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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. ___ 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.
Mitigation
Tenancy by the Entirety
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Errors & Omissions insurance
2. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
trustor
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Package Loan
3. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
Package Loan
conomic obsolescence
devise
4. 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.
ostensible agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
In a straight assumption - the new buyer is approved - and takes over payments and liability
Zoning
5. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
EMFs
devise
Fannie Mae - Freddie Mac and Ginnie Mae.
6. 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.
Balloon loan
estoppel
Package Loan
1. Release the lien when the note is paid. 2. Foreclose in the event of default
7. ___ is a limitation on your rights. It may also be a cloud on the title
husband and wife
An encumbrance
estoppel
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.
8. A property where there has been a murder or alleged haunting is called...
lower interest rate
Blanket
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
stigmatized
9. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
rescission
Vendee's Lien
Mitigation
10. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Special or limited agency
Radon
husband and wife
trustor
11. ___ is created when a licensee acts like an agent and others respond to those actions.
conomic obsolescence
encumbrance
Errors & Omissions insurance
ostensible agency
12. There are four basic characteristics of value
encumbrance
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
straight assumption
EMFs
13. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
rescission
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Reverse annuity
10%
14. What is easment?
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
$4000.
It is a right in land and should be created in writing and recorded.
Errors & Omissions insurance
15. IRS Lein - Specific lein or general lein
General
grow - stabilize - decline - revitalize
conomic obsolescence
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
16. Partially amortized loan - benefit
tenancy in common
lower interest rate
estoppel
income tax purposes
17. An ___ is a limitation on your rights
Statutory law
General Agency
encumbrance
a property exchange.
18. The veteran must obtain a Certificate of Eligibility from the VA
Blanket Loan
Vendee's Lien
The secondary
Total amount - Certificate amount x 4 = approved maximum loan amount
19. ___market is where lenders go for money
Vendee's Lien
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
estate for years
The secondary
20. ___loan - Covers more than one piece of property
Reverse annuity
a property exchange.
writ of execution
Blanket
21. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Reverse annuity
writ of execution
Balloon loan
conomic obsolescence
22. This will not impact of the seller's credit rating.
straight assumption
10%
trustor
estoppel
23. Property Manager ( which type of Agency)
Package Loan
An encumbrance
rescission
General Agency
24. __ is a specific type of joint tenancy where the co-owners are husband and wife.
a grante
Subordination clause
Tenancy by the Entirety
Alienation clause
25. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Subordination clause
Blanket
Balloon loan
26. Real estate investors can defer taxation of capital gains by making ___
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Fannie Mae - Freddie Mac and Ginnie Mae.
a property exchange.
In a straight assumption - the new buyer is approved - and takes over payments and liability
27. An agent's duties to his principal are...
husband and wife
10%
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
The secondary
28. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Radon
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
29. Loans qualified to be purchased in the secondary market are called
straight assumption
conforming loans
Package Loan
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
30. Covers more than one piece of property. (several lots on one note)
25%
Blanket Loan
estoppel
$4000.
31. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
devise
General Agency
The trustee
Subordination clause
32. An attorney-in-fact is the holder of...
a power of attorney
straight assumption
Alienation clause
Package Loan
33. A person who has real property willed to her by a relative is said to acquire title by...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
lower interest rate
devise
Alienation clause
34. For what group of buyers would the ARM be the least desirable?
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
trustor
husband and wife
Those on a fixed income
35. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
conforming loans.
writ of execution
General Agency
36. ___ are imposed to control land use - development and methods and materials for construction.
MIP - mortgage insurance premium
Deed Restrictions
3
conforming loans.
37. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
ostensible agency
Errors & Omissions insurance
In a straight assumption - the new buyer is approved - and takes over payments and liability
38. ____ - the refusal to lend in a particular geographic area - is prohibited.
Deed Restrictions
Redlining
ostensible agency
Special or limited agency
39. Must sign the Deed of Trust.
trustor
MIP - mortgage insurance premium
Subordination clause
estate for years
40. Common law does not always takes precedence over...
conomic obsolescence
Deed Restrictions
Statutory law
Total amount - Certificate amount x 4 = approved maximum loan amount
41. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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42. Loan novation?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
In a straight assumption - the new buyer is approved - and takes over payments and liability
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Subordination clause
43. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
The secondary
Subordination clause
The trustee
44. On income producing property land can never be depreciated for...
income tax purposes
husband and wife
a grante
grow - stabilize - decline - revitalize
45. Ownership by two or more without rights of survivorship is called
conforming loans
Deed Restrictions
tenancy in common
income tax purposes
46. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
Radon
The trustee
a grante
47. ___ 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.)
Package Loan
Vendee's Lien
conomic obsolescence
Balloon loan
48. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Errors & Omissions insurance
Blanket
49. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
In a straight assumption - the new buyer is approved - and takes over payments and liability
General Agency
Subordination clause
rescission
50. One who acquires property under a deed is....
The secondary
Reverse annuity
a grante
conforming loans