SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
Search
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. __ clause - states that the lien is defeated when the debt is repaid.
The secondary
An encumbrance
Defeasance
straight assumption
2. IRS Lein - Specific lein or general lein
estate for years
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
General
3. There are four basic characteristics of value
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.
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
writ of execution
MIP - mortgage insurance premium
4. ___ is a limitation on your rights. It may also be a cloud on the title
a power of attorney
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
An encumbrance
by ratification.
5. Advantages of FHA loans
6. 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.
Total amount - Certificate amount x 4 = approved maximum loan amount
Zoning
trustor
$4000.
7. Real estate investors can defer taxation of capital gains by making ___
Those on a fixed income
10%
a property exchange.
lower interest rate
8. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
9. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
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.
It is a right in land and should be created in writing and recorded.
ostensible agency
10. The minimum withdrawal from a home equity LOC is
1. Release the lien when the note is paid. 2. Foreclose in the event of default
straight assumption
$4000.
devise
11. The veteran must obtain a Certificate of Eligibility from the VA
Blanket Loan
grow - stabilize - decline - revitalize
estoppel
Total amount - Certificate amount x 4 = approved maximum loan amount
12. An ___ is a limitation on your rights
encumbrance
conforming loans
conomic obsolescence
The secondary
13. Includes real property plus personal property
Package Loan
Defeasance
straight assumption
Redlining
14. A property where there has been a murder or alleged haunting is called...
a property exchange.
conforming loans.
stigmatized
Alienation clause
15. The trustee has two functions in accordance with the Deed of Trust.
estoppel
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Alienation clause
Defeasance
16. A person who has real property willed to her by a relative is said to acquire title by...
MIP - mortgage insurance premium
devise
a property exchange.
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.
17. Must sign the Deed of Trust.
$4000.
straight assumption
trustor
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
18. The insurance on the FHA loan is referred to as___
Balloon loan
Defeasance
Blanket
MIP - mortgage insurance premium
19. Lenders can deny credit if your sole source of income is__
conforming loans.
alimony - child support or a pension plan.
by ratification.
writ of execution
20. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
21. ___market is where lenders go for money
1. Release the lien when the note is paid. 2. Foreclose in the event of default
The secondary
Defeasance
lower interest rate
22. ___loan - Covers more than one piece of property
conomic obsolescence
Blanket
encumbrance
by ratification.
23. Loans qualified to be purchased in the secondary market are called __
Statutory law
Redlining
conforming loans.
Trustee's Deed
24. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
An encumbrance
by ratification.
ostensible agency
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
25. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
alimony - child support or a pension plan.
a property exchange.
The trustee
trustor
26. Covers more than one piece of property. (several lots on one note)
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
Trustee's Deed
alimony - child support or a pension plan.
Blanket Loan
27. __ "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.
Alienation clause
by ratification.
a power of attorney
Errors & Omissions insurance
28. The secondary market warehousing agencies are...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Fannie Mae - Freddie Mac and Ginnie Mae.
straight assumption
29. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Those on a fixed income
conomic obsolescence
rescission
General Agency
30. Which of the following instruments is the promise to repay a debt?
It is a right in land and should be created in writing and recorded.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Alienation clause
Package Loan
31. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Package Loan
tenancy in common
writ of execution
Statutory law
32. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
conomic obsolescence
a power of attorney
Blanket
33. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Vendee's Lien
a grante
conforming loans
25%
34. An agent's duties to his principal are...
straight assumption
a grante
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Trustee's Deed
35. Loans qualified to be purchased in the secondary market are called
devise
Deed Restrictions
trustor
conforming loans
36. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
General
encumbrance
10%
estate for years
37. ___ is created when a licensee acts like an agent and others respond to those actions.
Zoning
ostensible agency
Special or limited agency
10%
38. For what group of buyers would the ARM be the least desirable?
Defeasance
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.
ostensible agency
Those on a fixed income
39. '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?
by ratification.
Alienation clause
rescission
The trustee
40. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Radon
Package Loan
41. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
General
husband and wife
1. Release the lien when the note is paid. 2. Foreclose in the event of default
$4000.
42. Ownership by two or more without rights of survivorship is called
Vendee's Lien
Blanket
MIP - mortgage insurance premium
tenancy in common
43. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Mitigation
ostensible agency
Radon
3
44. Property Manager ( which type of Agency)
General Agency
3
Statutory law
25%
45. Broker- Salesperson - owner-property manager-> which agency?
conforming loans
Defeasance
Those on a fixed income
General Agency
46. A principal's duties to an agent ar...
ostensible agency
alimony - child support or a pension plan.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
25%
47. ___ 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.
alimony - child support or a pension plan.
Package Loan
Errors & Omissions insurance
rescission
48. What is easment?
income tax purposes
25%
It is a right in land and should be created in writing and recorded.
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.
49. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
Vendee's Lien
lower interest rate
devise
50. 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.
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
Balloon loan
Redlining