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