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 secondary market warehousing agencies are...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Fannie Mae - Freddie Mac and Ginnie Mae.
Zoning
Errors & Omissions insurance

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.
Errors & Omissions insurance
$4000.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Release the lien when the note is paid. 2. Foreclose in the event of default

3. An ___ is a limitation on your rights
encumbrance
Zoning
Defeasance
alimony - child support or a pension plan.

4. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
grow - stabilize - decline - revitalize
writ of execution
a power of attorney
Tenancy by the Entirety

5. Advantages of FHA loans

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

6. ___ is created when a licensee acts like an agent and others respond to those actions.
ostensible agency
estate for years
rescission
Special or limited agency

7. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Blanket
Statutory law
Package Loan
rescission

8. '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?
income tax purposes
Zoning
conomic obsolescence
Alienation clause

9. The veteran must obtain a Certificate of Eligibility from the VA
General Agency
Total amount - Certificate amount x 4 = approved maximum loan amount
rescission
Deed Restrictions

10. What is easment?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Statutory law
The secondary
It is a right in land and should be created in writing and recorded.

11. This lease survives death and/or the sale of the property. No notice is required to terminate.
Special or limited agency
estate for years
General
Alienation clause

12. Common law does not always takes precedence over...
encumbrance
General Agency
Statutory law
Total amount - Certificate amount x 4 = approved maximum loan amount

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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

14. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Redlining
3
General
Deed Restrictions

15. IN Reg Z Advertising which states only __is permitted
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.
General Agency
the cash price or the APR
Radon

16. The deed of trust involves three parties...
Blanket
grow - stabilize - decline - revitalize
Radon
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

17. 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.
lower interest rate
Alienation clause
estoppel
Mitigation

18. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
conforming loans.
General Agency
grow - stabilize - decline - revitalize
stigmatized

19. ___ gives the agent the power to perform only specific acts and no others.
MIP - mortgage insurance premium
a property exchange.
Special or limited agency
alimony - child support or a pension plan.

20. 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
stigmatized
a grante
Special or limited agency

21. Covers more than one piece of property. (several lots on one note)
Blanket 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
the cash price or the APR
Reverse annuity

22. The minimum withdrawal from a home equity LOC is
Fannie Mae - Freddie Mac and Ginnie Mae.
the cash price or the APR
$4000.
Redlining

23. Loan novation?
Blanket
General Agency
a power of attorney
In a straight assumption - the new buyer is approved - and takes over payments and liability

24. Property Manager ( which type of Agency)
writ of execution
stigmatized
a power of attorney
General Agency

25. Real estate investors can defer taxation of capital gains by making ___
ostensible agency
a property exchange.
General Agency
An encumbrance

26. A principal's duties to an agent ar...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
An encumbrance
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
a power of attorney

27. 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.
25%
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Zoning
Balloon loan

28. The trustee has two functions in accordance with the Deed of Trust.
Radon
MIP - mortgage insurance premium
ostensible agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default

29. Lenders can deny credit if your sole source of income is__
Mitigation
alimony - child support or a pension plan.
devise
the cash price or the APR

30. __ clause - states that the lien is defeated when the debt is repaid.
The trustee
Those on a fixed income
Defeasance
Fannie Mae - Freddie Mac and Ginnie Mae.

31. Which of the following instruments is the promise to repay a debt?
Special or limited agency
lower interest rate
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
a power of attorney

32. IRS Lein - Specific lein or general lein
conomic obsolescence
Zoning
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General

33. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
The trustee
Errors & Omissions insurance
Alienation clause

34. ___ 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.)
It is a right in land and should be created in writing and recorded.
encumbrance
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
conomic obsolescence

35. An attorney-in-fact is the holder of...
a power of attorney
trustor
income tax purposes
Deed Restrictions

36. ___market is where lenders go for money
An encumbrance
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 property exchange.
The secondary

37. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Special or limited agency
General Agency
10%
estate for years

38. Ownership by two or more without rights of survivorship is called
tenancy in common
Reverse annuity
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%

39. Loans qualified to be purchased in the secondary market are called __
writ of execution
Fannie Mae - Freddie Mac and Ginnie Mae.
Zoning
conforming loans.

40. This will not impact of the seller's credit rating.
Alienation clause
conomic obsolescence
Blanket
straight assumption

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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

42. Loans qualified to be purchased in the secondary market are called
General Agency
10%
conforming loans
a property exchange.

43. __ "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.
Balloon loan
ostensible agency
conforming loans.
Alienation clause

44. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Tenancy by the Entirety
estoppel
rescission
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

45. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
Subordination clause
Special or limited agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
by ratification.

46. Must sign the Deed of Trust.
Alienation clause
Tenancy by the Entirety
Blanket Loan
trustor

47. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
It is a right in land and should be created in writing and recorded.
devise
Alienation clause
Reverse annuity

48. ___ are imposed to control land use - development and methods and materials for construction.
by ratification.
Deed Restrictions
3
The secondary

49. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
tenancy in common
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
stigmatized

50. High tension wire should be disclosed
EMFs
rescission
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
$4000.