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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. The minimum withdrawal from a home equity LOC is
$4000.
10%
Radon
The trustee
2. Property Manager ( which type of Agency)
An encumbrance
The trustee
General Agency
Blanket
3. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
writ of execution
stigmatized
Statutory law
4. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
General Agency
trustor
grow - stabilize - decline - revitalize
5. For what group of buyers would the ARM be the least desirable?
General Agency
Those on a fixed income
3
Reverse annuity
6. One who acquires property under a deed is....
a grante
by ratification.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Alienation clause
7. __ clause - states that the lien is defeated when the debt is repaid.
The trustee
Defeasance
conforming loans.
writ of execution
8. There are four basic characteristics of value
Special or limited agency
General Agency
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
9. ___market is where lenders go for money
It is a right in land and should be created in writing and recorded.
The secondary
conomic obsolescence
trustor
10. Broker- Salesperson - owner-property manager-> which agency?
Blanket
General Agency
estate for years
10%
11. Loans qualified to be purchased in the secondary market are called
Blanket
conforming loans
estate for years
3
12. '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
10%
alimony - child support or a pension plan.
Tenancy by the Entirety
13. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Balloon loan
EMFs
straight assumption
14. __ is a specific type of joint tenancy where the co-owners are husband and wife.
devise
encumbrance
Fannie Mae - Freddie Mac and Ginnie Mae.
Tenancy by the Entirety
15. Real estate investors can defer taxation of capital gains by making ___
the cash price or the APR
income tax purposes
Reverse annuity
a property exchange.
16. Which of the following instruments is the promise to repay a debt?
Blanket Loan
a grante
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
17. __ "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.
MIP - mortgage insurance premium
husband and wife
Reverse annuity
Alienation clause
18. The insurance on the FHA loan is referred to as___
income tax purposes
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
19. An attorney-in-fact is the holder of...
a power of attorney
Blanket Loan
conforming loans.
Statutory law
20. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Deed Restrictions
Fannie Mae - Freddie Mac and Ginnie Mae.
by ratification.
stigmatized
21. This lease survives death and/or the sale of the property. No notice is required to terminate.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Radon
estate for years
25%
22. This will not impact of the seller's credit rating.
Alienation clause
Those on a fixed income
straight assumption
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
23. A person who has real property willed to her by a relative is said to acquire title by...
Alienation clause
Alienation clause
10%
devise
24. A principal's duties to an agent ar...
General
Vendee's Lien
alimony - child support or a pension plan.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
25. ___ 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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Those on a fixed income
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
26. Lenders can deny credit if your sole source of income is__
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
alimony - child support or a pension plan.
Zoning
Balloon loan
27. The veteran must obtain a Certificate of Eligibility from the VA
a grante
Total amount - Certificate amount x 4 = approved maximum loan amount
devise
Blanket
28. 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
25%
a property exchange.
Tenancy by the Entirety
29. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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30. 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.
devise
estoppel
Total amount - Certificate amount x 4 = approved maximum loan amount
Zoning
31. An agent's duties to his principal are...
Blanket
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
Mitigation
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
32. ___loan - Covers more than one piece of property
Blanket
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Reverse annuity
Defeasance
33. ___ are imposed to control land use - development and methods and materials for construction.
a property exchange.
Deed Restrictions
Alienation clause
Vendee's Lien
34. On income producing property land can never be depreciated for...
lower interest rate
income tax purposes
EMFs
General Agency
35. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
Radon
lower interest rate
25%
36. What is easment?
It is a right in land and should be created in writing and recorded.
Fannie Mae - Freddie Mac and Ginnie Mae.
$4000.
Radon
37. 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.
writ of execution
encumbrance
Balloon loan
straight assumption
38. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
3
Special or limited agency
Redlining
39. Advantages of FHA loans
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40. ___ is a limitation on your rights. It may also be a cloud on the title
Blanket
An encumbrance
Tenancy by the Entirety
MIP - mortgage insurance premium
41. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Vendee's Lien
Subordination clause
lower interest rate
Radon
42. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
estoppel
Deed Restrictions
estate for years
3
43. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
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.
Alienation clause
writ of execution
The secondary
44. Includes real property plus personal property
Reverse annuity
writ of execution
Package Loan
Subordination clause
45. Ownership by two or more without rights of survivorship is called
Special or limited agency
tenancy in common
by ratification.
In a straight assumption - the new buyer is approved - and takes over payments and liability
46. Must sign the Deed of Trust.
Trustee's Deed
trustor
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
Tenancy by the Entirety
47. The trustee has two functions in accordance with the Deed of Trust.
Radon
Fannie Mae - Freddie Mac and Ginnie Mae.
MIP - mortgage insurance premium
1. Release the lien when the note is paid. 2. Foreclose in the event of default
48. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Total amount - Certificate amount x 4 = approved maximum loan amount
Mitigation
Trustee's Deed
Special or limited agency
49. ___ 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
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.
Those on a fixed income
Alienation clause
50. Covers more than one piece of property. (several lots on one note)
Blanket Loan
Alienation clause
encumbrance
Package Loan