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