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