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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. The trustee has two functions in accordance with the Deed of Trust.
conomic obsolescence
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Mitigation
In a straight assumption - the new buyer is approved - and takes over payments and liability
2. __ "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
10%
income tax purposes
Alienation clause
3. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
estate for years
Vendee's Lien
ostensible agency
The trustee
4. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
EMFs
Fannie Mae - Freddie Mac and Ginnie Mae.
writ of execution
5. ___ is a limitation on your rights. It may also be a cloud on the title
conforming loans.
10%
husband and wife
An encumbrance
6. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
An encumbrance
MIP - mortgage insurance premium
Radon
25%
7. The insurance on the FHA loan is referred to as___
Package Loan
MIP - mortgage insurance premium
tenancy in common
estate for years
8. A principal's duties to an agent ar...
Those on a fixed income
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
General
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.
9. ___ is created when a licensee acts like an agent and others respond to those actions.
estate for years
ostensible agency
Errors & Omissions insurance
Trustee's Deed
10. Lenders can deny credit if your sole source of income is__
$4000.
An encumbrance
alimony - child support or a pension plan.
conomic obsolescence
11. Partially amortized loan - benefit
Blanket
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
lower interest rate
trustor
12. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
An encumbrance
writ of execution
Balloon loan
by ratification.
13. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
The trustee
MIP - mortgage insurance premium
Alienation clause
rescission
14. Real estate investors can defer taxation of capital gains by making ___
lower interest rate
a property exchange.
The secondary
tenancy in common
15. Common law does not always takes precedence over...
husband and wife
Mitigation
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Statutory law
16. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
income tax purposes
straight assumption
An encumbrance
17. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
writ of execution
Blanket
conforming loans.
18. The minimum withdrawal from a home equity LOC is
$4000.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Blanket
straight assumption
19. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Redlining
estate for years
20. Which of the following instruments is the promise to repay a debt?
General Agency
a power of attorney
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
rescission
21. ___market is where lenders go for money
Alienation clause
husband and wife
tenancy in common
The secondary
22. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Fannie Mae - Freddie Mac and Ginnie Mae.
Reverse annuity
Trustee's Deed
husband and wife
23. Property Manager ( which type of Agency)
straight assumption
General Agency
$4000.
Fannie Mae - Freddie Mac and Ginnie Mae.
24. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
MIP - mortgage insurance premium
EMFs
tenancy in common
25. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Subordination clause
Alienation clause
10%
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
26. ___ 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.)
estate for years
by ratification.
conomic obsolescence
grow - stabilize - decline - revitalize
27. On income producing property land can never be depreciated for...
income tax purposes
Mitigation
a property exchange.
Those on a fixed income
28. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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29. 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.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
estoppel
Alienation clause
Blanket
30. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
grow - stabilize - decline - revitalize
ostensible agency
$4000.
31. ___ 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.
Defeasance
The trustee
Errors & Omissions insurance
a property exchange.
32. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
1. Release the lien when the note is paid. 2. Foreclose in the event of default
EMFs
Mitigation
33. 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.
$4000.
General Agency
Balloon loan
Fannie Mae - Freddie Mac and Ginnie Mae.
34. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Errors & Omissions insurance
3
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
An encumbrance
35. Advantages of FHA loans
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36. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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37. High tension wire should be disclosed
straight assumption
EMFs
Defeasance
Tenancy by the Entirety
38. An attorney-in-fact is the holder of...
Redlining
Blanket
a power of attorney
straight assumption
39. This will not impact of the seller's credit rating.
conomic obsolescence
straight assumption
Statutory law
Fannie Mae - Freddie Mac and Ginnie Mae.
40. Ownership by two or more without rights of survivorship is called
income tax purposes
tenancy in common
General
Trustee's Deed
41. What is easment?
Package Loan
It is a right in land and should be created in writing and recorded.
Subordination clause
Blanket
42. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.
Tenancy by the Entirety
Zoning
43. One who acquires property under a deed is....
the cash price or the APR
a grante
grow - stabilize - decline - revitalize
Special or limited agency
44. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
ostensible agency
grow - stabilize - decline - revitalize
the cash price or the APR
The secondary
45. This lease survives death and/or the sale of the property. No notice is required to terminate.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
straight assumption
income tax purposes
estate for years
46. __ is a specific type of joint tenancy where the co-owners are husband and wife.
General Agency
encumbrance
Tenancy by the Entirety
1. Release the lien when the note is paid. 2. Foreclose in the event of default
47. The secondary market warehousing agencies are...
straight assumption
Fannie Mae - Freddie Mac and Ginnie Mae.
Statutory law
conomic obsolescence
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?
Alienation clause
Zoning
The trustee
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
49. Loans qualified to be purchased in the secondary market are called
25%
Subordination clause
conforming loans
Redlining
50. Includes real property plus personal property
Blanket
$4000.
Package Loan
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