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