SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. IN Reg Z Advertising which states only __is permitted
An encumbrance
the cash price or the APR
income tax purposes
a property exchange.
2. ___ 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.)
estoppel
estate for years
ostensible agency
conomic obsolescence
3. 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.
Balloon loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
25%
10%
4. What is easment?
husband and wife
conforming loans.
It is a right in land and should be created in writing and recorded.
Alienation clause
5. Advantages of FHA loans
6. On income producing property land can never be depreciated for...
10%
Those on a fixed income
income tax purposes
Special or limited agency
7. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
encumbrance
writ of execution
lower interest rate
8. The minimum withdrawal from a home equity LOC is
3
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
$4000.
a power of attorney
9. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
General Agency
MIP - mortgage insurance premium
trustor
10. High tension wire should be disclosed
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Deed Restrictions
EMFs
grow - stabilize - decline - revitalize
11. Partially amortized loan - benefit
devise
10%
lower interest rate
Defeasance
12. An agent's duties to his principal are...
Reverse annuity
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
It is a right in land and should be created in writing and recorded.
writ of execution
13. ___ is a limitation on your rights. It may also be a cloud on the title
estoppel
Total amount - Certificate amount x 4 = approved maximum loan amount
An encumbrance
Trustee's Deed
14. There are four basic characteristics of value
Package Loan
income tax purposes
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
15. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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
1. Release the lien when the note is paid. 2. Foreclose in the event of default
16. Ownership by two or more without rights of survivorship is called
The secondary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Blanket
tenancy in common
17. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Radon
writ of execution
3
10%
18. A principal's duties to an agent ar...
tenancy in common
In a straight assumption - the new buyer is approved - and takes over payments and liability
conomic obsolescence
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
19. '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?
MIP - mortgage insurance premium
Mitigation
Vendee's Lien
Alienation clause
20. ___loan - Covers more than one piece of property
In a straight assumption - the new buyer is approved - and takes over payments and liability
Blanket
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
21. This will not impact of the seller's credit rating.
Subordination clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
straight assumption
encumbrance
22. 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
devise
Statutory law
23. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Total amount - Certificate amount x 4 = approved maximum loan amount
Tenancy by the Entirety
Vendee's Lien
General Agency
24. Which of the following instruments is the promise to repay a debt?
encumbrance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
the cash price or the APR
25. Loans qualified to be purchased in the secondary market are called
Defeasance
conforming loans
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Radon
26. Covers more than one piece of property. (several lots on one note)
the cash price or the APR
by ratification.
Blanket Loan
Vendee's Lien
27. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
straight assumption
Alienation clause
Package Loan
Radon
28. Broker- Salesperson - owner-property manager-> which agency?
trustor
MIP - mortgage insurance premium
General Agency
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 insurance on the FHA loan is referred to as___
Mitigation
MIP - mortgage insurance premium
conforming loans.
grow - stabilize - decline - revitalize
30. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
conomic obsolescence
tenancy in common
alimony - child support or a pension plan.
Subordination clause
31. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
writ of execution
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
32. ___market is where lenders go for money
trustor
rescission
grow - stabilize - decline - revitalize
The secondary
33. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Statutory law
estoppel
EMFs
34. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Special or limited agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Reverse annuity
35. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
a power of attorney
General Agency
alimony - child support or a pension plan.
grow - stabilize - decline - revitalize
36. One who acquires property under a deed is....
10%
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a grante
Trustee's Deed
37. 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.
It is a right in land and should be created in writing and recorded.
rescission
Zoning
Mitigation
38. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Zoning
The trustee
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Subordination clause
39. 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.
Total amount - Certificate amount x 4 = approved maximum loan amount
estoppel
grow - stabilize - decline - revitalize
husband and wife
40. Real estate investors can defer taxation of capital gains by making ___
EMFs
grow - stabilize - decline - revitalize
25%
a property exchange.
41. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
42. An ___ is a limitation on your rights
Zoning
encumbrance
writ of execution
General Agency
43. __ "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.
Alienation clause
Vendee's Lien
Package Loan
conforming loans
44. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
45. Includes real property plus personal property
trustor
devise
General Agency
Package Loan
46. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Those on a fixed income
trustor
Mitigation
lower interest rate
47. ____ - the refusal to lend in a particular geographic area - is prohibited.
Total amount - Certificate amount x 4 = approved maximum loan amount
An encumbrance
income tax purposes
Redlining
48. Property Manager ( which type of Agency)
Balloon loan
General
a power of attorney
General Agency
49. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
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
straight assumption
conforming loans.
3
50. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
a grante
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Release the lien when the note is paid. 2. Foreclose in the event of default