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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. Includes real property plus personal property
Package Loan
Special or limited agency
a power of attorney
estoppel
2. Loans qualified to be purchased in the secondary market are called __
a grante
a power of attorney
conforming loans.
Vendee's Lien
3. ___ is created when a licensee acts like an agent and others respond to those actions.
Deed Restrictions
ostensible agency
Vendee's Lien
husband and wife
4. A property where there has been a murder or alleged haunting is called...
stigmatized
EMFs
Total amount - Certificate amount x 4 = approved maximum loan amount
Those on a fixed income
5. ____ - the refusal to lend in a particular geographic area - is prohibited.
10%
Redlining
lower interest rate
Balloon loan
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.
Vendee's Lien
lower interest rate
Balloon loan
straight assumption
7. Loans qualified to be purchased in the secondary market are called
a property exchange.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency
conforming loans
8. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
trustor
General Agency
Reverse annuity
9. Broker- Salesperson - owner-property manager-> which agency?
It is a right in land and should be created in writing and recorded.
Tenancy by the Entirety
General Agency
General
10. IRS Lein - Specific lein or general lein
General
trustor
Statutory law
husband and wife
11. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
estate for years
Radon
Statutory law
Package Loan
12. The deed of trust involves three parties...
General Agency
conomic obsolescence
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Errors & Omissions insurance
13. This lease survives death and/or the sale of the property. No notice is required to terminate.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Radon
estate for years
Blanket
14. This will not impact of the seller's credit rating.
straight assumption
EMFs
3
Statutory law
15. Common law does not always takes precedence over...
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.
Statutory law
a grante
16. Must sign the Deed of Trust.
trustor
alimony - child support or a pension plan.
the cash price or the APR
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
17. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
10%
The trustee
General Agency
conomic obsolescence
18. '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?
ostensible agency
Alienation clause
estate for years
EMFs
19. An ___ is a limitation on your rights
writ of execution
Blanket Loan
husband and wife
encumbrance
20. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Redlining
Deed Restrictions
An encumbrance
21. ___ gives the agent the power to perform only specific acts and no others.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Special or limited agency
encumbrance
Blanket Loan
22. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
The trustee
the cash price or the APR
25%
husband and wife
23. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Mitigation
Redlining
Alienation clause
24. __ 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
a grante
3
Tenancy by the Entirety
25. __ "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.
General Agency
Alienation clause
General
a property exchange.
26. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
General
alimony - child support or a pension plan.
The secondary
27. Real estate investors can defer taxation of capital gains by making ___
It is a right in land and should be created in writing and recorded.
a property exchange.
Radon
1. Release the lien when the note is paid. 2. Foreclose in the event of default
28. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
An encumbrance
10%
Trustee's Deed
29. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
the cash price or the APR
25%
Tenancy by the Entirety
writ of execution
30. Covers more than one piece of property. (several lots on one note)
conomic obsolescence
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Blanket Loan
ostensible agency
31. ___ are imposed to control land use - development and methods and materials for construction.
Blanket Loan
Deed Restrictions
a grante
husband and wife
32. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Balloon loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Subordination clause
10%
33. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Package Loan
Vendee's Lien
devise
grow - stabilize - decline - revitalize
34. 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.
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
Blanket
Zoning
35. There are four basic characteristics of value
1. Release the lien when the note is paid. 2. Foreclose in the event of default
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
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.
36. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
writ of execution
Subordination clause
Mitigation
37. The minimum withdrawal from a home equity LOC is
writ of execution
Subordination clause
$4000.
Redlining
38. IN Reg Z Advertising which states only __is permitted
rescission
trustor
General Agency
the cash price or the APR
39. Advantages of FHA loans
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40. The trustee has two functions in accordance with the Deed of Trust.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conomic obsolescence
1. Release the lien when the note is paid. 2. Foreclose in the event of default
grow - stabilize - decline - revitalize
41. What is easment?
The trustee
devise
It is a right in land and should be created in writing and recorded.
MIP - mortgage insurance premium
42. 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.
estoppel
writ of execution
Blanket
Defeasance
43. The veteran must obtain a Certificate of Eligibility from the VA
Deed Restrictions
Total amount - Certificate amount x 4 = approved maximum loan amount
Statutory law
alimony - child support or a pension plan.
44. A principal's duties to an agent ar...
The secondary
General Agency
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Blanket Loan
45. ___loan - Covers more than one piece of property
General
Mitigation
10%
Blanket
46. Property Manager ( which type of Agency)
Statutory law
rescission
Reverse annuity
General Agency
47. One who acquires property under a deed is....
In a straight assumption - the new buyer is approved - and takes over payments and liability
a grante
Fannie Mae - Freddie Mac and Ginnie Mae.
Deed Restrictions
48. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
encumbrance
Zoning
Errors & Omissions insurance
49. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
alimony - child support or a pension plan.
Blanket Loan
Radon
50. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
devise
conforming loans.
Trustee's Deed