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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. An ___ is a limitation on your rights
Vendee's Lien
$4000.
Statutory law
encumbrance
2. The minimum withdrawal from a home equity LOC is
straight assumption
Reverse annuity
Special or limited agency
$4000.
3. Partially amortized loan - benefit
Package Loan
Mitigation
conforming loans.
lower interest rate
4. ___ gives the agent the power to perform only specific acts and no others.
EMFs
Fannie Mae - Freddie Mac and Ginnie Mae.
Special or limited agency
3
5. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
MIP - mortgage insurance premium
3
Blanket Loan
6. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
$4000.
Trustee's Deed
Redlining
by ratification.
7. An attorney-in-fact is the holder of...
Tenancy by the Entirety
a power of attorney
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
8. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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9. ___market is where lenders go for money
The secondary
stigmatized
Defeasance
Blanket
10. Advantages of FHA loans
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11. Real estate investors can defer taxation of capital gains by making ___
estoppel
In a straight assumption - the new buyer is approved - and takes over payments and liability
rescission
a property exchange.
12. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General Agency
25%
General Agency
13. Includes real property plus personal property
25%
Package Loan
Radon
a power of attorney
14. Must sign the Deed of Trust.
trustor
Redlining
by ratification.
Errors & Omissions insurance
15. ___loan - Covers more than one piece of property
Blanket
$4000.
conforming loans
by ratification.
16. __ "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.
Errors & Omissions insurance
$4000.
General Agency
Alienation clause
17. Covers more than one piece of property. (several lots on one note)
lower interest rate
Blanket Loan
estate for years
by ratification.
18. Loans qualified to be purchased in the secondary market are called __
Zoning
conforming loans.
husband and wife
$4000.
19. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
tenancy in common
Tenancy by the Entirety
3
Blanket Loan
20. On income producing property land can never be depreciated for...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
The trustee
income tax purposes
Special or limited agency
21. 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.
a property exchange.
General Agency
Balloon loan
conforming loans.
22. ___ is created when a licensee acts like an agent and others respond to those actions.
conforming loans
ostensible agency
In a straight assumption - the new buyer is approved - and takes over payments and liability
alimony - child support or a pension plan.
23. ___ is a limitation on your rights. It may also be a cloud on the title
Subordination clause
ostensible agency
An encumbrance
by ratification.
24. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
encumbrance
It is a right in land and should be created in writing and recorded.
Those on a fixed income
The trustee
25. __ is a specific type of joint tenancy where the co-owners are husband and wife.
An encumbrance
Tenancy by the Entirety
a property exchange.
Errors & Omissions insurance
26. The veteran must obtain a Certificate of Eligibility from the VA
MIP - mortgage insurance premium
Reverse annuity
Total amount - Certificate amount x 4 = approved maximum loan amount
Package Loan
27. 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.
a power of attorney
3
estoppel
Zoning
28. 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
$4000.
a grante
ostensible agency
29. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Those on a fixed income
Defeasance
Mitigation
Special or limited agency
30. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
alimony - child support or a pension plan.
Alienation clause
Reverse annuity
ostensible agency
31. High tension wire should be disclosed
EMFs
10%
Deed Restrictions
25%
32. One who acquires property under a deed is....
grow - stabilize - decline - revitalize
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a grante
10%
33. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
straight assumption
Radon
Balloon loan
34. Lenders can deny credit if your sole source of income is__
Radon
EMFs
alimony - child support or a pension plan.
Deed Restrictions
35. The trustee has two functions in accordance with the Deed of Trust.
Redlining
1. Release the lien when the note is paid. 2. Foreclose in the event of default
EMFs
Defeasance
36. For what group of buyers would the ARM be the least desirable?
MIP - mortgage insurance premium
Statutory law
Those on a fixed income
encumbrance
37. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
a power of attorney
by ratification.
Subordination clause
Mitigation
38. This lease survives death and/or the sale of the property. No notice is required to terminate.
MIP - mortgage insurance premium
$4000.
General
estate for years
39. A property where there has been a murder or alleged haunting is called...
a grante
writ of execution
stigmatized
10%
40. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
25%
10%
Blanket Loan
41. IRS Lein - Specific lein or general lein
MIP - mortgage insurance premium
Alienation clause
General
1. Release the lien when the note is paid. 2. Foreclose in the event of default
42. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
rescission
An encumbrance
MIP - mortgage insurance premium
43. Property Manager ( which type of Agency)
EMFs
Alienation clause
Redlining
General Agency
44. There are four basic characteristics of value
lower interest rate
Those on a fixed income
Subordination 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. ____ - the refusal to lend in a particular geographic area - is prohibited.
Trustee's Deed
estoppel
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Redlining
46. '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?
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
Statutory law
Trustee's Deed
47. __ clause - states that the lien is defeated when the debt is repaid.
The trustee
Defeasance
a power of attorney
10%
48. Loans qualified to be purchased in the secondary market are called
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
conforming loans
rescission
1. Release the lien when the note is paid. 2. Foreclose in the event of default
49. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
conforming loans.
Redlining
Those on a fixed income
10%
50. Common law does not always takes precedence over...
Deed Restrictions
Redlining
MIP - mortgage insurance premium
Statutory law