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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. One who acquires property under a deed is....
The secondary
Deed Restrictions
Blanket
a grante
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.
Zoning
tenancy in common
a power of attorney
An encumbrance
3. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Vendee's Lien
25%
writ of execution
conforming loans.
4. __ is a specific type of joint tenancy where the co-owners are husband and wife.
conomic obsolescence
Tenancy by the Entirety
Deed Restrictions
MIP - mortgage insurance premium
5. ___market is where lenders go for money
Trustee's Deed
Defeasance
The secondary
The trustee
6. Advantages of FHA loans
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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. It is called?
Tenancy by the Entirety
MIP - mortgage insurance premium
Radon
Alienation clause
8. __ clause - states that the lien is defeated when the debt is repaid.
MIP - mortgage insurance premium
It is a right in land and should be created in writing and recorded.
a power of attorney
Defeasance
9. The insurance on the FHA loan is referred to as___
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
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
MIP - mortgage insurance premium
alimony - child support or a pension plan.
10. On income producing property land can never be depreciated for...
Mitigation
Fannie Mae - Freddie Mac and Ginnie Mae.
income tax purposes
3
11. What is easment?
husband and wife
Trustee's Deed
It is a right in land and should be created in writing and recorded.
Zoning
12. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Radon
Zoning
trustor
rescission
13. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Package Loan
rescission
14. 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
General Agency
Blanket
straight assumption
15. Includes real property plus personal property
conforming loans.
trustor
Package Loan
Total amount - Certificate amount x 4 = approved maximum loan amount
16. Lenders can deny credit if your sole source of income is__
In a straight assumption - the new buyer is approved - and takes over payments and liability
devise
It is a right in land and should be created in writing and recorded.
alimony - child support or a pension plan.
17. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
tenancy in common
Fannie Mae - Freddie Mac and Ginnie Mae.
Radon
$4000.
18. ___ 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.
25%
Errors & Omissions insurance
conforming loans.
lower interest rate
19. Covers more than one piece of property. (several lots on one note)
Special or limited agency
conomic obsolescence
a grante
Blanket Loan
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.
conforming loans
by ratification.
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.
estoppel
21. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
estoppel
conforming loans
In a straight assumption - the new buyer is approved - and takes over payments and liability
22. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Blanket
estoppel
rescission
23. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
Reverse annuity
Deed Restrictions
It is a right in land and should be created in writing and recorded.
24. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Special or limited agency
trustor
10%
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
25. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
An encumbrance
grow - stabilize - decline - revitalize
Tenancy by the Entirety
Redlining
26. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
straight assumption
conforming loans
Redlining
27. A principal's duties to an agent ar...
Mitigation
grow - stabilize - decline - revitalize
Tenancy by the Entirety
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
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.
conforming loans
a property exchange.
Alienation clause
Statutory law
29. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
by ratification.
Those on a fixed income
Reverse annuity
EMFs
30. A person who has real property willed to her by a relative is said to acquire title by...
grow - stabilize - decline - revitalize
devise
Vendee's Lien
Statutory law
31. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
ostensible agency
husband and wife
estate for years
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
32. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
alimony - child support or a pension plan.
writ of execution
The trustee
Special or limited agency
33. A property where there has been a murder or alleged haunting is called...
stigmatized
Reverse annuity
a power of attorney
Errors & Omissions insurance
34. This will not impact of the seller's credit rating.
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.
straight assumption
The trustee
General Agency
35. Broker- Salesperson - owner-property manager-> which agency?
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Radon
General Agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
36. The secondary market warehousing agencies are...
The secondary
Fannie Mae - Freddie Mac and Ginnie Mae.
estoppel
3
37. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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38. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
trustor
Mitigation
alimony - child support or a pension plan.
39. ___loan - Covers more than one piece of property
tenancy in common
Blanket
Blanket Loan
a property exchange.
40. IN Reg Z Advertising which states only __is permitted
estoppel
Reverse annuity
the cash price or the APR
Package Loan
41. 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
Tenancy by the Entirety
$4000.
General
42. Property Manager ( which type of Agency)
Blanket Loan
estate for years
General Agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
43. Ownership by two or more without rights of survivorship is called
In a straight assumption - the new buyer is approved - and takes over payments and liability
stigmatized
25%
tenancy in common
44. Common law does not always takes precedence over...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Statutory law
General
Blanket Loan
45. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
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46. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
General Agency
Reverse annuity
3
47. ___ 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.)
General Agency
Alienation clause
conomic obsolescence
Mitigation
48. The veteran must obtain a Certificate of Eligibility from the VA
Errors & Omissions insurance
Total amount - Certificate amount x 4 = approved maximum loan amount
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
estate for years
49. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
the cash price or the APR
Alienation clause
50. Loans qualified to be purchased in the secondary market are called __
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
Mitigation
devise
conforming loans.