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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. '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?
Total amount - Certificate amount x 4 = approved maximum loan amount
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
The trustee
Alienation clause
2. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Those on a fixed income
Errors & Omissions insurance
Mitigation
alimony - child support or a pension plan.
3. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
Tenancy by the Entirety
Mitigation
tenancy in common
4. ___market is where lenders go for money
Trustee's Deed
The trustee
The secondary
1. Release the lien when the note is paid. 2. Foreclose in the event of default
5. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
stigmatized
Defeasance
Statutory law
Radon
6. 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
Radon
Reverse annuity
Vendee's Lien
7. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General
Special or limited agency
Tenancy by the Entirety
8. Partially amortized loan - benefit
lower interest rate
Mitigation
Defeasance
encumbrance
9. Ownership by two or more without rights of survivorship is called
Redlining
10%
tenancy in common
Those on a fixed income
10. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
estate for years
The trustee
1. Release the lien when the note is paid. 2. Foreclose in the event of default
conomic obsolescence
11. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
husband and wife
rescission
straight assumption
Mitigation
12. One who acquires property under a deed is....
Blanket
$4000.
encumbrance
a grante
13. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Zoning
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
14. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Errors & Omissions insurance
10%
The secondary
General Agency
15. ___ gives the agent the power to perform only specific acts and no others.
devise
Vendee's Lien
Blanket
Special or limited agency
16. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
3
rescission
17. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible 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.
Zoning
a power of attorney
18. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
income tax purposes
Subordination clause
alimony - child support or a pension plan.
the cash price or the APR
19. ___loan - Covers more than one piece of property
Blanket
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.
estate for years
20. IRS Lein - Specific lein or general lein
Trustee's Deed
General Agency
Fannie Mae - Freddie Mac and Ginnie Mae.
General
21. A property where there has been a murder or alleged haunting is called...
General Agency
Zoning
stigmatized
conforming loans.
22. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
10%
Total amount - Certificate amount x 4 = approved maximum loan amount
the cash price or the APR
23. Broker- Salesperson - owner-property manager-> which agency?
10%
General Agency
25%
Deed Restrictions
24. The insurance on the FHA loan is referred to as___
a grante
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
MIP - mortgage insurance premium
25. Common law does not always takes precedence over...
trustor
Statutory law
Blanket Loan
the cash price or the APR
26. An attorney-in-fact is the holder of...
husband and wife
Alienation clause
a power of attorney
stigmatized
27. An agent's duties to his principal are...
MIP - mortgage insurance premium
writ of execution
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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
28. ___ 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
estate for years
stigmatized
estoppel
29. Advantages of FHA loans
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30. __ clause - states that the lien is defeated when the debt is repaid.
estate for years
conforming loans.
Defeasance
Subordination clause
31. Includes real property plus personal property
The secondary
Subordination clause
Special or limited agency
Package Loan
32. Must sign the Deed of Trust.
trustor
Deed Restrictions
In a straight assumption - the new buyer is approved - and takes over payments and liability
Vendee's Lien
33. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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34. The trustee has two functions in accordance with the Deed of Trust.
encumbrance
income tax purposes
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
35. This lease survives death and/or the sale of the property. No notice is required to terminate.
by ratification.
estate for years
In a straight assumption - the new buyer is approved - and takes over payments and liability
It is a right in land and should be created in writing and recorded.
36. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
conforming loans.
Redlining
EMFs
37. 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.
Alienation clause
Blanket Loan
Zoning
Balloon loan
38. IN Reg Z Advertising which states only __is permitted
Reverse annuity
the cash price or the APR
writ of execution
a property exchange.
39. The deed of trust involves three parties...
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.
25%
tenancy in common
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
40. 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.
Balloon loan
estoppel
a property exchange.
lower interest rate
41. Lenders can deny credit if your sole source of income is__
10%
Mitigation
alimony - child support or a pension plan.
Those on a fixed income
42. ___ are imposed to control land use - development and methods and materials for construction.
conomic obsolescence
husband and wife
Deed Restrictions
The secondary
43. Loans qualified to be purchased in the secondary market are called __
Subordination clause
Those on a fixed income
conforming loans.
lower interest rate
44. A person who has real property willed to her by a relative is said to acquire title by...
alimony - child support or a pension plan.
$4000.
devise
10%
45. __ "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.
Blanket
Alienation clause
Zoning
Redlining
46. ___ is a limitation on your rights. It may also be a cloud on the title
by ratification.
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
An encumbrance
Radon
47. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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48. The minimum withdrawal from a home equity LOC is
Package Loan
stigmatized
Deed Restrictions
$4000.
49. Covers more than one piece of property. (several lots on one note)
stigmatized
ostensible agency
Blanket Loan
Tenancy by the Entirety
50. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
Those on a fixed income
straight assumption
General Agency