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. Lenders can deny credit if your sole source of income is__
Statutory law
Errors & Omissions insurance
Package Loan
alimony - child support or a pension plan.

2. If the loan will result in a lien on a personal residence - the consumer has a 3 day right of...
$4000.
General Agency
estate for years
rescission

3. Ownership by two or more without rights of survivorship is called
1. Release the lien when the note is paid. 2. Foreclose in the event of default
Redlining
tenancy in common
rescission

4. ___ 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.
EMFs
Errors & Omissions insurance
Redlining
Blanket

5. The veteran must obtain a Certificate of Eligibility from the VA
Deed Restrictions
by ratification.
Zoning
Total amount - Certificate amount x 4 = approved maximum loan amount

6. ____mortgage - allows elderly homeowners - the criteria is 62 years of age - to borrow against their equity
An encumbrance
Radon
encumbrance
Reverse annuity

7. Partially amortized loan - benefit
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
encumbrance
by ratification.
lower interest rate

8. ___ is created when a licensee acts like an agent and others respond to those actions.
income tax purposes
Total amount - Certificate amount x 4 = approved maximum loan amount
estate for years
ostensible agency

9. Broker- Salesperson - owner-property manager-> which agency?
General Agency
estate for years
stigmatized
estoppel

10. The life cycle of a neighborhood is defined as the stages of growth and development of a neighborhood
The trustee
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
encumbrance

11. What is easment?
Mitigation
It is a right in land and should be created in writing and recorded.
Zoning
writ of execution

12. __This clause would be found in a second mortgage - a home improvement loan - or a home equity loan.
Redlining
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Blanket Loan
Subordination clause

13. ___ 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
writ of execution
25%
General Agency

14. Real estate investors can defer taxation of capital gains by making ___
Special or limited agency
trustor
Those on a fixed income
a property exchange.

15. A property where there has been a murder or alleged haunting is called...
The secondary
3
stigmatized
encumbrance

16. ___ acts in a fiduciary relationship with the beneficiary in Deed of trust (mortgage)
Radon
The trustee
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

17. 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
MIP - mortgage insurance premium
Balloon loan
1. Release the lien when the note is paid. 2. Foreclose in the event of default

18. An attorney-in-fact is the holder of...
Blanket
a power of attorney
Vendee's Lien
Alienation clause

19. IRS Lein - Specific lein or general lein
Radon
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
3
General

20. High tension wire should be disclosed
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4
rescission
EMFs
Subordination clause

21. The minimum withdrawal from a home equity LOC is
The secondary
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.
$4000.
a property exchange.

22. One who acquires property under a deed is....
Fannie Mae - Freddie Mac and Ginnie Mae.
Redlining
the cash price or the APR
a grante

23. ___ is a limitation on your rights. It may also be a cloud on the title
conforming loans
An encumbrance
General Agency
rescission

24. If a party wins a judgment and is unable to collect - he can secure a___ from the courts to enforce payment.
a grante
Those on a fixed income
Reverse annuity
writ of execution

25. An ___ is a limitation on your rights
Total amount - Certificate amount x 4 = approved maximum loan amount
encumbrance
ostensible agency
a property exchange.

26. The secondary market warehousing agencies are...
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.
Fannie Mae - Freddie Mac and Ginnie Mae.
a grante
General Agency

27. On income producing property land can never be depreciated for...
Errors & Omissions insurance
income tax purposes
Mitigation
Vendee's Lien

28. A person who has real property willed to her by a relative is said to acquire title by...
rescission
devise
alimony - child support or a pension plan.
Blanket Loan

29. Covers more than one piece of property. (several lots on one note)
Blanket Loan
a grante
Fannie Mae - Freddie Mac and Ginnie Mae.
income tax purposes

30. 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.
Statutory law
estoppel
a property exchange.
General

31. ___ gives the agent the power to perform only specific acts and no others.
husband and wife
Special or limited agency
Defeasance
General Agency

32. IN Reg Z Advertising which states only __is permitted
Special or limited agency
the cash price or the APR
Blanket
25%

33. ___ are imposed to control land use - development and methods and materials for construction.
General Agency
estate for years
Fannie Mae - Freddie Mac and Ginnie Mae.
Deed Restrictions

34. Loan novation?
husband and wife
Total amount - Certificate amount x 4 = approved maximum loan amount
In a straight assumption - the new buyer is approved - and takes over payments and liability
Statutory law

35. Advantages of FHA loans

36. A principal's duties to an agent ar...
Trustee's Deed
Subordination clause
(CRIP) - Compensation - Reimbursement - Indemnification - Performance
Blanket

37. Must sign the Deed of Trust.
straight assumption
trustor
the cash price or the APR
ostensible agency

38. Property Manager ( which type of Agency)
Radon
tenancy in common
General Agency
Subordination clause

39. A borrower must be given a disclosure statement showing the full cost of borrowing within __ DAYS of loan application.
Vendee's Lien
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.
3
The trustee

40. 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.
Alienation clause
Zoning
alimony - child support or a pension plan.
devise

41. ____ - the refusal to lend in a particular geographic area - is prohibited.
writ of execution
a power of attorney
Mitigation
Redlining

42. Common law does not always takes precedence over...
Blanket Loan
alimony - child support or a pension plan.
Reverse annuity
Statutory law

43. Includes real property plus personal property
25%
devise
Package Loan
husband and wife

44. ___market is where lenders go for money
General
MIP - mortgage insurance premium
The secondary
$4000.

45. Which of the following instruments is the promise to repay a debt?
by ratification.
Zoning
stigmatized
1. Mortgage 2. Deed 3. Deed of Trust 4. Note 4

46. For what group of buyers would the ARM be the least desirable?
Those on a fixed income
Special or limited agency
3
Blanket

47. The deed of trust involves three parties...
Trustor (Mortgagor) borrower - buyer Beneficiary lender Trustee 3rd party - selected by the beneficiary
Mitigation
devise
Statutory law

48. ___loan - Covers more than one piece of property
encumbrance
Blanket
a grante
Zoning

49. __ clause - states that the lien is defeated when the debt is repaid.
a power of attorney
Defeasance
lower interest rate
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.

50. __ "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.
a power of attorney
Alienation clause
tenancy in common
lower interest rate