use - development and methods and materials for construction.
Balloon loan
Deed Restrictions
Statutory law
Radon
16. Broker- Salesperson - owner-property manager-> which agency?
Subordination clause
Deed Restrictions
tenancy in common
General Agency
17. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
conforming loans
writ of execution
Radon
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.
18. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
tenancy in common
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The trustee
Trustee's Deed
19. Lenders can deny credit if your sole source of income is__
Blanket Loan
Vendee's Lien
alimony - child support or a pension plan.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
20. The minimum withdrawal from a home equity LOC is
$4000.
tenancy in common
Fannie Mae - Freddie Mac and Ginnie Mae.
Trustee's Deed
21. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
Package Loan
tenancy in common
by ratification.
22. For what group of buyers would the ARM be the least desirable?
EMFs
straight assumption
Those on a fixed income
Special or limited agency
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.
Errors & Omissions insurance
General
An encumbrance
stigmatized
24. Must sign the Deed of Trust.
Deed Restrictions
trustor
Fannie Mae - Freddie Mac and Ginnie Mae.
Mitigation
25. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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26. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Mitigation
25%
It is a right in land and should be created in writing and recorded.
stigmatized
27. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Tenancy by the Entirety
Special or limited agency
writ of execution
husband and wife
28. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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29. Ownership by two or more without rights of survivorship is called
Blanket Loan
a property exchange.
The trustee
tenancy in common
30. The veteran must obtain a Certificate of Eligibility from the VA
stigmatized
Total amount - Certificate amount x 4 = approved maximum loan amount
3
The secondary
31. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
ostensible agency
Mitigation
a power of attorney
conomic obsolescence
32. ___market is where lenders go for money
The secondary
Defeasance
General Agency
straight assumption
33. Real estate investors can defer taxation of capital gains by making ___
Mitigation
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.
estate for years
34. 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.
Radon
Subordination clause
estoppel
writ of execution
35. Loans qualified to be purchased in the secondary market are called __
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conforming loans.
encumbrance
estoppel
36. 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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
estate for years
Zoning
Balloon loan
37. 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
The secondary
conomic obsolescence
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
38. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
husband and wife
Blanket Loan
Tenancy by the Entirety
39. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Zoning
estate for years
trustor
40. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Blanket Loan
General Agency
10%
1. Release the lien when the note is paid. 2. Foreclose in the event of default
41. On income producing property land can never be depreciated for...
General
ostensible agency
MIP - mortgage insurance premium
income tax purposes
42. Property Manager ( which type of Agency)
General Agency
Radon
estate for years
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
43. __ "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
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
grow - stabilize - decline - revitalize
44. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
25%
It is a right in land and should be created in writing and recorded.
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.
Subordination clause
45. Loans qualified to be purchased in the secondary market are called
conforming loans
rescission
ostensible agency
stigmatized
46. Which of the following instruments is the promise to repay a debt?
conomic obsolescence
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a power of attorney
General Agency
47. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Trustee's Deed
General
ostensible agency
48. IN Reg Z Advertising which states only __is permitted
Those on a fixed income
General
the cash price or the APR
tenancy in common
49. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
ostensible agency
encumbrance
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.
50. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Statutory law
Blanket
conomic obsolescence
writ of execution