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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. One who acquires property under a deed is....
a grante
Zoning
conomic obsolescence
Reverse annuity
2. A principal's duties to an agent ar...
MIP - mortgage insurance premium
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Zoning
estoppel
3. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Mitigation
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.
The trustee
straight assumption
4. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Redlining
rescission
alimony - child support or a pension plan.
Tenancy by the Entirety
5. Real estate investors can defer taxation of capital gains by making ___
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.
MIP - mortgage insurance premium
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.
6. Property Manager ( which type of Agency)
General Agency
Statutory law
the cash price or the APR
Special or limited agency
7. This lease survives death and/or the sale of the property. No notice is required to terminate.
devise
estate for years
lower interest rate
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
8. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
General Agency
Errors & Omissions insurance
25%
9. Includes real property plus personal property
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Those on a fixed income
Package Loan
Alienation clause
10. Which of the following instruments is the promise to repay a debt?
Defeasance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conomic obsolescence
MIP - mortgage insurance premium
11. Loans qualified to be purchased in the secondary market are called __
Radon
conforming loans.
Total amount - Certificate amount x 4 = approved maximum loan amount
Redlining
12. Loan novation?
ostensible agency
MIP - mortgage insurance premium
In a straight assumption - the new buyer is approved - and takes over payments and liability
husband and wife
13. The deed of trust involves three parties...
Reverse annuity
MIP - mortgage insurance premium
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a grante
14. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
conomic obsolescence
a grante
General Agency
15. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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16. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Radon
Blanket
17. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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18. The insurance on the FHA loan is referred to as___
The trustee
MIP - mortgage insurance premium
by ratification.
income tax purposes
19. The veteran must obtain a Certificate of Eligibility from the VA
stigmatized
Radon
Trustee's Deed
Total amount - Certificate amount x 4 = approved maximum loan amount
20. A property where there has been a murder or alleged haunting is called...
Zoning
tenancy in common
encumbrance
stigmatized
21. __ "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.
Those on a fixed income
Alienation clause
EMFs
General Agency
22. Lenders can deny credit if your sole source of income is__
Tenancy by the Entirety
$4000.
writ of execution
alimony - child support or a pension plan.
23. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General
The trustee
a grante
24. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
$4000.
3
a grante
25. Ownership by two or more without rights of survivorship is called
The secondary
encumbrance
In a straight assumption - the new buyer is approved - and takes over payments and liability
tenancy in common
26. __ clause - states that the lien is defeated when the debt is repaid.
Those on a fixed income
Defeasance
trustor
grow - stabilize - decline - revitalize
27. Common law does not always takes precedence over...
Subordination clause
Radon
Vendee's Lien
Statutory law
28. IRS Lein - Specific lein or general lein
Balloon loan
General
Vendee's Lien
Special or limited agency
29. Covers more than one piece of property. (several lots on one note)
Errors & Omissions insurance
grow - stabilize - decline - revitalize
Blanket Loan
by ratification.
30. ___market is where lenders go for money
straight assumption
The secondary
income tax purposes
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
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.
a grante
Errors & Omissions insurance
In a straight assumption - the new buyer is approved - and takes over payments and liability
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
32. 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.
income tax purposes
In a straight assumption - the new buyer is approved - and takes over payments and liability
Zoning
Total amount - Certificate amount x 4 = approved maximum loan amount
33. The secondary market warehousing agencies are...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Fannie Mae - Freddie Mac and Ginnie Mae.
General Agency
Reverse annuity
34. IN Reg Z Advertising which states only __is permitted
writ of execution
the cash price or the APR
straight assumption
income tax purposes
35. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
trustor
General
rescission
36. ___ 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.)
Zoning
devise
encumbrance
conomic obsolescence
37. Partially amortized loan - benefit
Blanket
lower interest rate
Subordination clause
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.
38. ___loan - Covers more than one piece of property
Blanket
the cash price or the APR
It is a right in land and should be created in writing and recorded.
Deed Restrictions
39. High tension wire should be disclosed
EMFs
3
devise
Tenancy by the Entirety
40. For what group of buyers would the ARM be the least desirable?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
encumbrance
Mitigation
Those on a fixed income
41. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
alimony - child support or a pension plan.
grow - stabilize - decline - revitalize
conomic obsolescence
Defeasance
42. What is easment?
In a straight assumption - the new buyer is approved - and takes over payments and liability
It is a right in land and should be created in writing and recorded.
25%
a power of attorney
43. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Tenancy by the Entirety
Vendee's Lien
by ratification.
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.
44. Advantages of FHA loans
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45. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
income tax purposes
grow - stabilize - decline - revitalize
Tenancy by the Entirety
46. ___ is a limitation on your rights. It may also be a cloud on the title
conomic obsolescence
Special or limited agency
General Agency
An encumbrance
47. Must sign the Deed of Trust.
encumbrance
trustor
Alienation clause
An encumbrance
48. An attorney-in-fact is the holder of...
writ of execution
Reverse annuity
General Agency
a power of attorney
49. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
3
Defeasance
10%
50. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
The trustee
Blanket Loan
10%
husband and wife