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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. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
EMFs
General Agency
25%
2. 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.
conforming loans
a power of attorney
Defeasance
Zoning
3. Lenders can deny credit if your sole source of income is__
straight assumption
alimony - child support or a pension plan.
trustor
conomic obsolescence
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.
Errors & Omissions insurance
Package Loan
Alienation clause
tenancy in common
5. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
straight assumption
rescission
Errors & Omissions insurance
the cash price or the APR
6. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
writ of execution
Subordination clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
7. ___ is created when a licensee acts like an agent and others respond to those actions.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
ostensible agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
trustor
8. ___ 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.)
husband and wife
conomic obsolescence
An encumbrance
Those on a fixed income
9. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Zoning
Subordination clause
trustor
Mitigation
10. This lease survives death and/or the sale of the property. No notice is required to terminate.
The trustee
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Defeasance
estate for years
11. ___ is a limitation on your rights. It may also be a cloud on the title
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
An encumbrance
by ratification.
Reverse annuity
12. 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
stigmatized
Blanket
Redlining
13. Broker- Salesperson - owner-property manager-> which agency?
trustor
Blanket
Tenancy by the Entirety
General Agency
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.
lower interest rate
Alienation clause
Special or limited agency
grow - stabilize - decline - revitalize
15. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conforming loans
The trustee
16. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
the cash price or the APR
by ratification.
Fannie Mae - Freddie Mac and Ginnie Mae.
17. High tension wire should be disclosed
General Agency
stigmatized
EMFs
a grante
18. 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
a property exchange.
writ of execution
Vendee's Lien
19. An ___ is a limitation on your rights
income tax purposes
conomic obsolescence
encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
20. Property Manager ( which type of Agency)
straight assumption
Blanket
The secondary
General Agency
21. A person who has real property willed to her by a relative is said to acquire title by...
devise
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
EMFs
Deed Restrictions
22. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Statutory law
writ of execution
Mitigation
Those on a fixed income
23. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Vendee's Lien
Deed Restrictions
Errors & Omissions insurance
24. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Mitigation
writ of execution
Special or limited agency
25. Loans qualified to be purchased in the secondary market are called
tenancy in common
EMFs
conforming loans
estoppel
26. Real estate investors can defer taxation of capital gains by making ___
25%
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a property exchange.
The secondary
27. A principal's duties to an agent ar...
devise
In a straight assumption - the new buyer is approved - and takes over payments and liability
rescission
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
28. ___market is where lenders go for money
The secondary
Those on a fixed income
conforming loans.
husband and wife
29. The trustee has two functions in accordance with the Deed of Trust.
stigmatized
1. Release the lien when the note is paid. 2. Foreclose in the event of default
lower interest rate
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
30. ___ gives the agent the power to perform only specific acts and no others.
a grante
Radon
income tax purposes
Special or limited agency
31. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
conforming loans.
Package Loan
General Agency
32. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
$4000.
husband and wife
tenancy in common
Statutory law
33. What is easment?
It is a right in land and should be created in writing and recorded.
conforming loans
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
trustor
34. ____ - the refusal to lend in a particular geographic area - is prohibited.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Alienation clause
Redlining
encumbrance
35. This will not impact of the seller's credit rating.
straight assumption
by ratification.
Statutory law
a grante
36. Which of the following instruments is the promise to repay a debt?
The trustee
conomic obsolescence
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
$4000.
37. IRS Lein - Specific lein or general lein
straight assumption
General
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.
38. There are four basic characteristics of value
Radon
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
Trustee's Deed
39. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Blanket Loan
by ratification.
It is a right in land and should be created in writing and recorded.
25%
40. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
Zoning
lower interest rate
Total amount - Certificate amount x 4 = approved maximum loan amount
41. Includes real property plus personal property
income tax purposes
EMFs
estoppel
Package Loan
42. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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43. On income producing property land can never be depreciated for...
Vendee's Lien
income tax purposes
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
10%
44. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
10%
3
a power of attorney
Radon
45. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Special or limited agency
Mitigation
a property exchange.
Vendee's Lien
46. Loans qualified to be purchased in the secondary market are called __
Redlining
conforming loans.
straight assumption
Alienation clause
47. Must sign the Deed of Trust.
trustor
3
10%
Tenancy by the Entirety
48. Common law does not always takes precedence over...
tenancy in common
25%
Statutory law
An encumbrance
49. ___loan - Covers more than one piece of property
conforming loans
Subordination clause
The secondary
Blanket
50. An attorney-in-fact is the holder of...
ostensible agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
alimony - child support or a pension plan.
a power of attorney