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. An attorney-in-fact is the holder of...
It is a right in land and should be created in writing and recorded.
a power of attorney
Vendee's Lien
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

2. Tenancy by the Entirety is a specific type of joint tenancy where the co-owners are ___
Fannie Mae - Freddie Mac and Ginnie Mae.
conforming loans.
husband and wife
Redlining

3. ___ gives the agent the power to perform only specific acts and no others.
Special or limited agency
alimony - child support or a pension plan.
Tenancy by the Entirety
EMFs

4. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
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
10%

5. An agent's duties to his principal are...
Radon
It is a right in land and should be created in writing and recorded.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
In a straight assumption - the new buyer is approved - and takes over payments and liability

6. One who acquires property under a deed is....
income tax purposes
a grante
It is a right in land and should be created in writing and recorded.
The trustee

7. ___ 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
a grante
conforming loans
Subordination clause

8. Broker- Salesperson - owner-property manager-> which agency?
Package Loan
trustor
Vendee's Lien
General Agency

9. 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
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.
the cash price or the APR
Alienation clause

10. 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
grow - stabilize - decline - revitalize
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

11. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
Statutory law
The trustee
straight assumption
Mitigation

12. A property where there has been a murder or alleged haunting is called...
a power of attorney
encumbrance
stigmatized
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. IN Reg Z Advertising which states only __is permitted
the cash price or the APR
EMFs
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
$4000.

14. Loans qualified to be purchased in the secondary market are called
Blanket
Trustee's Deed
conforming loans
MIP - mortgage insurance premium

15. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
Errors & Omissions insurance
ostensible agency
by ratification.
rescission

16. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
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.
25%
MIP - mortgage insurance premium
grow - stabilize - decline - revitalize

17. ____ - the refusal to lend in a particular geographic area - is prohibited.
The secondary
Redlining
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

18. What is easment?
It is a right in land and should be created in writing and recorded.
tenancy in common
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
3

19. Covers more than one piece of property. (several lots on one note)
Blanket Loan
income tax purposes
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

20. ___market is where lenders go for money
Fannie Mae - Freddie Mac and Ginnie Mae.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
husband and wife
The secondary

21. 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.
a power of attorney
General
Balloon loan
Radon

22. ___ 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.)
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
conomic obsolescence
Balloon loan
Vendee's Lien

23. Lenders can deny credit if your sole source of income is__
devise
The trustee
alimony - child support or a pension plan.
Blanket

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

25. The minimum withdrawal from a home equity LOC is
$4000.
Mitigation
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
Vendee's Lien

26. Property Manager ( which type of Agency)
Defeasance
General Agency
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

27. This lease survives death and/or the sale of the property. No notice is required to terminate.
income tax purposes
estate for years
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
10%

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

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29. An ___ is a limitation on your rights
encumbrance
25%
husband and wife
tenancy in common

30. ___ is a limitation on your rights. It may also be a cloud on the title
Blanket
3
An encumbrance
income tax purposes

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

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32. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
Balloon loan
writ of execution
Errors & Omissions insurance
Subordination clause

33. The deed of trust involves three parties...
Redlining
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
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.
conforming loans

34. The veteran must obtain a Certificate of Eligibility from the VA
The trustee
Total amount - Certificate amount x 4 = approved maximum loan amount
Mitigation
by ratification.

35. Ownership by two or more without rights of survivorship is called
ostensible agency
tenancy in common
10%
It is a right in land and should be created in writing and recorded.

36. When the principal learns of those actions - if the principal accepts those actions - that creates agency___
by ratification.
the cash price or the APR
Vendee's Lien
In a straight assumption - the new buyer is approved - and takes over payments and liability

37. The secondary market warehousing agencies are...
It is a right in land and should be created in writing and recorded.
Fannie Mae - Freddie Mac and Ginnie Mae.
General
Reverse annuity

38. Real estate investors can defer taxation of capital gains by making ___
Blanket
estate for years
Those on a fixed income
a property exchange.

39. Partially amortized loan - benefit
lower interest rate
a property exchange.
trustor
conforming loans

40. __ clause - states that the lien is defeated when the debt is repaid.
Defeasance
Statutory law
alimony - child support or a pension plan.
Alienation clause

41. __ is a specific type of joint tenancy where the co-owners are husband and wife.
estate for years
conforming loans.
Tenancy by the Entirety
grow - stabilize - decline - revitalize

42. Must sign the Deed of Trust.
the cash price or the APR
trustor
Zoning
Errors & Omissions insurance

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

44. ___ - a naturally occurring colorless and odorless gas produced by the decay of radioactive materials in rocks under the ground.
devise
Radon
estate for years
It is a right in land and should be created in writing and recorded.

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?
Blanket Loan
Subordination clause
Alienation clause
grow - stabilize - decline - revitalize

46. High tension wire should be disclosed
a power of attorney
EMFs
Special or limited agency
Errors & Omissions insurance

47. IRS Lein - Specific lein or general lein
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
conforming loans
Tenancy by the Entirety
General

48. Common law does not always takes precedence over...
husband and wife
conforming loans
Mitigation
Statutory law

49. For what group of buyers would the ARM be the least desirable?
Deed Restrictions
Subordination clause
Those on a fixed income
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

50. Loans qualified to be purchased in the secondary market are called __
conforming loans.
In a straight assumption - the new buyer is approved - and takes over payments and liability
It is a right in land and should be created in writing and recorded.
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care