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. '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?
General
Alienation clause
Blanket
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

2. Partially amortized loan - benefit
MIP - mortgage insurance premium
lower interest rate
Those on a fixed income
a grante

3. On income producing property land can never be depreciated for...
income tax purposes
Mitigation
Fannie Mae - Freddie Mac and Ginnie Mae.
alimony - child support or a pension plan.

4. Covers more than one piece of property. (several lots on one note)
MIP - mortgage insurance premium
Total amount - Certificate amount x 4 = approved maximum loan amount
Blanket Loan
straight assumption

5. __ is a specific type of joint tenancy where the co-owners are husband and wife.
25%
$4000.
Tenancy by the Entirety
estate for years

6. The insurance on the FHA loan is referred to as___
estoppel
a grante
MIP - mortgage insurance premium
conforming loans

7. IRS Lein - Specific lein or general lein
Zoning
General
The trustee
Balloon loan

8. ___ 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.)
Those on a fixed income
conomic obsolescence
a property exchange.
Blanket Loan

9. __ clause - states that the lien is defeated when the debt is repaid.
Subordination clause
Defeasance
In a straight assumption - the new buyer is approved - and takes over payments and liability
husband and wife

10. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
ostensible agency
Total amount - Certificate amount x 4 = approved maximum loan amount
Mitigation
It is a right in land and should be created in writing and recorded.

11. 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
Mitigation
$4000.
3

12. There are four basic characteristics of value
a grante
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
straight assumption

13. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
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
grow - stabilize - decline - revitalize
devise

14. ___ is a limitation on your rights. It may also be a cloud on the title
Fannie Mae - Freddie Mac and Ginnie Mae.
EMFs
1. Release the lien when the note is paid. 2. Foreclose in the event of default
An encumbrance

15. An ___ is a limitation on your rights
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
encumbrance
25%
Deed Restrictions

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.
Errors & Omissions insurance
husband and wife
a grante
1. Release the lien when the note is paid. 2. Foreclose in the event of default

17. ___ gives the agent the power to perform only specific acts and no others.
encumbrance
Special or limited agency
alimony - child support or a pension plan.
Tenancy by the Entirety

18. A property where there has been a murder or alleged haunting is called...
stigmatized
conforming loans
writ of execution
estate for years

19. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Balloon loan
by ratification.
devise
$4000.

20. ___ is created when a licensee acts like an agent and others respond to those actions.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
husband and wife
a power of attorney
ostensible agency

21. 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.
25%
It is a right in land and should be created in writing and recorded.
estoppel
Alienation clause

22. Loan novation?
tenancy in common
Special or limited agency
a power of attorney
In a straight assumption - the new buyer is approved - and takes over payments and liability

23. Property Manager ( which type of Agency)
General Agency
alimony - child support or a pension plan.
Package Loan
The secondary

24. Loans qualified to be purchased in the secondary market are called
writ of execution
Special or limited agency
conforming loans
the cash price or the APR

25. This lease survives death and/or the sale of the property. No notice is required to terminate.
Subordination clause
Those on a fixed income
estate for years
writ of execution

26. A principal's duties to an agent ar...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conomic obsolescence
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

27. Must sign the Deed of Trust.
25%
straight assumption
tenancy in common
trustor

28. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
grow - stabilize - decline - revitalize
3
General Agency
rescission

29. The deed of trust involves three parties...
Redlining
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Fannie Mae - Freddie Mac and Ginnie Mae.
Defeasance

30. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
a power of attorney
It is a right in land and should be created in writing and recorded.
encumbrance

31. Real estate investors can defer taxation of capital gains by making ___
by ratification.
In a straight assumption - the new buyer is approved - and takes over payments and liability
a property exchange.
stigmatized

32. IN Reg Z Advertising which states only __is permitted
tenancy in common
the cash price or the APR
Blanket Loan
General

33. 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.
devise
Package Loan
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

34. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
Defeasance
Alienation clause
alimony - child support or a pension plan.

35. What is easment?
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.
It is a right in land and should be created in writing and recorded.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
a power of attorney

36. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
In a straight assumption - the new buyer is approved - and takes over payments and liability
10%
General

37. Lenders can deny credit if your sole source of income is__
10%
In a straight assumption - the new buyer is approved - and takes over payments and liability
alimony - child support or a pension plan.
The trustee

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

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39. Loans qualified to be purchased in the secondary market are called __
conforming loans
Tenancy by the Entirety
by ratification.
conforming loans.

40. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
tenancy in common
by ratification.
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

41. Which of the following instruments is the promise to repay a debt?
conomic obsolescence
Statutory law
Defeasance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

42. Advantages of FHA loans

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43. A person who has real property willed to her by a relative is said to acquire title by...
devise
MIP - mortgage insurance premium
a grante
Tenancy by the Entirety

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

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45. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Redlining
Reverse annuity
In a straight assumption - the new buyer is approved - and takes over payments and liability
Mitigation

46. ___ are imposed to control land use - development and methods and materials for construction.
EMFs
Alienation clause
Deed Restrictions
husband and wife

47. Broker- Salesperson - owner-property manager-> which agency?
Defeasance
General Agency
Deed Restrictions
In a straight assumption - the new buyer is approved - and takes over payments and liability

48. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
MIP - mortgage insurance premium
Fannie Mae - Freddie Mac and Ginnie Mae.
grow - stabilize - decline - revitalize

49. ____ - the refusal to lend in a particular geographic area - is prohibited.
Special or limited agency
Redlining
Defeasance
Errors & Omissions insurance

50. Includes real property plus personal property
Package Loan
Alienation clause
stigmatized
EMFs