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
tenancy in common
Tenancy by the Entirety
Reverse annuity
encumbrance

2. This will not impact of the seller's credit rating.
General Agency
the cash price or the APR
It is a right in land and should be created in writing and recorded.
straight assumption

3. ____ - the refusal to lend in a particular geographic area - is prohibited.
EMFs
Redlining
Total amount - Certificate amount x 4 = approved maximum loan amount
the cash price or the APR

4. ___ 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
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
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

5. 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.
rescission
Alienation clause
Deed Restrictions
Zoning

6. This lease survives death and/or the sale of the property. No notice is required to terminate.
a power of attorney
estate for years
Subordination clause
Those on a fixed income

7. ___ is a limitation on your rights. It may also be a cloud on the title
estoppel
An encumbrance
tenancy in common
lower interest rate

8. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Alienation clause
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.
Those on a fixed income
3

9. An ___ is a limitation on your rights
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Deed Restrictions
encumbrance
a grante

10. Loans qualified to be purchased in the secondary market are called __
income tax purposes
The trustee
conforming loans.
stigmatized

11. High tension wire should be disclosed
writ of execution
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
ostensible agency
EMFs

12. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Alienation clause
Fannie Mae - Freddie Mac and Ginnie Mae.
husband and wife

13. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
Fannie Mae - Freddie Mac and Ginnie Mae.
Special or limited agency
25%
Mitigation

14. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Fannie Mae - Freddie Mac and Ginnie Mae.
Total amount - Certificate amount x 4 = approved maximum loan amount
conforming loans
The trustee

15. ___market is where lenders go for money
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 power of attorney
writ of execution
The secondary

16. IN Reg Z Advertising which states only __is permitted
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Statutory law
the cash price or the APR
Errors & Omissions insurance

17. Common law does not always takes precedence over...
Redlining
Package Loan
Statutory law
Defeasance

18. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
Blanket Loan
the cash price or the APR
tenancy in common

19. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
straight assumption
rescission
a property exchange.
Statutory law

20. The trustee has two functions in accordance with the Deed of Trust.
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
1. Release the lien when the note is paid. 2. Foreclose in the event of default
estoppel

21. 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.
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability
Total amount - Certificate amount x 4 = approved maximum loan amount
estoppel

22. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
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.
Total amount - Certificate amount x 4 = approved maximum loan amount
The trustee

23. ___loan - Covers more than one piece of property
Blanket Loan
General Agency
Blanket
conforming loans.

24. On income producing property land can never be depreciated for...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
stigmatized
income tax purposes
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

25. ___ gives the agent the power to perform only specific acts and no others.
Mitigation
Special or limited agency
$4000.
It is a right in land and should be created in writing and recorded.

26. An attorney-in-fact is the holder 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
a power of attorney
trustor
a grante

27. The veteran must obtain a Certificate of Eligibility from the VA
General Agency
stigmatized
Total amount - Certificate amount x 4 = approved maximum loan amount
Blanket Loan

28. A principal's duties to an agent ar...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
straight assumption

29. An agent's duties to his principal are...
encumbrance
Alienation clause
Balloon loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

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

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31. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
conforming loans
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
Zoning

32. ___ 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.)
Errors & Omissions insurance
conomic obsolescence
Blanket
lower interest rate

33. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
The secondary
a grante
10%
a property exchange.

34. ___ are imposed to control land use - development and methods and materials for construction.
a property exchange.
Total amount - Certificate amount x 4 = approved maximum loan amount
conforming loans.
Deed Restrictions

35. Real estate investors can defer taxation of capital gains by making ___
a property exchange.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General Agency
trustor

36. ___ is created when a licensee acts like an agent and others respond to those actions.
$4000.
ostensible agency
conforming loans.
It is a right in land and should be created in writing and recorded.

37. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Trustee's Deed
encumbrance
a power of attorney
writ of execution

38. Includes real property plus personal property
tenancy in common
Blanket Loan
Package Loan
MIP - mortgage insurance premium

39. Ownership by two or more without rights of survivorship is called
General
General Agency
Vendee's Lien
tenancy in common

40. The minimum withdrawal from a home equity LOC is
Blanket
Alienation clause
income tax purposes
$4000.

41. Covers more than one piece of property. (several lots on one note)
Blanket Loan
Special or limited agency
a power of attorney
lower interest rate

42. A person who has real property willed to her by a relative is said to acquire title by...
devise
Radon
Trustee's Deed
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

43. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
ostensible agency
25%
Subordination clause
$4000.

44. Loans qualified to be purchased in the secondary market are called
Blanket
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conforming loans
Mitigation

45. '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?
lower interest rate
Statutory law
devise
Alienation clause

46. What is easment?
It is a right in land and should be created in writing and recorded.
Blanket
Alienation clause
In a straight assumption - the new buyer is approved - and takes over payments and liability

47. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
General Agency
Deed Restrictions
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.
husband and wife

48. One who acquires property under a deed is....
Errors & Omissions insurance
a grante
devise
The secondary

49. 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.
grow - stabilize - decline - revitalize
The trustee
Balloon loan
husband and wife

50. The insurance on the FHA loan is referred to as___
writ of execution
MIP - mortgage insurance premium
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
devise