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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. '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?
Balloon loan
General Agency
Alienation clause
MIP - mortgage insurance premium
2. Which of the following instruments is the promise to repay a debt?
10%
stigmatized
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
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
3. The deed of trust involves three parties...
rescission
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Radon
It is a right in land and should be created in writing and recorded.
4. __ clause - states that the lien is defeated when the debt is repaid.
Trustee's Deed
Those on a fixed income
Blanket Loan
Defeasance
5. Partially amortized loan - benefit
lower interest rate
Blanket
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conforming loans
6. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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7. A person who has real property willed to her by a relative is said to acquire title by...
devise
General Agency
Alienation clause
Blanket Loan
8. The minimum withdrawal from a home equity LOC is
conforming loans.
trustor
$4000.
Mitigation
9. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
writ of execution
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
10. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
the cash price or the APR
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
lower interest rate
11. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
MIP - mortgage insurance premium
the cash price or the APR
Deed Restrictions
12. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
conforming loans.
3
1. Release the lien when the note is paid. 2. Foreclose in the event of default
encumbrance
13. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
3
Package Loan
10%
The trustee
14. The secondary market warehousing agencies are...
a grante
ostensible agency
Fannie Mae - Freddie Mac and Ginnie Mae.
Blanket Loan
15. For what group of buyers would the ARM be the least desirable?
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
lower interest rate
Those on a fixed income
Blanket
16. Covers more than one piece of property. (several lots on one note)
An encumbrance
grow - stabilize - decline - revitalize
Blanket Loan
Statutory law
17. Loan novation?
Defeasance
An encumbrance
In a straight assumption - the new buyer is approved - and takes over payments and liability
encumbrance
18. 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 (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conomic obsolescence
General
Zoning
19. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Blanket
MIP - mortgage insurance premium
alimony - child support or a pension plan.
Subordination clause
20. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
The secondary
estate for years
income tax purposes
by ratification.
21. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Radon
Tenancy by the Entirety
Trustee's Deed
encumbrance
22. What is easment?
25%
Trustee's Deed
3
It is a right in land and should be created in writing and recorded.
23. ___market is where lenders go for money
rescission
Alienation clause
The secondary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
24. Real estate investors can defer taxation of capital gains by making ___
straight assumption
a property exchange.
Subordination 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.
25. Must sign the Deed of Trust.
trustor
conforming loans
The secondary
An encumbrance
26. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Blanket Loan
Radon
Mitigation
estate for years
27. 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.
Deed Restrictions
Balloon loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
28. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Subordination clause
a grante
25%
Blanket Loan
29. An ___ is a limitation on your rights
Total amount - Certificate amount x 4 = approved maximum loan amount
Defeasance
MIP - mortgage insurance premium
encumbrance
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.)
25%
lower interest rate
encumbrance
conomic obsolescence
31. Common law does not always takes precedence over...
25%
$4000.
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
Statutory law
32. __ "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.
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
Alienation clause
The secondary
33. There are four basic characteristics of value
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
The secondary
Defeasance
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
34. This will not impact of the seller's credit rating.
straight assumption
The trustee
EMFs
Package Loan
35. IN Reg Z Advertising which states only __is permitted
An encumbrance
the cash price or the APR
devise
Vendee's Lien
36. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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37. The insurance on the FHA loan is referred to as___
trustor
Balloon loan
MIP - mortgage insurance premium
conforming loans
38. The veteran must obtain a Certificate of Eligibility from the VA
the cash price or the APR
estoppel
by ratification.
Total amount - Certificate amount x 4 = approved maximum loan amount
39. ___loan - Covers more than one piece of property
Blanket
Vendee's Lien
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.
a power of attorney
40. 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
lower interest rate
25%
Zoning
41. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Radon
rescission
conforming loans.
42. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Blanket
Radon
husband and wife
Special or limited agency
43. Includes real property plus personal property
Redlining
straight assumption
Package Loan
conforming loans
44. An agent's duties to his principal are...
straight assumption
income tax purposes
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
45. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
encumbrance
writ of execution
estate for years
conomic obsolescence
46. Property Manager ( which type of Agency)
EMFs
Blanket
Subordination clause
General Agency
47. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
$4000.
Statutory law
alimony - child support or a pension plan.
48. Broker- Salesperson - owner-property manager-> which agency?
a property exchange.
General Agency
lower interest rate
It is a right in land and should be created in writing and recorded.
49. Loans qualified to be purchased in the secondary market are called
conforming loans
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
estoppel
straight assumption
50. ___ are imposed to control land use - development and methods and materials for construction.
a grante
Deed Restrictions
a property exchange.
Subordination clause