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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. Loan novation?
General Agency
It is a right in land and should be created in writing and recorded.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Vendee's Lien
2. ___ 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.)
income tax purposes
estoppel
Reverse annuity
conomic obsolescence
3. The minimum withdrawal from a home equity LOC is
$4000.
General Agency
Alienation clause
MIP - mortgage insurance premium
4. Ownership by two or more without rights of survivorship is called
Radon
25%
tenancy in common
by ratification.
5. Must sign the Deed of Trust.
$4000.
trustor
a grante
conforming loans.
6. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Zoning
estoppel
Defeasance
7. An ___ is a limitation on your rights
encumbrance
Redlining
The secondary
a grante
8. The veteran must obtain a Certificate of Eligibility from the VA
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount
Subordination clause
a property exchange.
9. ___ is a limitation on your rights. It may also be a cloud on the title
Mitigation
husband and wife
by ratification.
An encumbrance
10. Partially amortized loan - benefit
conomic obsolescence
lower interest rate
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
3
11. 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.
Blanket
Balloon loan
General
Tenancy by the Entirety
12. On income producing property land can never be depreciated for...
alimony - child support or a pension plan.
Reverse annuity
Vendee's Lien
income tax purposes
13. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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14. Property Manager ( which type of Agency)
EMFs
General Agency
stigmatized
rescission
15. '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?
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
devise
1. Release the lien when the note is paid. 2. Foreclose in the event of default
16. An attorney-in-fact is the holder of...
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
husband and wife
a power of attorney
17. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Blanket
General
The trustee
General Agency
18. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Trustee's Deed
Radon
In a straight assumption - the new buyer is approved - and takes over payments and liability
19. IN Reg Z Advertising which states only __is permitted
Alienation clause
the cash price or the APR
a grante
conomic obsolescence
20. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
devise
alimony - child support or a pension plan.
Subordination clause
stigmatized
21. ___market is where lenders go for money
MIP - mortgage insurance premium
Redlining
The secondary
a power of attorney
22. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Subordination clause
Errors & Omissions insurance
rescission
Vendee's Lien
23. Covers more than one piece of property. (several lots on one note)
conforming loans
a power of attorney
Those on a fixed income
Blanket Loan
24. Loans qualified to be purchased in the secondary market are called __
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
alimony - child support or a pension plan.
conforming loans.
tenancy in common
25. ___ are imposed to control land use - development and methods and materials for construction.
straight assumption
Balloon loan
estate for years
Deed Restrictions
26. Loans qualified to be purchased in the secondary market are called
Deed Restrictions
conforming loans
a property exchange.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
27. Which of the following instruments is the promise to repay a debt?
Alienation clause
25%
husband and wife
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
28. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
tenancy in common
10%
Blanket Loan
29. IRS Lein - Specific lein or general lein
the cash price or the APR
General
Blanket Loan
Zoning
30. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
husband and wife
conomic obsolescence
Defeasance
31. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
General Agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
the cash price or the APR
32. The deed of trust involves three parties...
General
ostensible agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conforming loans
33. A person who has real property willed to her by a relative is said to acquire title by...
Those on a fixed income
Tenancy by the Entirety
conforming loans
devise
34. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Balloon loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
stigmatized
Mitigation
35. One who acquires property under a deed is....
Alienation clause
Tenancy by the Entirety
a grante
Vendee's Lien
36. This will not impact of the seller's credit rating.
by ratification.
rescission
Alienation clause
straight assumption
37. There are four basic characteristics of value
conomic obsolescence
straight assumption
estoppel
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
38. 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
10%
Blanket Loan
25%
39. A principal's duties to an agent ar...
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
The trustee
devise
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
40. ___ 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.
Errors & Omissions insurance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a power of attorney
3
41. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Alienation clause
straight assumption
The trustee
42. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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43. ___ gives the agent the power to perform only specific acts and no others.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Special or limited agency
Reverse annuity
44. __ "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.
tenancy in common
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General
45. What is easment?
$4000.
estate for years
25%
It is a right in land and should be created in writing and recorded.
46. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
In a straight assumption - the new buyer is approved - and takes over payments and liability
stigmatized
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Reverse annuity
47. Common law does not always takes precedence over...
Radon
Statutory law
Reverse annuity
husband and wife
48. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
General Agency
EMFs
writ of execution
Deed Restrictions
49. The trustee has two functions in accordance with the Deed of Trust.
Radon
1. Release the lien when the note is paid. 2. Foreclose in the event of default
$4000.
Blanket Loan
50. 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.
Fannie Mae - Freddie Mac and Ginnie Mae.
estoppel
encumbrance
lower interest rate