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. __ "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.
10%
Alienation clause
It is a right in land and should be created in writing and recorded.
straight assumption

2. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
grow - stabilize - decline - revitalize
An encumbrance
$4000.

3. ___ 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.)
Tenancy by the Entirety
conforming loans
MIP - mortgage insurance premium
conomic obsolescence

4. Lenders can deny credit if your sole source of income is__
alimony - child support or a pension plan.
tenancy in common
a power of attorney
the cash price or the APR

5. There are four basic characteristics of value
General Agency
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
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
$4000.

6. ___loan - Covers more than one piece of property
lower interest rate
Blanket
writ of execution
An encumbrance

7. Property Manager ( which type of Agency)
The trustee
Vendee's Lien
General Agency
EMFs

8. ___ is a limitation on your rights. It may also be a cloud on the title
General Agency
Redlining
An encumbrance
grow - stabilize - decline - revitalize

9. ___market is where lenders go for money
The secondary
10%
Redlining
In a straight assumption - the new buyer is approved - and takes over payments and liability

10. A principal's duties to an agent ar...
Those on a fixed income
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
estoppel
husband and wife

11. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
In a straight assumption - the new buyer is approved - and takes over payments and liability
Reverse annuity
1. Release the lien when the note is paid. 2. Foreclose in the event of default
The secondary

12. This will not impact of the seller's credit rating.
In a straight assumption - the new buyer is approved - and takes over payments and liability
straight assumption
Tenancy by the Entirety
conomic obsolescence

13. An ___ is a limitation on your rights
Fannie Mae - Freddie Mac and Ginnie Mae.
Balloon loan
encumbrance
stigmatized

14. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
10%
by ratification.
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

15. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Errors & Omissions insurance
a grante
The trustee
the cash price or the APR

16. Covers more than one piece of property. (several lots on one note)
Special or limited agency
Blanket Loan
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Package Loan

17. ___ 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.
Blanket Loan
25%
Alienation clause
Errors & Omissions insurance

18. Loans qualified to be purchased in the secondary market are called __
General Agency
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conforming loans.
Those on a fixed income

19. A property where there has been a murder or alleged haunting is called...
General
Alienation clause
devise
stigmatized

20. Real estate investors can defer taxation of capital gains by making ___
25%
estoppel
a property exchange.
husband and wife

21. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
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
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Radon
3

22. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
estate for years
by ratification.
3
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

23. Includes real property plus personal property
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Defeasance
Package Loan
Total amount - Certificate amount x 4 = approved maximum loan amount

24. What is easment?
It is a right in land and should be created in writing and recorded.
10%
25%
grow - stabilize - decline - revitalize

25. IN Reg Z Advertising which states only __is permitted
rescission
MIP - mortgage insurance premium
the cash price or the APR
income tax purposes

26. On income producing property land can never be depreciated for...
by ratification.
Radon
income tax purposes
Zoning

27. Must sign the Deed of Trust.
Blanket Loan
a grante
by ratification.
trustor

28. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
devise
husband and wife
25%
Total amount - Certificate amount x 4 = approved maximum loan amount

29. Ownership by two or more without rights of survivorship is called
stigmatized
General
tenancy in common
Tenancy by the Entirety

30. The secondary market warehousing agencies are...
Radon
Package Loan
Fannie Mae - Freddie Mac and Ginnie Mae.
Redlining

31. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
income tax purposes
devise
Tenancy by the Entirety

32. The insurance on the FHA loan is referred to as___
a power of attorney
MIP - mortgage insurance premium
conforming loans
Fannie Mae - Freddie Mac and Ginnie Mae.

33. ____ - the refusal to lend in a particular geographic area - is prohibited.
Redlining
Alienation clause
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
conomic obsolescence

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

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35. The minimum withdrawal from a home equity LOC is
$4000.
estate for years
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
a grante

36. __ clause - states that the lien is defeated when the debt is repaid.
a grante
Defeasance
Tenancy by the Entirety
Alienation clause

37. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
It is a right in land and should be created in writing and recorded.
The trustee
EMFs
3

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. It is called?
Fannie Mae - Freddie Mac and Ginnie Mae.
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.
Trustee's Deed

39. Broker- Salesperson - owner-property manager-> which agency?
General Agency
Radon
Statutory law
The trustee

40. IRS Lein - Specific lein or general lein
Defeasance
Fannie Mae - Freddie Mac and Ginnie Mae.
income tax purposes
General

41. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
estate for years
husband and wife
An encumbrance
1. Release the lien when the note is paid. 2. Foreclose in the event of default

42. A person who has real property willed to her by a relative is said to acquire title by...
Alienation clause
The trustee
devise
25%

43. The veteran must obtain a Certificate of Eligibility from the VA
Fannie Mae - Freddie Mac and Ginnie Mae.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
10%
Total amount - Certificate amount x 4 = approved maximum loan amount

44. Loans qualified to be purchased in the secondary market are called
The secondary
conforming loans
stigmatized
General Agency

45. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Reverse annuity
Mitigation
tenancy in common
by ratification.

46. Advantages of FHA loans

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47. 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.
Zoning
Reverse annuity
General Agency
3

48. The trustee has two functions in accordance with the Deed of Trust.
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
Errors & Omissions insurance
1. Release the lien when the note is paid. 2. Foreclose in the event of default

49. Loan novation?
25%
In a straight assumption - the new buyer is approved - and takes over payments and liability
estoppel
straight assumption

50. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
estoppel
a property exchange.
Special or limited agency