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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. On income producing property land can never be depreciated for...
Zoning
stigmatized
income tax purposes
Vendee's Lien
2. A property where there has been a murder or alleged haunting is called...
stigmatized
Trustee's Deed
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
The trustee
3. ___ 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.)
income tax purposes
conomic obsolescence
the cash price or the APR
MIP - mortgage insurance premium
4. What is easment?
It is a right in land and should be created in writing and recorded.
Mitigation
ostensible agency
income tax purposes
5. A person who has real property willed to her by a relative is said to acquire title by...
MIP - mortgage insurance premium
devise
tenancy in common
straight assumption
6. ___ 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.
Blanket Loan
Errors & Omissions insurance
rescission
Zoning
7. 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.
Package Loan
estoppel
tenancy in common
Tenancy by the Entirety
8. The veteran must obtain a Certificate of Eligibility from the VA
Fannie Mae - Freddie Mac and Ginnie Mae.
Total amount - Certificate amount x 4 = approved maximum loan amount
Statutory law
$4000.
9. High tension wire should be disclosed
Errors & Omissions insurance
EMFs
1. Release the lien when the note is paid. 2. Foreclose in the event of default
trustor
10. ___market is where lenders go for money
The secondary
Blanket Loan
10%
EMFs
11. Advantages of FHA loans
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12. Property Manager ( which type of Agency)
Trustee's Deed
General Agency
ostensible agency
Those on a fixed income
13. The deed of trust involves three parties...
Reverse annuity
the cash price or the APR
25%
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
14. ___ is a limitation on your rights. It may also be a cloud on the title
estoppel
An encumbrance
It is a right in land and should be created in writing and recorded.
trustor
15. Loans qualified to be purchased in the secondary market are called __
income tax purposes
ostensible agency
stigmatized
conforming loans.
16. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Alienation clause
tenancy in common
An encumbrance
17. ___ is created when a licensee acts like an agent and others respond to those actions.
Statutory law
Vendee's Lien
ostensible agency
stigmatized
18. Which of the following instruments is the promise to repay a debt?
by ratification.
tenancy in common
Defeasance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
19. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
tenancy in common
Mitigation
General Agency
estoppel
20. 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.
3
conforming loans
Alienation clause
Zoning
21. For what group of buyers would the ARM be the least desirable?
Subordination clause
3
Those on a fixed income
encumbrance
22. This will not impact of the seller's credit rating.
Trustee's Deed
Alienation clause
Alienation clause
straight assumption
23. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
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
straight assumption
3
24. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
25%
grow - stabilize - decline - revitalize
husband and wife
Radon
25. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Special or limited agency
trustor
encumbrance
26. __ "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.
by ratification.
estoppel
The trustee
Alienation clause
27. Partially amortized loan - benefit
Tenancy by the Entirety
Statutory law
Package Loan
lower interest rate
28. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
$4000.
3
In a straight assumption - the new buyer is approved - and takes over payments and liability
29. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
ostensible agency
writ of execution
30. Must sign the Deed of Trust.
conomic obsolescence
Blanket
estoppel
trustor
31. Ownership by two or more without rights of survivorship is called
The secondary
Defeasance
tenancy in common
a property exchange.
32. ___loan - Covers more than one piece of property
The trustee
a property exchange.
a power of attorney
Blanket
33. ____ - the refusal to lend in a particular geographic area - is prohibited.
encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Redlining
The secondary
34. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
25%
conomic obsolescence
Blanket Loan
35. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
straight assumption
devise
Reverse annuity
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. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
a grante
Those on a fixed income
Redlining
37. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Vendee's Lien
3
Alienation clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
38. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
writ of execution
MIP - mortgage insurance premium
Special or limited agency
39. Broker- Salesperson - owner-property manager-> which agency?
General Agency
stigmatized
conforming loans.
alimony - child support or a pension plan.
40. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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41. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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42. Common law does not always takes precedence over...
alimony - child support or a pension plan.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Errors & Omissions insurance
Statutory law
43. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
husband and wife
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
MIP - mortgage insurance premium
Subordination clause
44. Lenders can deny credit if your sole source of income is__
Trustee's Deed
alimony - child support or a pension plan.
General Agency
Balloon loan
45. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Balloon loan
Zoning
rescission
10%
46. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Fannie Mae - Freddie Mac and Ginnie Mae.
Deed Restrictions
The trustee
47. __ clause - states that the lien is defeated when the debt is repaid.
General
Defeasance
tenancy in common
Package Loan
48. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
ostensible agency
25%
Zoning
rescission
49. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Blanket
The secondary
An encumbrance
Tenancy by the Entirety
50. ___ gives the agent the power to perform only specific acts and no others.
Those on a fixed income
Alienation clause
EMFs
Special or limited agency