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