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 attorney-in-fact is the holder of...
a power of attorney
writ of execution
Tenancy by the Entirety
estate for years

2. Includes real property plus personal property
estoppel
Radon
encumbrance
Package Loan

3. Loans qualified to be purchased in the secondary market are called __
conforming loans.
Fannie Mae - Freddie Mac and Ginnie Mae.
devise
income tax purposes

4. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
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%
$4000.
General

5. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Special or limited agency
Deed Restrictions
Reverse annuity

6. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
estate for years
trustor
Alienation clause

7. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
The trustee
trustor
Reverse annuity
10%

8. Ownership by two or more without rights of survivorship is called
tenancy in common
by ratification.
Deed Restrictions
It is a right in land and should be created in writing and recorded.

9. The insurance on the FHA loan is referred to as___
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Radon
MIP - mortgage insurance premium

10. Real estate investors can defer taxation of capital gains by making ___
Statutory law
In a straight assumption - the new buyer is approved - and takes over payments and liability
$4000.
a property exchange.

11. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
lower interest rate
estate for years
grow - stabilize - decline - revitalize

12. Partially amortized loan - benefit
Fannie Mae - Freddie Mac and Ginnie Mae.
EMFs
rescission
lower interest rate

13. Advantages of FHA loans

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

14. Loan novation?
trustor
In a straight assumption - the new buyer is approved - and takes over payments and liability
Alienation clause
Trustee's Deed

15. ___ is created when a licensee acts like an agent and others respond to those actions.
conforming loans
ostensible 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
Total amount - Certificate amount x 4 = approved maximum loan amount

16. The minimum withdrawal from a home equity LOC is
devise
$4000.
conforming loans
In a straight assumption - the new buyer is approved - and takes over payments and liability

17. Must sign the Deed of Trust.
trustor
conomic obsolescence
a property exchange.
10%

18. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General
General Agency
Blanket Loan

19. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
encumbrance
rescission
by ratification.

20. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Special or limited agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
the cash price or the APR
3

21. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
An encumbrance
conforming loans
ostensible agency

22. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
husband and wife
stigmatized
Tenancy by the Entirety

23. IN Reg Z Advertising which states only __is permitted
grow - stabilize - decline - revitalize
the cash price or the APR
lower interest rate
The secondary

24. A principal's duties to an agent ar...
Blanket
Fannie Mae - Freddie Mac and Ginnie Mae.
25%
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

25. There are four basic characteristics of value
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Subordination clause
Errors & Omissions insurance
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

26. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Vendee's Lien
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. Foreclosure under a "power of sale" clause ends when the Trustee delivers a:___

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

28. __ "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.
Statutory law
conomic obsolescence
estoppel
Alienation clause

29. For what group of buyers would the ARM be the least desirable?
$4000.
Those on a fixed income
Radon
Alienation clause

30. One who acquires property under a deed is....
lower interest rate
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Tenancy by the Entirety
a grante

31. 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.
It is a right in land and should be created in writing and recorded.
Balloon loan
the cash price or the APR
by ratification.

32. Lenders can deny credit if your sole source of income is__
devise
conomic obsolescence
alimony - child support or a pension plan.
10%

33. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Special or limited agency
rescission
conforming loans
Radon

34. '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?
conomic obsolescence
Alienation clause
Blanket Loan
conforming loans.

35. This lease survives death and/or the sale of the property. No notice is required to terminate.
Special or limited agency
estate for years
ostensible agency
straight assumption

36. This will not impact of the seller's credit rating.
General Agency
straight assumption
Statutory law
General

37. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Fannie Mae - Freddie Mac and Ginnie Mae.
25%
husband and wife
Blanket Loan

38. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
estoppel
Those on a fixed income
husband and wife

39. IRS Lein - Specific lein or general lein
Trustee's Deed
Vendee's Lien
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General

40. The trustee has two functions in accordance with the Deed of Trust.
a property exchange.
income tax purposes
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General Agency

41. An agent's duties to his principal are...
lower interest rate
It is a right in land and should be created in writing and recorded.
(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

42. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Statutory law
conomic obsolescence
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.

43. An ___ is a limitation on your rights
encumbrance
General Agency
a property exchange.
alimony - child support or a pension plan.

44. ___market is where lenders go for money
3
Radon
The secondary
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

45. Covers more than one piece of property. (several lots on one note)
$4000.
conforming loans
Blanket Loan
Statutory law

46. ___ 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.)
Reverse annuity
3
conomic obsolescence
General Agency

47. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Zoning
Total amount - Certificate amount x 4 = approved maximum loan amount
estate for years
writ of execution

48. 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.
Zoning
Subordination clause
conforming loans
Errors & Omissions insurance

49. ___loan - Covers more than one piece of property
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a power of attorney
income tax purposes
Blanket

50. Which of the following instruments is the promise to repay a debt?
by ratification.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
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
alimony - child support or a pension plan.