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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. ___ is a limitation on your rights. It may also be a cloud on the title
3
An encumbrance
ostensible agency
Package Loan
2. 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.
a property exchange.
EMFs
by ratification.
Balloon loan
3. Common law does not always takes precedence over...
ostensible agency
a power of attorney
Statutory law
Package Loan
4. Must sign the Deed of Trust.
trustor
conomic obsolescence
Errors & Omissions insurance
Deed Restrictions
5. Advantages of FHA loans
6. The insurance on the FHA loan is referred to as___
ostensible agency
husband and wife
devise
MIP - mortgage insurance premium
7. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
trustor
25%
husband and wife
Those on a fixed income
8. What is easment?
It is a right in land and should be created in writing and recorded.
Mitigation
MIP - mortgage insurance premium
stigmatized
9. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
ostensible agency
rescission
MIP - mortgage insurance premium
An encumbrance
10. On income producing property land can never be depreciated for...
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.
Blanket Loan
The trustee
income tax purposes
11. 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.
Trustee's Deed
10%
a grante
estoppel
12. '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?
conomic obsolescence
Alienation clause
EMFs
Those on a fixed income
13. A property where there has been a murder or alleged haunting is called...
stigmatized
ostensible agency
General Agency
Balloon loan
14. Covers more than one piece of property. (several lots on one note)
writ of execution
Blanket Loan
EMFs
$4000.
15. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
Blanket
1. Release the lien when the note is paid. 2. Foreclose in the event of default
devise
16. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
Tenancy by the Entirety
Those on a fixed income
$4000.
17. Property Manager ( which type of Agency)
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
a power of attorney
alimony - child support or a pension plan.
General Agency
18. __ "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 a right in land and should be created in writing and recorded.
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
rescission
19. For what group of buyers would the ARM be the least desirable?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Those on a fixed income
encumbrance
conomic obsolescence
20. IN Reg Z Advertising which states only __is permitted
Blanket
Subordination clause
Those on a fixed income
the cash price or the APR
21. Loans qualified to be purchased in the secondary market are called
Subordination clause
conforming loans
It is a right in land and should be created in writing and recorded.
General
22. Includes real property plus personal property
estoppel
conforming loans.
Package Loan
alimony - child support or a pension plan.
23. A principal's duties to an agent ar...
stigmatized
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Tenancy by the Entirety
by ratification.
24. One who acquires property under a deed is....
10%
Redlining
$4000.
a grante
25. The trustee has two functions in accordance with the Deed of Trust.
income tax purposes
estoppel
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General
26. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
a grante
The trustee
An encumbrance
Subordination clause
27. There are four basic characteristics of value
husband and wife
Deed Restrictions
a grante
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
28. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
29. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
husband and wife
by ratification.
Blanket Loan
Alienation clause
30. ___market is where lenders go for money
Blanket
Trustee's Deed
The secondary
ostensible agency
31. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Defeasance
conomic obsolescence
Mitigation
The secondary
32. High tension wire should be disclosed
EMFs
rescission
Reverse annuity
Statutory law
33. Loan novation?
25%
grow - stabilize - decline - revitalize
In a straight assumption - the new buyer is approved - and takes over payments and liability
Total amount - Certificate amount x 4 = approved maximum loan amount
34. Which of the following instruments is the promise to repay a debt?
General
Total amount - Certificate amount x 4 = approved maximum loan amount
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
husband and wife
35. ___ are imposed to control land use - development and methods and materials for construction.
a grante
Deed Restrictions
$4000.
Fannie Mae - Freddie Mac and Ginnie Mae.
36. IRS Lein - Specific lein or general lein
writ of execution
It is a right in land and should be created in writing and recorded.
$4000.
General
37. Broker- Salesperson - owner-property manager-> which agency?
General Agency
lower interest rate
trustor
income tax purposes
38. An attorney-in-fact is the holder of...
a property exchange.
grow - stabilize - decline - revitalize
the cash price or the APR
a power of attorney
39. Loans qualified to be purchased in the secondary market are called __
conforming loans.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
straight assumption
40. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Those on a fixed income
25%
straight assumption
3
41. ___ 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.
devise
conomic obsolescence
Zoning
Errors & Omissions insurance
42. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
lower interest rate
The trustee
Errors & Omissions insurance
An encumbrance
43. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
44. The secondary market warehousing agencies are...
by ratification.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Fannie Mae - Freddie Mac and Ginnie Mae.
devise
45. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
husband and wife
Redlining
Subordination clause
writ of execution
46. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
47. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Alienation clause
EMFs
Redlining
48. 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.
husband and wife
a grante
Zoning
Reverse annuity
49. This lease survives death and/or the sale of the property. No notice is required to terminate.
stigmatized
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.
estate for years
50. A person who has real property willed to her by a relative is said to acquire title by...
General Agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
income tax purposes
devise