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
General
encumbrance
MIP - mortgage insurance premium
Defeasance

2. Loan novation?
Alienation clause
General
In a straight assumption - the new buyer is approved - and takes over payments and liability
3

3. The deed of trust involves three parties...
writ of execution
MIP - mortgage insurance premium
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
lower interest rate

4. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
25%
General
by ratification.

5. Ownership by two or more without rights of survivorship is called
General Agency
estoppel
tenancy in common
Alienation clause

6. Common law does not always takes precedence over...
Errors & Omissions insurance
grow - stabilize - decline - revitalize
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default

7. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Those on a fixed income
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.

8. Covers more than one piece of property. (several lots on one note)
conomic obsolescence
Blanket Loan
Defeasance
the cash price or the APR

9. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
rescission
Subordination clause
Total amount - Certificate amount x 4 = approved maximum loan amount
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

10. An attorney-in-fact is the holder of...
Radon
Redlining
Errors & Omissions insurance
a power of attorney

11. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
conforming loans.
The trustee
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.
Deed Restrictions

12. ___market is where lenders go for money
ostensible agency
conomic obsolescence
writ of execution
The secondary

13. One who acquires property under a deed is....
a grante
devise
It is a right in land and should be created in writing and recorded.
General Agency

14. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
General Agency
conforming loans
Radon
Alienation clause

15. Advantages of FHA loans

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16. A property where there has been a murder or alleged haunting is called...
stigmatized
$4000.
Zoning
by ratification.

17. ___ 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
stigmatized
a grante
devise

18. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Balloon loan
10%
husband and wife
trustor

19. Lenders can deny credit if your sole source of income is__
Vendee's Lien
by ratification.
alimony - child support or a pension plan.
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

20. A person who has real property willed to her by a relative is said to acquire title by...
It is a right in land and should be created in writing and recorded.
devise
trustor
by ratification.

21. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a grante
Package Loan

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

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23. Loans qualified to be purchased in the secondary market are called
General
conforming loans
a power of attorney
tenancy in common

24. Must sign the Deed of Trust.
Deed Restrictions
Reverse annuity
trustor
devise

25. A principal's duties to an agent ar...
MIP - mortgage insurance premium
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
by ratification.
Mitigation

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

27. Property Manager ( which type of Agency)
writ of execution
Tenancy by the Entirety
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency

28. What is easment?
It is a right in land and should be created in writing and recorded.
lower interest rate
Alienation clause
alimony - child support or a pension plan.

29. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Blanket Loan
Zoning
Vendee's Lien

30. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
lower interest rate
25%
Vendee's Lien
Balloon loan

31. This will not impact of the seller's credit rating.
encumbrance
straight assumption
conforming loans.
Blanket

32. High tension wire should be disclosed
EMFs
stigmatized
estoppel
Trustee's Deed

33. IRS Lein - Specific lein or general lein
In a straight assumption - the new buyer is approved - and takes over payments and liability
Statutory law
Balloon loan
General

34. ___ are imposed to control land use - development and methods and materials for construction.
25%
the cash price or the APR
Deed Restrictions
1. Release the lien when the note is paid. 2. Foreclose in the event of default

35. 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.
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Zoning
Statutory law

36. An agent's duties to his principal are...
the cash price or the APR
General Agency
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
income tax purposes

37. ___loan - Covers more than one piece of property
Blanket
tenancy in common
trustor
General

38. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
conforming loans
Defeasance
Fannie Mae - Freddie Mac and Ginnie Mae.

39. 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.
Redlining
alimony - child support or a pension plan.
estoppel
Vendee's Lien

40. There are four basic characteristics of value
$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
Balloon loan
encumbrance

41. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Alienation clause
Mitigation
trustor
writ of execution

42. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
MIP - mortgage insurance premium
Zoning
a grante

43. Partially amortized loan - benefit
lower interest rate
$4000.
Balloon loan
a grante

44. 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
ostensible agency
Package Loan
25%

45. 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
straight assumption
Those on a fixed income
conomic obsolescence

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

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47. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
An encumbrance
Alienation clause
Trustee's Deed
grow - stabilize - decline - revitalize

48. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
It is a right in land and should be created in writing and recorded.
10%
General Agency
Mitigation

49. __ "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.
Alienation clause
The trustee
rescission
encumbrance

50. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
a grante
the cash price or the APR
Blanket