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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. The insurance on the FHA loan is referred to as___
Alienation clause
lower interest rate
MIP - mortgage insurance premium
1. Release the lien when the note is paid. 2. Foreclose in the event of default
2. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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3. __ clause - states that the lien is defeated when the debt is repaid.
3
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount
Defeasance
4. __ is a specific type of joint tenancy where the co-owners are husband and wife.
alimony - child support or a pension plan.
Vendee's Lien
Tenancy by the Entirety
MIP - mortgage insurance premium
5. Advantages of FHA loans
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6. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
alimony - child support or a pension plan.
Balloon loan
Trustee's Deed
7. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
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
Reverse annuity
The trustee
8. '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?
Alienation clause
the cash price or the APR
In a straight assumption - the new buyer is approved - and takes over payments and liability
alimony - child support or a pension plan.
9. ___ 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.)
Blanket Loan
conomic obsolescence
Subordination clause
conforming loans.
10. The deed of trust involves three parties...
grow - stabilize - decline - revitalize
estate for years
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General Agency
11. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
3
ostensible agency
Errors & Omissions insurance
12. 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
Mitigation
estoppel
lower interest rate
13. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
General
a property exchange.
Special or limited agency
14. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Zoning
Reverse annuity
rescission
Balloon loan
15. An attorney-in-fact is the holder of...
a power of attorney
conforming loans
An encumbrance
alimony - child support or a pension plan.
16. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
EMFs
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Radon
Those on a fixed income
17. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
An encumbrance
Fannie Mae - Freddie Mac and Ginnie Mae.
EMFs
18. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Statutory law
a grante
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
19. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Deed Restrictions
It is a right in land and should be created in writing and recorded.
25%
stigmatized
20. The veteran must obtain a Certificate of Eligibility from the VA
MIP - mortgage insurance premium
General Agency
25%
Total amount - Certificate amount x 4 = approved maximum loan amount
21. ___market is where lenders go for money
The secondary
Defeasance
Total amount - Certificate amount x 4 = approved maximum loan amount
the cash price or the APR
22. The minimum withdrawal from a home equity LOC is
lower interest rate
Statutory law
$4000.
The trustee
23. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
husband and wife
rescission
grow - stabilize - decline - revitalize
straight assumption
24. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
grow - stabilize - decline - revitalize
Subordination clause
25. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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26. This will not impact of the seller's credit rating.
lower interest rate
tenancy in common
In a straight assumption - the new buyer is approved - and takes over payments and liability
straight assumption
27. The secondary market warehousing agencies are...
General Agency
Blanket
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Fannie Mae - Freddie Mac and Ginnie Mae.
28. Common law does not always takes precedence over...
The secondary
Trustee's Deed
Zoning
Statutory law
29. This lease survives death and/or the sale of the property. No notice is required to terminate.
estoppel
trustor
estate for years
The trustee
30. On income producing property land can never be depreciated for...
Alienation clause
income tax purposes
General Agency
Subordination clause
31. Loans qualified to be purchased in the secondary market are called
Total amount - Certificate amount x 4 = approved maximum loan amount
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.
conforming loans
Package Loan
32. An ___ is a limitation on your rights
rescission
Blanket
Alienation clause
encumbrance
33. What is easment?
An encumbrance
It is a right in land and should be created in writing and recorded.
MIP - mortgage insurance premium
The secondary
34. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
MIP - mortgage insurance premium
In a straight assumption - the new buyer is approved - and takes over payments and liability
Radon
35. Broker- Salesperson - owner-property manager-> which agency?
straight assumption
Alienation clause
General Agency
10%
36. Must sign the Deed of Trust.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conforming loans.
conforming loans
trustor
37. Includes real property plus personal property
a power of attorney
EMFs
Balloon loan
Package Loan
38. A person who has real property willed to her by a relative is said to acquire title by...
conforming loans
Balloon loan
Alienation clause
devise
39. IRS Lein - Specific lein or general lein
lower interest rate
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General
devise
40. For what group of buyers would the ARM be the least desirable?
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Package Loan
Those on a fixed income
EMFs
41. Loans qualified to be purchased in the secondary market are called __
conforming loans.
Trustee's Deed
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
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. ___loan - Covers more than one piece of property
Blanket
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
Zoning
Package Loan
43. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
husband and wife
Special or limited agency
44. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Radon
Alienation clause
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
45. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
$4000.
stigmatized
by ratification.
alimony - child support or a pension plan.
46. Covers more than one piece of property. (several lots on one note)
The secondary
writ of execution
a power of attorney
Blanket Loan
47. A property where there has been a murder or alleged haunting is called...
stigmatized
Alienation clause
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a property exchange.
48. Partially amortized loan - benefit
husband and wife
Tenancy by the Entirety
lower interest rate
Alienation clause
49. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
the cash price or the APR
Vendee's Lien
Special or limited agency
50. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
ostensible agency
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
Mitigation
EMFs