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. ___loan - Covers more than one piece of property
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Blanket
conforming loans
the cash price or the APR

2. __ clause - states that the lien is defeated when the debt is repaid.
General Agency
Fannie Mae - Freddie Mac and Ginnie Mae.
Defeasance
tenancy in common

3. Property Manager ( which type of Agency)
tenancy in common
General 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
husband and wife

4. Common law does not always takes precedence over...
Statutory law
writ of execution
General Agency
10%

5. Lenders can deny credit if your sole source of income is__
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Fannie Mae - Freddie Mac and Ginnie Mae.
a power of attorney
alimony - child support or a pension plan.

6. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
$4000.
income tax purposes
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

7. Covers more than one piece of property. (several lots on one note)
Blanket Loan
by ratification.
encumbrance
Special or limited agency

8. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
encumbrance

9. Loans qualified to be purchased in the secondary market are called __
conforming loans.
Package Loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

10. ____ - the refusal to lend in a particular geographic area - is prohibited.
Package Loan
the cash price or the APR
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Redlining

11. 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.
devise
estoppel
An encumbrance
Blanket

12. High tension wire should be disclosed
EMFs
Defeasance
Errors & Omissions insurance
income tax purposes

13. Real estate investors can defer taxation of capital gains by making ___
Trustee's Deed
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Fannie Mae - Freddie Mac and Ginnie Mae.
a property exchange.

14. '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?
trustor
Alienation clause
income tax purposes
It is a right in land and should be created in writing and recorded.

15. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
straight assumption
estoppel
writ of execution
Those on a fixed income

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

17. The trustee has two functions in accordance with the Deed of Trust.
conforming loans.
The trustee
1. Release the lien when the note is paid. 2. Foreclose in the event of default
EMFs

18. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
10%
25%
3
Alienation clause

19. A person who has real property willed to her by a relative is said to acquire title by...
It is a right in land and should be created in writing and recorded.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
devise
MIP - mortgage insurance premium

20. IRS Lein - Specific lein or general lein
trustor
General
It is a right in land and should be created in writing and recorded.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

21. Loans qualified to be purchased in the secondary market are called
rescission
by ratification.
Defeasance
conforming loans

22. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
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.
Special or limited 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

23. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
In a straight assumption - the new buyer is approved - and takes over payments and liability
It is a right in land and should be created in writing and recorded.
3
25%

24. 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.
rescission
Zoning
Package Loan
conomic obsolescence

25. An ___ is a limitation on your rights
General Agency
Mitigation
by ratification.
encumbrance

26. The insurance on the FHA loan is referred to as___
Tenancy by the Entirety
MIP - mortgage insurance premium
Trustee's Deed
Those on a fixed income

27. Loan novation?
Deed Restrictions
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
$4000.

28. The veteran must obtain a Certificate of Eligibility from the VA
the cash price or the APR
estate for years
Blanket Loan
Total amount - Certificate amount x 4 = approved maximum loan amount

29. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
income tax purposes
Zoning
Total amount - Certificate amount x 4 = approved maximum loan amount

30. This will not impact of the seller's credit rating.
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.
Total amount - Certificate amount x 4 = approved maximum loan amount
straight assumption
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

31. ___market is where lenders go for money
encumbrance
Those on a fixed income
Subordination clause
The secondary

32. On income producing property land can never be depreciated for...
Deed Restrictions
income tax purposes
Trustee's Deed
In a straight assumption - the new buyer is approved - and takes over payments and liability

33. Partially amortized loan - benefit
EMFs
MIP - mortgage insurance premium
lower interest rate
conforming loans.

34. A principal's duties to an agent ar...
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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Deed Restrictions
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

35. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination 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.
by ratification.
It is a right in land and should be created in writing and recorded.

36. A property where there has been a murder or alleged haunting is called...
In a straight assumption - the new buyer is approved - and takes over payments and liability
tenancy in common
stigmatized
MIP - mortgage insurance premium

37. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
trustor
Mitigation
Package Loan

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

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39. An agent's duties to his principal are...
straight assumption
Subordination clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Zoning

40. Broker- Salesperson - owner-property manager-> which agency?
Alienation clause
General Agency
conomic obsolescence
It is a right in land and should be created in writing and recorded.

41. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
An encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount

42. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
by ratification.
10%
Errors & Omissions insurance
alimony - child support or a pension plan.

43. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Errors & Omissions insurance
writ of execution
Reverse annuity
lower interest rate

44. This lease survives death and/or the sale of the property. No notice is required to terminate.
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
Blanket Loan
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
estate for years

45. Advantages of FHA loans

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46. One who acquires property under a deed is....
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 grante
conforming loans
trustor

47. ___ 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.
husband and wife
Errors & Omissions insurance
conforming loans.
General Agency

48. Which of the following instruments is the promise to repay a debt?
Defeasance
General
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
3

49. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
$4000.
Redlining
husband and wife

50. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
EMFs
by ratification.
Alienation clause
estate for years