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. On income producing property land can never be depreciated for...
Defeasance
It is a right in land and should be created in writing and recorded.
income tax purposes
Fannie Mae - Freddie Mac and Ginnie Mae.
2. Lenders can deny credit if your sole source of income is__
3
rescission
husband and wife
alimony - child support or a pension plan.
3. ___ are imposed to control land use - development and methods and materials for construction.
writ of execution
Tenancy by the Entirety
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
Deed Restrictions
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.
Zoning
a grante
conomic obsolescence
Errors & Omissions insurance
5. Partially amortized loan - benefit
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
The secondary
Errors & Omissions insurance
lower interest rate
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?
stigmatized
rescission
Alienation clause
a property exchange.
7. The insurance on the FHA loan is referred to as___
EMFs
MIP - mortgage insurance premium
Radon
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
8. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
straight assumption
25%
writ of execution
Blanket
9. A property where there has been a murder or alleged haunting is called...
10%
Mitigation
stigmatized
General Agency
10. 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.
grow - stabilize - decline - revitalize
Balloon loan
Deed Restrictions
Mitigation
11. High tension wire should be disclosed
straight assumption
EMFs
10%
grow - stabilize - decline - revitalize
12. An agent's duties to his principal are...
The trustee
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
trustor
1. Release the lien when the note is paid. 2. Foreclose in the event of default
13. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
estate for years
General
ostensible agency
grow - stabilize - decline - revitalize
14. Real estate investors can defer taxation of capital gains by making ___
conforming loans.
Total amount - Certificate amount x 4 = approved maximum loan amount
Statutory law
a property exchange.
15. Loans qualified to be purchased in the secondary market are called
In a straight assumption - the new buyer is approved - and takes over payments and liability
conforming loans
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
Alienation clause
16. IN Reg Z Advertising which states only __is permitted
Errors & Omissions insurance
EMFs
General
the cash price or the APR
17. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
Package Loan
Redlining
conforming loans.
18. 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
conforming loans
Statutory law
rescission
19. ___ is a limitation on your rights. It may also be a cloud on the title
stigmatized
the cash price or the APR
25%
An encumbrance
20. Broker- Salesperson - owner-property manager-> which agency?
25%
General Agency
General
Those on a fixed income
21. Common law does not always takes precedence over...
The secondary
The trustee
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Statutory law
22. One who acquires property under a deed is....
by ratification.
Reverse annuity
a grante
1. Release the lien when the note is paid. 2. Foreclose in the event of default
23. ___loan - Covers more than one piece of property
Blanket
Package Loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
EMFs
24. An attorney-in-fact is the holder of...
EMFs
estate for years
25%
a power of attorney
25. ___market is where lenders go for money
alimony - child support or a pension plan.
The secondary
encumbrance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
26. There are four basic characteristics of value
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.
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
Subordination clause
EMFs
27. Must sign the Deed of Trust.
Mitigation
Errors & Omissions insurance
Defeasance
trustor
28. Property Manager ( which type of Agency)
General Agency
rescission
Package Loan
Blanket
29. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.
ostensible agency
30. What is easment?
It is a right in land and should be created in writing and recorded.
Those on a fixed income
devise
trustor
31. __ clause - states that the lien is defeated when the debt is repaid.
Radon
husband and wife
Defeasance
MIP - mortgage insurance premium
32. IRS Lein - Specific lein or general lein
General
trustor
10%
estate for years
33. The deed of trust involves three parties...
encumbrance
Alienation clause
estate for years
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
34. 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
husband and wife
conomic obsolescence
stigmatized
35. The veteran must obtain a Certificate of Eligibility from the VA
Mitigation
Total amount - Certificate amount x 4 = approved maximum loan amount
$4000.
Errors & Omissions insurance
36. This will not impact of the seller's credit rating.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
straight assumption
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
In a straight assumption - the new buyer is approved - and takes over payments and liability
37. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
Fannie Mae - Freddie Mac and Ginnie Mae.
Statutory law
Blanket Loan
38. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Blanket Loan
General
39. Covers more than one piece of property. (several lots on one note)
Blanket Loan
by ratification.
MIP - mortgage insurance premium
25%
40. __ is a specific type of joint tenancy where the co-owners are husband and wife.
income tax purposes
the cash price or the APR
Tenancy by the Entirety
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
41. ____ - the refusal to lend in a particular geographic area - is prohibited.
Deed Restrictions
conomic obsolescence
a grante
Redlining
42. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Trustee's Deed
Statutory law
estoppel
43. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
straight assumption
Those on a fixed income
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
writ of execution
44. ___ 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.)
straight assumption
Special or limited agency
conomic obsolescence
Package Loan
45. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Mitigation
It is a right in land and should be created in writing and recorded.
Package Loan
46. 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.
Redlining
3
The trustee
Zoning
47. Ownership by two or more without rights of survivorship is called
Errors & Omissions insurance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conforming loans
tenancy in common
48. The secondary market warehousing agencies are...
Mitigation
Trustee's Deed
Fannie Mae - Freddie Mac and Ginnie Mae.
Those on a fixed income
49. A person who has real property willed to her by a relative is said to acquire title by...
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
conforming loans
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
devise
50. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
a property exchange.
An encumbrance
lower interest rate