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. Partially amortized loan - benefit
conforming loans.
a power of attorney
lower interest rate
Errors & Omissions insurance

2. ___ gives the agent the power to perform only specific acts and no others.
by ratification.
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.
Special or limited agency

3. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
conforming loans
Deed Restrictions
a power of attorney

4. This lease survives death and/or the sale of the property. No notice is required to terminate.
husband and wife
Deed Restrictions
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.

5. Loans qualified to be purchased in the secondary market are called __
conforming loans.
ostensible agency
Tenancy by the Entirety
conforming loans

6. __ is a specific type of joint tenancy where the co-owners are husband and wife.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Tenancy by the Entirety
Fannie Mae - Freddie Mac and Ginnie Mae.
Subordination clause

7. ___ are imposed to control land use - development and methods and materials for construction.
Deed Restrictions
Special or limited agency
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.

8. Covers more than one piece of property. (several lots on one note)
a grante
husband and wife
Blanket Loan
Subordination clause

9. High tension wire should be disclosed
3
Redlining
It is a right in land and should be created in writing and recorded.
EMFs

10. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
conforming loans
husband and wife
Defeasance
General Agency

11. An attorney-in-fact is the holder of...
Errors & Omissions insurance
a power of attorney
Zoning
Total amount - Certificate amount x 4 = approved maximum loan amount

12. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Statutory law
writ of execution
An encumbrance
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.

13. __ clause - states that the lien is defeated when the debt is repaid.
General Agency
Defeasance
Deed Restrictions
alimony - child support or a pension plan.

14. 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.
a grante
Statutory law
Zoning
Those on a fixed income

15. The deed of trust involves three parties...
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
Statutory law
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

16. IRS Lein - Specific lein or general lein
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
10%

17. Property Manager ( which type of Agency)
estoppel
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.
Package Loan
General Agency

18. Which of the following instruments is the promise to repay a debt?
Blanket
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
The trustee
estate for years

19. __ "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
General Agency
ostensible agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default

20. '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?
An encumbrance
Alienation clause
estate for years
tenancy in common

21. Includes real property plus personal property
25%
Alienation clause
Package Loan
Balloon loan

22. Common law does not always takes precedence over...
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default
ostensible agency
It is a right in land and should be created in writing and recorded.

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

24. Loans qualified to be purchased in the secondary market are called
conforming loans
Trustee's Deed
Subordination clause
Balloon loan

25. Lenders can deny credit if your sole source of income is__
stigmatized
1. Release the lien when the note is paid. 2. Foreclose in the event of default
the cash price or the APR
alimony - child support or a pension plan.

26. Advantages of FHA loans

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

28. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Blanket
10%
EMFs
alimony - child support or a pension plan.

29. Must sign the Deed of Trust.
3
Fannie Mae - Freddie Mac and Ginnie Mae.
trustor
Balloon loan

30. There are four basic characteristics of value
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
Vendee's Lien
grow - stabilize - decline - revitalize
Fannie Mae - Freddie Mac and Ginnie Mae.

31. An agent's duties to his principal are...
An encumbrance
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
conomic obsolescence
a property exchange.

32. ___ is created when a licensee acts like an agent and others respond to those actions.
conomic obsolescence
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
straight assumption
ostensible agency

33. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
trustor
ostensible agency
stigmatized

34. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
grow - stabilize - decline - revitalize
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
income tax purposes
rescission

35. Real estate investors can defer taxation of capital gains by making ___
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.
General
trustor

36. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
It is a right in land and should be created in writing and recorded.
Vendee's Lien
Blanket

37. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
Tenancy by the Entirety
Zoning
Blanket

38. Broker- Salesperson - owner-property manager-> which agency?
alimony - child support or a pension plan.
a property exchange.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
General Agency

39. ___ 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
Reverse annuity
Vendee's Lien
Fannie Mae - Freddie Mac and Ginnie Mae.

40. The insurance on the FHA loan is referred to as___
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.
estoppel
MIP - mortgage insurance premium
Package Loan

41. ___market is where lenders go for money
The secondary
Zoning
An encumbrance
a grante

42. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
grow - stabilize - decline - revitalize
Deed Restrictions
MIP - mortgage insurance premium
Statutory law

43. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Those on a fixed income
An encumbrance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Mitigation

44. A property where there has been a murder or alleged haunting is called...
a power of attorney
stigmatized
Statutory law
devise

45. One who acquires property under a deed is....
a grante
Tenancy by the Entirety
estate for years
25%

46. ____ - the refusal to lend in a particular geographic area - is prohibited.
lower interest rate
Trustee's Deed
Errors & Omissions insurance
Redlining

47. 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.
3
estoppel
10%
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.

48. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
writ of execution
Total amount - Certificate amount x 4 = approved maximum loan amount
Redlining
Radon

49. IN Reg Z Advertising which states only __is permitted
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
the cash price or the APR
income tax purposes
General

50. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Vendee's Lien
The trustee
husband and wife
General Agency