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