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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. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
the cash price or the APR
husband and wife
Zoning
2. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Those on a fixed income
Total amount - Certificate amount x 4 = approved maximum loan amount
25%
An encumbrance
3. Partially amortized loan - benefit
devise
lower interest rate
alimony - child support or a pension plan.
conforming loans.
4. Ownership by two or more without rights of survivorship is called
tenancy in common
estate for years
the cash price or the APR
Vendee's Lien
5. For what group of buyers would the ARM be the least desirable?
Fannie Mae - Freddie Mac and Ginnie Mae.
Those on a fixed income
ostensible agency
EMFs
6. 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
Deed Restrictions
1. Release the lien when the note is paid. 2. Foreclose in the event of default
It is a right in land and should be created in writing and recorded.
7. ___ 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.)
EMFs
straight assumption
Radon
conomic obsolescence
8. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
a grante
The trustee
alimony - child support or a pension plan.
9. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
10. The minimum withdrawal from a home equity LOC is
alimony - child support or a pension plan.
by ratification.
$4000.
Blanket Loan
11. The secondary market warehousing agencies are...
stigmatized
Fannie Mae - Freddie Mac and Ginnie Mae.
General
General Agency
12. ___ is created when a licensee acts like an agent and others respond to those actions.
Trustee's Deed
ostensible agency
25%
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
13. ___ is a limitation on your rights. It may also be a cloud on the title
Vendee's Lien
An encumbrance
stigmatized
Tenancy by the Entirety
14. What is easment?
EMFs
An encumbrance
a property exchange.
It is a right in land and should be created in writing and recorded.
15. ___ 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
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Package Loan
In a straight assumption - the new buyer is approved - and takes over payments and liability
16. ___ gives the agent the power to perform only specific acts and no others.
alimony - child support or a pension plan.
Mitigation
estate for years
Special or limited agency
17. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Mitigation
Tenancy by the Entirety
trustor
encumbrance
18. The deed of trust involves three parties...
General
The trustee
encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
19. 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
income tax purposes
Trustee's Deed
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.
20. Lenders can deny credit if your sole source of income is__
estate for years
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
stigmatized
21. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
Alienation clause
An encumbrance
Zoning
22. __ "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.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
encumbrance
Alienation clause
conforming loans.
23. IRS Lein - Specific lein or general lein
Package Loan
estate for years
General
ostensible agency
24. A person who has real property willed to her by a relative is said to acquire title by...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
devise
General Agency
estate for years
25. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
26. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
General
Deed Restrictions
MIP - mortgage insurance premium
27. Advantages of FHA loans
28. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Alienation clause
rescission
straight assumption
General Agency
29. One who acquires property under a deed is....
Package Loan
25%
tenancy in common
a grante
30. Real estate investors can defer taxation of capital gains by making ___
Radon
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a property exchange.
Alienation clause
31. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Mitigation
Vendee's Lien
Subordination clause
An encumbrance
32. ___market is where lenders go for money
The secondary
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.
3
Deed Restrictions
33. Loans qualified to be purchased in the secondary market are called
Tenancy by the Entirety
a grante
General Agency
conforming loans
34. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
Statutory law
by ratification.
It is a right in land and should be created in writing and recorded.
35. __ clause - states that the lien is defeated when the debt is repaid.
income tax purposes
Balloon loan
MIP - mortgage insurance premium
Defeasance
36. A principal's duties to an agent ar...
grow - stabilize - decline - revitalize
alimony - child support or a pension plan.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
trustor
37. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
straight assumption
Defeasance
10%
conomic obsolescence
38. An attorney-in-fact is the holder of...
Blanket
MIP - mortgage insurance premium
a power of attorney
Deed Restrictions
39. 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
estate for years
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General
40. Includes real property plus personal property
Package Loan
writ of execution
MIP - mortgage insurance premium
The trustee
41. Covers more than one piece of property. (several lots on one note)
Blanket Loan
General Agency
rescission
husband and wife
42. IN Reg Z Advertising which states only __is permitted
$4000.
It is a right in land and should be created in writing and recorded.
General Agency
the cash price or the APR
43. Broker- Salesperson - owner-property manager-> which agency?
Special or limited agency
General Agency
writ of execution
a power of attorney
44. High tension wire should be disclosed
$4000.
25%
EMFs
straight assumption
45. This will not impact of the seller's credit rating.
straight assumption
the cash price or the APR
Package Loan
Deed Restrictions
46. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conomic obsolescence
Errors & Omissions insurance
Special or limited agency
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
1. Release the lien when the note is paid. 2. Foreclose in the event of default
ostensible agency
Redlining
48. ____ - the refusal to lend in a particular geographic area - is prohibited.
Statutory law
Subordination clause
Special or limited agency
Redlining
49. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
The secondary
encumbrance
husband and wife
straight assumption
50. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
conforming loans.
ostensible agency
Reverse annuity