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. An agent's duties to his principal are...
income tax purposes
Mitigation
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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.

2. Partially amortized loan - benefit
Balloon loan
General
The trustee
lower interest rate

3. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Mitigation
the cash price or the APR
25%
The trustee

4. This lease survives death and/or the sale of the property. No notice is required to terminate.
stigmatized
estate for years
Radon
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

5. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
conforming loans.
Blanket
Tenancy by the Entirety

6. A person who has real property willed to her by a relative is said to acquire title by...
conforming loans.
MIP - mortgage insurance premium
devise
Zoning

7. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
ostensible agency
Alienation clause
encumbrance

8. The secondary market warehousing agencies are...
Those on a fixed income
Fannie Mae - Freddie Mac and Ginnie Mae.
EMFs
conforming loans.

9. Common law does not always takes precedence over...
Defeasance
Trustee's Deed
General
Statutory law

10. Which of the following instruments is the promise to repay a debt?
Special or limited agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
straight assumption
$4000.

11. Loans qualified to be purchased in the secondary market are called
Trustee's Deed
estate for years
conforming loans
a property exchange.

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.
Fannie Mae - Freddie Mac and Ginnie Mae.
Special or limited agency
writ of execution
Zoning

13. Loans qualified to be purchased in the secondary market are called __
by ratification.
General Agency
conforming loans.
rescission

14. The trustee has two functions in accordance with the Deed of Trust.
Zoning
conomic obsolescence
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

15. A principal's duties to an agent ar...
Package Loan
estoppel
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

16. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
An encumbrance
10%
Blanket Loan

17. Ownership by two or more without rights of survivorship is called
Those on a fixed income
Package Loan
tenancy in common
Blanket Loan

18. Advantages of FHA loans

19. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Blanket
EMFs
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

20. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
straight assumption
The secondary
Zoning

21. Includes real property plus personal property
Alienation clause
Package Loan
3
Those on a fixed income

22. There are four basic characteristics of value
Trustee's Deed
Deed Restrictions
conforming loans.
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

23. IN Reg Z Advertising which states only __is permitted
Total amount - Certificate amount x 4 = approved maximum loan amount
the cash price or the APR
estate for years
An encumbrance

24. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
devise
Tenancy by the Entirety

25. ___market is where lenders go for money
The secondary
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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
$4000.

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

27. Covers more than one piece of property. (several lots on one note)
grow - stabilize - decline - revitalize
Blanket Loan
Tenancy by the Entirety
Statutory law

28. IRS Lein - Specific lein or general lein
Statutory law
General
alimony - child support or a pension plan.
tenancy in common

29. One who acquires property under a deed is....
1. Release the lien when the note is paid. 2. Foreclose in the event of default
An encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
a grante

30. The deed of trust involves three parties...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

31. An ___ is a limitation on your rights
encumbrance
MIP - mortgage insurance premium
a property exchange.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

32. Loan novation?
conforming loans
In a straight assumption - the new buyer is approved - and takes over payments and liability
Balloon loan
Statutory law

33. This will not impact of the seller's credit rating.
trustor
straight assumption
The secondary
Errors & Omissions insurance

34. Must sign the Deed of Trust.
General Agency
trustor
straight assumption
writ of execution

35. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Mitigation
the cash price or the APR
writ of execution

36. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
10%
General Agency
Reverse annuity

37. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
alimony - child support or a pension plan.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
10%

38. What is easment?
General Agency
straight assumption
tenancy in common
It is a right in land and should be created in writing and recorded.

39. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Trustee's Deed
25%
conomic obsolescence
An encumbrance

40. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
stigmatized
Fannie Mae - Freddie Mac and Ginnie Mae.
encumbrance
husband and wife

41. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
the cash price or the APR
tenancy in common
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Mitigation

42. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
General Agency
encumbrance
Radon

43. Property Manager ( which type of Agency)
General Agency
a grante
stigmatized
income tax purposes

44. ___loan - Covers more than one piece of property
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Fannie Mae - Freddie Mac and Ginnie Mae.
General Agency
Blanket

45. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
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.
trustor
Vendee's Lien

46. ___ 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
EMFs
Vendee's Lien
Those on a fixed income

47. High tension wire should be disclosed
a property exchange.
EMFs
MIP - mortgage insurance premium
Radon

48. Lenders can deny credit if your sole source of income is__
Reverse annuity
alimony - child support or a pension plan.
the cash price or the APR
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

49. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
In a straight assumption - the new buyer is approved - and takes over payments and liability
Statutory law
by ratification.
Zoning

50. 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.
devise
Mitigation
estoppel
encumbrance