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Brokers License

Instructions:

Answer 50 questions in 15 minutes.
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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....
ostensible agency
Blanket Loan
a grante
Deed Restrictions

2. Which of the following instruments is the promise to repay a debt?
Errors & Omissions insurance
stigmatized
Zoning
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

3. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
Redlining
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

4. On income producing property land can never be depreciated for...
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
Alienation clause
income tax purposes
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

5. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
straight assumption
General Agency
Vendee's Lien
10%

6. ____ - the refusal to lend in a particular geographic area - is prohibited.
25%
Those on a fixed income
Redlining
lower interest rate

7. For what group of buyers would the ARM be the least desirable?
It is a right in land and should be created in writing and recorded.
Blanket
Those on a fixed income
An encumbrance

8. Partially amortized loan - benefit
lower interest rate
General
Package Loan
The secondary

9. ___ is created when a licensee acts like an agent and others respond to those actions.
alimony - child support or a pension plan.
writ of execution
ostensible agency
Deed Restrictions

10. __ "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.
estate for years
the cash price or the APR
Alienation clause
rescission

11. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
MIP - mortgage insurance premium
25%
Vendee's Lien
Fannie Mae - Freddie Mac and Ginnie Mae.

12. A property where there has been a murder or alleged haunting is 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
stigmatized
$4000.
a power of attorney

13. Loan novation?
It is a right in land and should be created in writing and recorded.
a power of attorney
Deed Restrictions
In a straight assumption - the new buyer is approved - and takes over payments and liability

14. This will not impact of the seller's credit rating.
straight assumption
conforming loans
MIP - mortgage insurance premium
lower interest rate

15. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Reverse annuity
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Defeasance

16. Loans qualified to be purchased in the secondary market are called __
conforming loans.
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.
alimony - child support or a pension plan.
Alienation clause

17. Ownership by two or more without rights of survivorship is called
$4000.
tenancy in common
Package Loan
MIP - mortgage insurance premium

18. An agent's duties to his principal are...
conforming loans
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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.
conomic obsolescence

19. Loans qualified to be purchased in the secondary market are called
conforming loans
Mitigation
husband and wife
10%

20. The insurance on the FHA loan is referred to as___
1. Release the lien when the note is paid. 2. Foreclose in the event of default
MIP - mortgage insurance premium
Blanket
Alienation clause

21. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
the cash price or the APR
Radon
Balloon loan

22. ___ 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.
Errors & Omissions insurance
straight assumption
Trustee's Deed
MIP - mortgage insurance premium

23. This lease survives death and/or the sale of the property. No notice is required to terminate.
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount
estate for years
Defeasance

24. A principal's duties to an agent ar...
straight assumption
The trustee
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
10%

25. A person who has real property willed to her by a relative is said to acquire title by...
devise
General Agency
stigmatized
income tax purposes

26. What is easment?
General Agency
Trustee's Deed
It is a right in land and should be created in writing and recorded.
by ratification.

27. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Errors & Omissions insurance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Tenancy by the Entirety
Reverse annuity

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?
conforming loans.
income tax purposes
Alienation clause
Deed Restrictions

29. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
the cash price or the APR
Redlining
Deed Restrictions

30. The trustee has two functions in accordance with the Deed of Trust.
Deed Restrictions
3
1. Release the lien when the note is paid. 2. Foreclose in the event of default
a grante

31. 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.
10%
rescission
$4000.
Zoning

32. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
the cash price or the APR
EMFs
conforming loans.

33. An ___ is a limitation on your rights
encumbrance
Blanket Loan
Total amount - Certificate amount x 4 = approved maximum loan amount
conomic obsolescence

34. The deed of trust involves three parties...
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
Package Loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
rescission

35. Property Manager ( which type of Agency)
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
General Agency
Blanket Loan

36. 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
Vendee's Lien
Tenancy by the Entirety
income tax purposes

37. Common law does not always takes precedence over...
stigmatized
Statutory law
the cash price or the APR
In a straight assumption - the new buyer is approved - and takes over payments and liability

38. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
It is a right in land and should be created in writing and recorded.
writ of execution
An encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

39. ___ is a limitation on your rights. It may also be a cloud on the title
a grante
An encumbrance
10%
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

40. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
Fannie Mae - Freddie Mac and Ginnie Mae.
a property exchange.
25%

41. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___
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
General Agency
grow - stabilize - decline - revitalize

42. IN Reg Z Advertising which states only __is permitted
Blanket
Balloon loan
the cash price or the APR
Zoning

43. The secondary market warehousing agencies are...
lower interest rate
Fannie Mae - Freddie Mac and Ginnie Mae.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
MIP - mortgage insurance premium

44. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
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
Blanket Loan
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.
Subordination clause

45. 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.
trustor
straight assumption
In a straight assumption - the new buyer is approved - and takes over payments and liability
Balloon loan

46. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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.
Mitigation

47. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Statutory law
25%
Mitigation
Trustee's Deed

48. Advantages of FHA loans
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
stigmatized
Special or limited agency
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.

49. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
devise
by ratification.
conomic obsolescence
Alienation clause

50. Real estate investors can defer taxation of capital gains by making ___
stigmatized
tenancy in common
conforming loans.
a property exchange.

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Brokers License

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