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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
Those on a fixed income
grow - stabilize - decline - revitalize
Package Loan
a grante
2. This will not impact of the seller's credit rating.
Vendee's Lien
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Package Loan
straight assumption
3. An agent's duties to his principal are...
Those on a fixed income
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
devise
grow - stabilize - decline - revitalize
4. IN Reg Z Advertising which states only __is permitted
Zoning
encumbrance
the cash price or the APR
husband and wife
5. Loans qualified to be purchased in the secondary market are called
alimony - child support or a pension plan.
General Agency
MIP - mortgage insurance premium
conforming loans
6. ___ is a limitation on your rights. It may also be a cloud on the title
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
An encumbrance
The secondary
MIP - mortgage insurance premium
7. Property Manager ( which type of Agency)
Blanket
Special or limited agency
General Agency
grow - stabilize - decline - revitalize
8. For what group of buyers would the ARM be the least desirable?
10%
husband and wife
by ratification.
Those on a fixed income
9. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
tenancy in common
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Alienation clause
10. The trustee has two functions in accordance with the Deed of Trust.
rescission
encumbrance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
husband and wife
11. High tension wire should be disclosed
a property exchange.
EMFs
It is a right in land and should be created in writing and recorded.
estate for years
12. Broker- Salesperson - owner-property manager-> which agency?
Deed Restrictions
Total amount - Certificate amount x 4 = approved maximum loan amount
by ratification.
General Agency
13. '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?
a property exchange.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Alienation clause
Special or limited agency
14. An ___ is a limitation on your rights
a property exchange.
Blanket
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
15. One who acquires property under a deed is....
stigmatized
grow - stabilize - decline - revitalize
a grante
estoppel
16. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
General Agency
3
25%
a property exchange.
17. 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.
by ratification.
10%
Balloon loan
Statutory law
18. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
General Agency
Blanket Loan
rescission
Reverse annuity
19. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
The trustee
Alienation clause
straight assumption
20. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
stigmatized
An encumbrance
The trustee
Blanket
21. Ownership by two or more without rights of survivorship is called
10%
Package Loan
Balloon loan
tenancy in common
22. __ clause - states that the lien is defeated when the debt is repaid.
Balloon loan
husband and wife
Vendee's Lien
Defeasance
23. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Blanket
3
grow - stabilize - decline - revitalize
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
24. A property where there has been a murder or alleged haunting is called...
Vendee's Lien
stigmatized
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
An encumbrance
25. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Zoning
husband and wife
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
26. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
grow - stabilize - decline - revitalize
income tax purposes
Radon
The trustee
27. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
28. Partially amortized loan - benefit
conomic obsolescence
General
ostensible agency
lower interest rate
29. An attorney-in-fact is the holder of...
a power of attorney
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
An encumbrance
30. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
a power of attorney
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.
Those on a fixed income
by ratification.
31. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
$4000.
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
32. IRS Lein - Specific lein or general lein
a power of attorney
General
Subordination clause
writ of execution
33. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
34. A person who has real property willed to her by a relative is said to acquire title by...
In a straight assumption - the new buyer is approved - and takes over payments and liability
devise
Package Loan
Errors & Omissions insurance
35. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Total amount - Certificate amount x 4 = approved maximum loan amount
An encumbrance
36. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
lower interest rate
An encumbrance
writ of execution
37. Lenders can deny credit if your sole source of income is__
General
Special or limited agency
Trustee's Deed
alimony - child support or a pension plan.
38. Common law does not always takes precedence over...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Statutory law
ostensible agency
Zoning
39. 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
tenancy in common
Redlining
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
40. On income producing property land can never be depreciated for...
Deed Restrictions
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
income tax purposes
the cash price or the APR
41. ___ 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
estate for years
lower interest rate
rescission
42. ___ 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.)
25%
conforming loans
conomic obsolescence
Fannie Mae - Freddie Mac and Ginnie Mae.
43. 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 Agency
25%
MIP - mortgage insurance premium
estoppel
44. The deed of trust involves three parties...
The trustee
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
3
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.
45. The insurance on the FHA loan is referred to as___
1. Release the lien when the note is paid. 2. Foreclose in the event of default
MIP - mortgage insurance premium
straight assumption
devise
46. There are four basic characteristics of value
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
estate for years
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.
3
47. The minimum withdrawal from a home equity LOC is
Blanket Loan
income tax purposes
$4000.
25%
48. __ "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.
encumbrance
by ratification.
EMFs
Alienation clause
49. ____ - the refusal to lend in a particular geographic area - is prohibited.
a power of attorney
Deed Restrictions
Redlining
straight assumption
50. ___loan - Covers more than one piece of property
stigmatized
Redlining
25%
Blanket