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