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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___
MIP - mortgage insurance premium
encumbrance
writ of execution
General Agency
2. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Deed Restrictions
Radon
by ratification.
a power of attorney
3. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Fannie Mae - Freddie Mac and Ginnie Mae.
Tenancy by the Entirety
Reverse annuity
ostensible agency
4. ___market is where lenders go for money
The secondary
Trustee's Deed
a property exchange.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
5. The minimum withdrawal from a home equity LOC is
$4000.
Radon
a power of attorney
rescission
6. Partially amortized loan - benefit
An encumbrance
EMFs
Alienation clause
lower interest rate
7. ___loan - Covers more than one piece of property
by ratification.
Blanket
EMFs
Defeasance
8. An attorney-in-fact is the holder of...
a power of attorney
In a straight assumption - the new buyer is approved - and takes over payments and liability
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
9. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
alimony - child support or a pension plan.
Radon
Package Loan
10. Loans qualified to be purchased in the secondary market are called __
straight assumption
Deed Restrictions
conforming loans.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
11. There are four basic characteristics of value
stigmatized
Tenancy by the Entirety
straight assumption
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. High tension wire should be disclosed
The secondary
Alienation clause
It is a right in land and should be created in writing and recorded.
EMFs
13. 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
husband and wife
Package Loan
EMFs
14. A property where there has been a murder or alleged haunting is called...
a grante
stigmatized
Trustee's Deed
conforming loans.
15. 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.
estoppel
conomic obsolescence
Mitigation
Tenancy by the Entirety
16. Must sign the Deed of Trust.
trustor
General Agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
stigmatized
17. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Radon
An encumbrance
Alienation clause
Subordination clause
18. ___ are imposed to control land use - development and methods and materials for construction.
Balloon loan
It is a right in land and should be created in writing and recorded.
Deed Restrictions
husband and wife
19. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
estoppel
Mitigation
10%
20. Common law does not always takes precedence over...
Blanket Loan
husband and wife
Statutory law
Defeasance
21. One who acquires property under a deed is....
a grante
Vendee's Lien
Alienation clause
rescission
22. IRS Lein - Specific lein or general lein
Statutory law
General
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.
23. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
1. Release the lien when the note is paid. 2. Foreclose in the event of default
10%
Redlining
Mitigation
24. Which of the following instruments is the promise to repay a debt?
income tax purposes
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency
General Agency
25. Ownership by two or more without rights of survivorship is called
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Errors & Omissions insurance
tenancy in common
Zoning
26. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
writ of execution
Tenancy by the Entirety
In a straight assumption - the new buyer is approved - and takes over payments and liability
27. An ___ is a limitation on your rights
the cash price or the APR
encumbrance
Mitigation
devise
28. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Mitigation
The secondary
encumbrance
29. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
devise
General
Blanket
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.)
conomic obsolescence
The trustee
rescission
Defeasance
31. What is easment?
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a grante
the cash price or the APR
It is a right in land and should be created in writing and recorded.
32. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
In a straight assumption - the new buyer is approved - and takes over payments and liability
conforming loans.
33. 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.
Blanket Loan
a grante
Zoning
Alienation clause
34. ___ is created when a licensee acts like an agent and others respond to those actions.
alimony - child support or a pension plan.
Reverse annuity
1. Release the lien when the note is paid. 2. Foreclose in the event of default
ostensible agency
35. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
EMFs
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
ostensible agency
36. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
37. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Reverse annuity
In a straight assumption - the new buyer is approved - and takes over payments and liability
38. Covers more than one piece of property. (several lots on one note)
10%
Blanket Loan
estoppel
a power of attorney
39. Lenders can deny credit if your sole source of income is__
Alienation clause
encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
alimony - child support or a pension plan.
40. On income producing property land can never be depreciated for...
$4000.
income tax purposes
Trustee's Deed
Balloon loan
41. Includes real property plus personal property
Errors & Omissions insurance
Those on a fixed income
Package Loan
Redlining
42. '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?
husband and wife
Redlining
a power of attorney
Alienation clause
43. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
tenancy in common
conomic obsolescence
by ratification.
Those on a fixed income
44. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
In a straight assumption - the new buyer is approved - and takes over payments and liability
grow - stabilize - decline - revitalize
ostensible agency
The trustee
45. IN Reg Z Advertising which states only __is permitted
Deed Restrictions
The secondary
husband and wife
the cash price or the APR
46. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Zoning
alimony - child support or a pension plan.
Tenancy by the Entirety
25%
47. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
48. For what group of buyers would the ARM be the least desirable?
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Radon
Those on a fixed income
The trustee
49. A person who has real property willed to her by a relative is said to acquire title by...
devise
estoppel
EMFs
The trustee
50. The secondary market warehousing agencies are...
Subordination clause
conforming loans
Fannie Mae - Freddie Mac and Ginnie Mae.
Deed Restrictions