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. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
by ratification.
lower interest rate
trustor
3

2. There are four basic characteristics of value
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
Tenancy by the Entirety
straight assumption

3. ____ - the refusal to lend in a particular geographic area - is prohibited.
Mitigation
In a straight assumption - the new buyer is approved - and takes over payments and liability
Redlining
General Agency

4. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
encumbrance
Reverse annuity
Blanket
Errors & Omissions insurance

5. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Blanket Loan
husband and wife
alimony - child support or a pension plan.
Radon

6. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
Blanket Loan
The secondary
25%

7. Advantages of FHA loans

8. A person who has real property willed to her by a relative is said to acquire title by...
Defeasance
25%
devise
The secondary

9. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
$4000.
Radon
Fannie Mae - Freddie Mac and Ginnie Mae.
Package Loan

10. This lease survives death and/or the sale of the property. No notice is required to terminate.
a property exchange.
estate for years
3
Blanket Loan

11. A principal's duties to an agent ar...
10%
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
trustor

12. This will not impact of the seller's credit rating.
straight assumption
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause
Subordination clause

13. The minimum withdrawal from a home equity LOC is
$4000.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
(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

14. Must sign the Deed of Trust.
General Agency
trustor
An encumbrance
Blanket

15. 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.
$4000.
Zoning
the cash price or the APR
Package Loan

16. ___ 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.
income tax purposes
Mitigation
Errors & Omissions insurance
alimony - child support or a pension plan.

17. High tension wire should be disclosed
a power of attorney
EMFs
Those on a fixed income
Errors & Omissions insurance

18. IRS Lein - Specific lein or general lein
conforming loans
General
MIP - mortgage insurance premium
Total amount - Certificate amount x 4 = approved maximum loan amount

19. ___loan - Covers more than one piece of property
grow - stabilize - decline - revitalize
alimony - child support or a pension plan.
Blanket
trustor

20. Which of the following instruments is the promise to repay a debt?
Total amount - Certificate amount x 4 = approved maximum loan amount
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
ostensible agency
10%

21. '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?
conforming loans.
Trustee's Deed
Alienation clause
$4000.

22. What is easment?
Subordination clause
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
10%
It is a right in land and should be created in writing and recorded.

23. Covers more than one piece of property. (several lots on one note)
income tax purposes
lower interest rate
Trustee's Deed
Blanket Loan

24. Lenders can deny credit if your sole source of income is__
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Alienation clause
alimony - child support or a pension plan.
Those on a fixed income

25. ___ 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.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
conomic obsolescence
Blanket Loan

26. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
a power of attorney
Errors & Omissions insurance
devise
writ of execution

27. Loans qualified to be purchased in the secondary market are called __
Fannie Mae - Freddie Mac and Ginnie Mae.
Redlining
Blanket
conforming loans.

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

29. An agent's duties to his principal are...
a grante
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
3
estate for years

30. Loans qualified to be purchased in the secondary market are called
a grante
Alienation clause
It is a right in land and should be created in writing and recorded.
conforming loans

31. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
Blanket Loan
General Agency
stigmatized

32. Real estate investors can defer taxation of capital gains by making ___
grow - stabilize - decline - revitalize
estoppel
husband and wife
a property exchange.

33. ___ is created when a licensee acts like an agent and others respond to those actions.
Balloon loan
conomic obsolescence
ostensible agency
3

34. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The trustee
Tenancy by the Entirety
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
estate for years

35. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
Mitigation
General Agency
The trustee

36. The trustee has two functions in accordance with the Deed of Trust.
income tax purposes
encumbrance
Subordination clause
1. Release the lien when the note is paid. 2. Foreclose in the event of default

37. One who acquires property under a deed is....
a grante
Special or limited agency
The secondary
General Agency

38. An ___ is a limitation on your rights
An encumbrance
EMFs
encumbrance
Tenancy by the Entirety

39. On income producing property land can never be depreciated for...
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.
income tax purposes
General Agency
alimony - child support or a pension plan.

40. Property Manager ( which type of Agency)
Subordination clause
General Agency
alimony - child support or a pension plan.
husband and wife

41. 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.
3
estoppel
General Agency
grow - stabilize - decline - revitalize

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

43. ___ are imposed to control land use - development and methods and materials for construction.
Fannie Mae - Freddie Mac and Ginnie Mae.
Deed Restrictions
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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.

44. For what group of buyers would the ARM be the least desirable?
Reverse annuity
Those on a fixed income
EMFs
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.

45. ___ gives the agent the power to perform only specific acts and no others.
Blanket
The trustee
Special or limited agency
Subordination clause

46. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General
Alienation clause
10%

47. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
encumbrance
Statutory law
EMFs
Subordination clause

48. ___market is where lenders go for money
lower interest rate
the cash price or the APR
estate for years
The secondary

49. Ownership by two or more without rights of survivorship is called
conforming loans
tenancy in common
conomic obsolescence
Tenancy by the Entirety

50. A property where there has been a murder or alleged haunting is called...
Blanket Loan
Radon
stigmatized
grow - stabilize - decline - revitalize