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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 minimum withdrawal from a home equity LOC is
$4000.
by ratification.
Zoning
conforming loans.
2. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
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.
husband and wife
Statutory law
3. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
4. On income producing property land can never be depreciated for...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a grante
Statutory law
income tax purposes
5. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
a grante
Those on a fixed income
tenancy in common
6. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
writ of execution
conforming loans
grow - stabilize - decline - revitalize
Errors & Omissions insurance
7. Loan novation?
by ratification.
encumbrance
straight assumption
In a straight assumption - the new buyer is approved - and takes over payments and liability
8. An attorney-in-fact is the holder of...
It is a right in land and should be created in writing and recorded.
Vendee's Lien
a power of attorney
10%
9. Ownership by two or more without rights of survivorship is called
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
Blanket
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.
10. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
The secondary
Redlining
conomic obsolescence
rescission
11. Loans qualified to be purchased in the secondary market are called
ostensible agency
EMFs
conforming loans
Blanket
12. Must sign the Deed of Trust.
trustor
husband and wife
EMFs
Redlining
13. Broker- Salesperson - owner-property manager-> which agency?
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
trustor
25%
14. Partially amortized loan - benefit
It is a right in land and should be created in writing and recorded.
Statutory law
Reverse annuity
lower interest rate
15. 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.
10%
trustor
Total amount - Certificate amount x 4 = approved maximum loan amount
estoppel
16. Advantages of FHA loans
17. Real estate investors can defer taxation of capital gains by making ___
by ratification.
Fannie Mae - Freddie Mac and Ginnie Mae.
Reverse annuity
a property exchange.
18. The insurance on the FHA loan is referred to as___
Alienation clause
MIP - mortgage insurance premium
General Agency
conomic obsolescence
19. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
rescission
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Balloon loan
20. An ___ is a limitation on your rights
encumbrance
Balloon loan
MIP - mortgage insurance premium
EMFs
21. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
writ of execution
10%
tenancy in common
Special or limited agency
22. ___ is created when a licensee acts like an agent and others respond to those actions.
Deed Restrictions
ostensible agency
Package Loan
25%
23. ___ are imposed to control land use - development and methods and materials for construction.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Deed Restrictions
3
Errors & Omissions insurance
24. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
ostensible agency
Radon
estate for years
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
25. The secondary market warehousing agencies are...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Defeasance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Fannie Mae - Freddie Mac and Ginnie Mae.
26. __ clause - states that the lien is defeated when the debt is repaid.
a property exchange.
Reverse annuity
The secondary
Defeasance
27. A principal's duties to an agent ar...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
tenancy in common
stigmatized
28. Which of the following instruments is the promise to repay a debt?
writ of execution
Package Loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
29. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
conforming loans.
An encumbrance
In a straight assumption - the new buyer is approved - and takes over payments and liability
30. An agent's duties to his principal are...
10%
grow - stabilize - decline - revitalize
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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.
Reverse annuity
Balloon loan
Radon
Errors & Omissions insurance
32. Covers more than one piece of property. (several lots on one note)
Blanket Loan
alimony - child support or a pension plan.
lower interest rate
Redlining
33. Loans qualified to be purchased in the secondary market are called __
writ of execution
conforming loans.
estate for years
It is a right in land and should be created in writing and recorded.
34. ___loan - Covers more than one piece of property
lower interest rate
Blanket
tenancy in common
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
35. 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.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Balloon loan
a grante
The secondary
36. Includes real property plus personal property
Package Loan
the cash price or the APR
General Agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
37. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Errors & Omissions insurance
25%
Total amount - Certificate amount x 4 = approved maximum loan amount
38. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
estoppel
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Balloon loan
Mitigation
39. There are four basic characteristics of value
straight assumption
a power of attorney
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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
40. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
husband and wife
Reverse annuity
Statutory law
An encumbrance
41. 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
3
Those on a fixed income
10%
42. High tension wire should be disclosed
EMFs
a property exchange.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Those on a fixed income
43. What is easment?
Radon
Subordination clause
It is a right in land and should be created in writing and recorded.
The trustee
44. This will not impact of the seller's credit rating.
a power of attorney
conforming loans.
straight assumption
Trustee's Deed
45. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
General
Fannie Mae - Freddie Mac and Ginnie Mae.
husband and wife
46. Property Manager ( which type of Agency)
General Agency
income tax purposes
3
Total amount - Certificate amount x 4 = approved maximum loan amount
47. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
income tax purposes
The secondary
Zoning
Subordination clause
48. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
conforming loans.
by ratification.
a property exchange.
Those on a fixed income
49. 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.
tenancy in common
estate for years
Blanket Loan
Zoning
50. 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
lower interest rate
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
conforming loans