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. ___ are imposed to control land use - development and methods and materials for construction.
The secondary
Deed Restrictions
income tax purposes
estoppel

2. Loans qualified to be purchased in the secondary market are called
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
writ of execution
income tax purposes
conforming loans

3. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
$4000.
3
Package Loan
In a straight assumption - the new buyer is approved - and takes over payments and liability

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

5. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
devise
Blanket
the cash price or the APR

6. ____ - the refusal to lend in a particular geographic area - is prohibited.
MIP - mortgage insurance premium
trustor
Redlining
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

7. '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?
income tax purposes
Alienation clause
Subordination clause
Tenancy by the Entirety

8. Covers more than one piece of property. (several lots on one note)
Blanket Loan
EMFs
General Agency
conomic obsolescence

9. One who acquires property under a deed is....
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
ostensible agency
rescission
a grante

10. ___ gives the agent the power to perform only specific acts and no others.
estate for years
Statutory law
Special or limited agency
MIP - mortgage insurance premium

11. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
EMFs
25%
General Agency
conomic obsolescence

12. IN Reg Z Advertising which states only __is permitted
It is a right in land and should be created in writing and recorded.
Mitigation
the cash price or the APR
Special or limited agency

13. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
lower interest rate
by ratification.
rescission
tenancy in common

14. ___ is a limitation on your rights. It may also be a cloud on the title
Reverse annuity
Package Loan
An encumbrance
straight assumption

15. __ is a specific type of joint tenancy where the co-owners are husband and wife.
General
Tenancy by the Entirety
Those on a fixed income
Package Loan

16. Property Manager ( which type of Agency)
rescission
straight assumption
Blanket
General Agency

17. 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
a power of attorney
The secondary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

18. ___market is where lenders go for money
tenancy in common
Package Loan
Statutory law
The secondary

19. The deed of trust involves three parties...
the cash price or the APR
Vendee's Lien
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
25%

20. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Those on a fixed income
writ of execution
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

21. IRS Lein - Specific lein or general lein
Alienation clause
The secondary
General
rescission

22. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Tenancy by the Entirety
Blanket
$4000.
writ of execution

23. A property where there has been a murder or alleged haunting is called...
Trustee's Deed
EMFs
Blanket Loan
stigmatized

24. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
25%
Reverse annuity
estate for years

25. Advantages of FHA loans

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26. An agent's duties to his principal are...
General
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Blanket
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

27. On income producing property land can never be depreciated for...
income tax purposes
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
The secondary
Fannie Mae - Freddie Mac and Ginnie Mae.

28. Real estate investors can defer taxation of capital gains by making ___
Errors & Omissions insurance
The secondary
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.

29. Broker- Salesperson - owner-property manager-> which agency?
devise
General Agency
Defeasance
Tenancy by the Entirety

30. The trustee has two functions in accordance with the Deed of Trust.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
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.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
It is a right in land and should be created in writing and recorded.

31. Must sign the Deed of Trust.
EMFs
Defeasance
trustor
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.

32. The secondary market warehousing agencies are...
devise
Fannie Mae - Freddie Mac and Ginnie Mae.
a power of attorney
Zoning

33. ___loan - Covers more than one piece of property
25%
Blanket
MIP - mortgage insurance premium
Trustee's Deed

34. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
writ of execution
General Agency
Special or limited agency
grow - stabilize - decline - revitalize

35. There are four basic characteristics of value
Trustee's Deed
It is a right in land and should be created in writing and recorded.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
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

36. High tension wire should be disclosed
Alienation clause
An encumbrance
by ratification.
EMFs

37. A principal's duties to an agent ar...
3
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
the cash price or the APR
Balloon loan

38. Loans qualified to be purchased in the secondary market are called __
General
It is a right in land and should be created in writing and recorded.
conforming loans.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

39. For what group of buyers would the ARM be the least desirable?
Fannie Mae - Freddie Mac and Ginnie Mae.
Those on a fixed income
conforming loans.
Blanket Loan

40. ___ 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
grow - stabilize - decline - revitalize
25%
devise

41. A person who has real property willed to her by a relative is said to acquire title by...
devise
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
trustor
husband and wife

42. The veteran must obtain a Certificate of Eligibility from the VA
Fannie Mae - Freddie Mac and Ginnie Mae.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Total amount - Certificate amount x 4 = approved maximum loan amount
income tax purposes

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

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44. 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.
$4000.
10%
Balloon loan
estate for years

45. The insurance on the FHA loan is referred to as___
3
EMFs
MIP - mortgage insurance premium
25%

46. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
MIP - mortgage insurance premium
Mitigation
Tenancy by the Entirety
lower interest rate

47. ___ 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.)
Radon
conforming loans
conomic obsolescence
Total amount - Certificate amount x 4 = approved maximum loan amount

48. This will not impact of the seller's credit rating.
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
estoppel

49. Ownership by two or more without rights of survivorship is called
Package Loan
tenancy in common
devise
encumbrance

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

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