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. For what group of buyers would the ARM be the least desirable?
Radon
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Trustee's Deed
Those on a fixed income

2. This will not impact of the seller's credit rating.
It is a right in land and should be created in writing and recorded.
a grante
straight assumption
Balloon loan

3. This lease survives death and/or the sale of the property. No notice is required to terminate.
In a straight assumption - the new buyer is approved - and takes over payments and liability
estate for years
encumbrance
Special or limited agency

4. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
10%
stigmatized
estate for years

5. The minimum withdrawal from a home equity LOC is
Total amount - Certificate amount x 4 = approved maximum loan amount
It is a right in land and should be created in writing and recorded.
estoppel
$4000.

6. Covers more than one piece of property. (several lots on one note)
Those on a fixed income
Total amount - Certificate amount x 4 = approved maximum loan amount
Blanket Loan
lower interest rate

7. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Alienation clause
writ of execution
income tax purposes

8. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Mitigation
tenancy in common
$4000.
Subordination clause

9. 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.
Deed Restrictions
Zoning
Vendee's Lien
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

10. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency
Those on a fixed income
Reverse annuity

11. ___loan - Covers more than one piece of property
Blanket
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Vendee's Lien

12. __ clause - states that the lien is defeated when the debt is repaid.
It is a right in land and should be created in writing and recorded.
Defeasance
Tenancy by the Entirety
Alienation clause

13. ___ is a limitation on your rights. It may also be a cloud on the title
grow - stabilize - decline - revitalize
An encumbrance
Fannie Mae - Freddie Mac and Ginnie Mae.
straight assumption

14. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
10%
Radon
stigmatized

15. '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?
EMFs
Alienation clause
$4000.
ostensible agency

16. A principal's duties to an agent ar...
Trustee's Deed
Subordination clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Total amount - Certificate amount x 4 = approved maximum loan amount

17. ___market is where lenders go for money
a grante
EMFs
The secondary
Redlining

18. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Alienation clause
Mitigation
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.
3

19. Includes real property plus personal property
Package Loan
Fannie Mae - Freddie Mac and Ginnie Mae.
Blanket
Defeasance

20. An ___ is a limitation on your rights
encumbrance
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
devise

21. A person who has real property willed to her by a relative is said to acquire title by...
devise
straight assumption
Blanket Loan
25%

22. __ 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.
Tenancy by the Entirety
An encumbrance
the cash price or the APR

23. Property Manager ( which type of Agency)
Those on a fixed income
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
General Agency
In a straight assumption - the new buyer is approved - and takes over payments and liability

24. __ "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.
Alienation clause
estoppel
grow - stabilize - decline - revitalize
a power of attorney

25. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Radon
Defeasance
Statutory law
alimony - child support or a pension plan.

26. Common law does not always takes precedence over...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
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
Statutory law

27. Advantages of FHA loans

28. ___ is created when a licensee acts like an agent and others respond to those actions.
EMFs
ostensible 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
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

29. One who acquires property under a deed is....
conforming loans.
a grante
a power of attorney
straight assumption

30. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
stigmatized
ostensible agency
Total amount - Certificate amount x 4 = approved maximum loan amount

31. IN Reg Z Advertising which states only __is permitted
conforming loans.
An encumbrance
the cash price or the APR
alimony - child support or a pension plan.

32. ___ 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.
MIP - mortgage insurance premium
estate for years
Errors & Omissions insurance
a property exchange.

33. 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
$4000.
straight assumption
Tenancy by the Entirety

34. Must sign the Deed of Trust.
a property exchange.
General
trustor
by ratification.

35. ____ - the refusal to lend in a particular geographic area - is prohibited.
An encumbrance
a power of attorney
Redlining
Reverse annuity

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

37. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
lower interest rate
Redlining
1. Release the lien when the note is paid. 2. Foreclose in the event of default

38. ___ 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
Balloon loan
General Agency
In a straight assumption - the new buyer is approved - and takes over payments and liability

39. ___ are imposed to control land use - development and methods and materials for construction.
In a straight assumption - the new buyer is approved - and takes over payments and liability
conforming loans
General Agency
Deed Restrictions

40. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
by ratification.
25%
trustor
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

41. Loans qualified to be purchased in the secondary market are called __
It is a right in land and should be created in writing and recorded.
Zoning
husband and wife
conforming loans.

42. An agent's duties to his principal are...
EMFs
Redlining
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
$4000.

43. A property where there has been a murder or alleged haunting is called...
grow - stabilize - decline - revitalize
straight assumption
stigmatized
MIP - mortgage insurance premium

44. 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.
Total amount - Certificate amount x 4 = approved maximum loan amount
An encumbrance
Balloon loan
Special or limited agency

45. Broker- Salesperson - owner-property manager-> which agency?
tenancy in common
General Agency
lower interest rate
General

46. An attorney-in-fact is the holder of...
Redlining
Special or limited agency
lower interest rate
a power of attorney

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

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

49. The veteran must obtain a Certificate of Eligibility from the VA
Blanket Loan
estate for years
Total amount - Certificate amount x 4 = approved maximum loan amount
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

50. 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.
Radon
trustor
Trustee's Deed
estoppel