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.
devise
grow - stabilize - decline - revitalize
Alienation clause
lower interest rate

2. ___ 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.
Mitigation
Errors & Omissions insurance
It is a right in land and should be created in writing and recorded.
a property exchange.

3. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Defeasance
conomic obsolescence
by ratification.

4. An attorney-in-fact is the holder of...
Deed Restrictions
lower interest rate
a power of attorney
rescission

5. ___loan - Covers more than one piece of property
income tax purposes
Total amount - Certificate amount x 4 = approved maximum loan amount
estate for years
Blanket

6. ___ is created when a licensee acts like an agent and others respond to those actions.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
the cash price or the APR
ostensible agency
a grante

7. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Vendee's Lien
rescission
stigmatized
10%

8. 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.
grow - stabilize - decline - revitalize
Total amount - Certificate amount x 4 = approved maximum loan amount
Zoning
Package Loan

9. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
EMFs
by ratification.
Alienation clause

10. High tension wire should be disclosed
Blanket
EMFs
General Agency
Package Loan

11. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
income tax purposes
Subordination clause
Alienation clause

12. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
writ of execution
3
Mitigation
An encumbrance

13. A principal's duties to an agent ar...
ostensible agency
An encumbrance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
3

14. There are four basic characteristics of value
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.
10%
alimony - child support or a pension plan.
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

15. A property where there has been a murder or alleged haunting is called...
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.
stigmatized
devise

16. Lenders can deny credit if your sole source of income is__
Those on a fixed income
The trustee
Vendee's Lien
alimony - child support or a pension plan.

17. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Zoning
$4000.
Tenancy by the Entirety
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

18. The veteran must obtain a Certificate of Eligibility from the VA
Vendee's Lien
ostensible agency
writ of execution
Total amount - Certificate amount x 4 = approved maximum loan amount

19. Includes real property plus personal property
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a grante
Alienation clause
Package Loan

20. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
trustor
Balloon loan
10%

21. An ___ is a limitation on your rights
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
grow - stabilize - decline - revitalize
Mitigation
encumbrance

22. Partially amortized loan - benefit
lower interest rate
husband and wife
Reverse annuity
tenancy in common

23. ___ gives the agent the power to perform only specific acts and no others.
10%
Special or limited agency
by ratification.
Errors & Omissions insurance

24. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
The secondary
a property exchange.
Deed Restrictions

25. The secondary market warehousing agencies are...
Balloon loan
Fannie Mae - Freddie Mac and Ginnie Mae.
Those on a fixed income
An encumbrance

26. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a power of attorney
a property exchange.
An encumbrance

27. On income producing property land can never be depreciated for...
Subordination clause
income tax purposes
Fannie Mae - Freddie Mac and Ginnie Mae.
a grante

28. ___ 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.)
conomic obsolescence
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Total amount - Certificate amount x 4 = approved maximum loan amount
EMFs

29. ____ - the refusal to lend in a particular geographic area - is prohibited.
Total amount - Certificate amount x 4 = approved maximum loan amount
Redlining
Defeasance
conforming loans

30. Loans qualified to be purchased in the secondary market are called
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
estate for years
Errors & Omissions insurance
conforming loans

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

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32. IRS Lein - Specific lein or general lein
rescission
Total amount - Certificate amount x 4 = approved maximum loan amount
MIP - mortgage insurance premium
General

33. The trustee has two functions in accordance with the Deed of Trust.
a property exchange.
the cash price or the APR
1. Release the lien when the note is paid. 2. Foreclose in the event of default
The trustee

34. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
Alienation clause
lower interest rate
husband and wife

35. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Defeasance
a power of attorney
Trustee's Deed
Reverse annuity

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

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37. Loans qualified to be purchased in the secondary market are called __
by ratification.
tenancy in common
conforming loans.
It is a right in land and should be created in writing and recorded.

38. Broker- Salesperson - owner-property manager-> which agency?
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General Agency
Package Loan
Total amount - Certificate amount x 4 = approved maximum loan amount

39. '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?
Alienation clause
Total amount - Certificate amount x 4 = approved maximum loan amount
The trustee
MIP - mortgage insurance premium

40. ___ are imposed to control land use - development and methods and materials for construction.
Subordination clause
devise
Deed Restrictions
$4000.

41. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
conforming loans
$4000.
Reverse annuity

42. Ownership by two or more without rights of survivorship is called
Reverse annuity
tenancy in common
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
In a straight assumption - the new buyer is approved - and takes over payments and liability

43. Advantages of FHA loans

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44. A person who has real property willed to her by a relative is said to acquire title by...
Trustee's Deed
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.
devise
straight assumption

45. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Vendee's Lien
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
10%

46. What is easment?
Defeasance
EMFs
It is a right in land and should be created in writing and recorded.
a property exchange.

47. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Package Loan
Those on a fixed income
Statutory law

48. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
$4000.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
husband and wife
the cash price or the APR

49. The deed of trust involves three parties...
Blanket Loan
Reverse annuity
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General Agency

50. IN Reg Z Advertising which states only __is permitted
EMFs
The trustee
Zoning
the cash price or the APR