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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 yellow "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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Question 1 1. A ____ is a provision in a mortgage that allows the lender to require the borrower pay off the outstanding loan balance if a certain event occurs.

Question 2 2. Which of the following legal instrument is referenced in a mortgage?

Question 3 3. Which of the following laws requires that a mortgage be in writing and be signed by the mortgagor?

Question 4 4. A plumbing subcontractor wants to be paid for his work on your kitchen remodel. What should you demand at time of payment?

Question 5 5. 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?

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Question 6 6. Who is entitled to a mechanics' lien?

Question 7 7. Which of the following is an essential party to a deed of trust?

Question 8 8. What's the most significant difference between a deed of trust and a mortgage from a practical standpoint?

Question 9 9. Tomas has a mortgage on a duplex without a reconveyance clause. He pays off half of the mortgage and requests that the lender transfer title for half of the property. Why would Tomas have legal issues in this case?

Question 10 10. What requires that a mortgage must be in writing signed by the borrower to be enforceable?

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Question 11 11. A borrower signs a ____ to evidence a loan and executes a ____ to provide the lender a lien in the real estate being purchased.

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 generally an assumable loan even if the lender doesn't want it to be?

Question 14 14. What clause in a real estate loan will prevent an assumption without the lender's express consent?

Question 15 15. Why might a buyer want to assume the loan and mortgage of a seller?

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Question 16 16. Which of these CANNOT help you to perfect a lien?

Question 17 17. There is reasonable cause to grant a prejudgement writ of attachment if the creditor is afraid the debtor will _____.

Question 18 18. In some states, people who default on loans and lose their property can recover their property by _____.

Question 19 19. A ____ is a potential defect on title to real estate that may impair or prevent it from being sold or mortgaged.

Question 20 20. Which of the following claims are resolvable by way of a quiet title action?

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Question 21 21. Title to property that contains possible defects such that no reasonably prudent buyer will accept the title is considered ____.

Question 22 22. The assessed value of a home is generally determined by:

Question 23 23. What is the difference between the market value and the assessed value of a home?

Question 24 24. The purpose of homestead exemption is:

Question 25 25. Where must a lis pendens be recorded so that the property owner is bound by the lawsuit's result?

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Question 26 26. What is the process a judgment creditor uses to collect on his judgment through the sale of a debtor's property?

Question 27 27. 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 28 28. Identify the best description for the term 'principal'.

Question 29 29. How can a mortgage loan be beneficial?

Question 30 30. How is the Veteran's Administration loan different from the Conventional loan?

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 yellow "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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