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