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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. An ___ is a limitation on your rights
estate for years
EMFs
encumbrance
a grante
2. A property where there has been a murder or alleged haunting is called...
devise
stigmatized
Blanket Loan
Total amount - Certificate amount x 4 = approved maximum loan amount
3. '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
ostensible agency
trustor
straight assumption
4. Ownership by two or more without rights of survivorship is called
alimony - child support or a pension plan.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
25%
tenancy in common
5. An attorney-in-fact is the holder of...
Errors & Omissions insurance
Trustee's Deed
a power of attorney
encumbrance
6. IRS Lein - Specific lein or general lein
by ratification.
rescission
Redlining
General
7. One who acquires property under a deed is....
a grante
Those on a fixed income
Tenancy by the Entirety
Deed Restrictions
8. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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9. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a property exchange.
tenancy in common
Vendee's Lien
10. A person who has real property willed to her by a relative is said to acquire title by...
devise
stigmatized
In a straight assumption - the new buyer is approved - and takes over payments and liability
ostensible agency
11. An agent's duties to his principal are...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Statutory law
Trustee's Deed
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
12. For what group of buyers would the ARM be the least desirable?
Fannie Mae - Freddie Mac and Ginnie Mae.
Balloon loan
Defeasance
Those on a fixed income
13. There are four basic characteristics of value
General Agency
Defeasance
$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
14. Advantages of FHA loans
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15. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
a property exchange.
MIP - mortgage insurance premium
10%
Blanket
16. 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.
General Agency
In a straight assumption - the new buyer is approved - and takes over payments and liability
General Agency
Zoning
17. Loans qualified to be purchased in the secondary market are called
conforming loans
income tax purposes
Redlining
a power of attorney
18. Covers more than one piece of property. (several lots on one note)
encumbrance
Blanket Loan
Trustee's Deed
lower interest rate
19. ___ 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.)
Trustee's Deed
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General
conomic obsolescence
20. ____ - the refusal to lend in a particular geographic area - is prohibited.
3
husband and wife
trustor
Redlining
21. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
conforming loans.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Mitigation
Trustee's Deed
22. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
Errors & Omissions insurance
Blanket Loan
In a straight assumption - the new buyer is approved - and takes over payments and liability
23. The minimum withdrawal from a home equity LOC is
$4000.
estate for years
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Fannie Mae - Freddie Mac and Ginnie Mae.
24. Lenders can deny credit if your sole source of income is__
Trustee's Deed
trustor
conforming loans
alimony - child support or a pension plan.
25. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Package Loan
by ratification.
Total amount - Certificate amount x 4 = approved maximum loan amount
Subordination clause
26. Loan novation?
Subordination clause
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
The trustee
27. __ "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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
MIP - mortgage insurance premium
straight assumption
28. 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.
straight assumption
estoppel
Vendee's Lien
Radon
29. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
stigmatized
The trustee
Total amount - Certificate amount x 4 = approved maximum loan amount
devise
30. Property Manager ( which type of Agency)
3
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General Agency
10%
31. Broker- Salesperson - owner-property manager-> which agency?
ostensible agency
Trustee's Deed
EMFs
General Agency
32. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Reverse annuity
Tenancy by the Entirety
3
Alienation clause
33. The trustee has two functions in accordance with the Deed of Trust.
Package Loan
It is a right in land and should be created in writing and recorded.
General Agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
34. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Tenancy by the Entirety
lower interest rate
rescission
Defeasance
35. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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36. What is easment?
It is a right in land and should be created in writing and recorded.
a property exchange.
the cash price or the APR
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.
37. ___market is where lenders go for money
a grante
a property exchange.
The secondary
It is a right in land and should be created in writing and recorded.
38. Loans qualified to be purchased in the secondary market are called __
The secondary
conforming loans.
Subordination clause
$4000.
39. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Radon
It is a right in land and should be created in writing and recorded.
by ratification.
40. 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.
Errors & Omissions insurance
Balloon loan
$4000.
straight assumption
41. Includes real property plus personal property
Package Loan
Blanket Loan
General
Total amount - Certificate amount x 4 = approved maximum loan amount
42. This will not impact of the seller's credit rating.
Trustee's Deed
In a straight assumption - the new buyer is approved - and takes over payments and liability
straight assumption
Mitigation
43. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Deed Restrictions
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
44. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
Radon
Zoning
Redlining
45. The insurance on the FHA loan is referred to as___
Fannie Mae - Freddie Mac and Ginnie Mae.
ostensible agency
MIP - mortgage insurance premium
grow - stabilize - decline - revitalize
46. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
Mitigation
Zoning
estate for years
47. __ clause - states that the lien is defeated when the debt is repaid.
Package Loan
Defeasance
Tenancy by the Entirety
Reverse annuity
48. ___ is created when a licensee acts like an agent and others respond to those actions.
conforming loans
The trustee
Defeasance
ostensible agency
49. ___ 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.
rescission
$4000.
Errors & Omissions insurance
Reverse annuity
50. On income producing property land can never be depreciated for...
rescission
grow - stabilize - decline - revitalize
income tax purposes
Package Loan