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. 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.
Balloon loan
a power of attorney
Blanket
3

2. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
conomic obsolescence
a property exchange.
Package Loan
by ratification.

3. There are four basic characteristics of value
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
writ of execution
Alienation clause

4. This will not impact of the seller's credit rating.
straight assumption
MIP - mortgage insurance premium
estoppel
conomic obsolescence

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.
writ of execution
Errors & Omissions insurance
The trustee
Zoning

6. What is easment?
It is a right in land and should be created in writing and recorded.
25%
The secondary
Special or limited agency

7. A property where there has been a murder or alleged haunting is called...
a property exchange.
The trustee
stigmatized
a power of attorney

8. 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.
25%
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
alimony - child support or a pension plan.

9. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
ostensible agency
writ of execution
trustor
The secondary

10. Property Manager ( which type of Agency)
Fannie Mae - Freddie Mac and Ginnie Mae.
Tenancy by the Entirety
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
General Agency

11. On income producing property land can never be depreciated for...
Blanket
conforming loans.
income tax purposes
conomic obsolescence

12. __ clause - states that the lien is defeated when the debt is repaid.
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.
ostensible agency
Defeasance
Radon

13. The deed of trust involves three parties...
Defeasance
alimony - child support or a pension plan.
devise
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

14. Common law does not always takes precedence over...
estoppel
Statutory law
Trustee's Deed
Reverse annuity

15. ___loan - Covers more than one piece of property
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Subordination clause
Blanket
income tax purposes

16. Loans qualified to be purchased in the secondary market are called __
the cash price or the APR
trustor
conforming loans.
encumbrance

17. Loan novation?
In a straight assumption - the new buyer is approved - and takes over payments and liability
Fannie Mae - Freddie Mac and Ginnie Mae.
encumbrance
General Agency

18. Covers more than one piece of property. (several lots on one note)
EMFs
Statutory law
25%
Blanket Loan

19. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
husband and wife
the cash price or the APR
Total amount - Certificate amount x 4 = approved maximum loan amount
Package Loan

20. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
3
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.
grow - stabilize - decline - revitalize

21. __ is a specific type of joint tenancy where the co-owners are husband and wife.
General Agency
Tenancy by the Entirety
Vendee's Lien
Blanket Loan

22. ___market is where lenders go for money
The secondary
Deed Restrictions
EMFs
rescission

23. Loans qualified to be purchased in the secondary market are called
conforming loans
Zoning
The secondary
conomic obsolescence

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

25. ____ - the refusal to lend in a particular geographic area - is prohibited.
Deed Restrictions
Defeasance
$4000.
Redlining

26. __ "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.
Statutory law
Subordination clause
Alienation clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

27. The trustee has two functions in accordance with the Deed of Trust.
The trustee
income tax purposes
Balloon loan
1. Release the lien when the note is paid. 2. Foreclose in the event of default

28. Real estate investors can defer taxation of capital gains by making ___
The trustee
a property exchange.
3
General Agency

29. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
income tax purposes
Mitigation
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

30. For what group of buyers would the ARM be the least desirable?
The trustee
Those on a fixed income
Total amount - Certificate amount x 4 = approved maximum loan amount
lower interest rate

31. ___ gives the agent the power to perform only specific acts and no others.
by ratification.
straight assumption
Special or limited agency
In a straight assumption - the new buyer is approved - and takes over payments and liability

32. The minimum withdrawal from a home equity LOC is
ostensible agency
10%
grow - stabilize - decline - revitalize
$4000.

33. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
stigmatized
Special or limited agency
3

34. Ownership by two or more without rights of survivorship is called
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.
by ratification.
a power of attorney
tenancy in common

35. One who acquires property under a deed is....
3
tenancy in common
Balloon loan
a grante

36. The veteran must obtain a Certificate of Eligibility from the VA
Total amount - Certificate amount x 4 = approved maximum loan amount
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
conomic obsolescence
income tax purposes

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

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38. A person who has real property willed to her by a relative is said to acquire title by...
devise
Reverse annuity
Special or limited 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

39. IRS Lein - Specific lein or general lein
income tax purposes
General Agency
General
25%

40. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
devise
a property exchange.
MIP - mortgage insurance premium
Subordination clause

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

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42. Must sign the Deed of Trust.
stigmatized
lower interest rate
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
trustor

43. A principal's duties to an agent ar...
a property exchange.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
An encumbrance
Zoning

44. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
Radon
ostensible agency
Defeasance

45. High tension wire should be disclosed
alimony - child support or a pension plan.
3
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.
EMFs

46. Lenders can deny credit if your sole source of income is__
Blanket
Subordination clause
alimony - child support or a pension plan.
conforming loans.

47. ___ 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.
In a straight assumption - the new buyer is approved - and takes over payments and liability
Errors & Omissions insurance
a property exchange.
devise

48. Broker- Salesperson - owner-property manager-> which agency?
Statutory law
General Agency
EMFs
Total amount - Certificate amount x 4 = approved maximum loan amount

49. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
Special or limited agency
grow - stabilize - decline - revitalize
1. Release the lien when the note is paid. 2. Foreclose in the event of default
estoppel

50. Advantages of FHA loans

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