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. IRS Lein - Specific lein or general lein
Mitigation
General
10%
alimony - child support or a pension plan.

2. ___ is created when a licensee acts like an agent and others respond to those actions.
Balloon loan
The secondary
The trustee
ostensible agency

3. __ is a specific type of joint tenancy where the co-owners are husband and wife.
the cash price or the APR
Tenancy by the Entirety
conforming loans.
10%

4. One who acquires property under a deed is....
Defeasance
encumbrance
a grante
General

5. Includes real property plus personal property
Statutory law
conforming loans.
Package Loan
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

6. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
Reverse annuity
tenancy in common
income tax purposes
conforming loans.

7. 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.
It is a right in land and should be created in writing and recorded.
estoppel
Vendee's Lien
straight assumption

8. Covers more than one piece of property. (several lots on one note)
estoppel
Blanket Loan
Subordination clause
Vendee's Lien

9. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Subordination clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
writ of execution
EMFs

10. 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
Package Loan
Mitigation
Balloon loan

11. IN Reg Z Advertising which states only __is permitted
Errors & Omissions insurance
conomic obsolescence
conforming loans.
the cash price or the APR

12. Lenders can deny credit if your sole source of income is__
An encumbrance
alimony - child support or a pension plan.
MIP - mortgage insurance premium
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.

13. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Those on a fixed income
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Package Loan
rescission

14. 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
Trustee's Deed
conforming loans
Alienation clause

15. The insurance on the FHA loan is referred to as___
MIP - mortgage insurance premium
income tax purposes
An encumbrance
The trustee

16. The minimum withdrawal from a home equity LOC is
Tenancy by the Entirety
$4000.
The trustee
the cash price or the APR

17. An ___ is a limitation on your rights
encumbrance
Balloon loan
conomic obsolescence
Package Loan

18. The deed of trust involves three parties...
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Statutory law
Blanket

19. This lease survives death and/or the sale of the property. No notice is required to terminate.
husband and wife
Errors & Omissions insurance
estate for years
conomic obsolescence

20. Real estate investors can defer taxation of capital gains by making ___
a grante
The secondary
stigmatized
a property exchange.

21. The trustee has two functions in accordance with the Deed of Trust.
Deed Restrictions
Statutory law
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Alienation clause

22. ___loan - Covers more than one piece of property
Tenancy by the Entirety
Blanket
Defeasance
estate for years

23. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
conforming loans
25%
Blanket Loan
ostensible agency

24. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Mitigation
Subordination clause
Package Loan
income tax purposes

25. An attorney-in-fact is the holder of...
a power of attorney
by ratification.
Fannie Mae - Freddie Mac and Ginnie Mae.
income tax purposes

26. Advantages of FHA loans

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27. ___ gives the agent the power to perform only specific acts and no others.
conforming loans.
Mitigation
Special or limited agency
Errors & Omissions insurance

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

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29. ___ 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
trustor
encumbrance
The secondary

30. The veteran must obtain a Certificate of Eligibility from the VA
In a straight assumption - the new buyer is approved - and takes over payments and liability
Redlining
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

31. High tension wire should be disclosed
General Agency
EMFs
income tax purposes
25%

32. ___ 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
Fannie Mae - Freddie Mac and Ginnie Mae.
a power of attorney
The trustee

33. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Zoning
ostensible agency
Fannie Mae - Freddie Mac and Ginnie Mae.

34. Loan novation?
a power of attorney
General Agency
EMFs
In a straight assumption - the new buyer is approved - and takes over payments and liability

35. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Statutory law
10%
devise
Redlining

36. What is easment?
It is a right in land and should be created in writing and recorded.
General
In a straight assumption - the new buyer is approved - and takes over payments and liability
ostensible agency

37. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
The secondary
writ of execution
conomic obsolescence
The trustee

38. On income producing property land can never be depreciated for...
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
income tax purposes
An encumbrance
Mitigation

39. Which of the following instruments is the promise to repay a debt?
General Agency
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.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
In a straight assumption - the new buyer is approved - and takes over payments and liability

40. This will not impact of the seller's credit rating.
conforming loans.
trustor
straight assumption
Trustee's Deed

41. __ "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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Package Loan
husband and wife
Alienation clause

42. Property Manager ( which type of Agency)
General Agency
estoppel
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Tenancy by the Entirety

43. Broker- Salesperson - owner-property manager-> which agency?
Alienation clause
Radon
25%
General Agency

44. The secondary market warehousing agencies are...
Vendee's Lien
conforming loans.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Fannie Mae - Freddie Mac and Ginnie Mae.

45. A person who has real property willed to her by a relative is said to acquire title by...
An encumbrance
General Agency
devise
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

46. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
The secondary
Blanket Loan
General Agency
grow - stabilize - decline - revitalize

47. __ clause - states that the lien is defeated when the debt is repaid.
An encumbrance
conforming loans.
tenancy in common
Defeasance

48. Common law does not always takes precedence over...
It is a right in land and should be created in writing and recorded.
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
Statutory law
Fannie Mae - Freddie Mac and Ginnie Mae.

49. Must sign the Deed of Trust.
General
a power of attorney
trustor
General Agency

50. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
conomic obsolescence
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
Radon