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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 trustee has two functions in accordance with the Deed of Trust.
Zoning
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Reverse annuity
Special or limited agency
2. '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?
Zoning
$4000.
Alienation clause
Trustee's Deed
3. Covers more than one piece of property. (several lots on one note)
Blanket Loan
$4000.
a grante
Alienation clause
4. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
3
the cash price or the APR
Reverse annuity
Fannie Mae - Freddie Mac and Ginnie Mae.
5. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Errors & Omissions insurance
Subordination clause
3
a grante
6. 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.
The secondary
ostensible agency
Balloon loan
EMFs
7. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
In a straight assumption - the new buyer is approved - and takes over payments and liability
tenancy in common
grow - stabilize - decline - revitalize
Balloon loan
8. ___market is where lenders go for money
Alienation clause
the cash price or the APR
Blanket
The secondary
9. __ "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.
conforming loans
It is a right in land and should be created in writing and recorded.
a power of attorney
Alienation clause
10. Must sign the Deed of Trust.
trustor
Reverse annuity
$4000.
a power of attorney
11. Loan novation?
conforming loans.
by ratification.
alimony - child support or a pension plan.
In a straight assumption - the new buyer is approved - and takes over payments and liability
12. The deed of trust involves three parties...
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
3
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Alienation clause
13. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
a power of attorney
stigmatized
Statutory law
25%
14. Loans qualified to be purchased in the secondary market are called
conomic obsolescence
encumbrance
conforming loans
Balloon loan
15. ___ gives the agent the power to perform only specific acts and no others.
estate for years
Special or limited agency
estoppel
by ratification.
16. Property Manager ( which type of Agency)
encumbrance
a grante
General Agency
25%
17. What is easment?
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Defeasance
It is a right in land and should be created in writing and recorded.
Alienation clause
18. The veteran must obtain a Certificate of Eligibility from the VA
General Agency
a property exchange.
Total amount - Certificate amount x 4 = approved maximum loan amount
Zoning
19. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Trustee's Deed
Redlining
rescission
20. Advantages of FHA loans
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21. ___ 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.)
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a grante
Deed Restrictions
conomic obsolescence
22. Partially amortized loan - benefit
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
lower interest rate
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
23. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Mitigation
writ of execution
tenancy in common
10%
24. One who acquires property under a deed is....
a grante
writ of execution
25%
Errors & Omissions insurance
25. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
Subordination clause
Statutory law
Reverse annuity
26. An attorney-in-fact is the holder of...
Those on a fixed income
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a power of attorney
stigmatized
27. The minimum withdrawal from a home equity LOC is
trustor
$4000.
In a straight assumption - the new buyer is approved - and takes over payments and liability
estoppel
28. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
Special or limited agency
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
29. Real estate investors can defer taxation of capital gains by making ___
estate for years
Alienation clause
General
a property exchange.
30. A property where there has been a murder or alleged haunting is called...
stigmatized
a property exchange.
Alienation clause
Mitigation
31. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
by ratification.
10%
ostensible agency
32. Includes real property plus personal property
Zoning
Package Loan
rescission
stigmatized
33. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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34. ___ is created when a licensee acts like an agent and others respond to those actions.
Blanket
General Agency
ostensible agency
husband and wife
35. 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.
lower interest rate
estoppel
income tax purposes
encumbrance
36. High tension wire should be disclosed
estate for years
Statutory law
EMFs
10%
37. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
The trustee
writ of execution
25%
devise
38. IN Reg Z Advertising which states only __is permitted
a power of attorney
25%
the cash price or the APR
Radon
39. Loans qualified to be purchased in the secondary market are called __
Total amount - Certificate amount x 4 = approved maximum loan amount
conforming loans.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
the cash price or the APR
40. ___loan - Covers more than one piece of property
Alienation clause
Statutory law
the cash price or the APR
Blanket
41. ___ 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
EMFs
trustor
writ of execution
42. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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
10%
43. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
An encumbrance
It is a right in land and should be created in writing and recorded.
The secondary
44. IRS Lein - Specific lein or general lein
Total amount - Certificate amount x 4 = approved maximum loan amount
Mitigation
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General
45. Ownership by two or more without rights of survivorship is called
Defeasance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
estate for years
tenancy in common
46. An ___ is a limitation on your rights
grow - stabilize - decline - revitalize
encumbrance
Package Loan
the cash price or the APR
47. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
rescission
stigmatized
Radon
48. The secondary market warehousing agencies are...
The trustee
Tenancy by the Entirety
Fannie Mae - Freddie Mac and Ginnie Mae.
devise
49. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
a power of attorney
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
The secondary
50. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.
grow - stabilize - decline - revitalize
conforming loans.