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Advanced Encumbrances in Real Estate Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Identify the best description for the term 'principal'.

Question 2 2. Sue is interested in purchasing her first home, which is $200,000. She has only around $8000 for down payment and has never served in the military. Which type of loan would be most appropriate for Sue?

Question 3 3. How can a mortgage loan be beneficial?

Question 4 4. What is a homestead?

Question 5 5. The purpose of homestead exemption is:

Page 2

Question 6 6. The assessed value of a home is generally determined by:

Question 7 7. A ____ is used make title marketable.

Question 8 8. A ____ is a potential defect on title to real estate that may impair or prevent it from being sold or mortgaged.

Question 9 9. Where may a quiet title judgment be recorded to provide notice to the public that the title defects related to the suit have been resolved?

Question 10 10. A borrower signs a ____ to evidence a loan and executes a ____ to provide the lender a lien in the real estate being purchased.

Page 3

Question 11 11. States where mortgages are used are ____ states, while states that use deeds of trust are ____ states.

Question 12 12. William has defaulted on his home loan. First National Bank has a mortgage on William's property securing the loan. What is the bank's likely course of action?

Question 13 13. Which of the following is an essential party to a deed of trust?

Question 14 14. What's the most significant difference between a deed of trust and a mortgage from a practical standpoint?

Question 15 15. Nancy has defaulted on her home loan. Her next statement from the bank demands payment of the entire loan immediately. What provision in her deed of trust permits this?

Page 4

Question 16 16. What type of lien is a mechanics' lien?

Question 17 17. Carl is a carpenter and commences work on a project on April 1, 2015 and finishes it on July 28, 2015. He provided a pre-filing notice on April 15, 2015. He timely records his mechanics' lien on September 15, 2015. For purposes of lien priority, which of the following dates is the effective date of the lien if the lien 'relates back' under state law?

Question 18 18. Who is entitled to a mechanics' lien?

Question 19 19. In general, a writ of execution has the following EXCEPT _____.

Question 20 20. There is reasonable cause to grant a prejudgement writ of attachment if the creditor is afraid the debtor will _____.

Page 5

Question 21 21. Rights of redemption are governed by _____.

Question 22 22. A notice to the public of a lawsuit relating to a piece of real estate is called a _____.

Question 23 23. Mary files a lawsuit claiming that she holds rightful title to property currently possessed by Peter. She sues Peter and files a lis pendens on the real estate. During the litigation it is determined that Mary is wrong and she decides to voluntarily dismiss the lawsuit. How does Mary get rid of the lis pendens?

Question 24 24. Where must a lis pendens be recorded so that the property owner is bound by the lawsuit's result?

Question 25 25. Why might a buyer want to assume the loan and mortgage of a seller?

Page 6

Question 26 26. Which of the following is generally an assumable loan even if the lender doesn't want it to be?

Question 27 27. What clause in a real estate loan will prevent an assumption without the lender's express consent?

Question 28 28. Which of the following legal instrument is referenced in a mortgage?

Question 29 29. Which of the following laws requires that a mortgage be in writing and be signed by the mortgagor?

Question 30 30. Donald is required to include money for payment of insurance and property taxes with his home loan payment. What provision requires this?

Advanced Encumbrances in Real Estate Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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