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. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
Fannie Mae - Freddie Mac and Ginnie Mae.
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.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

2. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Fannie Mae - Freddie Mac and Ginnie Mae.
3
Total amount - Certificate amount x 4 = approved maximum loan amount
Trustee's Deed

3. An attorney-in-fact is the holder of...
a power of attorney
grow - stabilize - decline - revitalize
stigmatized
estate for years

4. ___ 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
estoppel
Redlining
Radon

5. High tension wire should be disclosed
income tax purposes
An encumbrance
Package Loan
EMFs

6. Which of the following instruments is the promise to repay a debt?
Fannie Mae - Freddie Mac and Ginnie Mae.
Redlining
conforming loans.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

7. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Those on a fixed income
Mitigation
a property exchange.
encumbrance

8. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
EMFs
conforming loans
An encumbrance
Subordination clause

9. __ "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.
stigmatized
Alienation clause
Subordination clause
General

10. ___loan - Covers more than one piece of property
Blanket
husband and wife
trustor
Zoning

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

12. An agent's duties to his principal are...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
devise
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
writ of execution

13. A property where there has been a murder or alleged haunting is called...
lower interest rate
stigmatized
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Errors & Omissions insurance

14. 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
estoppel
Blanket Loan

15. One who acquires property under a deed is....
Fannie Mae - Freddie Mac and Ginnie Mae.
Vendee's Lien
a grante
Tenancy by the Entirety

16. This lease survives death and/or the sale of the property. No notice is required to terminate.
Blanket Loan
estate for years
The secondary
estoppel

17. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
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
estate for years
rescission
trustor

18. Covers more than one piece of property. (several lots on one note)
Blanket Loan
Zoning
Alienation clause
General Agency

19. ___market is where lenders go for money
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
The secondary
Balloon loan
Redlining

20. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Mitigation
Blanket
Alienation clause

21. ___ gives the agent the power to perform only specific acts and no others.
Total amount - Certificate amount x 4 = approved maximum loan amount
grow - stabilize - decline - revitalize
Errors & Omissions insurance
Special or limited agency

22. 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

23. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
writ of execution
a grante
Zoning
grow - stabilize - decline - revitalize

24. The insurance on the FHA loan is referred to as___
conforming loans.
MIP - mortgage insurance premium
Radon
devise

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.
Mitigation
Alienation clause
Errors & Omissions insurance
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.

26. Loans qualified to be purchased in the secondary market are called
conforming loans
Zoning
a property exchange.
It is a right in land and should be created in writing and recorded.

27. 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

28. 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
the cash price or the APR
a property exchange.

29. IN Reg Z Advertising which states only __is permitted
writ of execution
by ratification.
Redlining
the cash price or the APR

30. Ownership by two or more without rights of survivorship is called
General Agency
Radon
tenancy in common
lower interest rate

31. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
rescission
Those on a fixed income
Statutory law
by ratification.

32. ___ are imposed to control land use - development and methods and materials for construction.
Statutory law
25%
a power of attorney
Deed Restrictions

33. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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
$4000.

34. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
husband and wife
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
Special or limited agency
Radon

35. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
The trustee
Balloon loan
Alienation clause

36. A person who has real property willed to her by a relative is said to acquire title by...
the cash price or the APR
10%
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

37. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
Vendee's Lien
writ of execution
grow - stabilize - decline - revitalize

38. Must sign the Deed of Trust.
conforming loans.
ostensible agency
trustor
grow - stabilize - decline - revitalize

39. The deed of trust involves three parties...
Package Loan
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
estate for years
a power of attorney

40. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
trustor
estoppel
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

41. The trustee has two functions in accordance with the Deed of Trust.
Radon
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Alienation clause
grow - stabilize - decline - revitalize

42. Broker- Salesperson - owner-property manager-> which agency?
conforming loans.
General Agency
a power of attorney
Fannie Mae - Freddie Mac and Ginnie Mae.

43. A principal's duties to an agent ar...
Subordination clause
Radon
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Alienation clause

44. 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
Blanket Loan
estate for years
Alienation clause

45. Loans qualified to be purchased in the secondary market are called __
conforming loans.
income tax purposes
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Fannie Mae - Freddie Mac and Ginnie Mae.

46. Property Manager ( which type of Agency)
General Agency
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Alienation clause
Vendee's Lien

47. The secondary market warehousing agencies are...
alimony - child support or a pension plan.
Subordination clause
Tenancy by the Entirety
Fannie Mae - Freddie Mac and Ginnie Mae.

48. IRS Lein - Specific lein or general lein
Radon
25%
General
Reverse annuity

49. On income producing property land can never be depreciated for...
husband and wife
In a straight assumption - the new buyer is approved - and takes over payments and liability
income tax purposes
Blanket

50. Common law does not always takes precedence over...
ostensible agency
Blanket
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default