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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. Lenders can deny credit if your sole source of income is__
Radon
EMFs
alimony - child support or a pension plan.
rescission
2. An ___ is a limitation on your rights
a property exchange.
An encumbrance
encumbrance
devise
3. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Those on a fixed income
25%
encumbrance
10%
4. ___ is created when a licensee acts like an agent and others respond to those actions.
husband and wife
Balloon loan
Deed Restrictions
ostensible agency
5. Partially amortized loan - benefit
The secondary
MIP - mortgage insurance premium
lower interest rate
a power of attorney
6. The trustee has two functions in accordance with the Deed of Trust.
alimony - child support or a pension plan.
grow - stabilize - decline - revitalize
encumbrance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
7. Broker- Salesperson - owner-property manager-> which agency?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
The trustee
Trustee's Deed
General Agency
8. High tension wire should be disclosed
Package Loan
writ of execution
EMFs
Statutory law
9. The veteran must obtain a Certificate of Eligibility from the VA
stigmatized
alimony - child support or a pension plan.
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount
10. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
The secondary
rescission
Subordination clause
Radon
11. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
General Agency
The trustee
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Deed Restrictions
12. 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.
writ of execution
EMFs
The secondary
Zoning
13. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
ostensible agency
Zoning
by ratification.
Mitigation
14. The secondary market warehousing agencies are...
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.
Special or limited agency
Alienation clause
15. ___ is a limitation on your rights. It may also be a cloud on the title
Errors & Omissions insurance
encumbrance
An encumbrance
Mitigation
16. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Redlining
Blanket Loan
10%
grow - stabilize - decline - revitalize
17. The deed of trust involves three parties...
conomic obsolescence
Total amount - Certificate amount x 4 = approved maximum loan amount
trustor
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
18. Real estate investors can defer taxation of capital gains by making ___
The secondary
Subordination clause
a property exchange.
Trustee's Deed
19. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Those on a fixed income
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
20. 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.
rescission
Special or limited agency
estoppel
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
21. IRS Lein - Specific lein or general lein
General
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Defeasance
22. Property Manager ( which type of Agency)
Package Loan
General Agency
ostensible agency
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
23. IN Reg Z Advertising which states only __is permitted
$4000.
trustor
Redlining
the cash price or the APR
24. 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.
Alienation clause
Balloon loan
a power of attorney
conforming loans
25. Includes real property plus personal property
Package Loan
Reverse annuity
Redlining
devise
26. One who acquires property under a deed is....
Vendee's Lien
General
a grante
a property exchange.
27. On income producing property land can never be depreciated for...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
income tax purposes
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 in common
28. '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
writ of execution
a grante
General
29. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
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
conforming loans
income tax purposes
husband and wife
30. A property where there has been a murder or alleged haunting is called...
Trustee's Deed
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Blanket Loan
stigmatized
31. The insurance on the FHA loan is referred to as___
conforming loans.
Those on a fixed income
a grante
MIP - mortgage insurance premium
32. __ is a specific type of joint tenancy where the co-owners are husband and wife.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
An encumbrance
encumbrance
Tenancy by the Entirety
33. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
It is a right in land and should be created in writing and recorded.
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
34. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
Deed Restrictions
Those on a fixed income
Vendee's Lien
35. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Deed Restrictions
Mitigation
conomic obsolescence
36. What is easment?
Package Loan
It is a right in land and should be created in writing and recorded.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
conomic obsolescence
37. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Package Loan
The secondary
10%
Blanket
38. This lease survives death and/or the sale of the property. No notice is required to terminate.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Package Loan
estate for years
Zoning
39. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
estoppel
Mitigation
ostensible agency
40. Loans qualified to be purchased in the secondary market are called
Redlining
lower interest rate
writ of execution
conforming loans
41. The minimum withdrawal from a home equity LOC is
An encumbrance
$4000.
ostensible agency
10%
42. An attorney-in-fact is the holder of...
writ of execution
a power of attorney
3
estate for years
43. Loan novation?
Vendee's Lien
In a straight assumption - the new buyer is approved - and takes over payments and liability
Fannie Mae - Freddie Mac and Ginnie Mae.
General Agency
44. Ownership by two or more without rights of survivorship is called
estoppel
General Agency
Special or limited agency
tenancy in common
45. ___ gives the agent the power to perform only specific acts and no others.
Alienation clause
estoppel
Special or limited agency
Reverse annuity
46. A principal's duties to an agent ar...
husband and wife
Tenancy by the Entirety
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Redlining
47. Common law does not always takes precedence over...
Balloon loan
Statutory law
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
devise
48. Advantages of FHA loans
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49. 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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
devise
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
50. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Statutory law
Radon
by ratification.
Blanket Loan