Kansas Real Estate Salesperson Practice Exam

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• What type of loan is backed by collateral?
• What is a certificate of eligibility?
• What is the term used for the company that receives payments after a loan has been obtained?
• What term describes the date on which the interest rate on an adjustable-rate mortgage changes?
• What kind of cap limits the amount an adjustable interest rate can change during a single adjustment period?
• Which of the following is NOT included in the bundle of rights associated with property ownership?
• How do lenders refer to the process of obtaining new loans?
• What provision in a mortgage requires repayment in full if the property is sold?
• What is the term for the valuation placed on property by a public tax assessor for taxation purposes?
• What is the status of a borrower who has completed a loan application and had it reviewed and approved?
• What type of estate represents the most extensive interest in land that can be enjoyed and is of perpetual duration?
• What does the term 'note rate' refer to?
• What type of property asset can quickly be converted into cash?
• What does amortization in a loan context refer to?
• What is a lien?
• What is the definition of a legal description of property?
• What does the term sweat equity refer to?
• Which of the following is NOT one of the components of a mortgage payment on impounded loans?
• Which party is responsible for paying mortgage insurance premiums in a mortgage agreement?
• What is an item of value deposited with a third party to be delivered upon the fulfillment of a condition called?
• What is meant by a clear title?
• Which of the following best describes a 'top' or 'front' ratio?
• What is the commitment issued by a lender to a borrower that guarantees a specified interest rate for a specified period of time called?
• What is the primary purpose of a repayment plan?
• What is a common type of bankruptcy for individuals that relieves most types of debts?
• What is one advantage of employer-sponsored retirement plans like 401k and 403b?
• What characteristic defines an adjustable-rate mortgage (ARM)?
• What is an encumbrance in real estate?
• What term describes the right to enter or leave designated premises?
• What is a promissory note?
• What type of insurance covers the lender against losses due to a default on a home loan?
• What does it mean for a real estate transaction to be 'closed'?
• What is a chain of title?
• What are non-recurring closing costs?
• What do you call a person who is licensed to negotiate and transact the sale of real estate?
• What implication does a 'contingency' have for a home buyer?
• Which type of property ownership does tenancy in common describe?
• An escrow account is typically used to pay which of the following?
• What is a payment change date in the context of adjustable-rate mortgages?
• What does a homeowners association manage?
• What classification do mortgages insured by the FHA or guaranteed by the VA fall under?
• What does a power of attorney allow one person to do?
• What is a formal notice to a borrower indicating a default has occurred?
• What is the purpose of a title in real estate?
• What type of mortgage is guaranteed by the Department of Veterans Affairs (VA)?
• What is a construction loan primarily used for?
• Who is known as the grantor in a real property transaction?
• What is the common term used for one point, relative to loan origination fees?
• What term describes items of value owned by an individual, such as stocks, bonds, and real estate?
• In mortgage terms, what is a principal balance?
• What is the term used to describe the right of a government to take private property for public use upon payment of its fair market value?
• What might a lender allow in times of financial hardship concerning mortgage payments?
• What is a buydown in mortgage financing?
• What do adjustable-rate mortgages usually have to limit interest rate fluctuations?
• Who is described as a person named in a will to administer an estate?
• What type of mortgage has a lien position subordinate to the first mortgage?
• Which of the following refers to the official value assigned to property by a tax assessor?
• What is the role of a broker in real estate transactions?
• In a typical loan agreement, what does the borrower pledge as collateral?
• Which federal law requires lenders to make credit equally available without discrimination?
• What does the term "principal" refer to in mortgage terminology?
• What does COFI stand for in relation to mortgage interest rates?
• What defines a two-step mortgage?
• What is a written contract signed by the buyer and seller that states the terms and conditions under which a property will be sold?
• What is a prepayment in relation to loans?
• What legal document is used to convey title to a property?
• What term describes the process of paying off one loan with the proceeds from a new loan using the same property as collateral?
• What is the term for the portion of the property's purchase price that is paid in cash?
• What does pre-qualification refer to in the context of home loans?
• Which market is closely followed by lenders because it influences fixed-rate mortgage interests?
• What type of ownership allows residents of a multiunit housing complex to own shares in a cooperative corporation?
• Which type of mortgage is typically not insured or guaranteed by a government entity?
• What does a lender's policy in title insurance primarily protect?
• What does a loan typically consist of?
• What does a settlement statement include?
• What is the definition of a 'point' in mortgage terms?
• What is referred to when the ownership of your mortgage is transferred from one entity to another?
• What is included in the content of a mortgage application?
• What is the term for the highest price a buyer is willing to pay and the lowest price a seller is willing to accept?
• Who originates and funds their own loans, which are then sold on the secondary market?
• What is the legal process called when a borrower loses interest in mortgaged property due to default?
• In a planned unit development, how are ownership and common areas structured?
• What is the significance of the term 'trustee' in real estate?
• What consumer protection law requires lenders to give borrowers advance notice of closing costs?
• What does the term 'lien' imply for the property owner?
• What component is NOT typically included in PITI?
• What does the certificate of reasonable value (CRV) pertain to?
• Which type of loan is referred to as nonconforming?
• What is the primary purpose of a lease?
• What information is primarily shown in an amortization schedule?
• What is a legal document that pledges a property to the lender as security for payment of a debt?
• What is the process called when a lender modifies the terms of a mortgage without refinancing?
• What does it mean if a loan is described as 'no points'?
• What defines a Planned Unit Development (PUD)?
• What is a legal document obligating a borrower to repay a mortgage loan called?
• Which of the following describes an improvement that intrudes illegally on another's property?
• In a home loan, what role does the property serve?
• What is the nature of an agreement that guarantees a specified interest rate for a certain period?
• What does a transfer tax apply to?
• What is defined as the original amortization term minus the number of payments that have been applied?
• What are PITI reserves?
• What is joint tenancy in terms of property ownership?
• Who is responsible for estimating the value of real property?
• In real estate transactions, what does a title search reveal?
• How does the portion of the loan payment applied to interest change over time?
• What is the term for an oral or written agreement to do or not to do a certain thing?
• What is the term for an agreement in which a borrower pledges property to secure a loan?
• What term describes the amount paid by a mortgagor for mortgage insurance?
• Who is the public official responsible for establishing the value of a property for taxation purposes?
• What term describes a fiduciary who holds or controls property for the benefit of another?
• What is the purpose of a third-party originator in real estate?
• What is the term for the total principal owed on a mortgage before any payments are made?
• What term describes financial obligations, both long and short-term?
• Which of the following best describes a loan to value (LTV) percentage greater than 80%?
• What is the term for the difference between the interest rate and the index on an adjustable-rate mortgage?
• When does the principal balance of a loan become due and payable?
• What is the purpose of an acceleration clause in a mortgage?
• In some adjustable-rate mortgages, what happens when a borrower makes only the minimum payment?
• In real estate, what is a leasehold estate considered?
• Which loan option allows you to obtain a mortgage at no cost?
• What type of mortgage is characterized by lower initial payments that increase over time?
• Who is referred to as a lender in real estate?
• What do common area assessments support in a condominium or PUD?
• Who is a co-borrower in a loan context?
• What do we call the time period during which an interest rate is guaranteed to a borrower?
• Which condition does NOT trigger a payment change date?
• What is typically the penalty referred to as a late charge?
• Which term refers to an agreement that secures a specified interest rate upon receiving a loan?
• What is the term for a limit on the amount payments can increase or decrease during an adjustment period in an adjustable rate mortgage?
• What is a survey in real estate?
• Which type of deed transfers without warranty whatever interest or title a grantor may have?
• What is a home equity conversion mortgage (HECM)?
• In a condo project, what type of ownership does a unit owner have?
• What is an alternate term for a loan default situation when payments are not made on time?
• What are escrow disbursements used for?
• What type of properties provide separate housing units for multiple families under a single mortgage?
• What does controlling property imply in the context of property ownership?
• What is the term for the situation where deferred interest is added to the loan balance, causing it to grow larger?
• Why might a borrower need private mortgage insurance (MI)?
• What is the technique called where a seller deeds property to a buyer for consideration and the buyer simultaneously leases the property back to the seller?
• What does the appraised value of a property generally derive from?
• What is the 'bundle of rights' in real estate ownership?
• What defines a subdivision in real estate?
• How are closing costs categorized?
• What is a contingency in a real estate contract?
• What is the Truth in Lending Act primarily concerned with?
• What is the term for a written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time?
• What role does a servicer play in real estate financing?
• Which type of ownership allows individuals to own their unit while sharing ownership of common areas?
• Which rate is commonly charged by banks to their preferred customers?
• What does a homeowners warranty provide coverage for?
• What is the typical consequence of making only minimum payments on an adjustable-rate mortgage?
• In real estate, what does the term "equity" represent?
• What does the Fair Credit Reporting Act specifically aim to do?
• What type of refinance transaction does not provide cash to the borrower?
• What option allows home buyers to lease a property with the potential to buy it later?
• What is the process of making public record the details of an executed legal document called?
• Which of the following actions is an acceptable form of ownership transfer?
• What term refers to the buying and selling of existing mortgages, often as a part of a 'pool' of mortgages?
• What term refers to the amount of principal that has not yet been repaid?
• Which index is used to determine interest rate changes for certain adjustable rate mortgage plans?
• What does title insurance protect against?
• What allows a lender to reclaim the loan if the property is sold?
• What organization is a government-owned corporation that provides funds for government loans?
• What is an adjustable-rate mortgage that allows the borrower to change to a fixed rate mortgage called?
• Which type of insurance policy covers both personal liability and hazard insurance for homeowners?
• What type of payment is insufficient to cover the scheduled monthly payment on a mortgage loan?
• On a government loan, what is the origination fee typically set at as a percentage of the loan amount?
• What is a bridge loan typically used for?
• What type of loan can be an acceptable source of down payment for most types of loans?
• Which of the following is NOT a typical role in a real estate transaction?
• What is a bi-weekly mortgage?
• Why might a homeowner choose to refinance their mortgage?
• What is defined as an appraiser's estimate of a building's physical condition?
• What type of mortgage is insured by the Federal Housing Administration (FHA)?
• What term refers to the individual who represents the borrower to the lending institution?
• In real estate, what is an assessment primarily associated with?
• Which of the following is an example of property rights that an owner has?
• What type of loan typically has an interest rate that is approximately a quarter percent higher due to the absence of points?
• What primarily occurs during a title search?
• What is the purpose of an earnest money deposit in a real estate transaction?
• Which of the following best describes a 'rate and term refinance'?
• What is subordinate financing?
• What does the acronym PITI stand for in relation to mortgage payments?
• What term refers to the acquisition of property through the payment of money or its equivalent?
• Which of the following best defines an adjustable-rate mortgage (ARM)?
• Which of the following best describes a VA mortgage?
• What provides protection to lenders against loss when offering mortgages to veterans?
• What is a common disadvantage of a second mortgage?
• Which role is responsible for managing the financial aspects of an estate upon a person's death?
• What is the primary function of the Federal Housing Administration (FHA)?
• Which term refers to the process of placing a value on property for taxation?
• What term is used when a buyer assumes the seller's mortgage?
• How long must a borrower typically wait to qualify for an "A" paper loan after bankruptcy discharge?
• What describes the greatest possible interest a person can have in real estate?
• What are common areas in a homeowner's association typically associated with?
• Which of the following is not considered a liquid asset?
• Which organization provides funds for making home loans specifically for government loans?
• Which type of mortgage loan requires the remaining principal balance to be paid at a specific point?
• What term describes the property that will be pledged as collateral for a loan?
• What is a common characteristic of a principal balance?
• What do you call the final lump sum payment due at the end of a balloon mortgage?
• What is one of the main purposes of the Veterans Administration regarding mortgages?
• What does a lender typically do during the collection process?
• What refers to an organization that gathers and updates information about people's payment records for credit consideration?
• Which plan is specifically associated with private corporations as a retirement investment option?
• In an adjustable-rate mortgage, what is a life cap?
• Who is referred to as the grantee in a real property transaction?
• A borrower is unable to make payments on their mortgage. What process may take place?
• Encroachment is specifically the act of:
• What type of deed provides the greatest protection to the buyer?
• What is known as a sum of money paid to secure a future obligation?
• In terms of a mortgage, what does "second position" refer to?
• What term describes the process when a lender contacts a borrower who is behind on payments?
• In a mortgage context, "interest" refers to what?
• What does a homeowner pay when transferring property to a new owner?
• What is the term for an arrangement made to repay delinquent installments or advances?
• What might happen if a borrower transfers title of the property without the lender's consent?
• What is the term used for a public meeting held to sell property to repay a defaulted mortgage?
• What is common law best described as?
• What does it mean if a mortgage is classified as a government loan?
• Which type of mortgage can be assumed by the buyer when a home is sold, typically requiring qualification?
• What term describes a decline in property value?
• What type of mortgage has an unchanging interest rate throughout the loan term?
• Which type of foreclosure is conducted as a civil lawsuit under court supervision?
• Which of the following best describes a first mortgage?
• What is the term for an amount owed to another party?
• What kind of mortgage would typically involve a fixed interest rate?
• Which document is used to apply for a mortgage loan?
• What does liability insurance protect against?
• Which components are included in a monthly mortgage payment on impounded loans?
• How is an appraisal defined in real estate?
• What does the bond market closely influence regarding real estate?
• Which type of mortgage refers to home loans other than government loans such as VA and FHA?
• What is a certificate of deposit?
• What does a condo conversion entail?
• What is the financing type called when a property seller provides all or part of the financing?
• Which of the following is included in the monthly payment of an 'impounded' loan?
• What is the primary purpose of a rate lock?
• What generally happens to the amount applied to principal over the life of a loan?
• What is a seller carry back in real estate?
• Which of the following terms reflects a lender's additional costs that are a percentage of the loan amount?
• What are homeowners association fees generally used for?
• Who is referred to as a person to whom money is owed?
• What is Fannie Mae (FNMA) known for?
• What type of agreement involves a borrower receiving something of value in exchange for a promise to repay at a later date?
• Which of the following best describes an escrow account?
• What is typically included in a 'back' or 'bottom' ratio calculation?
• What does "amortization" primarily refer to in real estate?
• What is often the result of submitting a lease option?
• What is the term for the limit on the interest rate fluctuations during an adjustment period in an adjustable rate mortgage?
• In mortgage life and disability insurance, how does coverage change as the principal balance declines?
• What does the certificate of deposit index reflect?
• What is a cloud on title?
• What does equity in real estate represent?
• What is the term for a fee charged to a borrower for paying off a loan before its due date?
• In joint tenancy, what is the right of survivors to acquire the interest of a deceased joint tenant called?
• Which type of loan provides financing without an existing property sale?
• How can a bi-weekly payment schedule benefit a mortgage borrower?
• What is the term for a lender's agreement to make a loan to a specific borrower on a specific property?
• What type of mortgage allows the remaining balance to be paid at the end of a specified term?
• What is a bill of sale primarily used for in real estate transactions?
• In a cooperative housing arrangement, what do residents own?
• What can typically resolve a cloud on title?
• The total amount of fees charged for closing a mortgage loan can be classified under which term?
• What type of estate allows a mortgagor to have a long-term lease on a property without owning it?
• What is considered a transfer of ownership?
• What is the role of a title company?
• How does one demonstrate that they are fully vested in a retirement fund?
• What is the role of an appraiser in the mortgage process?
• What do discount points refer to in the mortgage industry?
• What are the calculations used to determine if a borrower can qualify for a mortgage called?
• What does the margin in an adjustable-rate mortgage represent?
• What role does escrow play in a real estate transaction?
• What is an explanation for the term “loan servicing”?
• What is a cash-out refinance?
• Which of the following describes a borrower who has shown proof of their financials?
• What type of credit report contains raw data from multiple major credit repositories?
• What does a call option in real estate primarily refer to?
• What term is used to describe the increase in the value of a property due to various factors like market conditions or inflation?
• Which document is essential for the transfer of property ownership?
• What does 'comps' refer to in real estate?
• What is required on all loans with a loan-to-value ratio higher than 80%?
• In a mortgage agreement, who is referred to as the borrower?
• What is the term used to describe the failure to make mortgage payments on time?
• What term describes the process of paying off a loan balance in advance?
• What defines a jumbo loan?
• What is the purpose of a title search?
• What does an exclusive listing provide to a real estate agent?
• Which type of mortgage company originates loans and places them with various lending institutions?
• What is the primary function of servicing in mortgage terms?
• What does depreciation in real estate signify?
• What is the purpose of an escrow analysis performed by a lender?
• Who is typically involved in real estate transactions alongside realtors?
• What aspect of a mortgage does the VA guarantee for eligible veterans?
• Who is the public official responsible for keeping records of transactions that affect real property?
• Which law regulates the disclosure of consumer credit reports and establishes procedures for correcting mistakes on a credit record?
• Which entity sets standards for construction and underwriting in residential mortgage loans?
• The term 'fair market value' refers to:
• Which index is used to determine interest rate changes for certain adjustable-rate mortgages by reflecting the average cost of borrowing?
• What is typically included in a home warranty?
• What does it mean to be 'vested' in relation to retirement funds?
• What is a judgment?
• What is the term for the sum total of all real and personal property owned by an individual at the time of death?
• What term refers to anything that affects or limits the fee simple title to a property?
• Which document formally grants a real estate agent the authority to sell property?
• What does the term 'pre-paid items' refer to in closing costs?
• What does the APR (Annual Percentage Rate) represent?
• What term is used for the cash portion a buyer pays when acquiring a property?
• Why might a homeowner consider a sale-leaseback arrangement?
• Which type of estate is characterized by ownership of the property for an undefined term?
• What is the primary purpose of homeowners insurance?
• Which agency guarantees residential mortgages made to eligible veterans?
• What type of mortgage insurance protects lenders in case a borrower defaults?
• What provides certain individuals access to a property without owning it?
• In a mortgage agreement, who is referred to as the lender?
• What does closing refer to in real estate transactions?
• What is a common feature of joint tenancy?