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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. For what group of buyers would the ARM be the least desirable?
Mitigation
grow - stabilize - decline - revitalize
Reverse annuity
Those on a fixed income
2. '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?
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
Alienation clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
stigmatized
3. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
Blanket Loan
MIP - mortgage insurance premium
Trustee's Deed
4. Must sign the Deed of Trust.
Vendee's Lien
Balloon loan
trustor
In a straight assumption - the new buyer is approved - and takes over payments and liability
5. 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
conforming loans
$4000.
In a straight assumption - the new buyer is approved - and takes over payments and liability
6. 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.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
a grante
lower interest rate
Balloon loan
7. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Blanket
conforming loans
Subordination clause
MIP - mortgage insurance premium
8. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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9. IN Reg Z Advertising which states only __is permitted
Redlining
Blanket
the cash price or the APR
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
10. Ownership by two or more without rights of survivorship is called
a grante
MIP - mortgage insurance premium
tenancy in common
conforming loans.
11. Which of the following instruments is the promise to repay a debt?
General
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Total amount - Certificate amount x 4 = approved maximum loan amount
the cash price or the APR
12. Advantages of FHA loans
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13. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
lower interest rate
tenancy in common
by ratification.
An encumbrance
14. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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15. The secondary market warehousing agencies are...
Package Loan
The secondary
tenancy in common
Fannie Mae - Freddie Mac and Ginnie Mae.
16. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
conomic obsolescence
MIP - mortgage insurance premium
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
17. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
10%
1. Release the lien when the note is paid. 2. Foreclose in the event of default
the cash price or the APR
18. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Fannie Mae - Freddie Mac and Ginnie Mae.
estoppel
25%
Deed Restrictions
19. There are four basic characteristics of value
Redlining
Defeasance
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
a property exchange.
20. The minimum withdrawal from a home equity LOC is
In a straight assumption - the new buyer is approved - and takes over payments and liability
$4000.
Trustee's Deed
MIP - mortgage insurance premium
21. This lease survives death and/or the sale of the property. No notice is required to terminate.
Special or limited agency
estate for years
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
22. Loan novation?
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
In a straight assumption - the new buyer is approved - and takes over payments and liability
Radon
General Agency
23. An agent's duties to his principal are...
Trustee's Deed
Statutory law
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
husband and wife
24. A principal's duties to an agent ar...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
It is a right in land and should be created in writing and recorded.
by ratification.
25. This will not impact of the seller's credit rating.
Radon
straight assumption
Deed Restrictions
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
26. A person who has real property willed to her by a relative is said to acquire title by...
devise
Balloon loan
Defeasance
Reverse annuity
27. ___ gives the agent the power to perform only specific acts and no others.
An encumbrance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conomic obsolescence
Special or limited agency
28. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
Vendee's Lien
General
grow - stabilize - decline - revitalize
29. ___loan - Covers more than one piece of property
alimony - child support or a pension plan.
Blanket
devise
Those on a fixed income
30. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
tenancy in common
3
a grante
Mitigation
31. 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.
Alienation clause
lower interest rate
Those on a fixed income
estoppel
32. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
10%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Alienation clause
husband and wife
33. Includes real property plus personal property
Deed Restrictions
Statutory law
Blanket Loan
Package Loan
34. ___ is a limitation on your rights. It may also be a cloud on the title
devise
conomic obsolescence
Statutory law
An encumbrance
35. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Defeasance
Zoning
It is a right in land and should be created in writing and recorded.
36. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
EMFs
grow - stabilize - decline - revitalize
The trustee
Reverse annuity
37. A property where there has been a murder or alleged haunting is called...
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.
writ of execution
stigmatized
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
38. ___ is created when a licensee acts like an agent and others respond to those actions.
encumbrance
grow - stabilize - decline - revitalize
ostensible agency
conforming loans.
39. High tension wire should be disclosed
MIP - mortgage insurance premium
EMFs
Total amount - Certificate amount x 4 = approved maximum loan amount
conforming loans.
40. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Balloon loan
rescission
conomic obsolescence
It is a right in land and should be created in writing and recorded.
41. The veteran must obtain a Certificate of Eligibility from the VA
Balloon loan
straight assumption
stigmatized
Total amount - Certificate amount x 4 = approved maximum loan amount
42. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
General
Alienation clause
Those on a fixed income
43. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Subordination clause
The trustee
straight assumption
10%
44. On income producing property land can never be depreciated for...
income tax purposes
Defeasance
3
grow - stabilize - decline - revitalize
45. An ___ is a limitation on your rights
Deed Restrictions
encumbrance
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
Mitigation
46. Broker- Salesperson - owner-property manager-> which agency?
The secondary
General Agency
General
It is a right in land and should be created in writing and recorded.
47. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Reverse annuity
EMFs
The trustee
25%
48. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
alimony - child support or a pension plan.
Statutory law
Fannie Mae - Freddie Mac and Ginnie Mae.
49. 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.
The trustee
rescission
Zoning
grow - stabilize - decline - revitalize
50. An attorney-in-fact is the holder of...
a power of attorney
Total amount - Certificate amount x 4 = approved maximum loan amount
Subordination clause
1. Release the lien when the note is paid. 2. Foreclose in the event of default