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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. High tension wire should be disclosed
Errors & Omissions insurance
tenancy in common
EMFs
Mitigation
2. ___ is created when a licensee acts like an agent and others respond to those actions.
Balloon loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
writ of execution
ostensible agency
3. ___market is where lenders go for money
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The secondary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General
4. What is easment?
conforming loans.
General Agency
estoppel
It is a right in land and should be created in writing and recorded.
5. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Blanket
The trustee
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
6. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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7. The minimum withdrawal from a home equity LOC is
Deed Restrictions
$4000.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Reverse annuity
8. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
Those on a fixed income
husband and wife
Special or limited agency
9. Partially amortized loan - benefit
a power of attorney
stigmatized
lower interest rate
straight assumption
10. Lenders can deny credit if your sole source of income is__
trustor
rescission
alimony - child support or a pension plan.
Alienation clause
11. ___ gives the agent the power to perform only specific acts and no others.
25%
Radon
Errors & Omissions insurance
Special or limited agency
12. For what group of buyers would the ARM be the least desirable?
Radon
Blanket Loan
3
Those on a fixed income
13. Loans qualified to be purchased in the secondary market are called
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conomic obsolescence
conforming loans
3
14. ___ 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
Alienation clause
Subordination clause
25%
15. '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?
the cash price or the APR
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Alienation clause
The secondary
16. Ownership by two or more without rights of survivorship is called
Trustee's Deed
Zoning
Those on a fixed income
tenancy in common
17. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Defeasance
conforming loans
Subordination clause
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.
18. ___ is a limitation on your rights. It may also be a cloud on the title
Trustee's Deed
the cash price or the APR
writ of execution
An encumbrance
19. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Special or limited agency
The trustee
grow - stabilize - decline - revitalize
Subordination clause
20. ___loan - Covers more than one piece of property
estoppel
Vendee's Lien
Blanket
rescission
21. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Special or limited agency
3
Subordination clause
Tenancy by the Entirety
22. Loans qualified to be purchased in the secondary market are called __
Mitigation
estate for years
conforming loans.
Errors & Omissions insurance
23. 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
Balloon loan
The secondary
Tenancy by the Entirety
24. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
encumbrance
Subordination clause
husband and wife
Balloon loan
25. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Tenancy by the Entirety
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
26. 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.
General
estoppel
1. Release the lien when the note is paid. 2. Foreclose in the event of default
a power of attorney
27. 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
rescission
income tax purposes
An encumbrance
28. ___ 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.)
MIP - mortgage insurance premium
conomic obsolescence
General Agency
lower interest rate
29. 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.
a power of attorney
Balloon loan
ostensible agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
30. A principal's duties to an agent ar...
25%
The secondary
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a power of attorney
31. Must sign the Deed of Trust.
Blanket
Mitigation
trustor
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
32. IRS Lein - Specific lein or general lein
conforming loans
the cash price or the APR
General
writ of execution
33. Which of the following instruments is the promise to repay a debt?
by ratification.
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
straight assumption
34. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
General Agency
Alienation clause
Total amount - Certificate amount x 4 = approved maximum loan amount
35. Broker- Salesperson - owner-property manager-> which agency?
Radon
General Agency
encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
36. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
a grante
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.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Radon
37. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Redlining
Special or limited agency
38. Includes real property plus personal property
writ of execution
alimony - child support or a pension plan.
Package Loan
1. Release the lien when the note is paid. 2. Foreclose in the event of default
39. Covers more than one piece of property. (several lots on one note)
conforming loans.
Vendee's Lien
Blanket Loan
writ of execution
40. An agent's duties to his principal are...
MIP - mortgage insurance premium
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Fannie Mae - Freddie Mac and Ginnie Mae.
41. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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42. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Trustee's Deed
General Agency
43. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
estoppel
25%
Reverse annuity
EMFs
44. A person who has real property willed to her by a relative is said to acquire title by...
Subordination clause
devise
General Agency
conforming loans
45. __ "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.
Alienation clause
Zoning
conforming loans.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
46. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Blanket Loan
$4000.
Tenancy by the Entirety
the cash price or the APR
47. Real estate investors can defer taxation of capital gains by making ___
Alienation clause
a property exchange.
Reverse annuity
a grante
48. The insurance on the FHA loan is referred to as___
3
Errors & Omissions insurance
income tax purposes
MIP - mortgage insurance premium
49. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
estate for years
Vendee's Lien
ostensible agency
50. ___ are imposed to control land use - development and methods and materials for construction.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
$4000.
Deed Restrictions
conomic obsolescence