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. Property Manager ( which type of Agency)
In a straight assumption - the new buyer is approved - and takes over payments and liability
Zoning
Redlining
General Agency

2. The trustee has two functions in accordance with the Deed of Trust.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
lower interest rate
Radon
Zoning

3. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
conomic obsolescence
conforming loans.
Reverse annuity
conforming loans

4. Loans qualified to be purchased in the secondary market are called
Subordination clause
conforming loans
Balloon loan
writ of execution

5. An agent's duties to his principal are...
(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.
Redlining
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

6. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
conforming loans.
In a straight assumption - the new buyer is approved - and takes over payments and liability
$4000.
husband and wife

7. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
The secondary
alimony - child support or a pension plan.
tenancy in common

8. ____ - the refusal to lend in a particular geographic area - is prohibited.
encumbrance
conomic obsolescence
rescission
Redlining

9. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
a power of attorney
In a straight assumption - the new buyer is approved - and takes over payments and liability
Zoning

10. Ownership by two or more without rights of survivorship is called
Alienation clause
Vendee's Lien
tenancy in common
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

11. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Blanket
Zoning
Radon
Mitigation

12. Which of the following instruments is the promise to repay a debt?
tenancy in common
General Agency
Balloon loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

13. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
a property exchange.
stigmatized
10%
grow - stabilize - decline - revitalize

14. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
Deed Restrictions
Mitigation
Balloon loan

15. 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.
Errors & Omissions insurance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Those on a fixed income
Balloon loan

16. A person who has real property willed to her by a relative is said to acquire title by...
Alienation clause
devise
conforming loans
tenancy in common

17. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
a grante
rescission
MIP - mortgage insurance premium
Alienation clause

18. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
a power of attorney
Zoning
estoppel

19. What is easment?
Package Loan
It is a right in land and should be created in writing and recorded.
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

20. '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?
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
Alienation clause
Redlining
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.

21. Real estate investors can defer taxation of capital gains by making ___
Those on a fixed income
a property exchange.
lower interest rate
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

22. An ___ is a limitation on your rights
Subordination clause
Balloon loan
25%
encumbrance

23. Common law does not always takes precedence over...
Radon
Total amount - Certificate amount x 4 = approved maximum loan amount
Statutory law
straight assumption

24. On income producing property land can never be depreciated for...
10%
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
husband and wife

25. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
grow - stabilize - decline - revitalize
Fannie Mae - Freddie Mac and Ginnie Mae.
straight assumption

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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

27. 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.
rescission
Blanket
lower interest rate
Zoning

28. Must sign the Deed of Trust.
trustor
Those on a fixed income
3
estoppel

29. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Alienation clause
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
The secondary

30. ___ 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.)
The secondary
conomic obsolescence
The trustee
Trustee's Deed

31. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Vendee's Lien
3
lower interest rate
General

32. ___ gives the agent the power to perform only specific acts and no others.
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
Special or limited agency
tenancy in common
The trustee

33. Covers more than one piece of property. (several lots on one note)
husband and wife
Blanket Loan
Redlining
the cash price or the APR

34. __ clause - states that the lien is defeated when the debt is repaid.
husband and wife
Defeasance
It is a right in land and should be created in writing and recorded.
Errors & Omissions insurance

35. High tension wire should be disclosed
EMFs
Defeasance
estate for years
An encumbrance

36. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Trustee's Deed
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
The trustee

37. One who acquires property under a deed is....
conomic obsolescence
ostensible agency
Zoning
a grante

38. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
An encumbrance
25%
$4000.

39. Advantages of FHA loans

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

40. An attorney-in-fact is the holder of...
Blanket Loan
Fannie Mae - Freddie Mac and Ginnie Mae.
a power of attorney
The secondary

41. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
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
Errors & Omissions insurance

42. 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.
Zoning
estoppel
$4000.
Subordination clause

43. The secondary market warehousing agencies are...
alimony - child support or a pension plan.
EMFs
Fannie Mae - Freddie Mac and Ginnie Mae.
$4000.

44. Includes real property plus personal property
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Package Loan
income tax purposes
conomic obsolescence

45. ___ 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
estoppel
General
Deed Restrictions

46. For what group of buyers would the ARM be the least desirable?
Deed Restrictions
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. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Those on a fixed income

47. ___loan - Covers more than one piece of property
Blanket Loan
Blanket
General
General Agency

48. Broker- Salesperson - owner-property manager-> which agency?
Total amount - Certificate amount x 4 = approved maximum loan amount
It is a right in land and should be created in writing and recorded.
General Agency
An encumbrance

49. ___ is created when a licensee acts like an agent and others respond to those actions.
by ratification.
alimony - child support or a pension plan.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
ostensible agency

50. Loans qualified to be purchased in the secondary market are called __
alimony - child support or a pension plan.
Deed Restrictions
conforming loans.
income tax purposes