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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. Real estate investors can defer taxation of capital gains by making ___
Statutory law
a property exchange.
rescission
encumbrance
2. What is easment?
General Agency
husband and wife
It is a right in land and should be created in writing and recorded.
tenancy in common
3. Loans qualified to be purchased in the secondary market are called __
Vendee's Lien
conforming loans.
estoppel
In a straight assumption - the new buyer is approved - and takes over payments and liability
4. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Fannie Mae - Freddie Mac and Ginnie Mae.
husband and wife
Blanket
1. Release the lien when the note is paid. 2. Foreclose in the event of default
5. IN Reg Z Advertising which states only __is permitted
devise
Balloon loan
lower interest rate
the cash price or the APR
6. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Blanket Loan
Alienation clause
Errors & Omissions insurance
25%
7. Covers more than one piece of property. (several lots on one note)
ostensible agency
Subordination clause
conomic obsolescence
Blanket Loan
8. A principal's duties to an agent ar...
Fannie Mae - Freddie Mac and Ginnie Mae.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
income tax purposes
Alienation clause
9. An ___ is a limitation on your rights
1. Release the lien when the note is paid. 2. Foreclose in the event of default
tenancy in common
Zoning
encumbrance
10. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
trustor
encumbrance
10%
Radon
11. ___ 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.)
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Defeasance
conomic obsolescence
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.
12. Common law does not always takes precedence over...
Statutory law
Blanket Loan
The secondary
Tenancy by the Entirety
13. ___ are imposed to control land use - development and methods and materials for construction.
a power of attorney
estate for years
Deed Restrictions
rescission
14. There are four basic characteristics of value
Those on a fixed income
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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
by ratification.
15. The veteran must obtain a Certificate of Eligibility from the VA
General
The secondary
encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
16. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
An encumbrance
Fannie Mae - Freddie Mac and Ginnie Mae.
conforming loans
grow - stabilize - decline - revitalize
17. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Blanket
conomic obsolescence
Radon
conforming loans.
18. Ownership by two or more without rights of survivorship is called
encumbrance
Blanket
Redlining
tenancy in common
19. A person who has real property willed to her by a relative is said to acquire title by...
Defeasance
$4000.
Statutory law
devise
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.
Defeasance
Zoning
Radon
conomic obsolescence
21. On income producing property land can never be depreciated for...
MIP - mortgage insurance premium
Package Loan
income tax purposes
Alienation clause
22. 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.
Special or limited agency
Reverse annuity
estoppel
General Agency
23. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
straight assumption
rescission
stigmatized
24. Which of the following instruments is the promise to repay a debt?
Reverse annuity
trustor
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
grow - stabilize - decline - revitalize
25. For what group of buyers would the ARM be the least desirable?
Special or limited agency
General
10%
Those on a fixed income
26. Property Manager ( which type of Agency)
$4000.
Defeasance
lower interest rate
General Agency
27. '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
$4000.
Redlining
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
28. Must sign the Deed of Trust.
Blanket
$4000.
trustor
An encumbrance
29. Loan novation?
Statutory law
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.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Defeasance
30. One who acquires property under a deed is....
Trustee's Deed
a power of attorney
a grante
Blanket
31. Loans qualified to be purchased in the secondary market are called
encumbrance
10%
conforming loans
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
32. This will not impact of the seller's credit rating.
straight assumption
Package Loan
estate for years
estoppel
33. The deed of trust involves three parties...
$4000.
EMFs
Tenancy by the Entirety
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
34. IRS Lein - Specific lein or general lein
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Redlining
ostensible agency
General
35. Advantages of FHA loans
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36. This lease survives death and/or the sale of the property. No notice is required to terminate.
the cash price or the APR
devise
estate for years
Defeasance
37. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
conomic obsolescence
ostensible agency
It is a right in land and should be created in writing and recorded.
38. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Special or limited agency
Defeasance
The secondary
rescission
39. 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
Redlining
a power of attorney
a property exchange.
40. High tension wire should be disclosed
grow - stabilize - decline - revitalize
EMFs
Redlining
conomic obsolescence
41. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
husband and wife
grow - stabilize - decline - revitalize
The trustee
42. Includes real property plus personal property
Blanket
Total amount - Certificate amount x 4 = approved maximum loan amount
Package Loan
husband and wife
43. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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44. Broker- Salesperson - owner-property manager-> which agency?
General Agency
25%
The secondary
Reverse annuity
45. Lenders can deny credit if your sole source of income is__
the cash price or the APR
Redlining
Balloon loan
alimony - child support or a pension plan.
46. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
income tax purposes
ostensible agency
Reverse annuity
47. Partially amortized loan - benefit
lower interest rate
Package Loan
income tax purposes
conforming loans.
48. ____ - the refusal to lend in a particular geographic area - is prohibited.
Those on a fixed income
Redlining
a grante
The secondary
49. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
estate for years
by ratification.
conforming loans
grow - stabilize - decline - revitalize
50. An attorney-in-fact is the holder of...
tenancy in common
Mitigation
a power of attorney
Balloon loan