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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. Advantages of FHA loans
2. Loans qualified to be purchased in the secondary market are called
conforming loans
In a straight assumption - the new buyer is approved - and takes over payments and liability
Package Loan
Redlining
3. A person who has real property willed to her by a relative is said to acquire title by...
10%
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.
devise
4. 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.
Zoning
Mitigation
25%
rescission
5. ___ 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
conomic obsolescence
Subordination clause
25%
6. This lease survives death and/or the sale of the property. No notice is required to terminate.
ostensible 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.
estate for years
Subordination clause
7. ____ - the refusal to lend in a particular geographic area - is prohibited.
Alienation clause
General
Redlining
MIP - mortgage insurance premium
8. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
conforming loans
10%
Subordination clause
The trustee
9. IRS Lein - Specific lein or general lein
General
writ of execution
alimony - child support or a pension plan.
devise
10. A principal's duties to an agent ar...
The trustee
Alienation clause
Redlining
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
11. The trustee has two functions in accordance with the Deed of Trust.
lower interest rate
1. Release the lien when the note is paid. 2. Foreclose in the event of default
ostensible agency
Those on a fixed income
12. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
13. Must sign the Deed of Trust.
Reverse annuity
Radon
estoppel
trustor
14. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Special or limited agency
husband and wife
Alienation clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
15. ___loan - Covers more than one piece of property
Blanket
Those on a fixed income
An encumbrance
In a straight assumption - the new buyer is approved - and takes over payments and liability
16. ___market is where lenders go for money
Radon
conomic obsolescence
lower interest rate
The secondary
17. For what group of buyers would the ARM be the least desirable?
straight assumption
Radon
Those on a fixed income
a property exchange.
18. ___ are imposed to control land use - development and methods and materials for construction.
a property exchange.
Package Loan
Deed Restrictions
Errors & Omissions insurance
19. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
a property exchange.
In a straight assumption - the new buyer is approved - and takes over payments and liability
rescission
estate for years
20. This will not impact of the seller's credit rating.
straight assumption
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Balloon loan
a grante
21. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Package Loan
by ratification.
$4000.
The trustee
22. Common law does not always takes precedence over...
EMFs
a grante
Alienation clause
Statutory law
23. An agent's duties to his principal are...
tenancy in common
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
devise
The trustee
24. '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?
rescission
Alienation clause
It is a right in land and should be created in writing and recorded.
Zoning
25. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Blanket Loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
stigmatized
Radon
26. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
conomic obsolescence
$4000.
The secondary
27. Broker- Salesperson - owner-property manager-> which agency?
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
ostensible agency
General Agency
28. __ "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 a right in land and should be created in writing and recorded.
Alienation clause
Redlining
General Agency
29. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
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
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
30. The insurance on the FHA loan is referred to as___
husband and wife
Zoning
MIP - mortgage insurance premium
estoppel
31. Loans qualified to be purchased in the secondary market are called __
Redlining
conforming loans.
Statutory law
estate for years
32. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Deed Restrictions
EMFs
The trustee
writ of execution
33. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
Those on a fixed income
Errors & Omissions insurance
the cash price or the APR
34. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
trustor
alimony - child support or a pension plan.
Deed Restrictions
35. The veteran must obtain a Certificate of Eligibility from the VA
conforming loans
Subordination clause
Radon
Total amount - Certificate amount x 4 = approved maximum loan amount
36. Covers more than one piece of property. (several lots on one note)
tenancy in common
encumbrance
General
Blanket Loan
37. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Blanket
conomic obsolescence
3
Those on a fixed income
38. Which of the following instruments is the promise to repay a debt?
Tenancy by the Entirety
trustor
the cash price or the APR
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
39. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
stigmatized
estoppel
The trustee
tenancy in common
40. ___ is created when a licensee acts like an agent and others respond to those actions.
10%
ostensible agency
stigmatized
estoppel
41. __ clause - states that the lien is defeated when the debt is repaid.
straight assumption
Special or limited agency
by ratification.
Defeasance
42. An attorney-in-fact is the holder of...
$4000.
Tenancy by the Entirety
Radon
a power of attorney
43. A property where there has been a murder or alleged haunting is called...
stigmatized
estoppel
The secondary
3
44. An ___ is a limitation on your rights
encumbrance
$4000.
MIP - mortgage insurance premium
devise
45. One who acquires property under a deed is....
a power of attorney
EMFs
Vendee's Lien
a grante
46. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Redlining
Mitigation
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
Trustee's Deed
47. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
stigmatized
Subordination clause
Reverse annuity
In a straight assumption - the new buyer is approved - and takes over payments and liability
48. Partially amortized loan - benefit
rescission
estoppel
Defeasance
lower interest rate
49. 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.
Alienation clause
lower interest rate
Balloon loan
ostensible agency
50. Ownership by two or more without rights of survivorship is called
conforming loans
The trustee
tenancy in common
25%