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. Broker- Salesperson - owner-property manager-> which agency?
alimony - child support or a pension plan.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
rescission
General Agency

2. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.
General Agency

3. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Reverse annuity
the cash price or the APR
$4000.
3

4. Partially amortized loan - benefit
encumbrance
a grante
lower interest rate
estate for years

5. Must sign the Deed of Trust.
conforming loans
husband and wife
trustor
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

6. The insurance on the FHA loan is referred to as___
trustor
3
MIP - mortgage insurance premium
Those on a fixed income

7. An attorney-in-fact is the holder of...
estoppel
1. Release the lien when the note is paid. 2. Foreclose in the event of default
a power of attorney
The trustee

8. Loans qualified to be purchased in the secondary market are called
General Agency
conforming loans
EMFs
Blanket

9. This will not impact of the seller's credit rating.
General Agency
straight assumption
estate for years
estoppel

10. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Package Loan
lower interest rate
writ of execution
25%

11. Which of the following instruments is the promise to repay a debt?
conforming loans.
rescission
EMFs
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

12. ___ is created when a licensee acts like an agent and others respond to those actions.
Radon
Blanket
An encumbrance
ostensible agency

13. 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
ostensible agency
In a straight assumption - the new buyer is approved - and takes over payments and liability

14. Advantages of FHA loans

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15. IRS Lein - Specific lein or general lein
Fannie Mae - Freddie Mac and Ginnie Mae.
General
25%
husband and wife

16. 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
conforming loans
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

17. On income producing property land can never be depreciated for...
conforming loans.
alimony - child support or a pension plan.
MIP - mortgage insurance premium
income tax purposes

18. ___loan - Covers more than one piece of property
Blanket Loan
Blanket
Alienation clause
Those on a fixed income

19. Common law does not always takes precedence over...
rescission
writ of execution
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Statutory law

20. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Defeasance
husband and wife
Radon
writ of execution

21. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
The trustee
the cash price or the APR
grow - stabilize - decline - revitalize
trustor

22. High tension wire should be disclosed
EMFs
Reverse annuity
grow - stabilize - decline - revitalize
straight assumption

23. 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.
Balloon loan
a power of attorney
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.

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

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

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26. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
$4000.
Those on a fixed income
by ratification.
rescission

27. Loan novation?
Vendee's Lien
Redlining
stigmatized
In a straight assumption - the new buyer is approved - and takes over payments and liability

28. ___ 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.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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.
General
Errors & Omissions insurance

29. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Trustee's Deed
Alienation clause
Alienation clause
husband and wife

30. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
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
husband and wife

31. 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
income tax purposes
An encumbrance
Radon

32. ___ gives the agent the power to perform only specific acts and no others.
estoppel
a power of attorney
Special or limited agency
Those on a fixed income

33. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
tenancy in common
trustor
Balloon loan
Mitigation

34. An ___ is a limitation on your rights
10%
a power of attorney
husband and wife
encumbrance

35. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Balloon loan
ostensible agency
10%

36. Includes real property plus personal property
Package Loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
devise
husband and wife

37. __ is a specific type of joint tenancy where the co-owners are husband and wife.
$4000.
Fannie Mae - Freddie Mac and Ginnie Mae.
Tenancy by the Entirety
trustor

38. ___ are imposed to control land use - development and methods and materials for construction.
lower interest rate
husband and wife
the cash price or the APR
Deed Restrictions

39. The veteran must obtain a Certificate of Eligibility from the VA
General
Total amount - Certificate amount x 4 = approved maximum loan amount
Zoning
tenancy in common

40. For what group of buyers would the ARM be the least desirable?
General Agency
In a straight assumption - the new buyer is approved - and takes over payments and liability
Those on a fixed income
husband and wife

41. Loans qualified to be purchased in the secondary market are called __
a power of attorney
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conforming loans.
10%

42. What is easment?
conomic obsolescence
lower interest rate
In a straight assumption - the new buyer is approved - and takes over payments and liability
It is a right in land and should be created in writing and recorded.

43. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Redlining
stigmatized
Alienation clause

44. __ "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.
$4000.
Alienation clause
trustor
Zoning

45. ___market is where lenders go for money
In a straight assumption - the new buyer is approved - and takes over payments and liability
straight assumption
Fannie Mae - Freddie Mac and Ginnie Mae.
The secondary

46. 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.
estoppel
stigmatized
Balloon loan
conomic obsolescence

47. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
In a straight assumption - the new buyer is approved - and takes over payments and liability
25%
Zoning

48. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
ostensible agency
Redlining
An encumbrance

49. The secondary market warehousing agencies are...
EMFs
Total amount - Certificate amount x 4 = approved maximum loan amount
Fannie Mae - Freddie Mac and Ginnie Mae.
Blanket Loan

50. Property Manager ( which type of Agency)
conforming loans
General Agency
Reverse annuity
10%