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. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
The trustee
Statutory law
Subordination clause
rescission

2. Property Manager ( which type of Agency)
EMFs
General Agency
stigmatized
conforming loans

3. ___ 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.
Vendee's Lien
General
Package Loan
Errors & Omissions insurance

4. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Fannie Mae - Freddie Mac and Ginnie Mae.
writ of execution
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

5. The deed of trust involves three parties...
In a straight assumption - the new buyer is approved - and takes over payments and liability
10%
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Package Loan

6. Common law does not always takes precedence over...
Statutory law
rescission
Redlining
Those on a fixed income

7. An attorney-in-fact is the holder of...
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.
$4000.
conforming loans.
a power of attorney

8. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
conomic obsolescence
a property exchange.
Reverse annuity
lower interest rate

9. Partially amortized loan - benefit
lower interest rate
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.
Tenancy by the Entirety
Subordination clause

10. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
MIP - mortgage insurance premium
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
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

11. ___market is where lenders go for money
income tax purposes
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
Package Loan
The secondary

12. Broker- Salesperson - owner-property manager-> which agency?
conforming loans
Reverse annuity
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount

13. High tension wire should be disclosed
Radon
Balloon loan
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

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

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15. A principal's duties to an agent ar...
lower interest rate
Errors & Omissions insurance
Deed Restrictions
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

16. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Alienation clause
Radon
Mitigation
husband and wife

17. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Total amount - Certificate amount x 4 = approved maximum loan amount
Special or limited agency
Blanket

18. IRS Lein - Specific lein or general lein
General
a power of attorney
rescission
a property exchange.

19. A person who has real property willed to her by a relative is said to acquire title by...
Mitigation
devise
10%
Fannie Mae - Freddie Mac and Ginnie Mae.

20. 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.
Zoning
Balloon loan
stigmatized
Total amount - Certificate amount x 4 = approved maximum loan amount

21. Loan novation?
An encumbrance
General
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.
In a straight assumption - the new buyer is approved - and takes over payments and liability

22. ___ 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.)
Trustee's Deed
conomic obsolescence
rescission
Balloon loan

23. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Mitigation
Tenancy by the Entirety
tenancy in common
Defeasance

24. There are four basic characteristics of value
Special or limited agency
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
Mitigation
MIP - mortgage insurance premium

25. Ownership by two or more without rights of survivorship is called
Vendee's Lien
Those on a fixed income
tenancy in common
writ of execution

26. Must sign the Deed of Trust.
Blanket
estoppel
trustor
husband and wife

27. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
rescission
Reverse annuity
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

28. ___ is a limitation on your rights. It may also be a cloud on the title
Deed Restrictions
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Reverse annuity
An encumbrance

29. Loans qualified to be purchased in the secondary market are called
MIP - mortgage insurance premium
conforming loans
Tenancy by the Entirety
Mitigation

30. Loans qualified to be purchased in the secondary market are called __
conforming loans.
General Agency
alimony - child support or a pension plan.
Blanket Loan

31. What is easment?
It is a right in land and should be created in writing and recorded.
3
The trustee
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

32. 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.
25%
Errors & Omissions insurance
$4000.
Zoning

33. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
3
estoppel

34. ___ are imposed to control land use - development and methods and materials for construction.
conomic obsolescence
General
alimony - child support or a pension plan.
Deed Restrictions

35. The minimum withdrawal from a home equity LOC is
$4000.
Defeasance
MIP - mortgage insurance premium
estoppel

36. ____ - the refusal to lend in a particular geographic area - is prohibited.
Those on a fixed income
lower interest rate
the cash price or the APR
Redlining

37. The veteran must obtain a Certificate of Eligibility from the VA
Special or limited agency
a property exchange.
straight assumption
Total amount - Certificate amount x 4 = approved maximum loan amount

38. The insurance on the FHA loan is referred to as___
a property exchange.
conomic obsolescence
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
MIP - mortgage insurance premium

39. __ "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.
straight assumption
Alienation clause
the cash price or the APR
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

40. ___ 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
conforming loans
alimony - child support or a pension plan.

41. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Balloon loan
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
grow - stabilize - decline - revitalize

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.
estoppel
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.
stigmatized

43. This will not impact of the seller's credit rating.
straight assumption
Blanket Loan
encumbrance
grow - stabilize - decline - revitalize

44. On income producing property land can never be depreciated for...
The secondary
income tax purposes
Statutory law
lower interest rate

45. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
devise
Deed Restrictions
MIP - mortgage insurance premium
25%

46. The secondary market warehousing agencies are...
Alienation clause
writ of execution
The trustee
Fannie Mae - Freddie Mac and Ginnie Mae.

47. A property where there has been a murder or alleged haunting is called...
MIP - mortgage insurance premium
stigmatized
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Zoning

48. An ___ is a limitation on your rights
alimony - child support or a pension plan.
encumbrance
3
Trustee's Deed

49. One who acquires property under a deed is....
Tenancy by the Entirety
10%
An encumbrance
a grante

50. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
25%
Subordination clause
Mitigation
conforming loans