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