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. ___ is a limitation on your rights. It may also be a cloud on the title
Mitigation
income tax purposes
An encumbrance
25%

2. The minimum withdrawal from a home equity LOC is
Those on a fixed income
$4000.
Redlining
1. Release the lien when the note is paid. 2. Foreclose in the event of default

3. One who acquires property under a deed is....
a grante
the cash price or the APR
Package Loan
Tenancy by the Entirety

4. Includes real property plus personal property
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
Defeasance
encumbrance
Package Loan

5. The trustee has two functions in accordance with the Deed of Trust.
Those on a fixed income
1. Release the lien when the note is paid. 2. Foreclose in the event of default
income tax purposes
estoppel

6. __ clause - states that the lien is defeated when the debt is repaid.
Fannie Mae - Freddie Mac and Ginnie Mae.
3
Defeasance
Balloon loan

7. ____ - the refusal to lend in a particular geographic area - is prohibited.
Radon
trustor
a power of attorney
Redlining

8. The secondary market warehousing agencies are...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Fannie Mae - Freddie Mac and Ginnie Mae.
Errors & Omissions insurance
The trustee

9. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
3
rescission
Errors & Omissions insurance

10. 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.
Defeasance
the cash price or the APR
Balloon loan
Subordination clause

11. 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.
income tax purposes
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Subordination clause
Zoning

12. Covers more than one piece of property. (several lots on one note)
Blanket Loan
General Agency
3
Trustee's Deed

13. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
grow - stabilize - decline - revitalize
lower interest rate
conforming loans

14. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
3
10%
25%

15. Advantages of FHA loans

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16. High tension wire should be disclosed
$4000.
by ratification.
Those on a fixed income
EMFs

17. What is easment?
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
It is a right in land and should be created in writing and recorded.
straight assumption

18. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
$4000.
25%
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Radon

19. Loan novation?
a power of attorney
conforming loans.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Alienation clause

20. ___ is created when a licensee acts like an agent and others respond to those actions.
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.
General Agency
ostensible agency

21. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Reverse annuity
Subordination clause
Errors & Omissions insurance
It is a right in land and should be created in writing and recorded.

22. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
by ratification.
General
Reverse annuity
alimony - child support or a pension plan.

23. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
stigmatized
alimony - child support or a pension plan.
conforming loans

24. '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?
Statutory law
Alienation clause
10%
writ of execution

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

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26. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
General
Trustee's Deed
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.

27. On income producing property land can never be depreciated for...
grow - stabilize - decline - revitalize
income tax purposes
encumbrance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

28. IRS Lein - Specific lein or general lein
stigmatized
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General
Tenancy by the Entirety

29. The insurance on the FHA loan is referred to as___
Blanket
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Balloon loan
MIP - mortgage insurance premium

30. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
a power of attorney
tenancy in common
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

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

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32. ___ 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.)
conomic obsolescence
Package Loan
rescission
Balloon loan

33. Loans qualified to be purchased in the secondary market are called __
stigmatized
tenancy in common
a grante
conforming loans.

34. ___market is where lenders go for money
General
The secondary
MIP - mortgage insurance premium
lower interest rate

35. An ___ is a limitation on your rights
ostensible agency
encumbrance
the cash price or the APR
3

36. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
devise
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Mitigation

37. Property Manager ( which type of Agency)
Fannie Mae - Freddie Mac and Ginnie Mae.
The secondary
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency

38. ___loan - Covers more than one piece of property
alimony - child support or a pension plan.
Subordination clause
Blanket
The secondary

39. Broker- Salesperson - owner-property manager-> which agency?
10%
grow - stabilize - decline - revitalize
straight assumption
General Agency

40. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
writ of execution
1. Release the lien when the note is paid. 2. Foreclose in the event of default
tenancy in common

41. ___ are imposed to control land use - development and methods and materials for construction.
estate for years
Deed Restrictions
25%
Zoning

42. A principal's duties to an agent ar...
income tax purposes
tenancy in common
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
by ratification.

43. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
income tax purposes
Vendee's Lien
It is a right in land and should be created in writing and recorded.

44. This will not impact of the seller's credit rating.
$4000.
straight assumption
An encumbrance
General

45. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
It is a right in land and should be created in writing and recorded.
writ of execution
a grante
conforming loans

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
An encumbrance
Special or limited agency
Redlining

47. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Special or limited agency
lower interest rate
a power of attorney
Tenancy by the Entirety

48. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
conomic obsolescence
rescission
devise
Balloon loan

49. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
a power of attorney
stigmatized
Trustee's Deed

50. A property where there has been a murder or alleged haunting is called...
stigmatized
a power of attorney
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Errors & Omissions insurance