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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. Real estate investors can defer taxation of capital gains by making ___
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Mitigation
a property exchange.
ostensible agency
2. Lenders can deny credit if your sole source of income is__
Vendee's Lien
rescission
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
alimony - child support or a pension plan.
3. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
The trustee
An encumbrance
General Agency
4. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
by ratification.
Tenancy by the Entirety
5. This will not impact of the seller's credit rating.
conforming loans
straight assumption
Radon
income tax purposes
6. ___ is created when a licensee acts like an agent and others respond to those actions.
writ of execution
Vendee's Lien
25%
ostensible agency
7. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
a property exchange.
An encumbrance
husband and wife
8. Partially amortized loan - benefit
lower interest rate
Package Loan
$4000.
conforming loans.
9. ___ are imposed to control land use - development and methods and materials for construction.
Radon
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Deed Restrictions
MIP - mortgage insurance premium
10. The minimum withdrawal from a home equity LOC is
husband and wife
$4000.
a power of attorney
the cash price or the APR
11. A property where there has been a murder or alleged haunting is called...
Vendee's Lien
devise
stigmatized
Defeasance
12. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
MIP - mortgage insurance premium
rescission
Mitigation
13. Loans qualified to be purchased in the secondary market are called __
Reverse annuity
conforming loans.
Deed Restrictions
alimony - child support or a pension plan.
14. Broker- Salesperson - owner-property manager-> which agency?
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
General Agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
encumbrance
15. The trustee has two functions in accordance with the Deed of Trust.
Defeasance
MIP - mortgage insurance premium
Special or limited agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
16. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
Package Loan
devise
grow - stabilize - decline - revitalize
17. Ownership by two or more without rights of survivorship is called
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Those on a fixed income
Special or limited agency
tenancy in common
18. High tension wire should be disclosed
EMFs
Alienation clause
Errors & Omissions insurance
Subordination clause
19. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
Total amount - Certificate amount x 4 = approved maximum loan amount
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The secondary
20. The insurance on the FHA loan is referred to as___
conforming loans
conforming loans.
Errors & Omissions insurance
MIP - mortgage insurance premium
21. Advantages of FHA loans
22. '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?
Defeasance
Alienation clause
a grante
An encumbrance
23. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
estate for years
Balloon loan
3
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
24. An attorney-in-fact is the holder of...
husband and wife
a power of attorney
conforming loans
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
25. Includes real property plus personal property
ostensible agency
Statutory law
Package Loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
26. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
General
rescission
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.
27. Must sign the Deed of Trust.
trustor
It is a right in land and should be created in writing and recorded.
Statutory law
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
28. Loans qualified to be purchased in the secondary market are called
husband and wife
devise
Radon
conforming loans
29. The deed of trust involves three parties...
EMFs
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The secondary
Fannie Mae - Freddie Mac and Ginnie Mae.
30. 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. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Those on a fixed income
rescission
Balloon loan
31. A principal's duties to an agent ar...
Special or limited agency
Redlining
estate for years
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
32. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
33. IRS Lein - Specific lein or general lein
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.
Mitigation
General
conforming loans.
34. Property Manager ( which type of Agency)
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.
Zoning
General Agency
the cash price or the APR
35. 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
Radon
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.
Zoning
36. ___ is a limitation on your rights. It may also be a cloud on the title
1. Release the lien when the note is paid. 2. Foreclose in the event of default
straight assumption
An encumbrance
a property exchange.
37. ___market is where lenders go for money
devise
encumbrance
Blanket Loan
The secondary
38. A person who has real property willed to her by a relative is said to acquire title by...
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
Blanket
devise
39. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
MIP - mortgage insurance premium
writ of execution
Alienation clause
Defeasance
40. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
alimony - child support or a pension plan.
trustor
rescission
41. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Errors & Omissions insurance
General Agency
income tax purposes
42. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Mitigation
conforming loans.
Subordination clause
Reverse annuity
43. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.
grow - stabilize - decline - revitalize
44. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
Blanket Loan
estoppel
estate for years
45. Covers more than one piece of property. (several lots on one note)
Total amount - Certificate amount x 4 = approved maximum loan amount
tenancy in common
General
Blanket Loan
46. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Statutory law
Radon
a property exchange.
47. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Blanket
Errors & Omissions insurance
General
grow - stabilize - decline - revitalize
48. __ clause - states that the lien is defeated when the debt is repaid.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Reverse annuity
Defeasance
husband and wife
49. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
The secondary
the cash price or the APR
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
50. What is easment?
estoppel
rescission
It is a right in land and should be created in writing and recorded.
Package Loan