Q&A Hero

Q: Which lien would have highest priority? a. Property tax lien b. Mechanic's lien c. First mortgage or trust deed d. The lien which is recorded first

Q: A property is sold and the buyer promises the seller in writing that he, the buyer, will repay the existing loan. This is called a. assuming the loan. b. buying down the loan. c. loan satisfaction. d. a partial release.

Q: Barry purchased Bob's home without accepting obligation for the existing loan. Barry is said to be buying the house a. subject to the loan. b. with an assumption of the loan. c. with an assumption by substitution of the loan. d. by contract for equitable title.

Q: An alienation clause in a mortgage loan is to the advantage of the a. borrower. b. lender. c. mortgagor. d. seller.

Q: A "due on sale" clause a. may be called a subordination clause. b. gives the lender the right to call the entire loan balance upon alienation. c. is the right of a mortgagor to repay a loan. d. gives the mortgagor the right to sell his property with a loan assumption by the buyer.

Q: A mortgagee in a lien theory state holds a. legal title. b. a note. c. naked title. d. naked legal title.

Q: In some states, a mortgage is considered to be a lien on real property. In other states a mortgage is interpreted as a. a bona fide purchase. b. a transfer of title. c. a sales contract. d. equitable title.

Q: The parties to a mortgage are called a. mortgagor and grantor. b. mortgagee and beneficiary. c. beneficiary and trustee. d. mortgagor and mortgagee.

Q: Which is an example of pledged property? a. Estoppel b. Covenant c. Dedication deed d. Real estate given as security

Q: When a loan evidenced by a note is secured by a mortgage, the funds are furnished by the a. grantor. b. beneficiary. c. grantee. d. lender.

Q: A mortgage or trust deed is considered to be a. an estate in land. b. a promissory note. c. chattel. d. debt security.

Q: When a borrower gets behind on his loan payments, the lender could call for the entire balance due immediately based on the a. alienation clause. b. acceleration clause. c. subordination clause. d. pre-payment clause.

Q: Of the following parties to a mortgage, whose interest is benefited by an acceleration clause? a. The mortgagor b. The mortgagee c. A future owner d. The trustee

Q: The phrase "jointly and severally liable" in a note or bond applies when there are two or more a. makers. b. obligees. c. trustees. d. holders.

Q: A borrower who wanted to make a monthly payment larger than that called for by the note, could do so if the note contains a a. prepayment privilege. b. grace period. c. prepayment penalty. d. subordination clause.

Q: In the United States, the instrument most commonly used to evidence a debt on real property is a. apromissory note. b. amortgagee's title policy. c. abill of sale. d. anearnest money agreements.

Q: A promissory note a. describes the property being hypothecated. b. is the primary evidence of a loan. c. is an agreement not to do a certain thing. d. is not negotiable when secured by a mortgage.

Q: A _________________________ allows the tenant to buy the property at a preset price for a given period of time.

Q: When two properties are exchange rather than each being sold independently, it is likely structured as a(n) _________________________ exchange.

Q: Under a(n) ____________________ contract, the buyer has a right to purchase the property but with no obligation to do so.

Q: Under an installment sale, the seller is known as the ____________________ and the buyer is known as the ____________________.

Q: The most important feature of a(n) ____________________ contract is that the seller does not deliver a deed to the buyer at closing.

Q: If two or more parties want to express their mutual intention to buy, sell, lease, develop, or invest, and wish to do so without creating any firm, legal obligation, they may use a ______________________________.

Q: A rider is any addition annexed to a document and made a part of the document by reference is also known as a(n) ____________________ or a(n) ____________________.

Q: The process of dividing ongoing expenses and income items at closing is known as ____________________.

Q: The right to demand that title be conveyed upon payment of the purchase price is known as ____________________ title.

Q: ____________________ is of the ____________________ is a phrase that means that the time limits of a contract must be faithfully observed or the contract is voidable.

Q: A lease-option allows a tenant to buy a property at a preset price and terms during the option period.

Q: During the period beginning with the buyer and seller signing the contract and the seller delivering the deed, the buyer is said to hold "equitable title" to the property.

Q: A rider is any addition annexed to a document and made part of the document by reference.

Q: The rejection of even the smallest portion of an offer is a rejection of the entire offer.

Q: The federal government has authorized electronic signatures and documents.

Q: After the buyer signs the sales contract, he retains one copy and the rest are delivered to the seller for his decision.

Q: "Time is of the essence" means that the time limits set by the contract must be faithfully observed or the contract is voidable by the defaulting party.

Q: In the event of default by the buyer the seller may sue for specific performance but not for money damages.

Q: Any item of personal property to be sold with the real estate must be handled with a bill of sale.

Q: If the buyer is unable to obtain financing on the terms outlined in the sales agreement, the seller will have to return the buyer's deposit.

Q: If the buyer needs possession prior to closing a separate rental agreement should be used.

Q: The most time consuming item in carrying out the terms of the purchase contract is the termite inspection.

Q: Earnest money is required to make a sales contract enforceable.

Q: Walter has reserved the right, for a specific period of time, to buy Helen's house. Walter gave Helen a $500 deposit for this right. This transaction most likely involves an option.

Q: If a person has the right to rent a house and the guaranteed opportunity to buy it at a fixed price at a later date, he would have what is known as a lease with option to buy.

Q: The vendor holds legal title to real property when a land sales contract has been entered into between the seller of the property and a buyer.

Q: On a land sales contract, the seller must have marketable title for the property when the contract is recorded.

Q: After the seller has accepted an offer, the sales agent should deliver a copy of the agreement first of all to the lender.

Q: In most residential purchase agreements, the purchaser has the right to withdraw from the purchase without forfeiture of the earnest money if he cannot obtain necessary financing.

Q: Money paid upon signing of a contract of sale by the offeror is called earnest money.

Q: Howard signed an option with Paula giving Paula the "right to purchase" in 90 days. Paula decided she did not want the property and did not exercise her option. Howard can a. sue for specific performance. b. sue for damages. c. sue for specific performance and damages. d. do nothing.

Q: When a property is optioned, the optionor is the a. buyer. b. vendor. c. owner. d. lessee.

Q: The legal grace period in an option to purchase real estate is how long? a. 72 hours b. 5 days c. 30 days d. There is no grace period

Q: At the time the expiration of an option to purchase, the optionee a. can request his deposit back. b. can renew the option or the same time period and terms. c. can repossess the property. d. forfeits his option money if he doesn"t buy the property.

Q: An option to purchase real property is NOT a. a contract. b. covered by the statute of frauds. c. covered by real property laws. d. cancelable by the optionor.

Q: An option is given wherein consideration is stated as $10.00. The option is a. valid. b. invalid for lack of sufficient consideration. c. void. d. unenforceable.

Q: A land sales contract passes a. the right to destroy the property. b. equitable title. c. legal title. d. no interest whatsoever.

Q: Under a conditional land sales contract, a. legal title is held by the vendee. b. equitable title is held by the vendee. c. legal title is held by a trustee. d. equitable title is held by a trustee.

Q: Which of the following is true of a land sales contract? a. Beneficiary holds naked legal title b. Purchaser holds equitable title c. Vendee holds full legal title d. Mortgagor holds title

Q: If the vendee is in default, the vendor a. cannot pursue the right of foreclosure. b. is in title. c. no longer has equitable title. d. retains color of title.

Q: From the following, select the parties to a land sales contract. a. Lessor-Lessee b. Mortgagor-Mortgagee c. Grantor-Grantee d. Vendor-Vendee

Q: When buying property under a land sales contract, which of the following does the buyer receive immediately? a. Possession b. Title c. Encumbrances d. Estate in fee simple

Q: If title to real property remains in the seller's name after it is sold on an installment payment plan, the buyer would have purchased it under a. an FHA mortgage. b. a conventional mortgage. c. a contract for deed. d. a VA loan.

Q: When property is purchased using a land sales contract, the instrument used to convey legal title would be a. an executory deed. b. a bargain and sale deed. c. a warranty deed. d. non-existent since legal title is not transferred until the contract is paid off.

Q: A broker is preparing an original real estate sales contract for a buyer and seller. Whom may he lawfully charge for this service? a. Buyer b. Seller c. Buyer and seller d. No one

Q: When a seller wishes to convey title by means of a statutory deed form, the salesperson a. can advise the seller which deed form to use. b. can advise seller to obtain the services of a lawyer. c. can advise the buyer which tenancy to use. d. can fill it out for the buyer.

Q: A real estate licensee may advise sellers or buyers regarding which of the following? a. Which deed form to use b. How to take title c. Tax implications on the sale or purchase d. Choices of financing for the transaction

Q: The printed portions of a standard residential sales contract refer to all the following EXCEPT a. title insurance. b. liens. c. discount rates. d. closing date.

Q: What should a salesperson do if he receives a second bona fide offer after one offer has already been submitted to the seller but not yet accepted or rejected? a. Allow the first purchaser to meet the second offer before submitting it b. Hold the second offer until a decision is made on the first offer c. Submit the second offer immediately d. Submit the second offer only if it is better than the first

Q: A purchase agreement for the purchase of real property is a. not necessary in a cash sale when the amount of earnest money paid equals the purchase price. b. a legally enforceable contract which is binding on the seller as soon as it is signed by the buyer if the price and terms of the listing agreement are met exactly. c. legally enforceable and binding on the buyer as soon as it is signed by him. d. enforceable when the seller signs it and the buyer is notified of the seller's acceptance.

Q: The phrase "time is of the essence" means a. that the broker must present the offer quickly. b. that the transaction must close as soon as possible. c. that punctual performance of the time limits set by the contract is essential. d. little, since the phrase has no specific meaning.

Q: The seller decided that he didn"t want to sell his house a few days before closing. He can a. simply not show up to sign the deed. b. return the earnest money deposit and declare the contract void. c. be sued by the buyer for specific performance and damages. d. can refuse to pay the broker a commission.

Q: If a contract of sale is subject to the buyer's ability to secure a loan, and after diligent effort the buyer is unable to do so by the stated deadline, the a. contract would become void. b. contract would be voidable by the seller only. c. buyer must be allowed additional time to meet the condition. d. contract would be voidable by the buyer.

Q: The phrase "as is" when used in real estate contracts means the buyer is accepting the property without a. a survey. b. a title report. c. new financing. d. warranty as to physical condition.

Q: The process of dividing ongoing expenses and income items as of the closing date is called a. prorating. b. "as is" basis. c. closing. d. arbitrating.

Q: A valid enforceable sales agreement must a. contain the grantor and grantee's signatures. b. be accompanied by an earnest money deposit. c. be written and delivered. d. be written and mailed.

Q: In a brokered real estate transaction, the amount of earnest money is determined by the a. buyer. b. seller. c. by agreement between the buyer and seller. d. by agreement between the buyer and broker.

Q: The amount of earnest money necessary for a given transaction is NOT determined by a. the buyer. b. the seller. c. the buyer and seller. d. the broker.

Q: An earnest money agreement signed by all parties is a. binding on the seller. b. a binding contract on the seller only if it is full price and the terms of the listing agreement are met. c. revocable by the buyer for 72 hours. d. only binding on the buyer.

Q: A real estate purchase agreement contract used by a multiple listing member may be all of the following EXCEPT a. receipt for earnest money. b. contract up to the date of closing. c. commission agreement between the seller and broker. d. statement of the buyer's costs.

Q: A(n) ____________________ contract results when a promise is exchanged for performance.

Q: A(n) ____________________ contract occurs when the parties to the contract declare their intentions either orally or in writing.

Q: A lawsuit for specific performance is an action in court to force the innocent party to carry out the remainder of the contract.