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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. Must sign the Deed of Trust.
conforming loans
Those on a fixed income
a property exchange.
trustor
2. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
MIP - mortgage insurance premium
Blanket
conforming loans
3. 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.
Special or limited agency
Tenancy by the Entirety
Fannie Mae - Freddie Mac and Ginnie Mae.
estoppel
4. ___loan - Covers more than one piece of property
Blanket
writ of execution
Vendee's Lien
by ratification.
5. Real estate investors can defer taxation of capital gains by making ___
the cash price or the APR
Reverse annuity
a property exchange.
The trustee
6. ___ 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.)
husband and wife
Errors & Omissions insurance
conomic obsolescence
$4000.
7. A person who has real property willed to her by a relative is said to acquire title by...
devise
10%
Blanket
ostensible agency
8. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
alimony - child support or a pension plan.
Trustee's Deed
devise
9. ___ 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
The secondary
a property exchange.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
10. A property where there has been a murder or alleged haunting is called...
conforming loans.
a property exchange.
grow - stabilize - decline - revitalize
stigmatized
11. IRS Lein - Specific lein or general lein
General
Package Loan
Radon
Alienation clause
12. The trustee has two functions in accordance with the Deed of Trust.
writ of execution
It is a right in land and should be created in writing and recorded.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
EMFs
13. Loans qualified to be purchased in the secondary market are called
Package Loan
Tenancy by the Entirety
conforming loans
General Agency
14. An agent's duties to his principal are...
The trustee
Vendee's Lien
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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
15. Which of the following instruments is the promise to repay a debt?
stigmatized
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
25%
Package Loan
16. The veteran must obtain a Certificate of Eligibility from the VA
a property exchange.
Trustee's Deed
Total amount - Certificate amount x 4 = approved maximum loan amount
conomic obsolescence
17. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
General Agency
Balloon loan
Vendee's Lien
18. Advantages of FHA loans
19. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
Subordination clause
Deed Restrictions
lower interest rate
20. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Subordination clause
Blanket
The trustee
Reverse annuity
21. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
straight assumption
The trustee
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
22. Loan novation?
the cash price or the APR
In a straight assumption - the new buyer is approved - and takes over payments and liability
General Agency
ostensible agency
23. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Zoning
Subordination clause
25%
lower interest rate
24. Broker- Salesperson - owner-property manager-> which agency?
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
General Agency
rescission
25. ___ are imposed to control land use - development and methods and materials for construction.
An encumbrance
Deed Restrictions
Fannie Mae - Freddie Mac and Ginnie Mae.
a grante
26. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
conforming loans.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Tenancy by the Entirety
27. Lenders can deny credit if your sole source of income is__
husband and wife
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
alimony - child support or a pension plan.
28. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
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
devise
Redlining
29. This will not impact of the seller's credit rating.
Package Loan
husband and wife
estoppel
straight assumption
30. ___ is created when a licensee acts like an agent and others respond to those actions.
rescission
ostensible agency
Errors & Omissions insurance
husband and wife
31. Loans qualified to be purchased in the secondary market are called __
ostensible agency
Balloon loan
conforming loans.
Tenancy by the Entirety
32. The deed of trust involves three parties...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General Agency
Mitigation
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
33. One who acquires property under a deed is....
Tenancy by the Entirety
25%
The trustee
a grante
34. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Subordination clause
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
Total amount - Certificate amount x 4 = approved maximum loan amount
35. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
36. On income producing property land can never be depreciated for...
income tax purposes
ostensible agency
estoppel
estate for years
37. Covers more than one piece of property. (several lots on one note)
alimony - child support or a pension plan.
It is a right in land and should be created in writing and recorded.
Blanket Loan
estoppel
38. '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?
Alienation clause
MIP - mortgage insurance premium
trustor
In a straight assumption - the new buyer is approved - and takes over payments and liability
39. The minimum withdrawal from a home equity LOC is
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
$4000.
10%
a property exchange.
40. Common law does not always takes precedence over...
25%
Statutory law
tenancy in common
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
41. ____ - the refusal to lend in a particular geographic area - is prohibited.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Redlining
42. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
General Agency
3
The trustee
conforming loans.
43. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conforming loans.
estoppel
44. A principal's duties to an agent ar...
ostensible agency
grow - stabilize - decline - revitalize
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
General Agency
45. There are four basic characteristics of value
rescission
It is a right in land and should be created in writing and recorded.
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
Total amount - Certificate amount x 4 = approved maximum loan amount
46. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
General
Trustee's Deed
rescission
a power of attorney
47. Includes real property plus personal property
Package Loan
conforming loans.
The trustee
Trustee's Deed
48. Property Manager ( which type of Agency)
General Agency
the cash price or the APR
An encumbrance
3
49. High tension wire should be disclosed
Blanket
EMFs
An encumbrance
Package Loan
50. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
$4000.
The trustee
Reverse annuity
1. Release the lien when the note is paid. 2. Foreclose in the event of default