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. ___ 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.
by ratification.
Deed Restrictions
Errors & Omissions insurance
conomic obsolescence

2. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
conforming loans.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
the cash price or the APR
3

3. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
rescission
Deed Restrictions
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
encumbrance

4. There are four basic characteristics of value
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
In a straight assumption - the new buyer is approved - and takes over payments and liability
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

5. High tension wire should be disclosed
EMFs
Zoning
Radon
devise

6. ____ - the refusal to lend in a particular geographic area - is prohibited.
ostensible agency
Errors & Omissions insurance
husband and wife
Redlining

7. __ clause - states that the lien is defeated when the debt is repaid.
General
Reverse annuity
Defeasance
The secondary

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

9. Which of the following instruments is the promise to repay a debt?
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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
a grante

10. This lease survives death and/or the sale of the property. No notice is required to terminate.
Zoning
a power of attorney
estate for years
stigmatized

11. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
straight assumption
conomic obsolescence
EMFs
The trustee

12. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
grow - stabilize - decline - revitalize
by ratification.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
husband and wife

13. The deed of trust involves three parties...
Alienation clause
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Total amount - Certificate amount x 4 = approved maximum loan amount
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

14. Property Manager ( which type of Agency)
General Agency
ostensible agency
Alienation clause
25%

15. This will not impact of the seller's credit rating.
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.
straight assumption
EMFs
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

16. Broker- Salesperson - owner-property manager-> which agency?
straight assumption
Reverse annuity
lower interest rate
General Agency

17. The trustee has two functions in accordance with the Deed of Trust.
25%
3
1. Release the lien when the note is paid. 2. Foreclose in the event of default
General Agency

18. ___ are imposed to control land use - development and methods and materials for construction.
conforming loans
alimony - child support or a pension plan.
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
Deed Restrictions

19. ___ is a limitation on your rights. It may also be a cloud on the title
Package Loan
Alienation clause
It is a right in land and should be created in writing and recorded.
An encumbrance

20. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
Those on a fixed income
lower interest rate
Radon
Vendee's Lien

21. The secondary market warehousing agencies are...
tenancy in common
Fannie Mae - Freddie Mac and Ginnie Mae.
25%
conforming loans

22. IRS Lein - Specific lein or general lein
Balloon loan
General
income tax purposes
trustor

23. Ownership by two or more without rights of survivorship is called
Mitigation
tenancy in common
In a straight assumption - the new buyer is approved - and takes over payments and liability
estoppel

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

25. On income producing property land can never be depreciated for...
1. Release the lien when the note is paid. 2. Foreclose in the event of default
income tax purposes
$4000.
Tenancy by the Entirety

26. ___market is where lenders go for money
alimony - child support or a pension plan.
The secondary
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
stigmatized

27. A principal's duties to an agent ar...
The secondary
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
An encumbrance
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.

28. A property where there has been a murder or alleged haunting is called...
Zoning
Blanket
stigmatized
General Agency

29. Loans qualified to be purchased in the secondary market are called __
husband and wife
The trustee
writ of execution
conforming loans.

30. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
tenancy in common
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
It is a right in land and should be created in writing and recorded.
25%

31. The insurance on the FHA loan is referred to as___
$4000.
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Mitigation
MIP - mortgage insurance premium

32. Loan novation?
conomic obsolescence
3
In a straight assumption - the new buyer is approved - and takes over payments and liability
Vendee's Lien

33. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
a power of attorney
Alienation clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

34. An ___ is a limitation on your rights
encumbrance
lower interest rate
by ratification.
The secondary

35. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
encumbrance
rescission
writ of execution
conomic obsolescence

36. 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.
estate for years
25%
Reverse annuity
Zoning

37. ___ gives the agent the power to perform only specific acts and no others.
conforming loans.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Special or limited agency
stigmatized

38. Must sign the Deed of Trust.
Defeasance
General
husband and wife
trustor

39. Lenders can deny credit if your sole source of income is__
Alienation clause
Balloon loan
alimony - child support or a pension plan.
straight assumption

40. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
the cash price or the APR
Subordination clause
conforming loans.
Those on a fixed income

41. Includes real property plus personal property
Package Loan
by ratification.
EMFs
Radon

42. 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.
Mitigation
estoppel
the cash price or the APR
3

43. The minimum withdrawal from a home equity LOC is
An encumbrance
$4000.
conforming loans.
stigmatized

44. __ is a specific type of joint tenancy where the co-owners are husband and wife.
1. Release the lien when the note is paid. 2. Foreclose in the event of default
straight assumption
Tenancy by the Entirety
3

45. ___loan - Covers more than one piece of property
Blanket
writ of execution
Redlining
It is a right in land and should be created in writing and recorded.

46. What is easment?
$4000.
It is a right in land and should be created in writing and recorded.
Vendee's Lien
the cash price or the APR

47. Loans qualified to be purchased in the secondary market are called
$4000.
grow - stabilize - decline - revitalize
tenancy in common
conforming loans

48. A person who has real property willed to her by a relative is said to acquire title by...
Statutory law
devise
straight assumption
Those on a fixed income

49. __ "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.
$4000.
Alienation clause
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
straight assumption

50. Advantages of FHA loans