Test your basic knowledge |

Brokers License

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. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Vendee's Lien
Subordination clause
1. Release the lien when the note is paid. 2. Foreclose in the event of default
rescission

2. Includes real property plus personal property
Vendee's Lien
Deed Restrictions
trustor
Package Loan

3. A property where there has been a murder or alleged haunting is called...
lower interest rate
encumbrance
MIP - mortgage insurance premium
stigmatized

4. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
$4000.
husband and wife
Balloon loan

5. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
ostensible agency
MIP - mortgage insurance premium
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

6. IRS Lein - Specific lein or general lein
encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
General
The secondary

7. Ownership by two or more without rights of survivorship is called
General Agency
EMFs
Zoning
tenancy in common

8. ___market is where lenders go for money
The secondary
An encumbrance
Tenancy by the Entirety
devise

9. An agent's duties to his principal are...
3
writ of execution
straight assumption
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

10. __ clause - states that the lien is defeated when the debt is repaid.
EMFs
Defeasance
General Agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default

11. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
trustor
tenancy in common
the cash price or the APR

12. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
25%
Fannie Mae - Freddie Mac and Ginnie Mae.
devise
3

13. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Blanket Loan
Radon
1. Release the lien when the note is paid. 2. Foreclose in the event of default
grow - stabilize - decline - revitalize

14. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Mitigation
Subordination clause
Deed Restrictions
alimony - child support or a pension plan.

15. A principal's duties to an agent ar...
by ratification.
lower interest rate
Those on a fixed income
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

16. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Those on a fixed income
The secondary
Mitigation
income tax purposes

17. An ___ is a limitation on your rights
3
a property exchange.
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

18. The minimum withdrawal from a home equity LOC is
$4000.
The secondary
stigmatized
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

19. This will not impact of the seller's credit rating.
straight assumption
Fannie Mae - Freddie Mac and Ginnie Mae.
It is a right in land and should be created in writing and recorded.
alimony - child support or a pension plan.

20. Partially amortized loan - benefit
$4000.
a property exchange.
lower interest rate
by ratification.

21. Covers more than one piece of property. (several lots on one note)
Blanket Loan
Vendee's Lien
straight assumption
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.

22. The secondary market warehousing agencies are...
Special or limited agency
Fannie Mae - Freddie Mac and Ginnie Mae.
Balloon loan
husband and wife

23. Property Manager ( which type of Agency)
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General Agency
estate for years
Vendee's Lien

24. This lease survives death and/or the sale of the property. No notice is required to terminate.
alimony - child support or a pension plan.
MIP - mortgage insurance premium
Total amount - Certificate amount x 4 = approved maximum loan amount
estate for years

25. Common law does not always takes precedence over...
trustor
Package Loan
encumbrance
Statutory law

26. A person who has real property willed to her by a relative is said to acquire title by...
Fannie Mae - Freddie Mac and Ginnie Mae.
The trustee
devise
Alienation clause

27. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
An encumbrance
Zoning
estate for years
writ of execution

28. Advantages of FHA loans

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29. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
3
Mitigation
MIP - mortgage insurance premium
by ratification.

30. ___ 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.)
rescission
It is a right in land and should be created in writing and recorded.
stigmatized
conomic obsolescence

31. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___

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32. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
estoppel
Zoning
a power of attorney

33. Real estate investors can defer taxation of capital gains by making ___
Statutory law
the cash price or the APR
estate for years
a property exchange.

34. On income producing property land can never be depreciated for...
income tax purposes
$4000.
Errors & Omissions insurance
General

35. Loan novation?
alimony - child support or a pension plan.
In a straight assumption - the new buyer is approved - and takes over payments and liability
husband and wife
25%

36. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
In a straight assumption - the new buyer is approved - and takes over payments and liability
Blanket Loan
Balloon loan

37. ___ are imposed to control land use - development and methods and materials for construction.
25%
General
Deed Restrictions
tenancy in common

38. ___loan - Covers more than one piece of property
25%
income tax purposes
Blanket
Balloon loan

39. ___ is a limitation on your rights. It may also be a cloud on the title
General Agency
trustor
An encumbrance
a grante

40. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
EMFs
25%
Subordination clause
Reverse annuity

41. High tension wire should be disclosed
by ratification.
An encumbrance
In a straight assumption - the new buyer is approved - and takes over payments and liability
EMFs

42. 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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
trustor
Zoning
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

43. The deed of trust involves three parties...
3
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
ostensible agency
Radon

44. An attorney-in-fact is the holder of...
Blanket Loan
a power of attorney
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency

45. __ "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.
alimony - child support or a pension plan.
In a straight assumption - the new buyer is approved - and takes over payments and liability
conforming loans
Alienation clause

46. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest

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47. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
General
grow - stabilize - decline - revitalize
Trustee's Deed
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

48. ____ - the refusal to lend in a particular geographic area - is prohibited.
General
$4000.
Redlining
Those on a fixed income

49. The trustee has two functions in accordance with the Deed of Trust.
Blanket Loan
The trustee
Alienation clause
1. Release the lien when the note is paid. 2. Foreclose in the event of default

50. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
Blanket
lower interest rate
encumbrance