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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. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
estoppel
The trustee
Trustee's Deed
Alienation clause
2. An ___ is a limitation on your rights
10%
Alienation clause
conforming loans.
encumbrance
3. A property where there has been a murder or alleged haunting is called...
Blanket
1. Release the lien when the note is paid. 2. Foreclose in the event of default
stigmatized
Special or limited agency
4. ___ gives the agent the power to perform only specific acts and no others.
In a straight assumption - the new buyer is approved - and takes over payments and liability
writ of execution
Special or limited agency
straight assumption
5. For what group of buyers would the ARM be the least desirable?
Balloon loan
Package Loan
stigmatized
Those on a fixed income
6. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Blanket Loan
rescission
General Agency
writ of execution
7. An attorney-in-fact is the holder of...
Total amount - Certificate amount x 4 = approved maximum loan amount
a grante
Deed Restrictions
a power of attorney
8. __ "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.
25%
Alienation clause
the cash price or the APR
trustor
9. Partially amortized loan - benefit
a property exchange.
Redlining
lower interest rate
Subordination clause
10. '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?
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
3
Alienation clause
1. Release the lien when the note is paid. 2. Foreclose in the event of default
11. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
conforming loans
The trustee
a grante
12. ____ - the refusal to lend in a particular geographic area - is prohibited.
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
Redlining
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
13. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
14. ___ is a limitation on your rights. It may also be a cloud on the title
devise
An encumbrance
The trustee
writ of execution
15. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Blanket Loan
Trustee's Deed
$4000.
16. ___ are imposed to control land use - development and methods and materials for construction.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Statutory law
In a straight assumption - the new buyer is approved - and takes over payments and liability
Deed Restrictions
17. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
trustor
a grante
conomic obsolescence
18. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Package Loan
The secondary
straight assumption
19. Broker- Salesperson - owner-property manager-> which agency?
straight assumption
General Agency
income tax purposes
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
20. Loans qualified to be purchased in the secondary market are called
conforming loans
Package Loan
Balloon loan
Statutory law
21. One who acquires property under a deed is....
estate for years
a power of attorney
a grante
EMFs
22. Must sign the Deed of Trust.
Trustee's Deed
trustor
1. Release the lien when the note is paid. 2. Foreclose in the event of default
conforming loans
23. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
a grante
rescission
writ of execution
24. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
3
conomic obsolescence
Trustee's Deed
25. Includes real property plus personal property
trustor
Package Loan
Alienation clause
3
26. On income producing property land can never be depreciated for...
alimony - child support or a pension plan.
income tax purposes
Package Loan
3
27. The minimum withdrawal from a home equity LOC is
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
rescission
estoppel
$4000.
28. 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.
alimony - child support or a pension plan.
The secondary
estoppel
a property exchange.
29. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Blanket Loan
rescission
In a straight assumption - the new buyer is approved - and takes over payments and liability
husband and wife
30. ___ 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.
General
Errors & Omissions insurance
Statutory law
Blanket
31. A principal's duties to an agent ar...
25%
tenancy in common
ostensible agency
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
32. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
An encumbrance
$4000.
Reverse annuity
33. What is easment?
Fannie Mae - Freddie Mac and Ginnie Mae.
It is a right in land and should be created in writing and recorded.
Statutory law
income tax purposes
34. This lease survives death and/or the sale of the property. No notice is required to terminate.
The trustee
grow - stabilize - decline - revitalize
$4000.
estate for years
35. High tension wire should be disclosed
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
EMFs
husband and wife
Errors & Omissions insurance
36. Property Manager ( which type of Agency)
Redlining
Those on a fixed income
conforming loans
General Agency
37. __ clause - states that the lien is defeated when the debt is repaid.
a grante
Subordination clause
Defeasance
by ratification.
38. A person who has real property willed to her by a relative is said to acquire title by...
EMFs
Fannie Mae - Freddie Mac and Ginnie Mae.
10%
devise
39. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
Statutory law
rescission
Defeasance
40. The veteran must obtain a Certificate of Eligibility from the VA
MIP - mortgage insurance premium
25%
Total amount - Certificate amount x 4 = approved maximum loan amount
estoppel
41. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
In a straight assumption - the new buyer is approved - and takes over payments and liability
Subordination clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
42. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Blanket Loan
Deed Restrictions
General Agency
43. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
writ of execution
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.
General Agency
44. Ownership by two or more without rights of survivorship is called
conforming loans.
tenancy in common
grow - stabilize - decline - revitalize
Reverse annuity
45. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
General Agency
25%
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.
Errors & Omissions insurance
46. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
conforming loans
by ratification.
General Agency
47. Which of the following instruments is the promise to repay a debt?
lower interest rate
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Special or limited agency
Zoning
48. ___market is where lenders go for money
husband and wife
Subordination clause
Total amount - Certificate amount x 4 = approved maximum loan amount
The secondary
49. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
50. The deed of trust involves three parties...
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Redlining
Total amount - Certificate amount x 4 = approved maximum loan amount