Exam 9: Real Property and Home Ownership

Conrad contracts to sell his house and lot to Winifred for $100,000. The terms of the purchase agreement require Winifred to pay 10 percent of the purchase price as a deposit toward the purchase price. The terms further stipulate that should the buyer breach the contract, the deposit will be retained by Conrad. Such a good faith deposit is called:​

Which of the following is not an economic benefit of home ownership?​

The offer to buy real estate is usually made on a standard form document called a purchase agreement and deposit receipt.​

For 20 years, homeowner A and homeowner B both paid $1,500 per month on their 30-year, seven percent mortgages. Homeowner A lived in the same home and paid on the same mortgage the entire period. Homeowner B moved three times, but each time obtained a 30-year, seven percent mortgage and paid $1,500 per month. A's home and B's home both rose in value by two percent per year. After the 20 years, A and B will have the same amount of wealth from their home investments.​

A typical title insurance policy will protect a new homeowner from losses caused by​

All other things being equal, the lower the interest rate; the lower the monthly payments required to amortize (repay) a typical mortgage loan.

A homeowner must pay a substantial penalty if the mortgage lender does not receive the required monthly payment by the stated ___________________ date.​

Although mechanics liens are used to protect automobile repair facilities that type of protection is not available to material suppliers to real property.​

A variable interest rate mortgage (VIRM) is the same thing as an adjustable rate mortgage (ARM).  ​

In 1985, George Weasley owned a parcel of land that extended down to the Quixote River. He conveyed the strip of the property fronting the river to Draco Malfoy. The deed included the following statement: "Reserve being kept for said Draco Malfoy. I grant the right of way by land or water." The strip of property is now owned by Sirius Black, and the portion retained by George Weasley now belongs to Cornelius Fudge. Fudge is denying Black access to the river.​

Creative financing involves​

After a sales agreement is signed, the buyer may thoroughly inspect the home (personally or by using professional inspectors) and demand the seller make any "necessary" repairs. Serious disputes can follow if the surprised seller objects to making such repairs, because a contract already has been signed.​

A debtor who fully reimburses the person who made the winning bid at the judicial-foreclosure sale within one year can reclaim the property through a called the _________________ .​

A(n) _ _ _ _ _ _ _ _ _ _ _ gives a person revocable permission to make limited use of another person's real property, such as driving a car over it.​

Many renters would purchase homes, except they​

Homestead laws are uniform through the states.​

Commonly regarded advantages of home ownership are the sense of community, stability and security.

The document that is usually called a listing is best described as​

Some lenders do not sell all of their home mortgage loans. Rather, they keep them as an investment to earn the stated interest rate. These lenders rely upon the credit-worthiness of their borrowers  instead of upon federal guarantees or repayment of private mortgage insurance. Such banks and savings and loans are called _________________ lenders.​

All other things being equal, the longer the repayment term, the lower the monthly payments required to amortize (repay) a typical mortgage loan and the larger the total amount of cumulative interest that must be paid ​