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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. 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
estate for years
a property exchange.
Radon
2. Covers more than one piece of property. (several lots on one note)
conomic obsolescence
General
Blanket Loan
conforming loans.
3. Lenders can deny credit if your sole source of income is__
25%
Errors & Omissions insurance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
alimony - child support or a pension plan.
4. Includes real property plus personal property
Total amount - Certificate amount x 4 = approved maximum loan amount
25%
Blanket
Package Loan
5. The trustee has two functions in accordance with the Deed of Trust.
It is a right in land and should be created in writing and recorded.
rescission
1. Release the lien when the note is paid. 2. Foreclose in the event of default
lower interest rate
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.
Deed Restrictions
stigmatized
Zoning
alimony - child support or a pension plan.
7. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
tenancy in common
Those on a fixed income
EMFs
8. 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.
lower interest rate
General
Redlining
9. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Defeasance
General
Package Loan
10. The minimum withdrawal from a home equity LOC is
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.
The secondary
$4000.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
11. The insurance on the FHA loan is referred to as___
Defeasance
MIP - mortgage insurance premium
Statutory law
10%
12. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
Alienation clause
husband and wife
encumbrance
13. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
Blanket
An encumbrance
the cash price or the APR
14. Partially amortized loan - benefit
Package Loan
10%
lower interest rate
alimony - child support or a pension plan.
15. 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.
Balloon loan
Statutory law
Defeasance
the cash price or the APR
16. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Alienation clause
by ratification.
Errors & Omissions insurance
It is a right in land and should be created in writing and recorded.
17. ___ 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.
Balloon loan
estate for years
Errors & Omissions insurance
EMFs
18. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
income tax purposes
estoppel
In a straight assumption - the new buyer is approved - and takes over payments and liability
19. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Defeasance
a power of attorney
Those on a fixed income
writ of execution
20. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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21. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Zoning
conforming loans.
MIP - mortgage insurance premium
10%
22. ___ are imposed to control land use - development and methods and materials for construction.
Zoning
Package Loan
Deed Restrictions
It is a right in land and should be created in writing and recorded.
23. Must sign the Deed of Trust.
trustor
Total amount - Certificate amount x 4 = approved maximum loan amount
tenancy in common
Package Loan
24. High tension wire should be disclosed
Blanket Loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
EMFs
Mitigation
25. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
by ratification.
husband and wife
Package Loan
writ of execution
26. ___market is where lenders go for money
The secondary
Vendee's Lien
Fannie Mae - Freddie Mac and Ginnie Mae.
income tax purposes
27. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
the cash price or the APR
Redlining
grow - stabilize - decline - revitalize
28. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Vendee's Lien
Radon
husband and wife
Zoning
29. Loans qualified to be purchased in the secondary market are called __
Redlining
An encumbrance
General Agency
conforming loans.
30. ___ 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
husband and wife
An encumbrance
Reverse annuity
31. ___ gives the agent the power to perform only specific acts and no others.
a grante
Fannie Mae - Freddie Mac and Ginnie Mae.
Special or limited agency
General Agency
32. Ownership by two or more without rights of survivorship is called
tenancy in common
husband and wife
$4000.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
33. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Those on a fixed income
The secondary
Radon
34. An attorney-in-fact is the holder of...
a property exchange.
General Agency
a grante
a power of attorney
35. '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
In a straight assumption - the new buyer is approved - and takes over payments and liability
Special or limited agency
Tenancy by the Entirety
36. Broker- Salesperson - owner-property manager-> which agency?
An encumbrance
Redlining
General Agency
income tax purposes
37. An ___ is a limitation on your rights
stigmatized
Vendee's Lien
encumbrance
Fannie Mae - Freddie Mac and Ginnie Mae.
38. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
writ of execution
straight assumption
Subordination clause
Reverse annuity
39. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Blanket
3
40. There are four basic characteristics of value
In a straight assumption - the new buyer is approved - and takes over payments and liability
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
straight assumption
Redlining
41. One who acquires property under a deed is....
devise
25%
It is a right in land and should be created in writing and recorded.
a grante
42. __ clause - states that the lien is defeated when the debt is repaid.
Radon
Fannie Mae - Freddie Mac and Ginnie Mae.
Defeasance
The secondary
43. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Statutory law
Trustee's Deed
Zoning
44. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
alimony - child support or a pension plan.
Balloon loan
conforming loans
45. A principal's duties to an agent ar...
tenancy in common
lower interest rate
Redlining
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
46. ____ - the refusal to lend in a particular geographic area - is prohibited.
Deed Restrictions
Redlining
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conforming loans
47. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
General Agency
EMFs
Subordination clause
Errors & Omissions insurance
48. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
1. Release the lien when the note is paid. 2. Foreclose in the event of default
alimony - child support or a pension plan.
estoppel
49. On income producing property land can never be depreciated for...
income tax purposes
trustor
Reverse annuity
Package Loan
50. This will not impact of the seller's credit rating.
straight assumption
Vendee's Lien
encumbrance
estoppel