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. This will not impact of the seller's credit rating.
An encumbrance
rescission
straight assumption
The trustee

2. A property where there has been a murder or alleged haunting is called...
Errors & Omissions insurance
stigmatized
Statutory law
Tenancy by the Entirety

3. 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
ostensible agency
Zoning
Special or limited agency

4. Partially amortized loan - benefit
encumbrance
lower interest rate
The secondary
Package Loan

5. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
Radon
tenancy in common
devise

6. ____ - the refusal to lend in a particular geographic area - is prohibited.
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.
alimony - child support or a pension plan.
Redlining
Fannie Mae - Freddie Mac and Ginnie Mae.

7. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
It is a right in land and should be created in writing and recorded.
devise
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
writ of execution

8. Property Manager ( which type of Agency)
Fannie Mae - Freddie Mac and Ginnie Mae.
Total amount - Certificate amount x 4 = approved maximum loan amount
General Agency
Those on a fixed income

9. ___ 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.)
MIP - mortgage insurance premium
Total amount - Certificate amount x 4 = approved maximum loan amount
by ratification.
conomic obsolescence

10. __ "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.
writ of execution
Package Loan
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause

11. One who acquires property under a deed is....
a grante
Subordination clause
Alienation clause
3

12. __ is a specific type of joint tenancy where the co-owners are husband and wife.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a grante
General Agency
Tenancy by the Entirety

13. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
In a straight assumption - the new buyer is approved - and takes over payments and liability
tenancy in common
Fannie Mae - Freddie Mac and Ginnie Mae.

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

15. Must sign the Deed of Trust.
trustor
Radon
a grante
encumbrance

16. Loans qualified to be purchased in the secondary market are called
rescission
lower interest rate
conforming loans
Package Loan

17. Loan novation?
husband and wife
alimony - child support or a pension plan.
In a straight assumption - the new buyer is approved - and takes over payments and liability
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

18. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
writ of execution
Mitigation
10%
grow - stabilize - decline - revitalize

19. ___loan - Covers more than one piece of property
Total amount - Certificate amount x 4 = approved maximum loan amount
Blanket
Radon
Alienation clause

20. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
a property exchange.
Total amount - Certificate amount x 4 = approved maximum loan amount
It is a right in land and should be created in writing and recorded.

21. This lease survives death and/or the sale of the property. No notice is required to terminate.
alimony - child support or a pension plan.
rescission
estate for years
a grante

22. ___ are imposed to control land use - development and methods and materials for construction.
Those on a fixed income
writ of execution
Deed Restrictions
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

23. ___ is a limitation on your rights. It may also be a cloud on the title
An encumbrance
Trustee's Deed
Total amount - Certificate amount x 4 = approved maximum loan amount
the cash price or the APR

24. Which of the following instruments is the promise to repay a debt?
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Subordination clause
Those on a fixed income
Vendee's Lien

25. ___ 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
lower interest rate
straight assumption
devise

26. Broker- Salesperson - owner-property manager-> which agency?
income tax purposes
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency
trustor

27. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
the cash price or the APR
alimony - child support or a pension plan.
Tenancy by the Entirety

28. The minimum withdrawal from a home equity LOC is
conforming loans
General Agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
$4000.

29. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
lower interest rate
by ratification.
husband and wife

30. IRS Lein - Specific lein or general lein
Alienation clause
a grante
General
Package Loan

31. On income producing property land can never be depreciated for...
Total amount - Certificate amount x 4 = approved maximum loan amount
income tax purposes
conforming loans.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

32. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
$4000.
Errors & Omissions insurance
stigmatized

33. Advantages of FHA loans

34. An agent's duties to his principal are...
25%
Defeasance
The secondary
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

35. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
10%
The trustee
ostensible agency
Blanket Loan

36. The veteran must obtain a Certificate of Eligibility from the VA
Zoning
Defeasance
Total amount - Certificate amount x 4 = approved maximum loan amount
MIP - mortgage insurance premium

37. The secondary market warehousing agencies are...
Fannie Mae - Freddie Mac and Ginnie Mae.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Vendee's Lien
Statutory law

38. Loans qualified to be purchased in the secondary market are called __
conforming loans.
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.
a property exchange.
Blanket

39. An attorney-in-fact is the holder of...
Reverse annuity
income tax purposes
a power of attorney
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

40. A person who has real property willed to her by a relative is said to acquire title by...
straight assumption
devise
The secondary
Radon

41. The deed of trust involves three parties...
Reverse annuity
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
$4000.
Radon

42. Includes real property plus personal property
writ of execution
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Package Loan
conforming loans.

43. 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.
rescission
The secondary
Balloon loan
Mitigation

44. Lenders can deny credit if your sole source of income is__
estoppel
alimony - child support or a pension plan.
It is a right in land and should be created in writing and recorded.
grow - stabilize - decline - revitalize

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

46. ___market is where lenders go for money
The secondary
conomic obsolescence
Statutory law
Subordination clause

47. '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?
Redlining
a grante
stigmatized
Alienation clause

48. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
EMFs
ostensible agency
Subordination clause
Those on a fixed income

49. What is easment?
Tenancy by the Entirety
It is a right in land and should be created in writing and recorded.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Errors & Omissions insurance

50. Ownership by two or more without rights of survivorship is called
25%
tenancy in common
EMFs
3