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...
General Agency
Blanket
a power of attorney
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.

2. 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
Zoning
conforming loans.
encumbrance

3. This will not impact of the seller's credit rating.
straight assumption
Zoning
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.

4. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
MIP - mortgage insurance premium
husband and wife
Package Loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

5. One who acquires property under a deed 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.
a grante
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Radon

6. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Statutory law
grow - stabilize - decline - revitalize
stigmatized
10%

7. Advantages of FHA loans

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8. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
The trustee
Tenancy by the Entirety
stigmatized
25%

9. 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
Total amount - Certificate amount x 4 = approved maximum loan amount
10%

10. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
conforming loans
straight assumption
Those on a fixed income

11. On income producing property land can never be depreciated for...
a property exchange.
stigmatized
tenancy in common
income tax purposes

12. The veteran must obtain a Certificate of Eligibility from the VA
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
straight assumption
encumbrance

13. Lenders can deny credit if your sole source of income is__
stigmatized
alimony - child support or a pension plan.
Redlining
Blanket Loan

14. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
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.
conforming loans
Reverse annuity
Vendee's Lien

15. 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
a power of attorney
Package Loan
lower interest rate

16. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Special or limited agency
General Agency
10%
by ratification.

17. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
a power of attorney
Defeasance
Blanket
Mitigation

18. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
Reverse annuity
Mitigation
$4000.

19. Broker- Salesperson - owner-property manager-> which agency?
It is a right in land and should be created in writing and recorded.
General Agency
Package Loan
Vendee's Lien

20. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
10%
3
Blanket Loan
trustor

21. An ___ is a limitation on your rights
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.
encumbrance
Alienation clause
General Agency

22. IN Reg Z Advertising which states only __is permitted
Balloon loan
Errors & Omissions insurance
Package Loan
the cash price or the APR

23. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
Total amount - Certificate amount x 4 = approved maximum loan amount
rescission
Fannie Mae - Freddie Mac and Ginnie Mae.

24. Real estate investors can defer taxation of capital gains by making ___
alimony - child support or a pension plan.
a property exchange.
$4000.
Mitigation

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

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26. Loans qualified to be purchased in the secondary market are called
Tenancy by the Entirety
conforming loans
General Agency
Fannie Mae - Freddie Mac and Ginnie Mae.

27. Common law does not always takes precedence over...
Special or limited agency
by ratification.
grow - stabilize - decline - revitalize
Statutory law

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

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29. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
estate for years
alimony - child support or a pension plan.
rescission
Trustee's Deed

30. 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
25%
lower interest rate
a grante

31. What is easment?
Package Loan
It is a right in land and should be created in writing and recorded.
MIP - mortgage insurance premium
devise

32. Ownership by two or more without rights of survivorship is called
tenancy in common
straight assumption
Alienation clause
Blanket Loan

33. High tension wire should be disclosed
Errors & Omissions insurance
Subordination clause
trustor
EMFs

34. ___ 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.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
encumbrance
Errors & Omissions insurance
estoppel

35. The deed of trust involves three parties...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
grow - stabilize - decline - revitalize
General Agency
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

36. Partially amortized loan - benefit
General Agency
lower interest rate
Blanket
devise

37. ___market is where lenders go for money
Reverse annuity
Total amount - Certificate amount x 4 = approved maximum loan amount
Package Loan
The secondary

38. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
stigmatized
Fannie Mae - Freddie Mac and Ginnie Mae.
Blanket

39. A principal's duties to an agent ar...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Total amount - Certificate amount x 4 = approved maximum loan amount
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.
a power of attorney

40. Loan novation?
ostensible agency
a grante
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
In a straight assumption - the new buyer is approved - and takes over payments and liability

41. The minimum withdrawal from a home equity LOC is
Tenancy by the Entirety
$4000.
General Agency
EMFs

42. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Errors & Omissions insurance
Tenancy by the Entirety
Total amount - Certificate amount x 4 = approved maximum loan amount
Defeasance

43. Property Manager ( which type of Agency)
General Agency
Alienation clause
writ of execution
lower interest rate

44. ___ are imposed to control land use - development and methods and materials for construction.
Subordination clause
a property exchange.
Deed Restrictions
conforming loans.

45. Covers more than one piece of property. (several lots on one note)
The secondary
Blanket Loan
MIP - mortgage insurance premium
Deed Restrictions

46. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Errors & Omissions insurance
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.
ostensible agency
The trustee

47. '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?
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Redlining

48. ___ 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.)
a property exchange.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Defeasance
conomic obsolescence

49. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Redlining
a power of attorney
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.

50. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
writ of execution
Mitigation
Redlining
Subordination clause