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. An ___ is a limitation on your rights
encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

2. The minimum withdrawal from a home equity LOC is
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
Total amount - Certificate amount x 4 = approved maximum loan amount
$4000.

3. Ownership by two or more without rights of survivorship is called
lower interest rate
Blanket
conforming loans.
tenancy in common

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

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5. Common law does not always takes precedence over...
Statutory law
conomic obsolescence
by ratification.
a property exchange.

6. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Deed Restrictions
Those on a fixed income
grow - stabilize - decline - revitalize
stigmatized

7. Property Manager ( which type of Agency)
$4000.
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
General Agency
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.

8. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
by ratification.
The trustee
Special or limited agency

9. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Trustee's Deed
straight assumption
3

10. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Subordination clause
Blanket
General

11. On income producing property land can never be depreciated for...
income tax purposes
Alienation clause
conomic obsolescence
1. Release the lien when the note is paid. 2. Foreclose in the event of default

12. ___ are imposed to control land use - development and methods and materials for construction.
lower interest rate
Trustee's Deed
Deed Restrictions
10%

13. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
$4000.
10%
Statutory law
rescission

14. Advantages of FHA loans

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15. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Balloon loan
straight assumption
Subordination clause
$4000.

16. For what group of buyers would the ARM be the least desirable?
MIP - mortgage insurance premium
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.
Those on a fixed income
income tax purposes

17. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
income tax purposes
rescission
the cash price or the APR
lower interest rate

18. Which of the following instruments is the promise to repay a debt?
devise
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Statutory law
Alienation clause

19. This will not impact of the seller's credit rating.
Zoning
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Radon
straight assumption

20. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
a property exchange.
Radon
Trustee's Deed
ostensible agency

21. The secondary market warehousing agencies are...
The trustee
Fannie Mae - Freddie Mac and Ginnie Mae.
Vendee's Lien
grow - stabilize - decline - revitalize

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.
Vendee's Lien
lower interest rate
Redlining
Balloon loan

23. What is easment?
by ratification.
It is a right in land and should be created in writing and recorded.
10%
Reverse annuity

24. ___market is where lenders go for money
The secondary
writ of execution
stigmatized
Redlining

25. Covers more than one piece of property. (several lots on one note)
estate for years
Errors & Omissions insurance
Blanket Loan
rescission

26. IRS Lein - Specific lein or general lein
General
Radon
Alienation clause
devise

27. 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
The secondary
lower interest rate
estate for years

28. The trustee has two functions in accordance with the Deed of Trust.
$4000.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Vendee's Lien
General Agency

29. An attorney-in-fact is the holder of...
$4000.
a power of attorney
Special or limited agency
25%

30. Loans qualified to be purchased in the secondary market are called
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
conforming loans
Alienation clause
3

31. An agent's duties to his principal are...
writ of execution
conomic obsolescence
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General

32. IN Reg Z Advertising which states only __is permitted
The secondary
by ratification.
the cash price or the APR
tenancy in common

33. ___ 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.)
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
General
conomic obsolescence

34. Loan novation?
MIP - mortgage insurance premium
Fannie Mae - Freddie Mac and Ginnie Mae.
In a straight assumption - the new buyer is approved - and takes over payments and liability
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

35. Broker- Salesperson - owner-property manager-> which agency?
General Agency
25%
by ratification.
10%

36. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
Total amount - Certificate amount x 4 = approved maximum loan amount
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Deed Restrictions

37. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
3
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
$4000.

38. The veteran must obtain a Certificate of Eligibility from the VA
the cash price or the APR
Errors & Omissions insurance
Total amount - Certificate amount x 4 = approved maximum loan amount
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

39. ___ is created when a licensee acts like an agent and others respond to those actions.
grow - stabilize - decline - revitalize
Blanket Loan
alimony - child support or a pension plan.
ostensible agency

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

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41. Loans qualified to be purchased in the secondary market are called __
conforming loans.
husband and wife
devise
encumbrance

42. ___loan - Covers more than one piece of property
Blanket
Those on a fixed income
Vendee's Lien
conforming loans

43. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
25%
writ of execution
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

44. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Total amount - Certificate amount x 4 = approved maximum loan amount
Deed Restrictions
trustor

45. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
devise
writ of execution
a power of attorney
EMFs

46. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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
EMFs
3

47. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
by ratification.
Redlining
conforming loans

48. Partially amortized loan - benefit
$4000.
writ of execution
lower interest rate
Special or limited agency

49. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
EMFs
It is a right in land and should be created in writing and recorded.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

50. A property where there has been a murder or alleged haunting is called...
Package Loan
income tax purposes
stigmatized
alimony - child support or a pension plan.