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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. Which of the following instruments is the promise to repay a debt?
a property exchange.
the cash price or the APR
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
$4000.
2. This will not impact of the seller's credit rating.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
straight assumption
trustor
Alienation clause
3. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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4. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Fannie Mae - Freddie Mac and Ginnie Mae.
10%
Mitigation
Errors & Omissions insurance
5. An ___ is a limitation on your rights
encumbrance
25%
Mitigation
tenancy in common
6. A principal's duties to an agent ar...
Balloon loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Fannie Mae - Freddie Mac and Ginnie Mae.
stigmatized
7. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Blanket Loan
Balloon loan
a property exchange.
8. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
income tax purposes
An encumbrance
The trustee
estate for years
9. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
Those on a fixed income
Special or limited agency
lower interest rate
10. For what group of buyers would the ARM be the least desirable?
Special or limited agency
Those on a fixed income
Statutory law
conforming loans
11. Real estate investors can defer taxation of capital gains by making ___
conomic obsolescence
a property exchange.
Errors & Omissions insurance
Fannie Mae - Freddie Mac and Ginnie Mae.
12. Partially amortized loan - benefit
conforming loans
lower interest rate
rescission
Zoning
13. 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.
Blanket Loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Zoning
a power of attorney
14. This lease survives death and/or the sale of the property. No notice is required to terminate.
grow - stabilize - decline - revitalize
3
estate for years
EMFs
15. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
In a straight assumption - the new buyer is approved - and takes over payments and liability
conomic obsolescence
Redlining
Radon
16. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
EMFs
10%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
17. The veteran must obtain a Certificate of Eligibility from the VA
estoppel
Total amount - Certificate amount x 4 = approved maximum loan amount
Tenancy by the Entirety
Blanket
18. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
tenancy in common
income tax purposes
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
19. What is easment?
Fannie Mae - Freddie Mac and Ginnie Mae.
stigmatized
It is a right in land and should be created in writing and recorded.
ostensible agency
20. The secondary market warehousing agencies are...
It is a right in land and should be created in writing and recorded.
Fannie Mae - Freddie Mac and Ginnie Mae.
the cash price or the APR
estoppel
21. 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.
Special or limited agency
conomic obsolescence
estoppel
Subordination clause
22. __ "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.
3
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
It is a right in land and should be created in writing and recorded.
23. IN Reg Z Advertising which states only __is permitted
Statutory law
It is a right in land and should be created in writing and recorded.
10%
the cash price or the APR
24. ___ 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.
General Agency
10%
Errors & Omissions insurance
conforming loans
25. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
The trustee
writ of execution
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
26. Common law does not always takes precedence over...
Statutory law
Redlining
the cash price or the APR
by ratification.
27. Covers more than one piece of property. (several lots on one note)
income tax purposes
grow - stabilize - decline - revitalize
Those on a fixed income
Blanket Loan
28. Broker- Salesperson - owner-property manager-> which agency?
tenancy in common
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General Agency
Alienation clause
29. 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.
Zoning
25%
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.
Balloon loan
30. ___ 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.)
Blanket
conomic obsolescence
MIP - mortgage insurance premium
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
31. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
In a straight assumption - the new buyer is approved - and takes over payments and liability
3
estate for years
Balloon loan
32. A person who has real property willed to her by a relative is said to acquire title by...
devise
Defeasance
Total amount - Certificate amount x 4 = approved maximum loan amount
writ of execution
33. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
Fannie Mae - Freddie Mac and Ginnie Mae.
trustor
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
34. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Trustee's Deed
$4000.
25%
MIP - mortgage insurance premium
35. Loans qualified to be purchased in the secondary market are called
Zoning
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.
estoppel
conforming loans
36. An attorney-in-fact is the holder of...
Balloon loan
$4000.
Radon
a power of attorney
37. The insurance on the FHA loan is referred to as___
The secondary
MIP - mortgage insurance premium
straight assumption
rescission
38. Includes real property plus personal property
Package Loan
a property exchange.
Balloon loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
39. Property Manager ( which type of Agency)
EMFs
Those on a fixed income
Special or limited agency
General Agency
40. IRS Lein - Specific lein or general lein
Defeasance
estate for years
writ of execution
General
41. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
lower interest rate
EMFs
husband and wife
Redlining
42. The minimum withdrawal from a home equity LOC is
a grante
rescission
$4000.
Subordination clause
43. __ is a specific type of joint tenancy where the co-owners are husband and wife.
devise
lower interest rate
Tenancy by the Entirety
straight assumption
44. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
Blanket
husband and wife
General Agency
45. On income producing property land can never be depreciated for...
$4000.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
income tax purposes
the cash price or the APR
46. The deed of trust involves three parties...
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.
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
tenancy in common
47. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Total amount - Certificate amount x 4 = approved maximum loan amount
Redlining
Vendee's Lien
rescission
48. High tension wire should be disclosed
alimony - child support or a pension plan.
conforming loans
EMFs
encumbrance
49. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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50. ___ is a limitation on your rights. It may also be a cloud on the title
stigmatized
conforming loans.
Errors & Omissions insurance
An encumbrance