Metro Brokers Practice Test

These questions are part of the practice quiz. Start practicing

• What occurs if a veteran sells a home via loan assumption to a non-veteran purchaser?
• What is implied by a grant deed regarding the seller's ownership?
• What factor might influence the calculation of cash requirements at closing?
• What does 'condemnation' in property law mean?
• Which term refers to the individual who manages the distribution of an estate after death?
• What type of deed implies that the grantor has the right to convey the title but carries no warranties?
• Which premium is charged to borrowers as a percentage of the loan amount for FHA insurance?
• How many months are typically added when calculating tax escrow?
• Which is NOT considered an agent's duty?
• What is the primary benefit of VA loans?
• Does the VA issue a ceiling after appraisal?
• How can you remove a cloud from a title?
• Who typically purchases home mortgage loans from originators?
• Who has the authority to elect the directors of a condominium?
• What characterizes a Graduated Payment Mortgage (GPM)?
• What does the term "eminent domain" refer to?
• In a Title Theory State, what happens when a borrower defaults on a loan?
• What is a significant characteristic of severalty ownership?
• Which task is typically needed for a quitclaim deed?
• Which of the following is NOT included in the Covenants of Title?
• What does a security deed represent in terms of ownership?
• Would a creditor seek satisfaction of debt from the personal assets of each co-owner in a general partnership?
• Does the Federal Housing Administration provide loans directly to borrowers?
• Which principle dictates that sales agents must be licensed as brokers unless exempt by law?
• If you have a rectangular plot of land with a length of 100 feet and width of 50 feet, what is its area?
• What legal interest allows a user rights under specific conditions, but remains revocable?
• In the context of title, what does “against encumbrances” refer to?
• When must real estate contracts be in writing?
• Which covenant protects the grantee from unexpected claims against the title?
• Which type of deed is used to correct an error in a previous deed?
• What is the maximum time an agent can call a consumer after an inquiry?
• What does MIP stand for?
• What is the legal action called that allows for the division or sale of property held in tenancy in common or joint tenancy?
• What is typically associated with the term 'Loan Estimate'?
• Which covenant promises that the grantor owns the property?
• What is the Right of Recission?
• What is the primary characteristic of a Lien Theory State?
• What is the outcome of down zoning?
• In a Gross Lease, who is responsible for paying all property expenses?
• What is the definition of Equity of Redemption?
• What does the Covenant to Acknowledge Indebtedness entail?
• In the context of mortgages, what does "indebtedness" typically refer to?
• How many square miles does a township cover?
• What is required from brokers when offering a public offering statement?
• What does RESPA stand for?
• Who does PMI (Private Mortgage Insurance) apply to?
• What characterizes a balloon payment?
• What action can a landowner take regarding their riparian rights?
• What is a listing contract primarily used for?
• What is required for a deed to be considered valid?
• A buydown is primarily designed to...
• What describes Tenancy in Common?
• What does the term "blockbusting" refer to?
• What typically characterizes a straight loan?
• Which of the following is NOT a component of a borrower's covenants?
• What is earnest money in a real estate transaction?
• What does consideration refer to in a contract?
• What is a participation loan?
• Which of the following refers to private restrictions placed on property?
• Is the maximum loan amount by law a characteristic of a VA-backed loan?
• What is ostensible agency?
• How many square feet are in one square yard?
• What occurs during up zoning?
• An Interest Only loan typically lasts for which period before converting to a fully amortized loan?
• What is the primary function of a trust fund in an escrow?
• Which covenant promises to defend the title?
• How is the ownership of property transferred?
• Which covenant should a borrower adhere to ensure property taxes are paid?
• What is a feature of a Net Lease?
• What is commonly referred to as a 'last will and testament'?
• What is necessary for a valid deed to transfer property?
• Which of the following statements about joint tenancy is true?
• What is the purpose of a Good Faith Estimate?
• What would characterize a contract that lacks mutual assent?
• What is Fannie Mae?
• Under what condition can a government exercise eminent domain?
• What is the role of Private Mortgage Insurance (PMI)?
• What is the benefit of discount points offered by some lenders?
• What are Fructus Naturales?
• What does a bargain and sale deed imply about the seller's rights?
• How often must a no call list be scrubbed?
• What is a characteristic of a budget mortgage?
• What does economic life refer to in real estate?
• What does a blanket mortgage cover?
• Do condo owners have liability if another owner in their building is foreclosed on?
• What does intestate succession refer to?
• What classification does a life estate fall under?
• What does the habendum clause describe?
• What does the adjustment period refer to in loan terms?
• How can property ownership rights change due to the death of a tenant?
• Is water and sewer service typically included in a buyer's monthly loan payment?
• What is the primary basis for calculating transfer tax?
• What defines a Syndicate in real estate?
• What is the intangible tax rate for real estate transactions?
• What is unique about a partially amortized loan?
• What is a common characteristic of emblements?
• What does a Step-up Lease provide for?
• Why is a promissory note considered a negotiable instrument?
• Does Regulation Z require further disclosure on simple interest rates?
• Which of the following describes the legal status of an oral will?
• What is the transfer tax rate for real estate transactions?
• What is the role of the FDIC?
• A sale and leaseback is primarily used for what purpose?
• What is typically included in the bundle of rights?
• How many square feet are contained in one acre?
• What type of loan typically involves legal expenses paid by the borrower in default cases?
• What are the rights attached to land that allow its owner to use and control it called?
• What is the definition of a license in property law?
• What are impounds in the context of real estate?
• In the context of adverse possession, what does 'notorious' mean?
• Which of the following is a correct conversion of 1 acre to square feet?
• What occurs when multiple people sign a promissory note?
• What does an interval cap restrict?
• What is a limited partnership?
• What formula would you use to calculate the area of a rectangle?
• Which form of co-ownership allows for unequal shares and has no right of survivorship?
• What legal effect does a deed in lieu of foreclosure have for a borrower?
• Under what condition might a deficiency judgment be issued?
• Is it possible for a husband and wife to own property in severalty?
• What is the Equitable Right of Redemption?
• Does a life estate always pass to a remainderman?
• Which deed implies limited warranties only for the period of the grantor's ownership?
• What does RESPA prohibit?
• What defines a Holder in Due Course?
• Which practice is often considered discriminatory in real estate?
• Who is referred to as the one to whom a deed is given?
• Which closing cost would remain unchanged when making a cash payment?
• What is an effect of steering on housing markets?
• How long can a telemarketer contact you if there was a previous business relationship?
• What describes the Statutory Right of Redemption?
• What does "caveat emptor" mean in real estate transactions?
• Is a step-up lease guaranteed?
• What does "right of survivorship" imply in joint tenancy?
• Which term refers to the process of legally giving up ownership of a property?
• Which of the following describes an incorporeal right?
• What is the legal status of a forged deed?
• Which type of deed provides the most protection to a buyer?
• What is the primary purpose of a mortgage?
• Regarding agent responsibilities, what is the primary duty of a fiduciary?
• Which party is required to sign the deed?
• Is cut timber considered real property?
• What occurs to an easement upon the death of the grantor?
• What is a Good Faith Estimate now called?
• What is a Chattel Mortgage?
• What does 'erosion' refer to?
• What does the Georgia Timeshare Act require for trust funds?
• What does it mean to die 'intestate'?
• In which capacity does a salesperson typically operate?
• What is a deed in lieu of foreclosure?
• What does "dedication" refer to in real estate?
• What does the term "datum" refer to in land measurements?
• In terms of property rights, what typically cannot be transferred?
• What is a Purchase Money Mortgage?
• Whose risk does mortgage insurance always cover?
• How would unpaid property tax be reflected on the purchaser cost estimate?
• What are Riparian Rights?
• What is a key factor that differentiates down zoning from up zoning?
• In the event of default, what does the borrower agree to pay?
• What are some common demands for loans in real estate?
• When is a Conditional Commitment used in real estate?
• What term describes the common areas such as stairwells and roofs that are owned collectively?
• What is Community Property?
• What is a chattel mortgage?
• What is the purpose of the Uniform Settlement Statement?
• What is typical in a residential Gross Lease?
• Which type of loan may include prepayment penalties?
• What is the main concept of steering in real estate?
• What is one characteristic of a Step-up Lease?
• What legal document typically provides a description of property agreements between parties?
• Which loan type does MIP specifically apply to?
• Which statement correctly describes fixtures?
• What type of deed would a homeowner use to transfer their rights without any guarantees?
• How does an amortized loan function?
• What do escalator leases tie rent increases to?
• What occurs to property if an individual dies without a will and no named heirs?
• Which term refers specifically to plants that do not require cultivation each year?
• What defines nonconforming use in real estate?
• What is the purpose of land trusts?
• What does the term 'naked title' refer to in real estate?
• In real estate, what does 'situs' refer to?
• In a general partnership, how are debts typically handled regarding personal assets?
• What is the principal advantage to the mortgagee of a budget mortgage?
• What type of insurance is required for borrowers with less than 20% equity in a conventional loan?
• What is an example of 'avulsion'?
• What does a Prepayment Clause allow?
• Will a straight loan generally cost more to repay than an amortized loan?
• If Smith mistakenly builds a fence on Jones's land, what can Jones do?
• Which organization is responsible for guaranteeing and funding home mortgages?
• In the context of property, what is a Trust?
• What is the definition of a fiduciary in real estate?
• How is the front-end ratio calculated?
• What is a sale and leaseback transaction?
• Is a conveyance valid if using a power of attorney and the client dies?
• What does the Law of Capture refer to?
• In financial terminology, what does 'margin' specifically refer to?
• What defines Fructus Industriales?
• What is meant by 'accretion' in property law?
• How does the Federal Truth in Lending Act impact borrowers?
• An item that was personal property but has been attached to and become part of the real property is known as:
• What does Freddie Mac primarily do?
• What is a typical index used for adjustable-rate mortgages?
• How is 'reliction' defined?
• What is ostensible authority?
• Can an estate exist simultaneously with another estate in the same property?
• Which type of mortgage combines both real and personal property as security?
• What is a Living Trust?
• What is the intent of the statute of fraud?
• What does "credit to the buyer/seller" typically mean in a real estate transaction?
• What is the formula for calculating the area of a triangle?
• For how long can a seller be contacted after their listing has expired?
• Which type of will is typically written by an attorney to ensure compliance with state requirements?
• Which term refers to an interest in land that is not immediately possessed by the holder?
• What type of loan requires Mortgage Insurance Premium (MIP)?
• Which of the following is NOT a characteristic of an easement?
• What occurs to a listing if it has a lien and is condemned?
• What do homestead laws aim to do?
• How is the priority of liens, with exceptions, primarily determined?
• Which legal document formally indicates a potential claim on property due to litigation?
• What is a key benefit of having a clear title?
• What type of lease allows rental rates to increase at predetermined intervals?
• In real estate, what does the term "title" refer to?
• What is the purpose of a quiet title action?
• What does the term "tax base" refer to?
• What could be a consequence of not recording a deed in the county courthouse?
• What legal concept does the term "Color of Title" refer to?
• Why is a promissory note considered negotiable?
• To convert acres to square feet, which formula should you use?
• What serves as protection for lenders in case of foreclosure when a borrower has less than 20% down payment?
• How does earnest money deposited appear on the estimated purchaser cost sheet?
• What phrase is associated with a fee simple condition subsequent?
• Which ownership structure includes the right of survivorship?
• Can a married woman and an unmarried man own real estate as tenants by the entireties?
• What financial strategy does the secondary mortgage market implement?
• What does a Writ of Attachment prevent a debtor from doing during a lawsuit?
• What is an act by one party intended to deceive another party called?
• Does failure to discuss zoning in a real estate transaction constitute misrepresentation?
• Which of the following describes the relationship between a tenant and landlord?
• What does a plat map indicate?
• Which document typically contains the earnest money deposit details?
• What is express authority in agency law?
• Which type of deed signifies that an individual is conveying their property rights without any warranties?
• What document certifies a veteran's eligibility for a VA loan?
• Who owns the land on which a high-rise condominium is built?
• What is the most distinctive physical characteristic of land?
• What term describes the person who conveys an interest in realty by deed?
• What is the primary purpose of escrowing taxes in a real estate transaction?
• Does an owner of a cooperative apartment own stock in a nonprofit organization?
• Will all freehold estates come with inheritability?
• The term 'PITI' stands for...
• How many feet are there in one mile?
• Can a mechanic’s lien expire?
• What are the agent’s duties?
• Which method is NOT used to measure land area?
• What is the purpose of a Lis Pendens?
• During which hours are telemarketers allowed to make calls?
• What is a lien?
• What is the role of an interest rate cap?
• What need does tacking fulfill in property law?
• What percentage of a loan does one discount point represent?
• In real estate, what does 'cloud on title' imply?
• In the context of mortgage regulations, what is the term for the obligation to disclose loan terms?
• Which covenant requires the borrower to pay legal expenses?
• What does a Gift Deed refer to?
• What does a wraparound mortgage loan encompass?
• What does a PITI payment include?
• What is the purpose of a buydown in a mortgage?
• What is a proprietary lease in a cooperative?
• What is an essential element of a valid and enforceable contract?
• What does "Involuntary Alienation" describe?
• What is the formula to convert square feet to acres?
• Which action can help avoid foreclosure?
• What can trigger the effectiveness of a lien on a property?
• Which of the following is compliant with Regulation Z?
• What information does the estimated purchaser cost form provide?
• What defines the procuring cause of sale?
• What does the term "fee" signify in real estate law?
• What is the role of a security deed in a mortgage?
• What does the Covenant of Good Repair require from the borrower?
• What does the "bundle of rights" refer to in real estate?
• Which statement is true regarding interest on mortgage loans?
• What is the requirement of the borrower in the Covenant to Pay Insurance?
• Who acknowledges a deed?
• In a Covenant to Pay Taxes, what does the borrower agree to do?
• In which scenario does a veteran remain liable for payment after selling their home?
• What does the term "encumbrance" commonly refer to?
• What is intestate succession?
• What is a complete description of all aspects of each United referenced in legal documents?
• What should you do if a client inquires about the title to a property?
• What is the key difference between equity right of redemption and statutory right of redemption?
• Which term refers to the right to extract resources from a property?
• Which of the following is typically not included in closing costs?
• What type of lease is known as an estate for years?
• What type of mortgage allows a borrower to draw up to a certain amount secured by the mortgage?
• What is the main promise of the covenant of Seisin?
• What does RESPA stand for?
• What is the primary purpose of a budget mortgage for lenders?
• How does a chattel mortgage differ from a traditional mortgage?
• What is the primary obligation of the grantor under a covenant of further or future assurances?
• What best describes a parcel of land?
• What is the function of a payment cap in a mortgage?
• What is required for an easement's protection from third-party interference?
• Which of the following is not considered real property?
• Which of the following best describes the concept of a legal life estate?
• Who typically creates a Land Trust?
• What occurs with a Condemnation Clause?
• What characterizes spot zoning?
• What type of lease is connected to an index like the Consumer Price Index?
• Does a lender require PMI for a loan being financed at 80%?
• What type of crops are considered as Emblements?
• What must an owner demonstrate to successfully defend a claim of ownership?
• On what is the intangible tax calculated?
• In terms of protective measures, which deed is the least protective for the buyer?
• What is defined as unauthorized intrusion onto another's property?
• What is a graduated payment loan?
• What is one requirement of RESPA?
• What type of housing does Ginnie Mae primarily focus on?
• Which loan specifically covers the costs of materials and labor for construction?
• Which type of loan uses an index and margin to determine the interest rate?
• How is a holographic will defined?
• What does the covenant against encumbrances guarantee?
• In which type of agency does the agent have limited authority?
• What does the Mortgage Insurance Premium (MIP) signify for FHA loans?
• A Purchase Money Mortgage is also known as...
• Which factor is not considered when determining whether an item is a fixture?
• Which of these is a possible method to establish property boundaries?
• Which covenant relates to the enjoyment of property free from any claims?
• When must the uniform settlement statement be utilized during closing?
• What does Hypothecation refer to in the context of property?
• What is required for a lien to be effective?
• Can an agent contact a seller with an expired listing?
• What is meant by 'genuine assent' in the context of agreements?
• What is a Graduated Lease designed to do?
• What is the legal significance of 'actual' possession in adverse possession claims?
• What does redlining refer to in the context of real estate?
• What represents joint tenancy in property ownership?
• How can joint tenancy be changed to a tenancy in common?
• Which of the following is considered a characteristic of a warranty deed?
• What distinguishes a Limited Partnership from a General Partnership?
• Which loan type requires a significant final payment after a series of smaller payments?
• Which statement is true regarding tenants by the entireties?
• What is a special warranty deed's main feature regarding the title?
• What does the margin represent in the context of an adjustable-rate mortgage?
• What is a key feature of an Interest Only Loan?
• What is a codicil in relation to a will?
• What defines an Adjustable Rate Mortgage (ARM)?
• What is the purpose of a reservation clause?
• Which deed is not executed by court-appointed representatives?
• What type of property is considered Community Property?
• What does the covenant of Quiet Enjoyment ensure for tenants?
• What allows multiple owners to hold fee simple title in a condo?
• How can voluntary alienation of property be accomplished?
• In a condominium, how are the owners related to the common elements?
• What does the term 'attestation' refer to in relation to wills?
• What does the covenant of Warranty Forever ensure for the grantee?
• What are terminal points and boundary lines commonly referred to?
• Who is a testator?
• What is classified as chattel real?
• What is the main function of the secondary mortgage market?
• How is police power best defined?
• Which term best describes taking private property for public use?
• What does authority by ratification mean?
• What is a primary characteristic of a Quitclaim deed?
• Which type of loan is commonly used by investors?
• Which of the following refers to a gradual increase in land area?
• What does the term fiduciary primarily describe in real estate?
• What is a Defeasance Clause?
• When a municipality allows a specific property use that is not aligned with current zoning laws, what is it called?
• What type of loan is characterized by paying only interest during the term?
• What type of ownership entails one party holding title for another's benefit?
• What is a key benefit of forming a Limited Partnership?
• What is defined as an official FHA appraisal of a specific property to determine loan insurance?
• What is the primary purpose of a Reverse Annuity Mortgage (RAM)?
• What is a Trust Deed?
• Which of the following could be considered part of the fees necessary for redemption in a foreclosure situation?
• What is one of the primary direct sources of money for mortgage loans for borrowers on residential property?
• How does a corporation typically own property?
• What type of loans does Regulation Z primarily cover?
• What must be included in a good faith estimate of closing costs?
• Which of the following best describes an index lease?
• Which type of deed is best described as a deed with the intention to correct a previously recorded error?
• Which type of lease requires the tenant to pay specified operating expenses?
• Can a private landowner disinherit their heirs?
• Which phrase indicates a fee simple determinable?
• Which of the following describes a Cooperative owned in severalty?
• Will the transfer of a loan escrow account appear as a debit on the seller's closing statement?
• What condition must be met for joint tenancy to exist?
• What is the primary promise that a borrower makes in a Covenant to Pay Indebtedness?
• What type of leasing arrangement has rent based on operating costs?
• What type of deed provides the highest level of protection to the grantee?
• What are emblements?
• What is an Estoppel Certificate?
• What is the down payment requirement for VA loans?
• What is the purpose of an estoppal certificate in relation to a loan?
• What is true about payments in a fully amortized loan?
• In a General Partnership, how are responsibilities and liabilities shared?
• What is the primary function of a trustee in a trust deed?
• What happens when you purchase a $5000 option to buy land?
• In which loan type does the entire principal amount become due with the final interest payment?
• What is prohibited by the Covenant Against Removal?
• What aspect of a listing contract is crucial for defining the broker's role?
• What do dower and curtesy rights provide for in property ownership?
• What type of mortgage allows for monthly payments to be received by an elderly homeowner?
• What type of loan is characterized by fluctuating interest rates?
• What does the legal term "pur autre vie" mean?
• What characteristic distinguishes personal property from real property?
• What is a formal will?
• What does the right of survivorship entail in a joint tenancy?
• What is required for a testator’s deed to be executed?
• What happens to an agency if the listing salesperson dies?
• What indicates the cost of credit for banks?
• What is the status of a deed that is made and delivered but not recorded?
• How long does a freehold estate last?
• What type of deed does not provide warranties about the title?
• According to the law of agency, what type of agency is a real estate listing contract?
• What is a nuncupative will?
• What is the primary role of a real estate agent?
• Why does legal description only describe land?
• What is meant by Equitable Title?
• Is using a street address, county, and state an effective way to describe a parcel of land?
• What role does the Federal Reserve play in the banking system?
• What is the primary purpose of earnest money?
• A devisee is defined as:
• Which unit of measurement is NOT directly related to area?
• Do all tenants in common have a title to the property they share?
• In what situation is a Certificate of Eligibility necessary?
• Can a property owner sell air rights while retaining surface and subsurface rights?
• What is defined by 'escheat'?
• Which of the following is NOT a characteristic of a limited partnership?
• What is one reason an agent may perform personal performance duties?
• What does a writ of execution instruct the sheriff to do?
• Would a custom made window be considered a fixture?
• What is the conversion ratio to change square feet into yards?
• Which lien generally has the highest priority?
• What happens to an easement footpath if the owner builds a fence around it, preventing its use?
• What is NOT a requirement for a valid conveyance by deed?
• What term describes the sum of all factors that affect property value?
• Which of the following best describes the role of a Trustor?
• What document must a lender provide within three days of receiving a borrower's loan application?
• What does the legal term 'tacking' refer to in property law?
• Which statement is true regarding General Partnerships?
• What does the subordination clause allow?
• How long is an agent allowed to call a consumer who made an inquiry?
• What does the right of survivorship entail in tenancy ownership?
• Is the annual percentage rate (APR) usually higher than the stated interest rate?
• What right does the lender have according to the Covenant of Property Inspection?
• A will must typically be:
• What is the Metes and Bounds method of land description?
• What does MIP insure?
• What does Mabel's action of building a fence around her easement imply about her intentions with it?
• What does Emblements refer to?
• When property taxes have already been paid, what is the buyer's financial obligation towards the seller?
• Under what condition can a borrower avoid paying PMI?
• What is a general expectation in the Covenant to Maintain Insurance?
• In closing costs, what are discount points primarily used for?
• Is the intangible tax related to the total cost of the home?
• What is the Master Deed in condominium developments?
• What is a distinguishing feature of an adjustable rate mortgage?
• What is meant by eminent domain?
• Upon ownership transfer, which property aspect usually remains with the land?
• What can be a consequence of blockbusting?
• What does a Certificate of Reasonable Value (CRV) relate to?
• What does the Federal Truth in Lending Act regulate?
• To derive the area of a triangle with a base of 10 feet and height of 5 feet, what would the calculation be?
• What does package mortgage include as security?
• Which type of deed is associated with "good" consideration?
• What does a grant deed assure regarding encumbrances?
• Which of the following is NOT a requirement of adverse possession?
• What is an easement in gross?
• What does the Granting Clause do?
• Which factor does NOT relate to a deficiency judgment?