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 Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
In a straight assumption - the new buyer is approved - and takes over payments and liability
General Agency
General

2. What is easment?
a power of attorney
It is a right in land and should be created in writing and recorded.
estate for years
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

3. __ "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.
by ratification.
10%
devise
Alienation clause

4. When the principal learns of those actions - if the principal accepts those actions - that creates 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
a power of attorney
ostensible agency
by ratification.

5. A principal's duties to an agent ar...
Package Loan
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
25%
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

6. An ___ is a limitation on your rights
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
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.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

7. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
a property exchange.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
writ of execution
Balloon loan

8. On income producing property land can never be depreciated for...
encumbrance
Errors & Omissions insurance
income tax purposes
a grante

9. One who acquires property under a deed is....
Vendee's Lien
a grante
Total amount - Certificate amount x 4 = approved maximum loan amount
lower interest rate

10. ___ are imposed to control land use - development and methods and materials for construction.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Total amount - Certificate amount x 4 = approved maximum loan amount
Statutory law
Deed Restrictions

11. The minimum withdrawal from a home equity LOC is
alimony - child support or a pension plan.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Reverse annuity
$4000.

12. An attorney-in-fact is the holder of...
An encumbrance
Alienation clause
General Agency
a power of attorney

13. Includes real property plus personal property
Package Loan
3
EMFs
Redlining

14. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
a power of attorney
Those on a fixed income
Radon
Zoning

15. There are four basic characteristics of value
Special or limited agency
by ratification.
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

16. This will not impact of the seller's credit rating.
Trustee's Deed
conforming loans
straight assumption
MIP - mortgage insurance premium

17. __ is a specific type of joint tenancy where the co-owners are husband and wife.
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
1. Release the lien when the note is paid. 2. Foreclose in the event of default
a grante
Tenancy by the Entirety

18. The insurance on the FHA loan is referred to as___
by ratification.
Vendee's Lien
trustor
MIP - mortgage insurance premium

19. IN Reg Z Advertising which states only __is permitted
1. Release the lien when the note is paid. 2. Foreclose in the event of default
by ratification.
the cash price or the APR
25%

20. The trustee has two functions in accordance with the Deed of Trust.
It is a right in land and should be created in writing and recorded.
straight assumption
1. Release the lien when the note is paid. 2. Foreclose in the event of default
estoppel

21. Must sign the Deed of Trust.
Radon
Total amount - Certificate amount x 4 = approved maximum loan amount
encumbrance
trustor

22. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
conomic obsolescence
General
Reverse annuity
grow - stabilize - decline - revitalize

23. ___ is a limitation on your rights. It may also be a cloud on the title
Mitigation
tenancy in common
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
An encumbrance

24. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
25%
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

25. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
grow - stabilize - decline - revitalize
a grante
Deed Restrictions

26. IRS Lein - Specific lein or general lein
EMFs
estoppel
Package Loan
General

27. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
Statutory law
It is a right in land and should be created in writing and recorded.

28. Loans qualified to be purchased in the secondary market are called
The secondary
conforming loans
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
by ratification.

29. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
husband and wife
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
3
rescission

30. A person who has real property willed to her by a relative is said to acquire title by...
Mitigation
Defeasance
1. Release the lien when the note is paid. 2. Foreclose in the event of default
devise

31. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
straight assumption
Reverse annuity
by ratification.
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.

32. The deed of trust involves three parties...
The secondary
lower interest rate
rescission
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

33. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Trustee's Deed
the cash price or the APR
Total amount - Certificate amount x 4 = approved maximum loan amount

34. __ clause - states that the lien is defeated when the debt is repaid.
Tenancy by the Entirety
In a straight assumption - the new buyer is approved - and takes over payments and liability
Defeasance
estate for years

35. 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.
conforming loans
the cash price or the APR
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Zoning

36. Partially amortized loan - benefit
The trustee
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
lower interest rate
1. Release the lien when the note is paid. 2. Foreclose in the event of default

37. Advantages of FHA loans

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38. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Vendee's Lien
Reverse annuity
straight assumption

39. ___ 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.)
Redlining
conomic obsolescence
Statutory law
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

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

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

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42. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
25%
10%
tenancy in common
stigmatized

43. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
MIP - mortgage insurance premium
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
rescission
grow - stabilize - decline - revitalize

44. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Radon
Trustee's Deed
In a straight assumption - the new buyer is approved - and takes over payments and liability

45. ___market is where lenders go for money
Subordination clause
Total amount - Certificate amount x 4 = approved maximum loan amount
The secondary
devise

46. 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.
a grante
General Agency
Balloon loan
Fannie Mae - Freddie Mac and Ginnie Mae.

47. This lease survives death and/or the sale of the property. No notice is required to terminate.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Those on a fixed income
estate for years
a grante

48. '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?
Balloon loan
husband and wife
a property exchange.
Alienation clause

49. Ownership by two or more without rights of survivorship is called
tenancy in common
the cash price or the APR
25%
General

50. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
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
income tax purposes
Mitigation