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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. Covers more than one piece of property. (several lots on one note)
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
trustor
Blanket Loan
Balloon loan
2. The trustee has two functions in accordance with the Deed of Trust.
the cash price or the APR
1. Release the lien when the note is paid. 2. Foreclose in the event of default
lower interest rate
The trustee
3. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Redlining
Deed Restrictions
Radon
grow - stabilize - decline - revitalize
4. ____ - the refusal to lend in a particular geographic area - is prohibited.
estoppel
Redlining
Blanket
An encumbrance
5. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Radon
$4000.
estate for years
6. ___ 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.)
rescission
Radon
25%
conomic obsolescence
7. ___ are imposed to control land use - development and methods and materials for construction.
Fannie Mae - Freddie Mac and Ginnie Mae.
Deed Restrictions
income tax purposes
a grante
8. High tension wire should be disclosed
In a straight assumption - the new buyer is approved - and takes over payments and liability
EMFs
husband and wife
Total amount - Certificate amount x 4 = approved maximum loan amount
9. Partially amortized loan - benefit
Subordination clause
Alienation clause
husband and wife
lower interest rate
10. The minimum withdrawal from a home equity LOC is
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
An encumbrance
$4000.
MIP - mortgage insurance premium
11. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Special or limited agency
Total amount - Certificate amount x 4 = approved maximum loan amount
rescission
$4000.
12. __ clause - states that the lien is defeated when the debt is repaid.
General Agency
rescission
Defeasance
Fannie Mae - Freddie Mac and Ginnie Mae.
13. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
writ of execution
Reverse annuity
estate for years
a power of attorney
14. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
10%
Alienation clause
Reverse annuity
15. Property Manager ( which type of Agency)
Errors & Omissions insurance
Radon
Trustee's Deed
General Agency
16. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Those on a fixed income
by ratification.
Redlining
Mitigation
17. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
Alienation clause
encumbrance
3
18. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Fannie Mae - Freddie Mac and Ginnie Mae.
encumbrance
Subordination clause
estoppel
19. This lease survives death and/or the sale of the property. No notice is required to terminate.
conforming loans.
Alienation clause
straight assumption
estate for years
20. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
conforming loans
Blanket
trustor
21. An agent's duties to his principal are...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General Agency
Deed Restrictions
22. Common law does not always takes precedence over...
$4000.
25%
Deed Restrictions
Statutory law
23. Must sign the Deed of Trust.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Alienation clause
trustor
stigmatized
24. 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
General Agency
Balloon loan
a power of attorney
25. ___market is where lenders go for money
Package Loan
trustor
encumbrance
The secondary
26. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
MIP - mortgage insurance premium
trustor
the cash price or the APR
27. ___ is a limitation on your rights. It may also be a cloud on the title
Trustee's Deed
An encumbrance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Statutory law
28. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Mitigation
Blanket Loan
Balloon loan
29. __ "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.
Special or limited agency
devise
Alienation clause
Deed Restrictions
30. Advantages of FHA loans
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31. There are four basic characteristics of value
conomic obsolescence
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
ostensible agency
Special or limited agency
32. The insurance on the FHA loan is referred to as___
Radon
Errors & Omissions insurance
Trustee's Deed
MIP - mortgage insurance premium
33. A property where there has been a murder or alleged haunting is called...
The secondary
rescission
stigmatized
estate for years
34. ___ gives the agent the power to perform only specific acts and no others.
stigmatized
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Special or limited agency
a grante
35. ___loan - Covers more than one piece of property
It is a right in land and should be created in writing and recorded.
Blanket
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Reverse annuity
36. Which of the following instruments is the promise to repay a debt?
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
Errors & Omissions insurance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
37. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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38. Loans qualified to be purchased in the secondary market are called
estate for years
25%
devise
conforming loans
39. Loans qualified to be purchased in the secondary market are called __
Errors & Omissions insurance
conforming loans.
Blanket
Blanket Loan
40. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
General Agency
3
estoppel
Mitigation
41. Broker- Salesperson - owner-property manager-> which agency?
Defeasance
General Agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The secondary
42. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
estate for years
Radon
rescission
by ratification.
43. ___ 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.
trustor
Radon
estoppel
Errors & Omissions insurance
44. A principal's duties to an agent ar...
Alienation clause
conomic obsolescence
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conforming loans
45. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Mitigation
MIP - mortgage insurance premium
devise
46. The deed of trust involves three parties...
Mitigation
Redlining
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
47. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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48. 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.
Alienation clause
trustor
Balloon loan
encumbrance
49. A person who has real property willed to her by a relative is said to acquire title by...
Mitigation
The trustee
conomic obsolescence
devise
50. This will not impact of the seller's credit rating.
Redlining
3
rescission
straight assumption