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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. ___ gives the agent the power to perform only specific acts and no others.
Vendee's Lien
An encumbrance
rescission
Special or limited agency
2. The minimum withdrawal from a home equity LOC is
writ of execution
$4000.
estate for years
Deed Restrictions
3. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
conomic obsolescence
Statutory law
25%
a grante
4. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
Reverse annuity
conomic obsolescence
Defeasance
5. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Zoning
Blanket Loan
husband and wife
the cash price or the APR
6. Loans qualified to be purchased in the secondary market are called __
alimony - child support or a pension plan.
income tax purposes
conforming loans.
trustor
7. Broker- Salesperson - owner-property manager-> which agency?
alimony - child support or a pension plan.
conforming loans.
Special or limited agency
General Agency
8. IN Reg Z Advertising which states only __is permitted
Blanket Loan
by ratification.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
the cash price or the APR
9. ___ 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.
Deed Restrictions
Errors & Omissions insurance
Zoning
25%
10. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
devise
In a straight assumption - the new buyer is approved - and takes over payments and liability
Blanket
Mitigation
11. 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.
conomic obsolescence
Fannie Mae - Freddie Mac and Ginnie Mae.
Balloon loan
Zoning
12. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
stigmatized
grow - stabilize - decline - revitalize
income tax purposes
13. What is easment?
It is a right in land and should be created in writing and recorded.
Reverse annuity
income tax purposes
lower interest rate
14. 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.
$4000.
Zoning
General Agency
income tax purposes
15. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Radon
Errors & Omissions insurance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
16. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
Zoning
estate for years
General Agency
17. Loan novation?
grow - stabilize - decline - revitalize
income tax purposes
Statutory law
In a straight assumption - the new buyer is approved - and takes over payments and liability
18. ___ is a limitation on your rights. It may also be a cloud on the title
In a straight assumption - the new buyer is approved - and takes over payments and liability
Those on a fixed income
An encumbrance
Statutory law
19. Includes real property plus personal property
Subordination clause
ostensible agency
EMFs
Package Loan
20. This will not impact of the seller's credit rating.
Those on a fixed income
estoppel
General Agency
straight assumption
21. __ "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.
rescission
Subordination clause
The secondary
Alienation clause
22. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
Mitigation
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
alimony - child support or a pension plan.
23. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Blanket
3
Blanket Loan
alimony - child support or a pension plan.
24. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
General
Statutory law
a grante
25. IRS Lein - Specific lein or general lein
Tenancy by the Entirety
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.
Fannie Mae - Freddie Mac and Ginnie Mae.
26. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
conforming loans
the cash price or the APR
Total amount - Certificate amount x 4 = approved maximum loan amount
27. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
28. An attorney-in-fact is the holder of...
rescission
stigmatized
a power of attorney
husband and wife
29. A property where there has been a murder or alleged haunting is called...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Mitigation
General Agency
stigmatized
30. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Defeasance
Subordination clause
writ of execution
rescission
31. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
stigmatized
Fannie Mae - Freddie Mac and Ginnie Mae.
32. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Blanket Loan
lower interest rate
encumbrance
33. ___market is where lenders go for money
The secondary
Balloon loan
Zoning
General Agency
34. There are four basic characteristics of value
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Total amount - Certificate amount x 4 = approved maximum loan amount
Mitigation
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
35. On income producing property land can never be depreciated for...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
ostensible agency
conforming loans.
income tax purposes
36. An ___ is a limitation on your rights
encumbrance
Subordination clause
lower interest rate
Reverse annuity
37. __ clause - states that the lien is defeated when the debt is repaid.
Zoning
Fannie Mae - Freddie Mac and Ginnie Mae.
Defeasance
Package Loan
38. The deed of trust involves three parties...
the cash price or the APR
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
tenancy in common
In a straight assumption - the new buyer is approved - and takes over payments and liability
39. 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
Fannie Mae - Freddie Mac and Ginnie Mae.
Deed Restrictions
Those on a fixed income
40. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
ostensible agency
The trustee
grow - stabilize - decline - revitalize
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. Covers more than one piece of property. (several lots on one note)
rescission
Blanket Loan
writ of execution
Subordination clause
42. Loans qualified to be purchased in the secondary market are called
conforming loans
ostensible agency
Tenancy by the Entirety
estate for years
43. An agent's duties to his principal are...
In a straight assumption - the new buyer is approved - and takes over payments and liability
stigmatized
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
The secondary
44. Common law does not always takes precedence over...
3
Statutory law
Redlining
Blanket
45. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
$4000.
conomic obsolescence
Deed Restrictions
46. ___ 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.)
conomic obsolescence
tenancy in common
An encumbrance
Blanket Loan
47. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The trustee
It is a right in land and should be created in writing and recorded.
Mitigation
48. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
49. High tension wire should be disclosed
The trustee
EMFs
Deed Restrictions
MIP - mortgage insurance premium
50. A person who has real property willed to her by a relative is said to acquire title by...
$4000.
devise
rescission
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care