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

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2. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
General Agency
conforming loans.
Reverse annuity

3. Advantages of FHA loans

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4. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Deed Restrictions
Special or limited agency
writ of execution

5. Lenders can deny credit if your sole source of income is__
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.
alimony - child support or a pension plan.
$4000.

6. 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.
a grante
tenancy in common
estate for years
estoppel

7. The trustee has two functions in accordance with the Deed of Trust.
a grante
Package Loan
Radon
1. Release the lien when the note is paid. 2. Foreclose in the event of default

8. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
The secondary
Radon
by ratification.
writ of execution

9. Property Manager ( which type of Agency)
Errors & Omissions insurance
General Agency
Alienation clause
estoppel

10. ___ is a limitation on your rights. It may also be a cloud on the title
Those on a fixed income
husband and wife
grow - stabilize - decline - revitalize
An encumbrance

11. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Those on a fixed income
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.

12. This lease survives death and/or the sale of the property. No notice is required to terminate.
It is a right in land and should be created in writing and recorded.
estate for years
MIP - mortgage insurance premium
the cash price or the APR

13. Loans qualified to be purchased in the secondary market are called __
conforming loans.
devise
Package Loan
Redlining

14. The veteran must obtain a Certificate of Eligibility from the VA
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.
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
Subordination clause

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

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

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17. Common law does not always takes precedence over...
Mitigation
Statutory law
Radon
Package Loan

18. Covers more than one piece of property. (several lots on one note)
EMFs
devise
Balloon loan
Blanket Loan

19. ___loan - Covers more than one piece of property
stigmatized
Trustee's Deed
Blanket
An encumbrance

20. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
10%
3
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

21. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
grow - stabilize - decline - revitalize
straight assumption
Vendee's Lien
The trustee

22. 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
Radon
lower interest rate
Blanket Loan

23. Real estate investors can defer taxation of capital gains by making ___
Tenancy by the Entirety
stigmatized
a property exchange.
Total amount - Certificate amount x 4 = approved maximum loan amount

24. ___ are imposed to control land use - development and methods and materials for construction.
stigmatized
Deed Restrictions
encumbrance
Trustee's Deed

25. The secondary market warehousing agencies are...
Radon
Fannie Mae - Freddie Mac and Ginnie Mae.
tenancy in common
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.

26. Which of the following instruments is the promise to repay a debt?
estate for years
Package Loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
1. Release the lien when the note is paid. 2. Foreclose in the event of default

27. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
An encumbrance
In a straight assumption - the new buyer is approved - and takes over payments and liability
a grante

28. ___ is created when a licensee acts like an agent and others respond to those actions.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Mitigation
ostensible agency
Statutory law

29. On income producing property land can never be depreciated for...
General Agency
MIP - mortgage insurance premium
income tax purposes
Blanket Loan

30. A property where there has been a murder or alleged haunting is called...
Tenancy by the Entirety
ostensible agency
stigmatized
1. Release the lien when the note is paid. 2. Foreclose in the event of default

31. ___market is where lenders go for money
The secondary
Blanket
stigmatized
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

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

33. For what group of buyers would the ARM be the least desirable?
conomic obsolescence
income tax purposes
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Those on a fixed income

34. Must sign the Deed of Trust.
conomic obsolescence
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
Reverse annuity
trustor

35. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
10%
husband and wife
Redlining
Radon

36. The insurance on the FHA loan is referred to as___
It is a right in land and should be created in writing and recorded.
MIP - mortgage insurance premium
Those on a fixed income
The trustee

37. The deed of trust involves three parties...
encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Trustee's Deed
$4000.

38. ___ 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.
estate for years
a power of attorney
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.
Errors & Omissions insurance

39. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
a power of attorney
Vendee's Lien
$4000.
grow - stabilize - decline - revitalize

40. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Radon
10%
ostensible agency

41. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Vendee's Lien
General Agency
It is a right in land and should be created in writing and recorded.

42. What is easment?
husband and wife
Alienation clause
It is a right in land and should be created in writing and recorded.
Blanket

43. High tension wire should be disclosed
EMFs
the cash price or the APR
Total amount - Certificate amount x 4 = approved maximum loan amount
It is a right in land and should be created in writing and recorded.

44. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
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.
grow - stabilize - decline - revitalize
estate for years
3

45. __This clause would be found in a second mortgage - a home improvement loan - or a home equity 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.
Subordination clause
conforming loans.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

46. IN Reg Z Advertising which states only __is permitted
Blanket
the cash price or the APR
conomic obsolescence
Subordination clause

47. One who acquires property under a deed is....
a grante
income tax purposes
The secondary
It is a right in land and should be created in writing and recorded.

48. Loans qualified to be purchased in the secondary market are called
conforming loans
Fannie Mae - Freddie Mac and Ginnie Mae.
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
stigmatized

49. IRS Lein - Specific lein or general lein
Blanket
General
lower interest rate
EMFs

50. There are four basic characteristics of value
writ of execution
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
3