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. Ownership by two or more without rights of survivorship is called
tenancy in common
husband and wife
Reverse annuity
Alienation clause

2. The veteran must obtain a Certificate of Eligibility from the VA
trustor
In a straight assumption - the new buyer is approved - and takes over payments and liability
Total amount - Certificate amount x 4 = approved maximum loan amount
An encumbrance

3. There are four basic characteristics of value
Blanket
Redlining
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

4. An ___ is a limitation on your rights
Errors & Omissions insurance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
ostensible agency
encumbrance

5. Lenders can deny credit if your sole source of income is__
An encumbrance
Special or limited agency
a property exchange.
alimony - child support or a pension plan.

6. An agent's duties to his principal are...
Special or limited agency
Blanket
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.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

7. Covers more than one piece of property. (several lots on one note)
Deed Restrictions
Special or limited agency
Blanket Loan
Fannie Mae - Freddie Mac and Ginnie Mae.

8. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
lower interest rate
husband and wife
Blanket

9. Loans qualified to be purchased in the secondary market are called __
EMFs
conforming loans.
Subordination clause
Tenancy by the Entirety

10. ___ is created when a licensee acts like an agent and others respond to those actions.
estoppel
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
estate for years
ostensible agency

11. A property where there has been a murder or alleged haunting is called...
stigmatized
Fannie Mae - Freddie Mac and Ginnie Mae.
alimony - child support or a pension plan.
a grante

12. For what group of buyers would the ARM be the least desirable?
Alienation clause
Those on a fixed income
10%
General Agency

13. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
tenancy in common
The trustee
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
EMFs

14. ___market is where lenders go for money
The secondary
a property exchange.
Statutory law
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.

15. ___ 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.)
Mitigation
conomic obsolescence
1. Release the lien when the note is paid. 2. Foreclose in the event of default
by ratification.

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

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17. __ "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.
Statutory law
a power of attorney
Tenancy by the Entirety
Alienation clause

18. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
MIP - mortgage insurance premium
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.
Blanket Loan

19. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
conforming loans
conforming loans.
by ratification.
writ of execution

20. What is easment?
It is a right in land and should be created in writing and recorded.
tenancy in common
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Package Loan

21. Property Manager ( which type of Agency)
a grante
conforming loans
General Agency
Errors & Omissions insurance

22. Common law does not always takes precedence over...
Statutory law
An encumbrance
conomic obsolescence
conforming loans

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

24. Must sign the Deed of Trust.
trustor
lower interest rate
$4000.
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.

25. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

26. Real estate investors can defer taxation of capital gains by making ___
devise
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
stigmatized
a property exchange.

27. ___ are imposed to control land use - development and methods and materials for construction.
Blanket Loan
Alienation clause
Radon
Deed Restrictions

28. Advantages of FHA loans

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29. Partially amortized loan - benefit
Radon
rescission
lower interest rate
tenancy in common

30. This will not impact of the seller's credit rating.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General Agency
straight assumption
10%

31. ___ gives the agent the power to perform only specific acts and no others.
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
Special or limited agency
by ratification.
stigmatized

32. The deed of trust involves three parties...
General Agency
Mitigation
10%
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

33. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
straight assumption
Blanket

34. Loans qualified to be purchased in the secondary market are called
Statutory law
devise
conforming loans
Those on a fixed income

35. ___ 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
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
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

36. ___loan - Covers more than one piece of property
10%
MIP - mortgage insurance premium
Blanket
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

37. 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.
Blanket Loan
Trustee's Deed
by ratification.
Balloon loan

38. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Zoning
stigmatized
Alienation clause

39. __ clause - states that the lien is defeated when the debt is repaid.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
straight assumption
Defeasance
Alienation clause

40. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
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.
rescission

41. ____ - the refusal to lend in a particular geographic area - is prohibited.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Redlining
estoppel
Radon

42. One who acquires property under a deed is....
a grante
encumbrance
lower interest rate
estoppel

43. IRS Lein - Specific lein or general lein
Reverse annuity
alimony - child support or a pension plan.
10%
General

44. High tension wire should be disclosed
EMFs
Errors & Omissions insurance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Alienation clause

45. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Reverse annuity
An encumbrance
trustor

46. ___ is a limitation on your rights. It may also be a cloud on the title
grow - stabilize - decline - revitalize
It is a right in land and should be created in writing and recorded.
Zoning
An encumbrance

47. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
Trustee's Deed
estate for years
the cash price or the APR

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

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49. The minimum withdrawal from a home equity LOC is
$4000.
3
Those on a fixed income
10%

50. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
It is a right in land and should be created in writing and recorded.
$4000.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary