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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. 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.
devise
An encumbrance
Balloon loan
a property exchange.
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.)
a property exchange.
Zoning
Reverse annuity
conomic obsolescence
3. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
25%
It is a right in land and should be created in writing and recorded.
stigmatized
4. A property where there has been a murder or alleged haunting is called...
General Agency
stigmatized
Reverse annuity
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.
5. High tension wire should be disclosed
Trustee's Deed
EMFs
conomic obsolescence
Deed Restrictions
6. Must sign the Deed of Trust.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
by ratification.
trustor
grow - stabilize - decline - revitalize
7. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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8. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
a grante
An encumbrance
Deed Restrictions
Mitigation
9. ___market is where lenders go for money
estate for years
Tenancy by the Entirety
The secondary
1. Release the lien when the note is paid. 2. Foreclose in the event of default
10. This will not impact of the seller's credit rating.
General Agency
Those on a fixed income
straight assumption
General
11. Covers more than one piece of property. (several lots on one note)
tenancy in common
Reverse annuity
Blanket Loan
alimony - child support or a pension plan.
12. Ownership by two or more without rights of survivorship is called
trustor
Trustee's Deed
income tax purposes
tenancy in common
13. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Defeasance
Radon
rescission
income tax purposes
14. What is easment?
An encumbrance
rescission
It is a right in land and should be created in writing and recorded.
$4000.
15. Broker- Salesperson - owner-property manager-> which agency?
10%
$4000.
General Agency
Balloon loan
16. Which of the following instruments is the promise to repay a debt?
Reverse annuity
Alienation clause
25%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
17. Partially amortized loan - benefit
the cash price or the APR
Balloon loan
It is a right in land and should be created in writing and recorded.
lower interest rate
18. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
husband and wife
The secondary
Errors & Omissions insurance
19. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
husband and wife
tenancy in common
The trustee
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.
20. 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.
a power of attorney
Zoning
3
Special or limited agency
21. ___ is a limitation on your rights. It may also be a cloud on the title
The trustee
An encumbrance
estoppel
General Agency
22. ___ 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
25%
In a straight assumption - the new buyer is approved - and takes over payments and liability
The trustee
23. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
MIP - mortgage insurance premium
grow - stabilize - decline - revitalize
Trustee's Deed
24. IRS Lein - Specific lein or general lein
The trustee
husband and wife
General
Subordination clause
25. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
the cash price or the APR
income tax purposes
Subordination clause
rescission
26. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
10%
Subordination clause
devise
Radon
27. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
trustor
General
Radon
28. ___loan - Covers more than one piece of property
Blanket
$4000.
conforming loans.
The trustee
29. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
MIP - mortgage insurance premium
ostensible agency
Package Loan
30. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
income tax purposes
The trustee
grow - stabilize - decline - revitalize
conforming loans
31. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
Fannie Mae - Freddie Mac and Ginnie Mae.
income tax purposes
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
32. Common law does not always takes precedence over...
alimony - child support or a pension plan.
$4000.
Statutory law
Zoning
33. Advantages of FHA loans
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34. One who acquires property under a deed is....
Total amount - Certificate amount x 4 = approved maximum loan amount
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%
a grante
35. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Special or limited agency
Trustee's Deed
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
husband and wife
36. For what group of buyers would the ARM be the least desirable?
straight assumption
Blanket
Alienation clause
Those on a fixed income
37. Property Manager ( which type of Agency)
husband and wife
General Agency
The secondary
Tenancy by the Entirety
38. The insurance on the FHA loan is referred to as___
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
writ of execution
straight assumption
MIP - mortgage insurance premium
39. The secondary market warehousing agencies are...
a power of attorney
Fannie Mae - Freddie Mac and Ginnie Mae.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
writ of execution
40. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
Blanket
10%
stigmatized
41. 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
Trustee's Deed
estoppel
$4000.
42. Includes real property plus personal property
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Reverse annuity
Package Loan
Alienation clause
43. The trustee has two functions in accordance with the Deed of Trust.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Deed Restrictions
1. Release the lien when the note is paid. 2. Foreclose in the event of default
a grante
44. __ 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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Tenancy by the Entirety
rescission
45. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
husband and wife
Reverse annuity
25%
Errors & Omissions insurance
46. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
rescission
Vendee's Lien
The trustee
47. The veteran must obtain a Certificate of Eligibility from the VA
Balloon loan
3
Total amount - Certificate amount x 4 = approved maximum loan amount
Fannie Mae - Freddie Mac and Ginnie Mae.
48. ___ gives the agent the power to perform only specific acts and no others.
Redlining
alimony - child support or a pension plan.
Package Loan
Special or limited agency
49. Loans qualified to be purchased in the secondary market are called __
conforming loans.
stigmatized
25%
by ratification.
50. A person who has real property willed to her by a relative is said to acquire title by...
estate for years
Total amount - Certificate amount x 4 = approved maximum loan amount
devise
stigmatized