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. The minimum withdrawal from a home equity LOC is
estate for years
Alienation clause
ostensible agency
$4000.

2. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
trustor
Subordination clause
25%
In a straight assumption - the new buyer is approved - and takes over payments and liability

3. This will not impact of the seller's credit rating.
$4000.
25%
straight assumption
trustor

4. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
a property exchange.
rescission
Alienation clause
estoppel

5. IRS Lein - Specific lein or general lein
General Agency
General
lower interest rate
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

6. ___ 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.
General Agency
Errors & Omissions insurance
trustor
Those on a fixed income

7. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
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
The trustee
writ of execution
General

8. Common law does not always takes precedence over...
Radon
Statutory law
MIP - mortgage insurance premium
conomic obsolescence

9. Partially amortized loan - benefit
EMFs
lower interest rate
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Subordination clause

10. ___ 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.)
10%
Blanket Loan
Trustee's Deed
conomic obsolescence

11. 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.
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.
Zoning
conforming loans.

12. A property where there has been a murder or alleged haunting is called...
encumbrance
stigmatized
estoppel
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

13. __ "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.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
10%
Alienation clause
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.

14. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
a property exchange.
Deed Restrictions
Errors & Omissions insurance

15. The veteran must obtain a Certificate of Eligibility from the VA
Those on a fixed income
trustor
a power of attorney
Total amount - Certificate amount x 4 = approved maximum loan amount

16. One who acquires property under a deed is....
a grante
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
Special or limited agency
Total amount - Certificate amount x 4 = approved maximum loan amount

17. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
by ratification.
Statutory law
The secondary

18. ___loan - Covers more than one piece of property
10%
Blanket
General
grow - stabilize - decline - revitalize

19. ___ are imposed to control land use - development and methods and materials for construction.
Total amount - Certificate amount x 4 = approved maximum loan amount
writ of execution
10%
Deed Restrictions

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

21. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
a grante
Blanket
a power of attorney
3

22. For what group of buyers would the ARM be the least desirable?
Radon
An encumbrance
General Agency
Those on a fixed income

23. Loan novation?
Subordination clause
General
In a straight assumption - the new buyer is approved - and takes over payments and liability
the cash price or the APR

24. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
a power of attorney
Tenancy by the Entirety
10%
Deed Restrictions

25. Real estate investors can defer taxation of capital gains by making ___
ostensible agency
estoppel
a property exchange.
EMFs

26. 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
Trustee's Deed
Special or limited agency
Errors & Omissions insurance

27. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
conforming loans.
a grante
Reverse annuity

28. A principal's duties to an agent ar...
ostensible agency
grow - stabilize - decline - revitalize
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conforming loans

29. Broker- Salesperson - owner-property manager-> which agency?
stigmatized
Redlining
Alienation clause
General Agency

30. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Zoning
husband and wife
Defeasance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

31. ___ is a limitation on your rights. It may also be a cloud on the title
the cash price or the APR
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
An encumbrance
Special or limited agency

32. On income producing property land can never be depreciated for...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
The trustee
Reverse annuity
income tax purposes

33. The deed of trust involves three parties...
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.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conforming loans.

34. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
EMFs
Package Loan
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.

35. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Zoning
Deed Restrictions
grow - stabilize - decline - revitalize
Redlining

36. The secondary market warehousing agencies are...
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
Fannie Mae - Freddie Mac and Ginnie Mae.
writ of execution

37. ___market is where lenders go for money
The secondary
Alienation clause
income tax purposes
Statutory law

38. Loans qualified to be purchased in the secondary market are called __
conomic obsolescence
straight assumption
a grante
conforming loans.

39. Must sign the Deed of Trust.
conforming loans.
trustor
rescission
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

40. An attorney-in-fact is the holder of...
Statutory law
estate for years
a power of attorney
conforming loans

41. A person who has real property willed to her by a relative is said to acquire title by...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
devise
a property exchange.

42. Ownership by two or more without rights of survivorship is called
tenancy in common
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
The secondary
lower interest rate

43. There are four basic characteristics of value
General Agency
Blanket
1. Release the lien when the note is paid. 2. Foreclose in the event of default
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

44. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
MIP - mortgage insurance premium
Subordination clause
25%

45. 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.
Package Loan
encumbrance
Alienation clause

46. '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?
Reverse annuity
Radon
10%
Alienation clause

47. Which of the following instruments is the promise to repay a debt?
a grante
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
An encumbrance
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.

48. ___ is created when a licensee acts like an agent and others respond to those actions.
Subordination clause
stigmatized
ostensible agency
tenancy in common

49. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Redlining
In a straight assumption - the new buyer is approved - and takes over payments and liability
a power of attorney

50. Advantages of FHA loans