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