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Brokers License

Instructions:

Answer 50 questions in 15 minutes.
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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 clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
by ratification.
Those on a fixed income
conforming loans

2. Common law does not always takes precedence over...
Package Loan
Statutory law
Deed Restrictions
Tenancy by the Entirety

3. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
straight assumption
encumbrance
Total amount - Certificate amount x 4 = approved maximum loan amount
Mitigation

4. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Radon
by ratification.
Reverse annuity
3

5. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
estate for years
$4000.
Balloon loan
Radon

6. A principal's duties to an agent ar...
General Agency
estoppel
10%
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

7. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
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
General Agency
In a straight assumption - the new buyer is approved - and takes over payments and liability

8. The secondary market warehousing agencies are...
Alienation clause
Fannie Mae - Freddie Mac and Ginnie Mae.
The trustee
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

9. ____ - the refusal to lend in a particular geographic area - is prohibited.
lower interest rate
MIP - mortgage insurance premium
Alienation clause
Redlining

10. __ is a specific type of joint tenancy where the co-owners are husband and wife.
25%
Balloon loan
estoppel
Tenancy by the Entirety

11. Loans qualified to be purchased in the secondary market are called __
lower interest rate
devise
conforming loans.
encumbrance

12. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
by ratification.
devise
conforming loans

13. Loan novation?
General Agency
estate for years
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
In a straight assumption - the new buyer is approved - and takes over payments and liability

14. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
Alienation clause
estoppel
straight assumption

15. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Redlining
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.
Trustee's Deed

16. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
Those on a fixed income
10%
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

17. On income producing property land can never be depreciated for...
encumbrance
Statutory law
income tax purposes
25%

18. 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.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Zoning
1. Release the lien when the note is paid. 2. Foreclose in the event of default
by ratification.

19. ___market is where lenders go for money
The secondary
estoppel
conforming loans.
EMFs

20. If the Trustee fails to deliver the deed the buyer may use a ___ to protect his interest
estoppel
Vendee's Lien
3
conforming loans

21. This will not impact of the seller's credit rating.
Redlining
straight assumption
grow - stabilize - decline - revitalize
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

22. There are four basic characteristics of value
10%
Statutory law
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
EMFs

23. __ clause - states that the lien is defeated when the debt is repaid.
Blanket Loan
Defeasance
stigmatized
estoppel

24. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
estate for years
stigmatized
conomic obsolescence
writ of execution

25. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Subordination clause
Balloon loan
husband and wife
3

26. Partially amortized loan - benefit
lower interest rate
trustor
EMFs
writ of execution

27. 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.
Trustee's Deed
estoppel
Package Loan
$4000.

28. ___ is created when a licensee acts like an agent and others respond to those actions.
a grante
$4000.
ostensible agency
trustor

29. Covers more than one piece of property. (several lots on one note)
trustor
Blanket Loan
husband and wife
the cash price or the APR

30. Broker- Salesperson - owner-property manager-> which agency?
25%
General Agency
Mitigation
estate for years

31. __ "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.
3
Alienation clause
General Agency
devise

32. IRS Lein - Specific lein or general lein
General
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Tenancy by the Entirety
Zoning

33. The deed of trust involves three parties...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Mitigation
An encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

34. ___ is a limitation on your rights. It may also be a cloud on the title
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
An encumbrance
Zoning

35. One who acquires property under a deed is....
trustor
a grante
income tax purposes
devise

36. ___ gives the agent the power to perform only specific acts and no others.
Subordination clause
The trustee
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Special or limited agency

37. Advantages of FHA loans
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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.
encumbrance
lower interest rate

38. IN Reg Z Advertising which states only __is permitted
10%
encumbrance
grow - stabilize - decline - revitalize
the cash price or the APR

39. ___loan - Covers more than one piece of property
Trustee's Deed
stigmatized
Package Loan
Blanket

40. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
The trustee
Special or limited agency
alimony - child support or a pension plan.

41. An ___ is a limitation on your rights
encumbrance
trustor
EMFs
husband and wife

42. What is easment?
Alienation clause
It is a right in land and should be created in writing and recorded.
a property exchange.
General

43. Ownership by two or more without rights of survivorship is called
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
Statutory law
tenancy in common

44. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
General
stigmatized
Vendee's Lien

45. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
Fannie Mae - Freddie Mac and Ginnie Mae.
tenancy in common
rescission

46. A property where there has been a murder or alleged haunting is called...
Blanket
stigmatized
An encumbrance
In a straight assumption - the new buyer is approved - and takes over payments and liability

47. Real estate investors can defer taxation of capital gains by making ___
straight assumption
estoppel
husband and wife
a property exchange.

48. Must sign the Deed of Trust.
Radon
trustor
Special or limited agency
Balloon loan

49. An attorney-in-fact is the holder of...
conomic obsolescence
income tax purposes
a power of attorney
Mitigation

50. Includes real property plus personal property
Trustee's Deed
Package Loan
tenancy in common
Reverse annuity

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