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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. 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
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
MIP - mortgage insurance premium
Statutory law

2. IRS Lein - Specific lein or general lein
Vendee's Lien
the cash price or the APR
General
income tax purposes

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.)
conomic obsolescence
Those on a fixed income
Alienation clause
General Agency

4. Includes real property plus personal property
Tenancy by the Entirety
Fannie Mae - Freddie Mac and Ginnie Mae.
Total amount - Certificate amount x 4 = approved maximum loan amount
Package Loan

5. __ "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.
lower interest rate
Fannie Mae - Freddie Mac and Ginnie Mae.
Alienation clause
Blanket Loan

6. ___market is where lenders go for money
3
1. Release the lien when the note is paid. 2. Foreclose in the event of default
The secondary
estate for years

7. Ownership by two or more without rights of survivorship is called
Reverse annuity
An encumbrance
tenancy in common
Statutory law

8. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
The secondary
encumbrance
rescission
Trustee's Deed

9. Real estate investors can defer taxation of capital gains by making ___
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
estate for years
a property exchange.

10. Partially amortized loan - benefit
EMFs
Vendee's Lien
lower interest rate
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

11. Foreign Investment and Real Property Tax Act -The title company will withhold __ of the sellers' sale price over $300 -000
Mitigation
10%
Deed Restrictions
the cash price or the APR

12. The minimum withdrawal from a home equity LOC is
a property exchange.
$4000.
income tax purposes
Balloon loan

13. ___loan - Covers more than one piece of property
Subordination clause
Blanket
The trustee
Alienation clause

14. An agent's duties to his principal are...
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
Those on a fixed income
writ of execution
MIP - mortgage insurance premium

15. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
25%
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.
(CRIP) - Compensation - Reimbursement - Indemnification - Performance

16. The veteran must obtain a Certificate of Eligibility from the VA
25%
Package Loan
Total amount - Certificate amount x 4 = approved maximum loan amount
by ratification.

17. What is easment?
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
Radon
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
It is a right in land and should be created in writing and recorded.

18. An ___ is a limitation on your rights
Mitigation
Vendee's Lien
estate for years
encumbrance

19. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
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.
Reverse annuity
Alienation clause

20. This lease survives death and/or the sale of the property. No notice is required to terminate.
estate for years
Trustee's Deed
tenancy in common
a property exchange.

21. Advantages of FHA loans

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22. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Reverse annuity
grow - stabilize - decline - revitalize
Alienation clause

23. ___ is created when a licensee acts like an agent and others respond to those actions.
conforming loans
Blanket Loan
EMFs
ostensible agency

24. Loans qualified to be purchased in the secondary market are called __
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
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. Release the lien when the note is paid. 2. Foreclose in the event of default
conforming loans.

25. A property where there has been a murder or alleged haunting is called...
Radon
stigmatized
writ of execution
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.

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

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27. ___ gives the agent the power to perform only specific acts and no others.
the cash price or the APR
Special or limited agency
grow - stabilize - decline - revitalize
1. Release the lien when the note is paid. 2. Foreclose in the event of default

28. ___ 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
Tenancy by the Entirety
It is a right in land and should be created in writing and recorded.
Special or limited agency

29. ___ are imposed to control land use - development and methods and materials for construction.
encumbrance
$4000.
Deed Restrictions
devise

30. Which of the following instruments is the promise to repay a debt?
estate for years
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. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
25%

31. 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.
Radon
$4000.
writ of execution
estoppel

32. __ is a specific type of joint tenancy where the co-owners are husband and wife.
income tax purposes
by ratification.
Radon
Tenancy by the Entirety

33. For what group of buyers would the ARM be the least desirable?
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
Special or limited agency
Those on a fixed income
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

34. ___ is the term used to describe methods used to lower levels of radon in homes and other buildings
tenancy in common
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Mitigation
Those on a fixed income

35. Lenders can deny credit if your sole source of income is__
Fannie Mae - Freddie Mac and Ginnie Mae.
Subordination clause
devise
alimony - child support or a pension plan.

36. This will not impact of the seller's credit rating.
Subordination clause
straight assumption
Deed Restrictions
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary

37. An attorney-in-fact is the holder of...
25%
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
a power of attorney
An encumbrance

38. The secondary market warehousing agencies are...
a property exchange.
Statutory law
lower interest rate
Fannie Mae - Freddie Mac and Ginnie Mae.

39. Loan novation?
Those on a fixed income
grow - stabilize - decline - revitalize
Subordination clause
In a straight assumption - the new buyer is approved - and takes over payments and liability

40. High tension wire should be disclosed
EMFs
writ of execution
Balloon loan
Deed Restrictions

41. One who acquires property under a deed is....
(OLD CAR) - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care
General Agency
a grante
ostensible agency

42. Property Manager ( which type of Agency)
Package Loan
Blanket Loan
General Agency
straight assumption

43. There are four basic characteristics of value
Errors & Omissions insurance
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
Total amount - Certificate amount x 4 = approved maximum loan amount
Alienation clause

44. The Veterans Administration GUARANTEES repayment of the loan. The guarantee is for at least the top ___ of the loan.
25%
Reverse annuity
Defeasance
devise

45. Broker- Salesperson - owner-property manager-> which agency?
General Agency
a power of attorney
alimony - child support or a pension plan.
ostensible agency

46. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Those on a fixed income
Errors & Omissions insurance
3
estoppel

47. ____ - the refusal to lend in a particular geographic area - is prohibited.
conomic obsolescence
It is a right in land and should be created in writing and recorded.
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Redlining

48. IN Reg Z Advertising which states only __is permitted
General
the cash price or the APR
25%
Balloon loan

49. __ clause - states that the lien is defeated when the debt is repaid.
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
Defeasance
$4000.
Package Loan

50. Covers more than one piece of property. (several lots on one note)
conforming loans.
Blanket Loan
Vendee's Lien
25%