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