SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 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.
EMFs
estoppel
by ratification.
In a straight assumption - the new buyer is approved - and takes over payments and liability
2. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Special or limited agency
conforming loans
MIP - mortgage insurance premium
Subordination clause
3. Loans qualified to be purchased in the secondary market are called __
General
conforming loans.
Blanket Loan
straight assumption
4. Ownership by two or more without rights of survivorship is called
Blanket Loan
encumbrance
tenancy in common
grow - stabilize - decline - revitalize
5. The minimum withdrawal from a home equity LOC is
Tenancy by the Entirety
a power of attorney
conforming loans.
$4000.
6. The insurance on the FHA loan is referred to as___
Those on a fixed income
Trustee's Deed
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.
MIP - mortgage insurance premium
7. Property Manager ( which type of Agency)
An encumbrance
ostensible agency
General Agency
Zoning
8. If the loan will result in a lien on a personal residence - the consumer has a 3 day right 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.
husband and wife
rescission
encumbrance
9. ___ is a limitation on your rights. It may also be a cloud on the title
General
An encumbrance
Redlining
General Agency
10. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
the cash price or the APR
by ratification.
lower interest rate
11. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
The trustee
Alienation clause
Those on a fixed income
husband and wife
12. An attorney-in-fact is the holder of...
a power of attorney
Statutory law
Those on a fixed income
Deed Restrictions
13. The secondary market warehousing agencies are...
conomic obsolescence
Alienation clause
Fannie Mae - Freddie Mac and Ginnie Mae.
Those on a fixed income
14. The veteran must obtain a Certificate of Eligibility from the VA
Mitigation
Total amount - Certificate amount x 4 = approved maximum loan amount
Balloon loan
25%
15. Loans qualified to be purchased in the secondary market are called
Those on a fixed income
conforming loans
husband and wife
a property exchange.
16. ___market is where lenders go for money
Radon
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
The secondary
10%
17. Partially amortized loan - benefit
writ of execution
lower interest rate
An encumbrance
Tenancy by the Entirety
18. An agent's duties to his principal are...
EMFs
General
lower interest rate
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
19. ___ is created when a licensee acts like an agent and others respond to those actions.
grow - stabilize - decline - revitalize
tenancy in common
ostensible agency
estate for years
20. A principal's duties to an agent ar...
Special or limited agency
Fannie Mae - Freddie Mac and Ginnie Mae.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conomic obsolescence
21. 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
Alienation clause
by ratification.
Subordination clause
22. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
straight assumption
alimony - child support or a pension plan.
An encumbrance
23. Which of the following instruments is the promise to repay a debt?
EMFs
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Alienation clause
lower interest rate
24. __ "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
a grante
Redlining
Blanket
25. What is easment?
It is a right in land and should be created in writing and recorded.
The trustee
Balloon loan
the cash price or the APR
26. The deed of trust involves three parties...
Mitigation
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
income tax purposes
Deed Restrictions
27. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
Balloon loan
Package Loan
income tax purposes
28. A property where there has been a murder or alleged haunting is called...
a property exchange.
stigmatized
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Those on a fixed income
29. One who acquires property under a deed is....
a grante
An encumbrance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
3
30. Lenders can deny credit if your sole source of income is__
Fannie Mae - Freddie Mac and Ginnie Mae.
a power of attorney
alimony - child support or a pension plan.
devise
31. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Deed Restrictions
Special or limited agency
10%
Vendee's Lien
32. ___ are imposed to control land use - development and methods and materials for construction.
Zoning
Alienation clause
Deed Restrictions
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
33. 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.
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
Balloon loan
estate for years
34. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Total amount - Certificate amount x 4 = approved maximum loan amount
25%
straight assumption
Subordination clause
35. For what group of buyers would the ARM be the least desirable?
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
$4000.
Alienation clause
Those on a fixed income
36. '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?
EMFs
Alienation clause
Fannie Mae - Freddie Mac and Ginnie Mae.
straight assumption
37. This will not impact of the seller's credit rating.
straight assumption
grow - stabilize - decline - revitalize
a property exchange.
rescission
38. IRS Lein - Specific lein or general lein
General
EMFs
the cash price or the APR
Those on a fixed income
39. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
Redlining
MIP - mortgage insurance premium
estate for years
40. __ clause - states that the lien is defeated when the debt is repaid.
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
It is a right in land and should be created in writing and recorded.
25%
Defeasance
41. The trustee has two functions in accordance with the Deed of Trust.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Reverse annuity
conforming loans
10%
42. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Redlining
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.
Tenancy by the Entirety
43. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
44. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
tenancy in common
Blanket Loan
MIP - mortgage insurance premium
writ of execution
45. ___ 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.)
encumbrance
estate for years
Errors & Omissions insurance
conomic obsolescence
46. Must sign the Deed of Trust.
Errors & Omissions insurance
a property exchange.
Radon
trustor
47. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
General Agency
Mitigation
Statutory law
In a straight assumption - the new buyer is approved - and takes over payments and liability
48. Includes real property plus personal property
Mitigation
conforming loans.
Fannie Mae - Freddie Mac and Ginnie Mae.
Package Loan
49. Broker- Salesperson - owner-property manager-> which agency?
conomic obsolescence
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
a power of attorney
General Agency
50. There are four basic characteristics of value
Package Loan
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
10%
EMFs