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