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. One who acquires property under a deed is....
a grante
Alienation clause
Special or limited agency
3

2. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Balloon loan
trustor
25%
EMFs

3. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
$4000.
straight assumption
Alienation clause
Subordination clause

4. The trustee has two functions in accordance with the Deed of Trust.
Fannie Mae - Freddie Mac and Ginnie Mae.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
The trustee
Subordination clause

5. The minimum withdrawal from a home equity LOC is
a power of attorney
$4000.
Trustee's Deed
Total amount - Certificate amount x 4 = approved maximum loan amount

6. When a principal fails to maintain due diligence over his agent and as a result the court prevents the principal from denying that agency - agency by __ is created.
General
Tenancy by the Entirety
the cash price or the APR
estoppel

7. Must sign the Deed of Trust.
Blanket Loan
Alienation clause
trustor
Errors & Omissions insurance

8. This will not impact of the seller's credit rating.
Redlining
Defeasance
$4000.
straight assumption

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

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10. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
It is a right in land and should be created in writing and recorded.
lower interest rate
Radon
writ of execution

11. An attorney-in-fact is the holder of...
Errors & Omissions insurance
a grante
a power of attorney
Redlining

12. 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
Zoning
Redlining
Radon

13. Advantages of FHA loans

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14. Lenders can deny credit if your sole source of income is__
Statutory law
Total amount - Certificate amount x 4 = approved maximum loan amount
Reverse annuity
alimony - child support or a pension plan.

15. ___ gives the agent the power to perform only specific acts and no others.
10%
Special or limited agency
conomic obsolescence
Redlining

16. __ "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.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Alienation clause
straight assumption
The secondary

17. ___ is created when a licensee acts like an agent and others respond to those actions.
Total amount - Certificate amount x 4 = approved maximum loan amount
Reverse annuity
husband and wife
ostensible agency

18. A property where there has been a murder or alleged haunting is called...
stigmatized
encumbrance
Reverse annuity
Blanket Loan

19. '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?
Trustee's Deed
alimony - child support or a pension plan.
husband and wife
Alienation clause

20. On income producing property land can never be depreciated for...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
income tax purposes
a grante
Errors & Omissions insurance

21. This lease survives death and/or the sale of the property. No notice is required to terminate.
devise
estate for years
the cash price or the APR
husband and wife

22. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
Alienation clause
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.
Reverse annuity

23. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
alimony - child support or a pension plan.
3
10%

24. ___market is where lenders go for money
3
10%
husband and wife
The secondary

25. ___ is a limitation on your rights. It may also be a cloud on the title
In a straight assumption - the new buyer is approved - and takes over payments and liability
stigmatized
An encumbrance
trustor

26. 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.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Trustee's Deed
Balloon loan
Those on a fixed income

27. The secondary market warehousing agencies are...
Reverse annuity
The secondary
straight assumption
Fannie Mae - Freddie Mac and Ginnie Mae.

28. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a grante
Trustee's Deed
Tenancy by the Entirety

29. ___ are imposed to control land use - development and methods and materials for construction.
The secondary
Fannie Mae - Freddie Mac and Ginnie Mae.
It is a right in land and should be created in writing and recorded.
Deed Restrictions

30. The veteran must obtain a Certificate of Eligibility from the VA
An encumbrance
It is a right in land and should be created in writing and recorded.
General
Total amount - Certificate amount x 4 = approved maximum loan amount

31. ___loan - Covers more than one piece of property
Blanket
by ratification.
Fannie Mae - Freddie Mac and Ginnie Mae.
Statutory law

32. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
the cash price or the APR
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
straight assumption

33. Broker- Salesperson - owner-property manager-> which agency?
General Agency
10%
Special or limited agency
stigmatized

34. ___ 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.)
$4000.
conomic obsolescence
encumbrance
Those on a fixed income

35. Real estate investors can defer taxation of capital gains by making ___
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
writ of execution

36. There are four basic characteristics of value
Special or limited agency
a grante
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

37. Covers more than one piece of property. (several lots on one note)
by ratification.
Blanket
Blanket Loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

38. __ is a specific type of joint tenancy where the co-owners are husband and wife.
a property exchange.
10%
Special or limited agency
Tenancy by the Entirety

39. High tension wire should be disclosed
writ of execution
lower interest rate
EMFs
conforming loans.

40. The insurance on the FHA loan is referred to as___
tenancy in common
Fannie Mae - Freddie Mac and Ginnie Mae.
MIP - mortgage insurance premium
income tax purposes

41. What is easment?
It is a right in land and should be created in writing and recorded.
Blanket Loan
Errors & Omissions insurance
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.

42. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Radon
Reverse annuity
a power of attorney
1. Release the lien when the note is paid. 2. Foreclose in the event of default

43. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
husband and wife
An encumbrance
conforming loans.

44. An agent's duties to his principal are...
Deed Restrictions
Errors & Omissions insurance
trustor
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

45. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
by ratification.
writ of execution
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.
the cash price or the APR

46. A person who has real property willed to her by a relative is said to acquire title by...
Total amount - Certificate amount x 4 = approved maximum loan amount
encumbrance
devise
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

47. Includes real property plus personal property
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
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
An encumbrance
Package Loan

48. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
a property exchange.
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.
Package Loan

49. An ___ is a limitation on your rights
estate for years
3
encumbrance
In a straight assumption - the new buyer is approved - and takes over payments and liability

50. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Vendee's Lien
husband and wife
grow - stabilize - decline - revitalize