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. Loans qualified to be purchased in the secondary market are called
conforming loans
General Agency
ostensible agency
Trustee's Deed

2. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Reverse annuity
tenancy in common
Vendee's Lien

3. IRS Lein - Specific lein or general lein
Total amount - Certificate amount x 4 = approved maximum loan amount
General
General Agency
tenancy in common

4. The minimum withdrawal from a home equity LOC is
Blanket Loan
estoppel
estate for years
$4000.

5. ___ are imposed to control land use - development and methods and materials for construction.
alimony - child support or a pension plan.
grow - stabilize - decline - revitalize
Deed Restrictions
An encumbrance

6. A person who has real property willed to her by a relative is said to acquire title by...
straight assumption
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

7. 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
alimony - child support or a pension plan.
Balloon loan
grow - stabilize - decline - revitalize

8. 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.
Alienation clause
Balloon loan
Special or limited agency
Subordination clause

9. Real estate investors can defer taxation of capital gains by making ___
3
a property exchange.
Package Loan
conforming loans

10. Property Manager ( which type of Agency)
25%
In a straight assumption - the new buyer is approved - and takes over payments and liability
ostensible agency
General Agency

11. ___ is created when a licensee acts like an agent and others respond to those actions.
estoppel
1. Release the lien when the note is paid. 2. Foreclose in the event of default
ostensible agency
stigmatized

12. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
by ratification.
Mitigation
General Agency
10%

13. An attorney-in-fact is the holder of...
Errors & Omissions insurance
a power of attorney
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.
conforming loans.

14. What is easment?
General
It is a right in land and should be created in writing and recorded.
General Agency
Errors & Omissions insurance

15. The trustee has two functions in accordance with the Deed of Trust.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Balloon loan
Vendee's Lien
Deed Restrictions

16. ___ 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.)
grow - stabilize - decline - revitalize
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conomic obsolescence
tenancy in common

17. The insurance on the FHA loan is referred to as___
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
estoppel
MIP - mortgage insurance premium
ostensible agency

18. 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
Those on a fixed income

19. Must sign the Deed of Trust.
General Agency
rescission
husband and wife
trustor

20. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
Those on a fixed income
grow - stabilize - decline - revitalize
income tax purposes

21. ____ - the refusal to lend in a particular geographic area - is prohibited.
Blanket
husband and wife
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Redlining

22. One who acquires property under a deed is....
rescission
General Agency
a grante
MIP - mortgage insurance premium

23. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
writ of execution
Deed Restrictions
estate for years
Mitigation

24. Covers more than one piece of property. (several lots on one note)
Radon
Blanket Loan
the cash price or the APR
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

25. Includes real property plus personal property
alimony - child support or a pension plan.
Package Loan
Total amount - Certificate amount x 4 = approved maximum loan amount
conforming loans

26. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
Defeasance
a grante
MIP - mortgage insurance premium

27. A property where there has been a murder or alleged haunting is called...
$4000.
stigmatized
Package Loan
Statutory law

28. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
by ratification.
25%
grow - stabilize - decline - revitalize
husband and wife

29. __ is a specific type of joint tenancy where the co-owners are husband and wife.
EMFs
grow - stabilize - decline - revitalize
Tenancy by the Entirety
Errors & Omissions insurance

30. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
General Agency
a property exchange.
Subordination clause
25%

31. A principal's duties to an agent ar...
Fannie Mae - Freddie Mac and Ginnie Mae.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Zoning
ostensible agency

32. Ownership by two or more without rights of survivorship is called
3
10%
tenancy in common
ostensible agency

33. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
Alienation clause
conomic obsolescence
by ratification.

34. 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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
EMFs
Zoning
Defeasance

35. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
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
conforming loans.
Reverse annuity
10%

36. Loan novation?
The trustee
Blanket
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

37. '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?
Alienation clause
estoppel
alimony - child support or a pension plan.
Zoning

38. __ "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.
encumbrance
Tenancy by the Entirety
Alienation clause
3

39. This will not impact of the seller's credit rating.
Balloon loan
Package Loan
straight assumption
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

40. Loans qualified to be purchased in the secondary market are called __
conforming loans.
the cash price or the APR
income tax purposes
straight assumption

41. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
It is a right in land and should be created in writing and recorded.
$4000.
tenancy in common

42. ___loan - Covers more than one piece of property
3
Blanket
The secondary
Those on a fixed income

43. This lease survives death and/or the sale of the property. No notice is required to terminate.
alimony - child support or a pension plan.
estate for years
EMFs
Vendee's Lien

44. The secondary market warehousing agencies are...
Total amount - Certificate amount x 4 = approved maximum loan amount
Statutory law
10%
Fannie Mae - Freddie Mac and Ginnie Mae.

45. ___ 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.
An encumbrance
writ of execution
rescission
Errors & Omissions insurance

46. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
alimony - child support or a pension plan.
Alienation clause
Redlining
Reverse annuity

47. Partially amortized loan - benefit
trustor
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
lower interest rate
writ of execution

48. An agent's duties to his principal are...
straight assumption
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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.
An encumbrance

49. Advantages of FHA loans

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

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