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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. Loan novation?
Those on a fixed income
husband and wife
In a straight assumption - the new buyer is approved - and takes over payments and liability
Special or limited agency
2. Real estate investors can defer taxation of capital gains by making ___
Tenancy by the Entirety
a property exchange.
Blanket Loan
General Agency
3. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
tenancy in common
trustor
In a straight assumption - the new buyer is approved - and takes over payments and liability
4. A principal's duties to an agent ar...
trustor
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Redlining
a grante
5. An attorney-in-fact is the holder of...
Fannie Mae - Freddie Mac and Ginnie Mae.
a power of attorney
conforming loans.
grow - stabilize - decline - revitalize
6. An ___ is a limitation on your rights
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
straight assumption
encumbrance
Alienation clause
7. For what group of buyers would the ARM be the least desirable?
straight assumption
Those on a fixed income
Radon
The trustee
8. ___ is a limitation on your rights. It may also be a cloud on the title
$4000.
EMFs
An encumbrance
Tenancy by the Entirety
9. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
The secondary
grow - stabilize - decline - revitalize
3
10. IN Reg Z Advertising which states only __is permitted
grow - stabilize - decline - revitalize
Trustee's Deed
the cash price or the APR
Blanket Loan
11. Broker- Salesperson - owner-property manager-> which agency?
The trustee
Alienation clause
General Agency
a grante
12. This will not impact of the seller's credit rating.
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
Special or limited agency
estate for years
straight assumption
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
rescission
In a straight assumption - the new buyer is approved - and takes over payments and liability
Errors & Omissions insurance
14. ____ - the refusal to lend in a particular geographic area - is prohibited.
a power of attorney
Redlining
Deed Restrictions
Defeasance
15. On income producing property land can never be depreciated for...
income tax purposes
lower interest rate
Reverse annuity
An encumbrance
16. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Reverse annuity
writ of execution
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.
17. 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.
a power of attorney
Alienation clause
Balloon loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
18. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
trustor
In a straight assumption - the new buyer is approved - and takes over payments and liability
10%
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
19. The veteran must obtain a Certificate of Eligibility from the VA
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
Special or limited agency
alimony - child support or a pension plan.
Total amount - Certificate amount x 4 = approved maximum loan amount
20. The deed of trust involves three parties...
conforming loans.
straight assumption
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
husband and wife
21. '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
Defeasance
Errors & Omissions insurance
Mitigation
22. Advantages of FHA loans
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23. Property Manager ( which type of Agency)
Fannie Mae - Freddie Mac and Ginnie Mae.
stigmatized
General Agency
lower interest rate
24. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
3
Those on a fixed income
Mitigation
25. The minimum withdrawal from a home equity LOC is
$4000.
The secondary
Errors & Omissions insurance
Special or limited agency
26. Lenders can deny credit if your sole source of income is__
grow - stabilize - decline - revitalize
Total amount - Certificate amount x 4 = approved maximum loan amount
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
alimony - child support or a pension plan.
27. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
Package Loan
In a straight assumption - the new buyer is approved - and takes over payments and liability
a grante
28. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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29. __ "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.
by ratification.
Alienation clause
income tax purposes
Those on a fixed income
30. One who acquires property under a deed is....
encumbrance
a grante
Subordination clause
The trustee
31. A property where there has been a murder or alleged haunting is called...
An encumbrance
stigmatized
The trustee
the cash price or the APR
32. __ is a specific type of joint tenancy where the co-owners are husband and wife.
ostensible agency
Tenancy by the Entirety
tenancy in common
alimony - child support or a pension plan.
33. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
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
husband and wife
Fannie Mae - Freddie Mac and Ginnie Mae.
Mitigation
34. What is easment?
An encumbrance
25%
grow - stabilize - decline - revitalize
It is a right in land and should be created in writing and recorded.
35. 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.
a power of attorney
Special or limited agency
conomic obsolescence
estoppel
36. Loans qualified to be purchased in the secondary market are called
tenancy in common
conforming loans
stigmatized
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
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.)
straight assumption
conomic obsolescence
3
lower interest rate
38. Must sign the Deed of Trust.
devise
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
trustor
by ratification.
39. ___ are imposed to control land use - development and methods and materials for construction.
Mitigation
husband and wife
Deed Restrictions
Package Loan
40. Ownership by two or more without rights of survivorship is called
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.
tenancy in common
a grante
husband and wife
41. ___ gives the agent the power to perform only specific acts and no others.
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
3
Alienation clause
42. IRS Lein - Specific lein or general lein
General
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Mitigation
trustor
43. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
trustor
Deed Restrictions
Reverse annuity
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.
44. Covers more than one piece of property. (several lots on one note)
Tenancy by the Entirety
In a straight assumption - the new buyer is approved - and takes over payments and liability
Blanket Loan
by ratification.
45. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
Radon
Fannie Mae - Freddie Mac and Ginnie Mae.
Defeasance
46. Loans qualified to be purchased in the secondary market are called __
conforming loans.
estoppel
Redlining
alimony - child support or a pension plan.
47. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
a grante
It is a right in land and should be created in writing and recorded.
3
Vendee's Lien
48. ___ 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.
It is a right in land and should be created in writing and recorded.
encumbrance
Radon
Errors & Omissions insurance
49. 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.
It is a right in land and should be created in writing and recorded.
10%
straight assumption
Zoning
50. This lease survives death and/or the sale of the property. No notice is required to terminate.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
EMFs
estate for years
Deed Restrictions