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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. ___market is where lenders go for money
writ of execution
The secondary
Radon
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
2. High tension wire should be disclosed
An encumbrance
3
EMFs
General
3. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
4. IN Reg Z Advertising which states only __is permitted
grow - stabilize - decline - revitalize
the cash price or the APR
MIP - mortgage insurance premium
The trustee
5. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
General Agency
trustor
writ of execution
6. Partially amortized loan - benefit
lower interest rate
Blanket
Statutory law
Alienation clause
7. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
General
Blanket Loan
rescission
8. ___ 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.
Blanket
Errors & Omissions insurance
conforming loans.
devise
9. For what group of buyers would the ARM be the least desirable?
conforming loans.
10%
Total amount - Certificate amount x 4 = approved maximum loan amount
Those on a fixed income
10. One who acquires property under a deed is....
EMFs
conforming loans
Special or limited agency
a grante
11. Property Manager ( which type of Agency)
EMFs
Redlining
General Agency
Deed Restrictions
12. Must sign the Deed of Trust.
trustor
The secondary
ostensible agency
a property exchange.
13. An ___ is a limitation on your rights
encumbrance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Errors & Omissions insurance
Total amount - Certificate amount x 4 = approved maximum loan amount
14. There are four basic characteristics of value
General Agency
trustor
25%
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
15. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
Package Loan
conforming loans.
Vendee's Lien
16. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Alienation clause
by ratification.
Vendee's Lien
rescission
17. A person who has real property willed to her by a relative is said to acquire title by...
Redlining
devise
Package Loan
grow - stabilize - decline - revitalize
18. 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.
writ of execution
tenancy in common
Balloon loan
ostensible agency
19. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
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
the cash price or the APR
The trustee
devise
20. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
estoppel
Reverse annuity
rescission
stigmatized
21. Advantages of FHA loans
22. Loans qualified to be purchased in the secondary market are called __
conforming loans.
Radon
The trustee
estate for years
23. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
rescission
Mitigation
Statutory law
General Agency
24. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
a grante
estoppel
EMFs
25. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
Mitigation
It is a right in land and should be created in writing and recorded.
The trustee
26. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
3
lower interest rate
income tax purposes
10%
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. It is called?
Alienation clause
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Special or limited agency
Deed Restrictions
28. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
tenancy in common
General Agency
trustor
29. IRS Lein - Specific lein or general lein
Alienation clause
General Agency
General
encumbrance
30. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
estate for years
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
devise
31. __ "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.
estoppel
Alienation clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
EMFs
32. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
Mitigation
Defeasance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
33. The minimum withdrawal from a home equity LOC is
Tenancy by the Entirety
conomic obsolescence
straight assumption
$4000.
34. What is easment?
It is a right in land and should be created in writing and recorded.
grow - stabilize - decline - revitalize
conforming loans.
Alienation clause
35. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Errors & Omissions insurance
Reverse annuity
income tax purposes
by ratification.
36. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
stigmatized
Balloon loan
grow - stabilize - decline - revitalize
a property exchange.
37. Ownership by two or more without rights of survivorship is called
Blanket Loan
Package Loan
tenancy in common
conforming loans.
38. Lenders can deny credit if your sole source of income is__
a power of attorney
trustor
10%
alimony - child support or a pension plan.
39. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
10%
a property exchange.
Radon
devise
40. An attorney-in-fact is the holder of...
Balloon loan
Those on a fixed income
a power of attorney
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.
41. ___ gives the agent the power to perform only specific acts and no others.
a power of attorney
Special or limited agency
In a straight assumption - the new buyer is approved - and takes over payments and liability
conomic obsolescence
42. This lease survives death and/or the sale of the property. No notice is required to terminate.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
estate for years
income tax purposes
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
43. On income producing property land can never be depreciated for...
income tax purposes
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Radon
Zoning
44. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
General Agency
An encumbrance
Blanket
45. ___ 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.)
Alienation clause
conomic obsolescence
a grante
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
46. A property where there has been a murder or alleged haunting is called...
Trustee's Deed
stigmatized
Deed Restrictions
grow - stabilize - decline - revitalize
47. Which of the following instruments is the promise to repay a debt?
Balloon loan
income tax purposes
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Defeasance
48. Broker- Salesperson - owner-property manager-> which agency?
General Agency
lower interest rate
a power of attorney
An encumbrance
49. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
50. The insurance on the FHA loan is referred to as___
conforming loans
Vendee's Lien
MIP - mortgage insurance premium
Package Loan