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