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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. Partially amortized loan - benefit
estoppel
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
lower interest rate
2. 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
Radon
Special or limited agency
25%
3. The deed of trust involves three parties...
a grante
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
MIP - mortgage insurance premium
4. IRS Lein - Specific lein or general lein
conforming loans.
Defeasance
General
Vendee's Lien
5. Loan novation?
Blanket Loan
It is a right in land and should be created in writing and recorded.
In a straight assumption - the new buyer is approved - and takes over payments and liability
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
6. Loans qualified to be purchased in the secondary market are called __
Package Loan
conforming loans.
An encumbrance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
7. There are four basic characteristics of value
An encumbrance
The secondary
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
8. A person who has real property willed to her by a relative is said to acquire title by...
devise
10%
Statutory law
Special or limited agency
9. Loans qualified to be purchased in the secondary market are called
Mitigation
General Agency
The trustee
conforming loans
10. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
encumbrance
by ratification.
3
11. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Mitigation
Reverse annuity
by ratification.
Balloon loan
12. Lenders can deny credit if your sole source of income is__
3
a power of attorney
a property exchange.
alimony - child support or a pension plan.
13. The secondary market warehousing agencies are...
The trustee
Reverse annuity
Fannie Mae - Freddie Mac and Ginnie Mae.
stigmatized
14. __ "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
conomic obsolescence
a grante
Balloon loan
15. Common law does not always takes precedence over...
Special or limited agency
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default
10%
16. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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17. The trustee has two functions in accordance with the Deed of Trust.
estate for years
1. Release the lien when the note is paid. 2. Foreclose in the event of default
the cash price or the APR
EMFs
18. ___ gives the agent the power to perform only specific acts and no others.
writ of execution
trustor
alimony - child support or a pension plan.
Special or limited agency
19. ___ is created when a licensee acts like an agent and others respond to those actions.
income tax purposes
the cash price or the APR
Defeasance
ostensible agency
20. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
straight assumption
estate for years
Blanket
Radon
21. On income producing property land can never be depreciated for...
MIP - mortgage insurance premium
Reverse annuity
income tax purposes
conforming loans.
22. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
conomic obsolescence
In a straight assumption - the new buyer is approved - and takes over payments and liability
conforming loans
23. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
conforming loans
The trustee
10%
Special or limited agency
24. Covers more than one piece of property. (several lots on one note)
MIP - mortgage insurance premium
Errors & Omissions insurance
Reverse annuity
Blanket Loan
25. Which of the following instruments is the promise to repay a debt?
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Special or limited agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a property exchange.
26. An attorney-in-fact is the holder of...
a power of attorney
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
Blanket
Package Loan
27. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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28. IN Reg Z Advertising which states only __is permitted
husband and wife
devise
Blanket Loan
the cash price or the APR
29. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
husband and wife
rescission
Reverse annuity
devise
30. An agent's duties to his principal are...
conforming loans.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Reverse annuity
ostensible agency
31. Advantages of FHA loans
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32. Real estate investors can defer taxation of capital gains by making ___
MIP - mortgage insurance premium
10%
a property exchange.
Redlining
33. ___ 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.)
Vendee's Lien
Blanket Loan
conomic obsolescence
25%
34. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Redlining
Mitigation
Errors & Omissions insurance
ostensible agency
35. High tension wire should be disclosed
EMFs
writ of execution
Blanket Loan
Reverse annuity
36. ___loan - Covers more than one piece of property
Alienation clause
Blanket
a property exchange.
writ of execution
37. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
stigmatized
Deed Restrictions
Those on a fixed income
The trustee
38. __ clause - states that the lien is defeated when the debt is repaid.
Fannie Mae - Freddie Mac and Ginnie Mae.
Defeasance
devise
Total amount - Certificate amount x 4 = approved maximum loan amount
39. Ownership by two or more without rights of survivorship is called
estoppel
EMFs
Errors & Omissions insurance
tenancy in common
40. The veteran must obtain a Certificate of Eligibility from the VA
Trustee's Deed
EMFs
Total amount - Certificate amount x 4 = approved maximum loan amount
Subordination clause
41. ___ are imposed to control land use - development and methods and materials for construction.
Errors & Omissions insurance
Total amount - Certificate amount x 4 = approved maximum loan amount
tenancy in common
Deed Restrictions
42. The minimum withdrawal from a home equity LOC is
conomic obsolescence
Subordination clause
$4000.
trustor
43. This lease survives death and/or the sale of the property. No notice is required to terminate.
Defeasance
a power of attorney
estate for years
10%
44. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
lower interest rate
Tenancy by the Entirety
Blanket
husband and wife
45. Property Manager ( which type of Agency)
alimony - child support or a pension plan.
stigmatized
General Agency
Vendee's Lien
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.
Tenancy by the Entirety
ostensible agency
Zoning
straight assumption
47. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
alimony - child support or a pension plan.
Redlining
a grante
Subordination clause
48. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Tenancy by the Entirety
3
MIP - mortgage insurance premium
49. Must sign the Deed of Trust.
Subordination clause
trustor
Statutory law
ostensible agency
50. What is easment?
General Agency
Alienation clause
It is a right in land and should be created in writing and recorded.
Those on a fixed income