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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 refusal to lend in a particular geographic area - is prohibited.
Redlining
estate for years
Defeasance
10%
2. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Radon
estoppel
Trustee's Deed
3. __ clause - states that the lien is defeated when the debt is repaid.
a power of attorney
Defeasance
writ of execution
Trustee's Deed
4. On income producing property land can never be depreciated for...
by ratification.
The trustee
income tax purposes
conomic obsolescence
5. Real estate investors can defer taxation of capital gains by making ___
lower interest rate
the cash price or the APR
An encumbrance
a property exchange.
6. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
tenancy in common
Alienation clause
Radon
Reverse annuity
7. One who acquires property under a deed is....
estate for years
The trustee
straight assumption
a grante
8. Ownership by two or more without rights of survivorship is called
conforming loans.
rescission
Vendee's Lien
tenancy in common
9. Common law does not always takes precedence over...
Statutory law
Balloon loan
a power of attorney
Deed Restrictions
10. An agent's duties to his principal are...
conforming loans
3
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Total amount - Certificate amount x 4 = approved maximum loan amount
11. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
a property exchange.
Reverse annuity
alimony - child support or a pension plan.
straight assumption
12. __ "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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General
devise
13. IN Reg Z Advertising which states only __is permitted
conforming loans.
Balloon loan
Reverse annuity
the cash price or the APR
14. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
15. ___ are imposed to control land use - development and methods and materials for construction.
a property exchange.
grow - stabilize - decline - revitalize
Deed Restrictions
In a straight assumption - the new buyer is approved - and takes over payments and liability
16. ___market is where lenders go for money
In a straight assumption - the new buyer is approved - and takes over payments and liability
The secondary
estoppel
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
17. '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?
Those on a fixed income
a power of attorney
writ of execution
Alienation clause
18. ___ is created when a licensee acts like an agent and others respond to those actions.
Subordination clause
ostensible agency
An encumbrance
conforming loans
19. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Balloon loan
Total amount - Certificate amount x 4 = approved maximum loan amount
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
20. The deed of trust involves three parties...
Mitigation
encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
estate for years
21. A person who has real property willed to her by a relative is said to acquire title by...
Defeasance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
trustor
devise
22. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
The secondary
Alienation clause
ostensible agency
23. Partially amortized loan - benefit
Blanket Loan
Blanket
lower interest rate
Zoning
24. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
25. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.
estate for years
26. The secondary market warehousing agencies are...
ostensible agency
Fannie Mae - Freddie Mac and Ginnie Mae.
Deed Restrictions
Errors & Omissions insurance
27. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
MIP - mortgage insurance premium
by ratification.
Subordination clause
a power of attorney
28. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
trustor
husband and wife
Balloon loan
by ratification.
29. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
estoppel
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
30. There are four basic characteristics of value
straight assumption
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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
31. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
estoppel
It is a right in land and should be created in writing and recorded.
by ratification.
32. Covers more than one piece of property. (several lots on one note)
Package Loan
Blanket Loan
EMFs
conforming loans
33. 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.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
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 Loan
Balloon loan
34. This will not impact of the seller's credit rating.
Trustee's Deed
a property exchange.
Zoning
straight assumption
35. An ___ is a limitation on your rights
estoppel
conomic obsolescence
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
36. ___ 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.
The secondary
Errors & Omissions insurance
The trustee
1. Release the lien when the note is paid. 2. Foreclose in the event of default
37. High tension wire should be disclosed
Blanket Loan
EMFs
Tenancy by the Entirety
Reverse annuity
38. A property where there has been a murder or alleged haunting is called...
Special or limited agency
estoppel
Errors & Omissions insurance
stigmatized
39. The insurance on the FHA loan is referred to as___
25%
trustor
MIP - mortgage insurance premium
tenancy in common
40. Property Manager ( which type of Agency)
Special or limited agency
a grante
General Agency
An encumbrance
41. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Zoning
writ of execution
straight assumption
Package Loan
42. A principal's duties to an agent ar...
It is a right in land and should be created in writing and recorded.
Mitigation
Reverse annuity
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
43. ___ 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.)
devise
Deed Restrictions
conomic obsolescence
General Agency
44. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Errors & Omissions insurance
encumbrance
lower interest rate
45. Loans qualified to be purchased in the secondary market are called __
Deed Restrictions
Vendee's Lien
conforming loans.
Redlining
46. What is easment?
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
3
It is a right in land and should be created in writing and recorded.
Errors & Omissions insurance
47. Must sign the Deed of Trust.
trustor
Balloon loan
income tax purposes
In a straight assumption - the new buyer is approved - and takes over payments and liability
48. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
Zoning
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Redlining
49. Broker- Salesperson - owner-property manager-> which agency?
EMFs
husband and wife
General Agency
a grante
50. Loan novation?
It is a right in land and should be created in writing and recorded.
conforming loans.
stigmatized
In a straight assumption - the new buyer is approved - and takes over payments and liability