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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?
Those on a fixed income
Blanket Loan
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
Special or limited agency
2. High tension wire should be disclosed
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Those on a fixed income
straight assumption
EMFs
3. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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4. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
10%
encumbrance
devise
5. The secondary market warehousing agencies are...
In a straight assumption - the new buyer is approved - and takes over payments and liability
An encumbrance
lower interest rate
Fannie Mae - Freddie Mac and Ginnie Mae.
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.)
ostensible agency
conomic obsolescence
writ of execution
The secondary
7. Loan novation?
General Agency
In a straight assumption - the new buyer is approved - and takes over payments and liability
Tenancy by the Entirety
Package Loan
8. Loans qualified to be purchased in the secondary market are called __
An encumbrance
The trustee
estoppel
conforming loans.
9. This will not impact of the seller's credit rating.
grow - stabilize - decline - revitalize
straight assumption
conomic obsolescence
It is a right in land and should be created in writing and recorded.
10. 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.
Subordination clause
estoppel
Balloon loan
Total amount - Certificate amount x 4 = approved maximum loan amount
11. ___ is a limitation on your rights. It may also be a cloud on the title
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.
a grante
An encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
12. '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?
estoppel
EMFs
Zoning
Alienation clause
13. ___ is created when a licensee acts like an agent and others respond to those actions.
Blanket Loan
EMFs
ostensible agency
by ratification.
14. ___ gives the agent the power to perform only specific acts and no others.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
writ of execution
conomic obsolescence
Special or limited agency
15. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
The trustee
3
General Agency
writ of execution
16. IN Reg Z Advertising which states only __is permitted
Blanket Loan
the cash price or the APR
Fannie Mae - Freddie Mac and Ginnie Mae.
Redlining
17. What is easment?
General Agency
Blanket
EMFs
It is a right in land and should be created in writing and recorded.
18. An ___ is a limitation on your rights
encumbrance
estoppel
Tenancy by the Entirety
Defeasance
19. The deed of trust involves three parties...
Mitigation
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
It is a right in land and should be created in writing and recorded.
estoppel
20. Advantages of FHA loans
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21. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
a power of attorney
Alienation clause
Redlining
10%
22. One who acquires property under a deed is....
a grante
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Zoning
Balloon loan
23. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
The secondary
Package Loan
conforming loans
24. Common law does not always takes precedence over...
Statutory law
writ of execution
3
It is a right in land and should be created in writing and recorded.
25. On income producing property land can never be depreciated for...
MIP - mortgage insurance premium
Vendee's Lien
General Agency
income tax purposes
26. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
the cash price or the APR
rescission
straight assumption
27. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
lower interest rate
10%
conforming loans
28. ___ 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.
encumbrance
Errors & Omissions insurance
10%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
29. Includes real property plus personal property
husband and wife
rescission
Package Loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
30. ___ are imposed to control land use - development and methods and materials for construction.
An encumbrance
Deed Restrictions
a grante
Alienation clause
31. Ownership by two or more without rights of survivorship is called
In a straight assumption - the new buyer is approved - and takes over payments and liability
Blanket Loan
Errors & Omissions insurance
tenancy in common
32. There are four basic characteristics of value
General
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
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
rescission
33. __ is a specific type of joint tenancy where the co-owners are husband and wife.
grow - stabilize - decline - revitalize
Tenancy by the Entirety
Errors & Omissions insurance
Reverse annuity
34. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Special or limited agency
3
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
35. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
writ of execution
the cash price or the APR
Tenancy by the Entirety
36. An agent's duties to his principal are...
Reverse annuity
grow - stabilize - decline - revitalize
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Redlining
37. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
10%
Blanket Loan
husband and wife
alimony - child support or a pension plan.
38. The minimum withdrawal from a home equity LOC is
$4000.
In a straight assumption - the new buyer is approved - and takes over payments and liability
alimony - child support or a pension plan.
Radon
39. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
EMFs
Statutory law
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
40. A person who has real property willed to her by a relative is said to acquire title by...
devise
encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Blanket
41. ___loan - Covers more than one piece of property
stigmatized
Blanket
3
EMFs
42. ____ - the refusal to lend in a particular geographic area - is prohibited.
Reverse annuity
10%
writ of execution
Redlining
43. 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
25%
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
44. Must sign the Deed of Trust.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
rescission
Mitigation
trustor
45. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
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
Defeasance
Radon
46. The trustee has two functions in accordance with the Deed of Trust.
MIP - mortgage insurance premium
1. Release the lien when the note is paid. 2. Foreclose in the event of default
encumbrance
General
47. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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48. Real estate investors can defer taxation of capital gains by making ___
Radon
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
a property exchange.
49. Covers more than one piece of property. (several lots on one note)
Errors & Omissions insurance
Blanket Loan
25%
a property exchange.
50. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
lower interest rate
Redlining
rescission