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