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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 the principal learns of those actions - if the principal accepts those actions - that creates agency___
Those on a fixed income
by ratification.
Package Loan
estate for years
2. An agent's duties to his principal are...
Statutory law
Alienation clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Deed Restrictions
3. Must sign the Deed of Trust.
ostensible agency
husband and wife
trustor
a property exchange.
4. ___ 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
Total amount - Certificate amount x 4 = approved maximum loan amount
ostensible agency
a grante
5. __ "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.
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
trustor
6. Real estate investors can defer taxation of capital gains by making ___
$4000.
a property exchange.
Redlining
General Agency
7. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
The trustee
Alienation clause
ostensible agency
8. The insurance on the FHA loan is referred to as___
In a straight assumption - the new buyer is approved - and takes over payments and liability
husband and wife
MIP - mortgage insurance premium
Errors & Omissions insurance
9. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Those on a fixed income
ostensible agency
3
Alienation clause
10. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Trustee's Deed
stigmatized
conforming loans.
Subordination clause
11. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Reverse annuity
husband and wife
Balloon loan
12. This lease survives death and/or the sale of the property. No notice is required to terminate.
income tax purposes
An encumbrance
estate for years
Alienation clause
13. IN Reg Z Advertising which states only __is permitted
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
ostensible agency
EMFs
the cash price or the APR
14. High tension wire should be disclosed
The trustee
Statutory law
the cash price or the APR
EMFs
15. 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
conforming loans.
estate for years
10%
16. '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
a grante
straight assumption
Blanket
17. An ___ is a limitation on your rights
Zoning
It is a right in land and should be created in writing and recorded.
Alienation clause
encumbrance
18. 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.
Tenancy by the Entirety
Balloon loan
income tax purposes
In a straight assumption - the new buyer is approved - and takes over payments and liability
19. Includes real property plus personal property
The trustee
Package Loan
Tenancy by the Entirety
General Agency
20. Lenders can deny credit if your sole source of income is__
writ of execution
Alienation clause
Vendee's Lien
alimony - child support or a pension plan.
21. A person who has real property willed to her by a relative is said to acquire title by...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
devise
Zoning
encumbrance
22. An attorney-in-fact is the holder of...
It is a right in land and should be created in writing and recorded.
estate for years
conomic obsolescence
a power of attorney
23. Broker- Salesperson - owner-property manager-> which agency?
grow - stabilize - decline - revitalize
Alienation clause
General Agency
stigmatized
24. On income producing property land can never be depreciated for...
Blanket
25%
General
income tax purposes
25. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
Total amount - Certificate amount x 4 = approved maximum loan amount
conforming loans
Tenancy by the Entirety
26. ___ is created when a licensee acts like an agent and others respond to those actions.
rescission
conforming loans.
ostensible agency
3
27. The minimum withdrawal from a home equity LOC is
$4000.
tenancy in common
Errors & Omissions insurance
Alienation clause
28. A property where there has been a murder or alleged haunting is called...
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
In a straight assumption - the new buyer is approved - and takes over payments and liability
Alienation clause
stigmatized
29. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
Subordination clause
stigmatized
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
30. Property Manager ( which type of Agency)
Blanket
General Agency
The secondary
conforming loans
31. ____ - the refusal to lend in a particular geographic area - is prohibited.
lower interest rate
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
Redlining
32. What is easment?
alimony - child support or a pension plan.
writ of execution
Blanket Loan
It is a right in land and should be created in writing and recorded.
33. ___ 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.)
estate for years
Blanket Loan
estoppel
conomic obsolescence
34. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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35. Common law does not always takes precedence over...
encumbrance
Statutory law
3
Package Loan
36. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
devise
encumbrance
37. This will not impact of the seller's credit rating.
husband and wife
trustor
General Agency
straight assumption
38. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
Statutory law
writ of execution
Trustee's Deed
39. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Reverse annuity
10%
$4000.
alimony - child support or a pension plan.
40. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Fannie Mae - Freddie Mac and Ginnie Mae.
General Agency
Vendee's Lien
41. A principal's duties to an agent ar...
Redlining
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Errors & Omissions insurance
Tenancy by the Entirety
42. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
EMFs
Errors & Omissions insurance
Mitigation
rescission
43. Loans qualified to be purchased in the secondary market are called
estoppel
conomic obsolescence
conforming loans
Fannie Mae - Freddie Mac and Ginnie Mae.
44. Partially amortized loan - benefit
Vendee's Lien
estoppel
husband and wife
lower interest rate
45. 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.
An encumbrance
Balloon loan
Blanket
estoppel
46. The trustee has two functions in accordance with the Deed of Trust.
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default
income tax purposes
writ of execution
47. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
lower interest rate
Redlining
48. For what group of buyers would the ARM be the least desirable?
the cash price or the APR
General Agency
Those on a fixed income
ostensible agency
49. ___loan - Covers more than one piece of property
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
the cash price or the APR
3
50. One who acquires property under a deed is....
lower interest rate
Errors & Omissions insurance
a grante
General