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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. Includes real property plus personal property
Package Loan
25%
Statutory law
It is a right in land and should be created in writing and recorded.
2. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
straight assumption
rescission
Total amount - Certificate amount x 4 = approved maximum loan amount
Tenancy by the Entirety
3. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
stigmatized
Radon
4. Broker- Salesperson - owner-property manager-> which agency?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
The secondary
General Agency
Special or limited agency
5. IRS Lein - Specific lein or general lein
EMFs
25%
General
The trustee
6. This will not impact of the seller's credit rating.
An encumbrance
Tenancy by the Entirety
straight assumption
3
7. Advantages of FHA loans
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8. 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.
Balloon loan
Zoning
the cash price or the APR
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
9. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Those on a fixed income
writ of execution
Vendee's Lien
In a straight assumption - the new buyer is approved - and takes over payments and liability
10. ___market is where lenders go for money
EMFs
The secondary
Errors & Omissions insurance
husband and wife
11. __ clause - states that the lien is defeated when the debt is repaid.
General Agency
Defeasance
ostensible agency
10%
12. A person who has real property willed to her by a relative is said to acquire title by...
devise
Tenancy by the Entirety
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
writ of execution
13. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
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.
Radon
Reverse annuity
14. ___ is created when a licensee acts like an agent and others respond to those actions.
rescission
ostensible agency
$4000.
tenancy in common
15. An agent's duties to his principal are...
Reverse annuity
Radon
the cash price or the APR
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
16. The insurance on the FHA loan is referred to as___
Errors & Omissions insurance
MIP - mortgage insurance premium
a property exchange.
Special or limited agency
17. The deed of trust involves three parties...
a grante
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Alienation clause
10%
18. Loans qualified to be purchased in the secondary market are called __
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
MIP - mortgage insurance premium
conforming loans.
conforming loans
19. IN Reg Z Advertising which states only __is permitted
EMFs
the cash price or the APR
General Agency
Redlining
20. Partially amortized loan - benefit
lower interest rate
Alienation clause
Alienation clause
3
21. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
a power of attorney
Subordination clause
Errors & Omissions insurance
In a straight assumption - the new buyer is approved - and takes over payments and liability
22. The veteran must obtain a Certificate of Eligibility from the VA
Errors & Omissions insurance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Total amount - Certificate amount x 4 = approved maximum loan amount
It is a right in land and should be created in writing and recorded.
23. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Radon
a power of attorney
Errors & Omissions insurance
24. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
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
Reverse annuity
Trustee's Deed
25. ___ 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.)
conforming loans
conomic obsolescence
a power of attorney
Errors & Omissions insurance
26. 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.
25%
Alienation clause
estoppel
straight assumption
27. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Package Loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Reverse annuity
Those on a fixed income
28. '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
General
a grante
Defeasance
29. Loan novation?
EMFs
straight assumption
trustor
In a straight assumption - the new buyer is approved - and takes over payments and liability
30. An ___ is a limitation on your rights
encumbrance
Special or limited agency
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
In a straight assumption - the new buyer is approved - and takes over payments and liability
31. On income producing property land can never be depreciated for...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
An encumbrance
income tax purposes
ostensible agency
32. Covers more than one piece of property. (several lots on one note)
a power of attorney
alimony - child support or a pension plan.
straight assumption
Blanket Loan
33. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
Zoning
conforming loans.
encumbrance
34. An attorney-in-fact is the holder of...
Total amount - Certificate amount x 4 = approved maximum loan amount
a power of attorney
trustor
Tenancy by the Entirety
35. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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36. For what group of buyers would the ARM be the least desirable?
stigmatized
Those on a fixed income
Fannie Mae - Freddie Mac and Ginnie Mae.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
37. Which of the following instruments is the promise to repay a debt?
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
1. Release the lien when the note is paid. 2. Foreclose in the event of default
rescission
38. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
a grante
Reverse annuity
husband and wife
Alienation clause
39. 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.
conforming loans.
Special or limited agency
Zoning
rescission
40. ___ gives the agent the power to perform only specific acts and no others.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Special or limited agency
MIP - mortgage insurance premium
Alienation clause
41. __ "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.
General Agency
encumbrance
Alienation clause
the cash price or the APR
42. High tension wire should be disclosed
EMFs
rescission
lower interest rate
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
43. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
The secondary
a property exchange.
3
44. Real estate investors can defer taxation of capital gains by making ___
Mitigation
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Blanket
a property exchange.
45. There are four basic characteristics of value
estoppel
Zoning
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
46. This lease survives death and/or the sale of the property. No notice is required to terminate.
General Agency
3
encumbrance
estate for years
47. ___ 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.
devise
estate for years
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Errors & Omissions insurance
48. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
EMFs
Errors & Omissions insurance
Redlining
49. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
grow - stabilize - decline - revitalize
Vendee's Lien
tenancy in common
50. Common law does not always takes precedence over...
Those on a fixed income
Statutory law
lower interest rate
tenancy in common