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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. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Special or limited agency
Mitigation
Subordination clause
lower interest rate
2. On income producing property land can never be depreciated for...
Blanket Loan
income tax purposes
Mitigation
straight assumption
3. IRS Lein - Specific lein or general lein
General
1. Release the lien when the note is paid. 2. Foreclose in the event of default
grow - stabilize - decline - revitalize
encumbrance
4. The veteran must obtain a Certificate of Eligibility from the VA
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
$4000.
Total amount - Certificate amount x 4 = approved maximum loan amount
Vendee's Lien
5. A principal's duties to an agent ar...
income tax purposes
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a power of attorney
Blanket
6. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
alimony - child support or a pension plan.
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
Reverse annuity
7. __ "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.
a power of attorney
The secondary
Alienation clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
8. The secondary market warehousing agencies are...
General Agency
In a straight assumption - the new buyer is approved - and takes over payments and liability
Fannie Mae - Freddie Mac and Ginnie Mae.
General Agency
9. ___ gives the agent the power to perform only specific acts and no others.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Reverse annuity
General Agency
Special or limited agency
10. Partially amortized loan - benefit
lower interest rate
Radon
conomic obsolescence
1. Release the lien when the note is paid. 2. Foreclose in the event of default
11. Loan novation?
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
An encumbrance
Reverse annuity
In a straight assumption - the new buyer is approved - and takes over payments and liability
12. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount
income tax purposes
General
13. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
rescission
by ratification.
Vendee's Lien
General Agency
14. IN Reg Z Advertising which states only __is permitted
conforming loans.
10%
Blanket Loan
the cash price or the APR
15. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Statutory law
rescission
General
encumbrance
16. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
grow - stabilize - decline - revitalize
Deed Restrictions
Vendee's Lien
10%
17. Must sign the Deed of Trust.
trustor
$4000.
Subordination clause
Defeasance
18. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
Blanket
straight assumption
Balloon loan
19. Advantages of FHA loans
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20. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
EMFs
rescission
25%
grow - stabilize - decline - revitalize
21. The deed of trust involves three parties...
encumbrance
General Agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
tenancy in common
22. ___ 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
Package Loan
the cash price or the APR
income tax purposes
23. ___ 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.)
a grante
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
conomic obsolescence
24. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The secondary
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The trustee
25%
25. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
Alienation clause
Statutory law
Errors & Omissions insurance
26. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Total amount - Certificate amount x 4 = approved maximum loan amount
25%
Subordination clause
Mitigation
27. ___ are imposed to control land use - development and methods and materials for construction.
$4000.
lower interest rate
Deed Restrictions
In a straight assumption - the new buyer is approved - and takes over payments and liability
28. For what group of buyers would the ARM be the least desirable?
Reverse annuity
Those on a fixed income
devise
husband and wife
29. 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
encumbrance
Package Loan
Total amount - Certificate amount x 4 = approved maximum loan amount
30. The minimum withdrawal from a home equity LOC is
$4000.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Alienation clause
tenancy in common
31. This will not impact of the seller's credit rating.
Radon
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
straight assumption
Alienation clause
32. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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33. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Reverse annuity
Fannie Mae - Freddie Mac and Ginnie Mae.
10%
34. A property where there has been a murder or alleged haunting is called...
stigmatized
MIP - mortgage insurance premium
Total amount - Certificate amount x 4 = approved maximum loan amount
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
35. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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36. An attorney-in-fact is the holder of...
a power of attorney
Reverse annuity
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
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.
37. ___loan - Covers more than one piece of property
10%
estate for years
straight assumption
Blanket
38. Common law does not always takes precedence over...
Total amount - Certificate amount x 4 = approved maximum loan amount
conforming loans
Statutory law
3
39. An ___ is a limitation on your rights
alimony - child support or a pension plan.
$4000.
In a straight assumption - the new buyer is approved - and takes over payments and liability
encumbrance
40. ___ is created when a licensee acts like an agent and others respond to those actions.
Fannie Mae - Freddie Mac and Ginnie Mae.
$4000.
Subordination clause
ostensible agency
41. One who acquires property under a deed is....
a grante
lower interest rate
the cash price or the APR
ostensible agency
42. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
MIP - mortgage insurance premium
3
income tax purposes
estate for years
43. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Vendee's Lien
General Agency
25%
Deed Restrictions
44. __ clause - states that the lien is defeated when the debt is repaid.
writ of execution
trustor
Defeasance
rescission
45. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Total amount - Certificate amount x 4 = approved maximum loan amount
writ of execution
General Agency
Vendee's Lien
46. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
ostensible agency
Trustee's Deed
General
Reverse annuity
47. '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?
conforming loans
$4000.
Alienation clause
straight assumption
48. Includes real property plus personal property
$4000.
Package Loan
a property exchange.
General Agency
49. Property Manager ( which type of Agency)
Alienation clause
An 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
General Agency
50. An agent's duties to his principal are...
trustor
Those on a fixed income
EMFs
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care