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