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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
Blanket Loan
25%
Package Loan
2. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
3
Blanket Loan
stigmatized
3. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
devise
It is a right in land and should be created in writing and recorded.
Errors & Omissions insurance
4. Ownership by two or more without rights of survivorship is called
encumbrance
Special or limited agency
tenancy in common
Package Loan
5. __ "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.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Those on a fixed income
Alienation clause
conforming loans
6. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
Deed Restrictions
Tenancy by the Entirety
Trustee's Deed
7. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Deed Restrictions
Balloon loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
8. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
The secondary
It is a right in land and should be created in writing and recorded.
Errors & Omissions insurance
9. A person who has real property willed to her by a relative is said to acquire title by...
a grante
devise
conforming loans.
income tax purposes
10. The insurance on the FHA loan is referred to as___
The secondary
tenancy in common
lower interest rate
MIP - mortgage insurance premium
11. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
12. ___ 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.)
Package Loan
3
conomic obsolescence
Fannie Mae - Freddie Mac and Ginnie Mae.
13. What is easment?
It is a right in land and should be created in writing and recorded.
10%
Special or limited agency
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
14. Must sign the Deed of Trust.
Mitigation
The secondary
conomic obsolescence
trustor
15. Broker- Salesperson - owner-property manager-> which agency?
General Agency
estoppel
income tax purposes
3
16. 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
25%
1. Release the lien when the note is paid. 2. Foreclose in the event of default
conomic obsolescence
17. IN Reg Z Advertising which states only __is permitted
estoppel
The trustee
the cash price or the APR
$4000.
18. The trustee has two functions in accordance with the Deed of Trust.
encumbrance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
estoppel
Defeasance
19. '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
25%
Radon
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
20. 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
It is a right in land and should be created in writing and recorded.
MIP - mortgage insurance premium
21. Covers more than one piece of property. (several lots on one note)
Blanket 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
Radon
encumbrance
22. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
General
grow - stabilize - decline - revitalize
MIP - mortgage insurance premium
husband and wife
23. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
tenancy in common
Reverse annuity
devise
24. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Alienation clause
3
Trustee's Deed
General Agency
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.
Zoning
Blanket Loan
income tax purposes
Alienation clause
26. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Package Loan
$4000.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
27. One who acquires property under a deed is....
a grante
Zoning
Balloon loan
MIP - mortgage insurance premium
28. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
General
10%
husband and wife
29. The secondary market warehousing agencies are...
stigmatized
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Fannie Mae - Freddie Mac and Ginnie Mae.
estate for years
30. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
31. 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.
Subordination clause
Balloon loan
stigmatized
Deed Restrictions
32. High tension wire should be disclosed
a property exchange.
EMFs
Those on a fixed income
Defeasance
33. Includes real property plus personal property
$4000.
3
The trustee
Package Loan
34. 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
estate for years
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
Redlining
35. ___loan - Covers more than one piece of property
the cash price or the APR
Blanket
encumbrance
Trustee's Deed
36. A principal's duties to an agent ar...
Defeasance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
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.
25%
37. A property where there has been a murder or alleged haunting is called...
Fannie Mae - Freddie Mac and Ginnie Mae.
3
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
stigmatized
38. IRS Lein - Specific lein or general lein
General
Subordination clause
Defeasance
Blanket
39. ___market is where lenders go for money
Alienation clause
ostensible agency
husband and wife
The secondary
40. Loans qualified to be purchased in the secondary market are called __
grow - stabilize - decline - revitalize
Alienation clause
conforming loans.
ostensible agency
41. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
$4000.
conforming loans.
EMFs
42. Advantages of FHA loans
43. An ___ is a limitation on your rights
alimony - child support or a pension plan.
encumbrance
straight assumption
Alienation clause
44. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
General Agency
grow - stabilize - decline - revitalize
encumbrance
45. Partially amortized loan - benefit
Statutory law
trustor
Redlining
lower interest rate
46. On income producing property land can never be depreciated for...
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
Tenancy by the Entirety
Alienation clause
income tax purposes
47. An attorney-in-fact is the holder of...
a power of attorney
conforming loans
Zoning
General Agency
48. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Balloon loan
49. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
the cash price or the APR
Special or limited agency
Mitigation
husband and wife
50. Common law does not always takes precedence over...
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default
a power of attorney
conforming loans