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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. __ "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.
Alienation clause
straight assumption
Reverse annuity
In a straight assumption - the new buyer is approved - and takes over payments and liability
2. IRS Lein - Specific lein or general lein
Reverse annuity
Deed Restrictions
General
Subordination clause
3. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Trustee's Deed
ostensible agency
Reverse annuity
conforming loans.
4. Partially amortized loan - benefit
lower interest rate
General Agency
Deed Restrictions
1. Release the lien when the note is paid. 2. Foreclose in the event of default
5. IN Reg Z Advertising which states only __is permitted
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
encumbrance
the cash price or the APR
25%
6. '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?
Subordination clause
25%
Those on a fixed income
Alienation clause
7. Property Manager ( which type of Agency)
General Agency
The secondary
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
estoppel
8. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a grante
Mitigation
husband and wife
9. The insurance on the FHA loan is referred to as___
alimony - child support or a pension plan.
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
Redlining
MIP - mortgage insurance premium
10. 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.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
stigmatized
estoppel
3
11. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Blanket Loan
grow - stabilize - decline - revitalize
alimony - child support or a pension plan.
rescission
12. The veteran must obtain a Certificate of Eligibility from the VA
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Total amount - Certificate amount x 4 = approved maximum loan amount
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
stigmatized
13. A person who has real property willed to her by a relative is said to acquire title by...
a grante
estate for years
devise
Fannie Mae - Freddie Mac and Ginnie Mae.
14. Loans qualified to be purchased in the secondary market are called __
The trustee
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
1. Release the lien when the note is paid. 2. Foreclose in the event of default
conforming loans.
15. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
Deed Restrictions
General
conforming loans.
16. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
General Agency
Those on a fixed income
alimony - child support or a pension plan.
3
17. The secondary market warehousing agencies are...
Errors & Omissions insurance
Fannie Mae - Freddie Mac and Ginnie Mae.
rescission
1. Release the lien when the note is paid. 2. Foreclose in the event of default
18. ___ gives the agent the power to perform only specific acts and no others.
grow - stabilize - decline - revitalize
a grante
Special or limited agency
rescission
19. Loan novation?
Those on a fixed income
In a straight assumption - the new buyer is approved - and takes over payments and liability
Mitigation
Statutory law
20. Loans qualified to be purchased in the secondary market are called
Errors & Omissions insurance
Alienation clause
conforming loans
a property exchange.
21. One who acquires property under a deed is....
rescission
a grante
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
22. Common law does not always takes precedence over...
General Agency
Statutory law
The trustee
trustor
23. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
$4000.
Alienation clause
Redlining
by ratification.
24. ___market is where lenders go for money
encumbrance
The secondary
Defeasance
Package Loan
25. ___ 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.
Trustee's Deed
Reverse annuity
Errors & Omissions insurance
$4000.
26. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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27. Must sign the Deed of Trust.
trustor
Errors & Omissions insurance
conomic obsolescence
conforming loans
28. High tension wire should be disclosed
Those on a fixed income
EMFs
An encumbrance
Balloon loan
29. Real estate investors can defer taxation of capital gains by making ___
10%
devise
Alienation clause
a property exchange.
30. 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.
Package Loan
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.
Balloon loan
General Agency
31. For what group of buyers would the ARM be the least desirable?
stigmatized
Those on a fixed income
the cash price or the APR
Blanket
32. ___ 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.)
conomic obsolescence
Package Loan
Balloon loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
33. The minimum withdrawal from a home equity LOC is
Zoning
In a straight assumption - the new buyer is approved - and takes over payments and liability
$4000.
Trustee's Deed
34. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Defeasance
Subordination clause
Fannie Mae - Freddie Mac and Ginnie Mae.
35. Which of the following instruments is the promise to repay a debt?
EMFs
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
MIP - mortgage insurance premium
General Agency
36. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
General Agency
conomic obsolescence
The trustee
Subordination clause
37. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
EMFs
writ of execution
Balloon loan
Tenancy by the Entirety
38. Includes real property plus personal property
Tenancy by the Entirety
Reverse annuity
Radon
Package Loan
39. An ___ is a limitation on your rights
Blanket Loan
Radon
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
40. Ownership by two or more without rights of survivorship is called
An encumbrance
tenancy in common
stigmatized
Defeasance
41. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
The trustee
Balloon loan
rescission
Radon
42. There are four basic characteristics of value
stigmatized
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
Tenancy by the Entirety
trustor
43. __ clause - states that the lien is defeated when the debt is repaid.
Redlining
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
Defeasance
44. An agent's duties to his principal are...
lower interest rate
Balloon loan
Blanket
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
45. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Those on a fixed income
Fannie Mae - Freddie Mac and Ginnie Mae.
Redlining
10%
46. This lease survives death and/or the sale of the property. No notice is required to terminate.
$4000.
Alienation clause
estate for years
10%
47. ___loan - Covers more than one piece of property
Zoning
tenancy in common
Blanket
Package Loan
48. A property where there has been a murder or alleged haunting is called...
stigmatized
conforming loans
An encumbrance
devise
49. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Zoning
straight assumption
Vendee's Lien
husband and wife
50. __ is a specific type of joint tenancy where the co-owners are husband and wife.
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
Zoning
Tenancy by the Entirety