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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. What is easment?
General
Statutory law
It is a right in land and should be created in writing and recorded.
straight assumption
2. The trustee has two functions in accordance with the Deed of Trust.
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
Reverse annuity
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Zoning
3. The secondary market warehousing agencies are...
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.
Statutory law
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
4. This lease survives death and/or the sale of the property. No notice is required to terminate.
General Agency
estate for years
stigmatized
Deed Restrictions
5. Which of the following instruments is the promise to repay a debt?
Fannie Mae - Freddie Mac and Ginnie Mae.
EMFs
devise
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
6. Covers more than one piece of property. (several lots on one note)
Blanket Loan
Package Loan
by ratification.
10%
7. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Zoning
Radon
Mitigation
Redlining
8. High tension wire should be disclosed
EMFs
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
General Agency
Blanket Loan
9. A person who has real property willed to her by a relative is said to acquire title by...
rescission
3
devise
income tax purposes
10. Property Manager ( which type of Agency)
Errors & Omissions insurance
General Agency
stigmatized
$4000.
11. On income producing property land can never be depreciated for...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Errors & Omissions insurance
income tax purposes
Alienation clause
12. One who acquires property under a deed is....
a grante
Alienation clause
Deed Restrictions
Radon
13. ___ are imposed to control land use - development and methods and materials for construction.
Special or limited agency
Deed Restrictions
$4000.
Blanket Loan
14. Loan novation?
Special or limited agency
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
husband and wife
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.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
The secondary
Balloon loan
Subordination clause
16. The veteran must obtain a Certificate of Eligibility from the VA
Subordination clause
10%
Total amount - Certificate amount x 4 = approved maximum loan amount
Zoning
17. An ___ is a limitation on your rights
Subordination clause
Reverse annuity
Fannie Mae - Freddie Mac and Ginnie Mae.
encumbrance
18. ___ is a limitation on your rights. It may also be a cloud on the title
by ratification.
devise
An encumbrance
3
19. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
the cash price or the APR
Trustee's Deed
1. Release the lien when the note is paid. 2. Foreclose in the event of default
20. ___ gives the agent the power to perform only specific acts and no others.
Reverse annuity
Special or limited agency
Statutory law
An encumbrance
21. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
conomic obsolescence
Defeasance
Blanket Loan
22. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
the cash price or the APR
Zoning
stigmatized
23. __ "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.
25%
grow - stabilize - decline - revitalize
Special or limited agency
Alienation clause
24. The insurance on the FHA loan is referred to as___
encumbrance
Tenancy by the Entirety
MIP - mortgage insurance premium
Those on a fixed income
25. A principal's duties to an agent ar...
ostensible agency
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
$4000.
Alienation clause
26. Must sign the Deed of Trust.
trustor
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
writ of execution
Zoning
27. The minimum withdrawal from a home equity LOC is
encumbrance
Blanket
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
$4000.
28. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
husband and wife
3
lower interest rate
29. ___ 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
General Agency
stigmatized
Special or limited agency
30. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
1. Release the lien when the note is paid. 2. Foreclose in the event of default
a power of attorney
Tenancy by the Entirety
Reverse annuity
31. Loans qualified to be purchased in the secondary market are called
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Reverse annuity
The secondary
conforming loans
32. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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33. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Radon
Alienation clause
by ratification.
Reverse annuity
34. 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
Radon
25%
General Agency
35. Loans qualified to be purchased in the secondary market are called __
conforming loans.
a power of attorney
General Agency
Defeasance
36. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
lower interest rate
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
37. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
encumbrance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Mitigation
grow - stabilize - decline - revitalize
38. __ is a specific type of joint tenancy where the co-owners are husband and wife.
The trustee
Tenancy by the Entirety
Balloon loan
grow - stabilize - decline - revitalize
39. This will not impact of the seller's credit rating.
by ratification.
25%
straight assumption
3
40. 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.
Trustee's Deed
Zoning
husband and wife
conforming loans.
41. An attorney-in-fact is the holder of...
$4000.
a power of attorney
General Agency
estate for years
42. Partially amortized loan - benefit
The trustee
lower interest rate
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
43. Includes real property plus personal property
writ of execution
Package Loan
EMFs
conforming loans.
44. Lenders can deny credit if your sole source of income is__
grow - stabilize - decline - revitalize
Vendee's Lien
alimony - child support or a pension plan.
Defeasance
45. A property where there has been a murder or alleged haunting is called...
stigmatized
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
ostensible agency
the cash price or the APR
46. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
ostensible agency
Trustee's Deed
3
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
47. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Tenancy by the Entirety
a power of attorney
Redlining
48. There are four basic characteristics of value
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
General Agency
writ of execution
Radon
49. '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?
10%
Total amount - Certificate amount x 4 = approved maximum loan amount
a power of attorney
Alienation clause
50. IRS Lein - Specific lein or general lein
$4000.
Special or limited agency
encumbrance
General