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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. IRS Lein - Specific lein or general lein
General
25%
Subordination clause
General Agency
2. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
EMFs
Deed Restrictions
MIP - mortgage insurance premium
10%
3. An attorney-in-fact is the holder of...
Balloon loan
a power of attorney
Blanket
writ of execution
4. Advantages of FHA loans
5. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Radon
In a straight assumption - the new buyer is approved - and takes over payments and liability
tenancy in common
writ of execution
6. A property where there has been a murder or alleged haunting is called...
Tenancy by the Entirety
EMFs
stigmatized
husband and wife
7. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Balloon loan
ostensible agency
Deed Restrictions
rescission
8. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
9. ___market is where lenders go for money
Defeasance
The secondary
income tax purposes
Tenancy by the Entirety
10. On income producing property land can never be depreciated for...
Fannie Mae - Freddie Mac and Ginnie Mae.
General Agency
income tax purposes
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
11. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
12. 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
a property exchange.
Mitigation
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
13. 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
Zoning
encumbrance
Statutory law
14. For what group of buyers would the ARM be the least desirable?
income tax purposes
ostensible agency
Those on a fixed income
1. Release the lien when the note is paid. 2. Foreclose in the event of default
15. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Radon
General Agency
Errors & Omissions insurance
16. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
MIP - mortgage insurance premium
25%
the cash price or the APR
17. Property Manager ( which type of Agency)
Redlining
ostensible agency
General Agency
Blanket
18. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Those on a fixed income
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.
a grante
19. Includes real property plus personal property
devise
Package Loan
alimony - child support or a pension plan.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
20. Ownership by two or more without rights of survivorship is called
Radon
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
devise
tenancy in common
21. The secondary market warehousing agencies are...
MIP - mortgage insurance premium
Fannie Mae - Freddie Mac and Ginnie Mae.
General Agency
10%
22. ___loan - Covers more than one piece of property
stigmatized
Statutory law
Blanket
estate for years
23. What is easment?
Reverse annuity
In a straight assumption - the new buyer is approved - and takes over payments and liability
Mitigation
It is a right in land and should be created in writing and recorded.
24. ___ 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.)
a property exchange.
conomic obsolescence
Special or limited agency
Reverse annuity
25. Which of the following instruments is the promise to repay a debt?
straight assumption
grow - stabilize - decline - revitalize
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
25%
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.
Tenancy by the Entirety
ostensible agency
estoppel
Defeasance
27. ___ 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
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Those on a fixed income
conomic obsolescence
28. Broker- Salesperson - owner-property manager-> which agency?
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General Agency
encumbrance
Radon
29. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Special or limited agency
Tenancy by the Entirety
Zoning
the cash price or the APR
30. Loan novation?
Deed Restrictions
devise
In a straight assumption - the new buyer is approved - and takes over payments and liability
Redlining
31. __ clause - states that the lien is defeated when the debt is repaid.
devise
Those on a fixed income
Reverse annuity
Defeasance
32. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
estoppel
the cash price or the APR
It is a right in land and should be created in writing and recorded.
Mitigation
33. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
conomic obsolescence
a grante
by ratification.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
34. One who acquires property under a deed is....
conforming loans.
General
General Agency
a grante
35. ___ is created when a licensee acts like an agent and others respond to those actions.
EMFs
Defeasance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
ostensible agency
36. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Total amount - Certificate amount x 4 = approved maximum loan amount
10%
MIP - mortgage insurance premium
Radon
37. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
lower interest rate
Reverse annuity
a property exchange.
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.
38. There are four basic characteristics of value
It is a right in land and should be created in writing and recorded.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
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
Reverse annuity
39. Lenders can deny credit if your sole source of income is__
a power of attorney
General Agency
alimony - child support or a pension plan.
straight assumption
40. __ "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.
Redlining
husband and wife
Alienation clause
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
41. Loans qualified to be purchased in the secondary market are called
Zoning
Fannie Mae - Freddie Mac and Ginnie Mae.
conforming loans
lower interest rate
42. Must sign the Deed of Trust.
trustor
conforming loans.
by ratification.
General Agency
43. ___ 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
Special or limited agency
Vendee's Lien
Fannie Mae - Freddie Mac and Ginnie Mae.
44. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Statutory law
Package Loan
by ratification.
45. ___ are imposed to control land use - development and methods and materials for construction.
estate for years
Deed Restrictions
straight assumption
Total amount - Certificate amount x 4 = approved maximum loan amount
46. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
$4000.
An encumbrance
husband and wife
47. 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.
25%
Statutory law
Reverse annuity
Balloon loan
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. It is called?
conomic obsolescence
a power of attorney
Alienation clause
Reverse annuity
49. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
It is a right in land and should be created in writing and recorded.
EMFs
An encumbrance
50. The insurance on the FHA loan is referred to as___
Defeasance
trustor
MIP - mortgage insurance premium
grow - stabilize - decline - revitalize