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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. A person who has real property willed to her by a relative is said to acquire title by...
by ratification.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
devise
An encumbrance
2. 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
trustor
Mitigation
3. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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4. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
straight assumption
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Mitigation
5. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
devise
straight assumption
$4000.
6. An attorney-in-fact is the holder of...
trustor
husband and wife
MIP - mortgage insurance premium
a power of attorney
7. Covers more than one piece of property. (several lots on one note)
Blanket Loan
General Agency
Package Loan
25%
8. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
alimony - child support or a pension plan.
by ratification.
the cash price or the APR
rescission
9. Partially amortized loan - benefit
Errors & Omissions insurance
devise
estoppel
lower interest rate
10. There are four basic characteristics of value
alimony - child support or a pension plan.
Vendee's Lien
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
Errors & Omissions insurance
11. The deed of trust involves three parties...
Redlining
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Subordination clause
by ratification.
12. Ownership by two or more without rights of survivorship is called
Tenancy by the Entirety
tenancy in common
An encumbrance
Statutory law
13. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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14. Property Manager ( which type of Agency)
husband and wife
trustor
General Agency
Radon
15. ___ are imposed to control land use - development and methods and materials for construction.
Redlining
25%
devise
Deed Restrictions
16. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
estate for years
Deed Restrictions
stigmatized
The trustee
17. IRS Lein - Specific lein or general lein
Blanket
General
conomic obsolescence
grow - stabilize - decline - revitalize
18. 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
lower interest rate
19. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
grow - stabilize - decline - revitalize
Blanket Loan
Special or limited agency
20. Loan novation?
by ratification.
conforming loans
tenancy in common
In a straight assumption - the new buyer is approved - and takes over payments and liability
21. This will not impact of the seller's credit rating.
Statutory law
straight assumption
General
Alienation clause
22. An ___ is a limitation on your rights
Those on a fixed income
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
25%
encumbrance
23. 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.
Package Loan
income tax purposes
Trustee's Deed
estoppel
24. The secondary market warehousing agencies are...
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
lower interest rate
Fannie Mae - Freddie Mac and Ginnie Mae.
25. One who acquires property under a deed is....
by ratification.
Balloon loan
a grante
The trustee
26. Loans qualified to be purchased in the secondary market are called __
conforming loans.
a grante
Tenancy by the Entirety
Package Loan
27. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conforming loans.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Statutory law
28. __ "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
trustor
Blanket Loan
conforming loans
29. Includes real property plus personal property
Special or limited agency
income tax purposes
Package Loan
10%
30. 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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
alimony - child support or a pension plan.
a grante
31. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Errors & Omissions insurance
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
Tenancy by the Entirety
32. ___loan - Covers more than one piece of property
Blanket
10%
Total amount - Certificate amount x 4 = approved maximum loan amount
General
33. Real estate investors can defer taxation of capital gains by making ___
In a straight assumption - the new buyer is approved - and takes over payments and liability
tenancy in common
a property exchange.
Blanket
34. ___ 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
the cash price or the APR
husband and wife
a property exchange.
35. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
In a straight assumption - the new buyer is approved - and takes over payments and liability
rescission
by ratification.
36. On income producing property land can never be depreciated for...
income tax purposes
Balloon loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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.
37. Which of the following instruments is the promise to repay a debt?
devise
The secondary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency
38. 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.
Defeasance
25%
Mitigation
Balloon loan
39. ____ - the refusal to lend in a particular geographic area - is prohibited.
The trustee
Redlining
Those on a fixed income
Subordination clause
40. Must sign the Deed of Trust.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
trustor
Statutory law
Alienation clause
41. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
EMFs
Subordination clause
rescission
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.
42. 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
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.
Trustee's Deed
trustor
43. An agent's duties to his principal are...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
An encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
44. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
devise
Mitigation
Vendee's Lien
by ratification.
45. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
rescission
Package Loan
Reverse annuity
a grante
46. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
conforming loans.
Balloon loan
Alienation clause
47. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
stigmatized
the cash price or the APR
25%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
48. IN Reg Z Advertising which states only __is permitted
The secondary
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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
the cash price or the APR
49. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
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.
25%
Total amount - Certificate amount x 4 = approved maximum loan amount
50. What is easment?
Redlining
It is a right in land and should be created in writing and recorded.
lower interest rate
conforming loans.