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. The secondary market warehousing agencies are...
Errors & Omissions insurance
Deed Restrictions
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.

2. High tension wire should be disclosed
EMFs
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.
stigmatized

3. A principal's duties to an agent ar...
Balloon loan
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

4. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
$4000.
Vendee's Lien
lower interest rate

5. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
General
Alienation clause
Alienation clause

6. What is easment?
trustor
Subordination clause
It is a right in land and should be created in writing and recorded.
ostensible agency

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

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8. Loan novation?
conforming loans.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
In a straight assumption - the new buyer is approved - and takes over payments and liability
Defeasance

9. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Package Loan
Redlining

10. ___loan - Covers more than one piece of property
Blanket
It is a right in land and should be created in writing and recorded.
rescission
Zoning

11. Partially amortized loan - benefit
lower interest rate
writ of execution
General Agency
trustor

12. Broker- Salesperson - owner-property manager-> which agency?
General Agency
devise
conomic obsolescence
Subordination clause

13. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Radon
10%
3
Those on a fixed income

14. Common law does not always takes precedence over...
Statutory law
Blanket Loan
Defeasance
Alienation clause

15. A person who has real property willed to her by a relative is said to acquire title by...
Balloon loan
devise
lower interest rate
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

16. 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.
devise
Zoning
An encumbrance
tenancy in common

17. Must sign the Deed of Trust.
a grante
trustor
The secondary
grow - stabilize - decline - revitalize

18. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Radon
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
writ of execution
Mitigation

19. Loans qualified to be purchased in the secondary market are called
It is a right in land and should be created in writing and recorded.
Blanket Loan
conforming loans
lower interest rate

20. Real estate investors can defer taxation of capital gains by making ___
a grante
Total amount - Certificate amount x 4 = approved maximum loan amount
a property exchange.
$4000.

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

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22. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
encumbrance
income tax purposes
devise

23. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
Blanket
husband and wife
The trustee

24. On income producing property land can never be depreciated for...
25%
Trustee's Deed
General Agency
income tax purposes

25. The veteran must obtain a Certificate of Eligibility from the VA
estoppel
Total amount - Certificate amount x 4 = approved maximum loan amount
conomic obsolescence
$4000.

26. ___ 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.
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
Redlining
Errors & Omissions insurance

27. 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
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.
estoppel
rescission

28. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
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
3
ostensible agency
Reverse annuity

29. Advantages of FHA loans

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30. An attorney-in-fact is the holder of...
trustor
tenancy in common
Blanket
a power of attorney

31. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
$4000.
Balloon loan

32. The trustee has two functions in accordance with the Deed of Trust.
Balloon 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.
straight assumption
1. Release the lien when the note is paid. 2. Foreclose in the event of default

33. '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?
stigmatized
3
Alienation clause
trustor

34. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
devise
Mitigation
encumbrance

35. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
a property exchange.
Subordination clause
stigmatized
Alienation clause

36. ___market is where lenders go for money
trustor
income tax purposes
The secondary
Special or limited agency

37. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Zoning
Redlining
Special or limited agency

38. __ is a specific type of joint tenancy where the co-owners are husband and wife.
a grante
3
conforming loans.
Tenancy by the Entirety

39. Loans qualified to be purchased in the secondary market are called __
Zoning
MIP - mortgage insurance premium
conforming loans.
income tax purposes

40. IN Reg Z Advertising which states only __is permitted
by ratification.
Trustee's Deed
the cash price or the APR
straight assumption

41. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Those on a fixed income
a power of attorney
Radon

42. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
grow - stabilize - decline - revitalize
10%

43. Includes real property plus personal property
Alienation clause
Package Loan
Redlining
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

44. There are four basic characteristics of value
conforming loans
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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
lower interest rate

45. An ___ is a limitation on your rights
stigmatized
encumbrance
rescission
income tax purposes

46. The deed of trust involves three parties...
Radon
Mitigation
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
$4000.

47. ___ is a limitation on your rights. It may also be a cloud on the title
the cash price or the APR
conforming loans.
An encumbrance
Mitigation

48. IRS Lein - Specific lein or general lein
Balloon loan
General
Subordination clause
The secondary

49. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
10%
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
trustor
The trustee

50. Ownership by two or more without rights of survivorship is called
The trustee
tenancy in common
Blanket Loan
EMFs