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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. An agent's duties to his principal are...
rescission
3
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Redlining
2. The secondary market warehousing agencies are...
The trustee
$4000.
by ratification.
Fannie Mae - Freddie Mac and Ginnie Mae.
3. This lease survives death and/or the sale of the property. No notice is required to terminate.
Mitigation
trustor
estate for years
3
4. Common law does not always takes precedence over...
Trustee's Deed
encumbrance
Blanket Loan
Statutory law
5. ___ gives the agent the power to perform only specific acts and no others.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
tenancy in common
Special or limited agency
3
6. One who acquires property under a deed is....
Blanket
income tax purposes
Subordination clause
a grante
7. __ "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.
General Agency
Balloon loan
trustor
Alienation clause
8. Partially amortized loan - benefit
grow - stabilize - decline - revitalize
General
Tenancy by the Entirety
lower interest rate
9. A property where there has been a murder or alleged haunting is called...
stigmatized
by ratification.
husband and wife
The secondary
10. The deed of trust involves three parties...
Package Loan
conforming loans
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
11. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
In a straight assumption - the new buyer is approved - and takes over payments and liability
by ratification.
Subordination clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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?
Radon
Alienation clause
25%
Package Loan
13. 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
25%
grow - stabilize - decline - revitalize
Vendee's Lien
14. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
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.
by ratification.
income tax purposes
15. ___loan - Covers more than one piece of property
Blanket
Radon
a grante
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
16. ___market is where lenders go for money
by ratification.
The secondary
a power of attorney
Alienation clause
17. Covers more than one piece of property. (several lots on one note)
Blanket Loan
Subordination clause
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount
18. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Defeasance
3
19. __ clause - states that the lien is defeated when the debt is repaid.
An encumbrance
Radon
tenancy in common
Defeasance
20. The minimum withdrawal from a home equity LOC is
$4000.
An encumbrance
General
Blanket
21. ___ is created when a licensee acts like an agent and others respond to those actions.
EMFs
Deed Restrictions
ostensible agency
alimony - child support or a pension plan.
22. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Fannie Mae - Freddie Mac and Ginnie Mae.
Mitigation
conforming loans.
a power of attorney
23. There are four basic characteristics of value
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
Trustee's Deed
Fannie Mae - Freddie Mac and Ginnie Mae.
a property exchange.
24. 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.
25%
income tax purposes
Zoning
Alienation clause
25. ___ 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.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Errors & Omissions insurance
stigmatized
In a straight assumption - the new buyer is approved - and takes over payments and liability
26. 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.
alimony - child support or a pension plan.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
estoppel
General
27. ___ are imposed to control land use - development and methods and materials for construction.
The secondary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
tenancy in common
Deed Restrictions
28. Advantages of FHA loans
29. An attorney-in-fact is the holder of...
a power of attorney
Those on a fixed income
the cash price or the APR
Subordination clause
30. Loan novation?
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
It is a right in land and should be created in writing and recorded.
31. High tension wire should be disclosed
3
EMFs
conforming loans
trustor
32. An ___ is a limitation on your rights
alimony - child support or a pension plan.
Redlining
25%
encumbrance
33. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
devise
a power of attorney
Errors & Omissions insurance
34. For what group of buyers would the ARM be the least desirable?
by ratification.
EMFs
a grante
Those on a fixed income
35. __ is a specific type of joint tenancy where the co-owners are husband and wife.
25%
straight assumption
Tenancy by the Entirety
the cash price or the APR
36. Includes real property plus personal property
husband and wife
Package Loan
conforming loans
MIP - mortgage insurance premium
37. Which of the following instruments is the promise to repay a debt?
Special or limited agency
Subordination clause
10%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
38. ___ 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.)
25%
encumbrance
Package Loan
conomic obsolescence
39. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
40. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Reverse annuity
Trustee's Deed
Package Loan
41. Property Manager ( which type of Agency)
General Agency
Zoning
husband and wife
Trustee's Deed
42. The trustee has two functions in accordance with the Deed of Trust.
25%
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Subordination clause
grow - stabilize - decline - revitalize
43. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Zoning
Balloon loan
10%
25%
44. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
husband and wife
Trustee's Deed
Zoning
45. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
estate for years
Radon
trustor
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
46. Loans qualified to be purchased in the secondary market are called __
conforming loans.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Blanket
Tenancy by the Entirety
47. ____ - the refusal to lend in a particular geographic area - is prohibited.
trustor
Deed Restrictions
a property exchange.
Redlining
48. IRS Lein - Specific lein or general lein
Those on a fixed income
a property exchange.
General
husband and wife
49. The insurance on the FHA loan is referred to as___
lower interest rate
An encumbrance
MIP - mortgage insurance premium
straight assumption
50. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
rescission
husband and wife
encumbrance
Special or limited agency