Question 1

Who is a mortgagee?

Accepted Answer

A mortgagee is a lender who accepts an interest in land as security for a loan.

Question 2

The right of a mortgagor to redeem the property upon the payment of the debt in full is called

Accepted Answer

A)  the right in equity. 
B)  the equity. 
C)  the equity of redemption. 
D)  the foreclosure. 
E)  the equitable right. 
A)  the right in equity. 
B)  the equity. 
C)  the equity of redemption. 
D)  the foreclosure. 
E)  the equitable right. C

Question 3

What is an acceleration clause and what is its purpose?

Accepted Answer

This is a clause found in a mortgage contract. It states that upon default of any installment payment, the whole of the principal plus accrued interest is immediately due. This allows the mortgagee to pursue all its remedies.

Question 4

The date for completing the sale of a real estate transaction is known as

Accepted Answer

A)  the mortgage date. 
B)  the closing date. 
C)  the equitable date. 
D)  the discharge date. 
E)  the final date. 
A)  the mortgage date. 
B)  the closing date. 
C)  the equitable date. 
D)  the discharge date. 
E)  the final date.

Question 5

What is a mortgage?

Accepted Answer

A mortgage is a conveyance of

Question 6

An order by the court that ends the mortgagor's right to redeem within a fixed time is referred to as

Accepted Answer

A)  pledge. 
B)  foreclosure. 
C)  equity of redemption. 
D)  acceleration clause. 
E)  redemption. 
A)  pledge. 
B)  foreclosure. 
C)  equity of redemption. 
D)  acceleration clause. 
E)  redemption.

Question 7

What is the equity of redemption and who does it benefit?

Accepted Answer

The equity of redemption benef

Question 8

A conveyance of a interest in land as security for a debt, with the condition that if the debt is repaid the conveyance becomes void is called

Accepted Answer

A)  a mortgagee. 
B)  a mortgage. 
C)  a mortgagor. 
D)  a pledge. 
E)  a security. 
A)  a mortgagee. 
B)  a mortgage. 
C)  a mortgagor. 
D)  a pledge. 
E)  a security.

Question 9

What are the basic terms included in an agreement of purchase and sale?

Accepted Answer

The basic terms included in an agreement

Question 10

A discharge of a mortgage acknowledges that

Accepted Answer

A)  the mortgage has reached maturity. 
B)  the mortgage debt has been paid off in full. 
C)  the mortgagee is prepared to renew the mortgage. 
D)  the mortgagor has assigned the mortgage to a third party. 
E)  the mortgage has been rejected by the mortgagee. 
A)  the mortgage has reached maturity. 
B)  the mortgage debt has been paid off in full. 
C)  the mortgagee is prepared to renew the mortgage. 
D)  the mortgagor has assigned the mortgage to a third party. 
E)  the mortgage has been rejected by the mortgagee.

Question 11

What is a reverse mortgage? Why might a reverse mortgage be an advantage to an older person?

Accepted Answer

People can give mortgages on their own h

Question 12

Which of the following is not true regarding second mortgages?

Accepted Answer

A)  A second mortgagee ranks behind the first in priority. 
B)  A second mortgage does not convey the legal title to the mortgagee. 
C)  A mortgagor who wishes to give a second mortgage can only give an interest in the equity of redemption. 
D)  A second mortgagee's interest is in the fee simple. 
E)  In the event of a default and sale of the property, the second mortgagee is paid to the extent that there is a surplus after paying of the first mortgage. 
A)  A second mortgagee ranks behind the first in priority. 
B)  A second mortgage does not convey the legal title to the mortgagee. 
C)  A mortgagor who wishes to give a second mortgage can only give an interest in the equity of redemption. 
D)  A second mortgagee's interest is in the fee simple. 
E)  In the event of a default and sale of the property, the second mortgagee is paid to the extent that there is a surplus after paying of the first mortgage.

Question 13

Explain the concept of a mortgage.

Accepted Answer

A mortgage under the common law is a con

Question 14

A second mortgage is a mortgage of the equity of redemption.

Accepted Answer

A) True 
 B)False

Question 15

Distinguish between a first and second mortgage?

Accepted Answer

There is only one legal title to land. W

Question 16

In a foreclosure, even after the final day for redemption, the mortgagee may successfully sue the mortgagor for the debt,

Accepted Answer

A)  until the period prescribed in the Statute of Limitations runs out. 
B)  after the property has been sold to another party. 
C)  until the six month period has expired. 
D)  only if the mortgagor has sufficient funds to pay the debt. 
E)  until the one month period has expired. 
A)  until the period prescribed in the Statute of Limitations runs out. 
B)  after the property has been sold to another party. 
C)  until the six month period has expired. 
D)  only if the mortgagor has sufficient funds to pay the debt. 
E)  until the one month period has expired.

Question 17

When there is a mortgage on land, the is the borrower, and the is the lender.

Accepted Answer

A)  mortgage broker; mortgagor 
B)  debtor; land owner 
C)  mortgagor; mortgagee 
D)  creditor; bank 
E)  mortgagee; mortgagor 
A)  mortgage broker; mortgagor 
B)  debtor; land owner 
C)  mortgagor; mortgagee 
D)  creditor; bank 
E)  mortgagee; mortgagor

Question 18

What is the difference and relationship between a first and second mortgage?

Accepted Answer

There is only one legal title to land. W

Question 19

In a real estate transaction, the statement of adjustments is prepared by the purchaser.

Accepted Answer

A) True 
 B)False

Question 20

Michael misses a mortgage payment and receives a letter from the bank advising him that he owes $155,000 plus interest and costs. The bank has most likely

Accepted Answer

A)  invoked the acceleration clause in the mortgage contract. 
B)  misrepresented Michaels position. 
C)  breached the mortgage contract. 
D)  made a mistake. 
E)  invoked an exemption clause in the mortgage contract. 
A)  invoked the acceleration clause in the mortgage contract. 
B)  misrepresented Michaels position. 
C)  breached the mortgage contract. 
D)  made a mistake. 
E)  invoked an exemption clause in the mortgage contract.

Exam 25: Mortgages of Land and Real Estate Transactions

Who is a mortgagee?

The right of a mortgagor to redeem the property upon the payment of the debt in full is called

What is an acceleration clause and what is its purpose?

The date for completing the sale of a real estate transaction is known as

What is a mortgage?

An order by the court that ends the mortgagor's right to redeem within a fixed time is referred to as

What is the equity of redemption and who does it benefit?

A conveyance of a interest in land as security for a debt, with the condition that if the debt is repaid the conveyance becomes void is called

What are the basic terms included in an agreement of purchase and sale?

A discharge of a mortgage acknowledges that

What is a reverse mortgage? Why might a reverse mortgage be an advantage to an older person?

Which of the following is not true regarding second mortgages?

Explain the concept of a mortgage.

A second mortgage is a mortgage of the equity of redemption.

Distinguish between a first and second mortgage?

In a foreclosure, even after the final day for redemption, the mortgagee may successfully sue the mortgagor for the debt,

When there is a mortgage on land, the is the borrower, and the is the lender.

What is the difference and relationship between a first and second mortgage?

In a real estate transaction, the statement of adjustments is prepared by the purchaser.

Michael misses a mortgage payment and receives a letter from the bank advising him that he owes $155,000 plus interest and costs. The bank has most likely

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