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