Question 1

The forced sale of real property following a court proceeding is called a:

Accepted Answer

A) judicial foreclosure. 
B) deficiency judgment. 
C) right of redemption. 
D) real estate owned. 
A) judicial foreclosure. 
B) deficiency judgment. 
C) right of redemption. 
D) real estate owned. A

Question 2

Lee and Patricia Cheema own a house in California.The house was owned by Lee Cheema as his separate property before his marriage to Patricia.Improvements were made to the house after the marriage and paid for with community property funds.California is a community property state and therefore most property acquired during a marriage is community property.Assume that Don Burgunder wishes to buy the property from Lee Cheema.Don will want to be sure that all interests in the property are conveyed to him.Ownership records will show that Lee Cheema is the sole owner.Don,however,would be right to be concerned that Patricia may have some interest in the house because of the community property improvements to it.What type of deed should Don expect from the Cheema's to protect his interests?

Accepted Answer

Don would like a warranty or grant deed from Lee,which will include the implied promise to protect Don from all claims of ownership from others.In some states Don would accept a warranty deed.However,as to Patricia's potential interest,he would like a quitclaim deed from her.Patricia should be willing to convey this deed,because it transfers only what ownership interest she may
have,but does not warrant that she owns any interest at all.Quitclaim deeds are very useful to transfer an interest in cases such as this,when a person might have an interest,but no formal records document its existence.

Question 3

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

Accepted Answer

A) buildup of ownership equity 
B) appreciation in value 
C) deduction of property taxes on income-tax returns 
D) tax deduction of principal on income-tax returns 
A) buildup of ownership equity 
B) appreciation in value 
C) deduction of property taxes on income-tax returns 
D) tax deduction of principal on income-tax returns D

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A due on sale clause

Accepted Answer

A) triggers payment of any unpaid balance on home loan. 
B) requires a seller to pay for title insurance. 
C) requires a seller to sign an appropriate deed. 
D) is a form of quiet title action. 
A) triggers payment of any unpaid balance on home loan. 
B) requires a seller to pay for title insurance. 
C) requires a seller to sign an appropriate deed. 
D) is a form of quiet title action.

Question 6

The listing real estate agent is an employee of

Accepted Answer

A) the buyer. 
B) the seller. 
C) both the buyer and seller. 
D) the multiple-listing service. 
A) the buyer. 
B) the seller. 
C) both the buyer and seller. 
D) the multiple-listing service.

Question 7

The size of each payment required to amortize an adjustable interest rate mortgage (ARM)may remain constant even though the adjustable interest rate may increase from time to time.

Accepted Answer

A) True 
 B)False

Question 8

When a home buyer agrees to continue to make monthly payments to the seller's existing mortgage
lender,a(n)occurs.

Accepted Answer

The answer of When a home buyer agrees to continue...

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Monthly payments on home mortgages often include,PITI,Principal,Interest,Property Taxes,and
.

Accepted Answer

homeowners

Question 12

Money borrowed and secured with a home equity loan can only be used for home improvements.

Accepted Answer

A) True 
 B)False

Question 13

Houses owned by institutional lenders through foreclosure are referred to as

Accepted Answer

A) commission free properties. 
B) reinstatement positioned. 
C) damaged properties. 
D) real estate owned (REO). 
A) commission free properties. 
B) reinstatement positioned. 
C) damaged properties. 
D) real estate owned (REO).

Question 14

The document that constitutes a power to foreclose upon collateral and apply its value to satisfaction of the underlying debt,is called

Accepted Answer

A) a note. 
B) a deed of trust. 
C) a mortgage. 
D) both b and c 
A) a note. 
B) a deed of trust. 
C) a mortgage. 
D) both b and c

Question 15

A two party instrument stating on its face "Pay to Tom Smith" is:

Accepted Answer

A) A promissory note with Tom Smith as the payee. 
B) A quitclaim deed with Tom Smith a grantor 
C) a mortgage with the bank as the beneficiary 
D) a deed of trust with Smith as the beneficiary 
A) A promissory note with Tom Smith as the payee. 
B) A quitclaim deed with Tom Smith a grantor 
C) a mortgage with the bank as the beneficiary 
D) a deed of trust with Smith as the beneficiary

Question 16

A debtor fails for several months to pay creditor money due on a loan secured by a mortgage.Which of the following may happen?

Accepted Answer

A) nonjudicial foreclosure 
B) right of reinstatement 
C) judicial foreclosure 
D) all of the above 
A) nonjudicial foreclosure 
B) right of reinstatement 
C) judicial foreclosure 
D) all of the above

Question 17

One advantage of a non-judicial foreclosure to the buyer is the debtor lacks the right of redemption.

Accepted Answer

A) True 
 B)False

Question 18

A foreclosure is a process by which secured real property is confiscated at the direction of the unpaid creditor and sold to the highest bidder

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

It is generally believed and a common saying that the most important factor in selecting a home is price,price,price.
Test Bank

Accepted Answer

A) True 
 B)False

The forced sale of real property following a court proceeding is called a:

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

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

A due on sale clause

The listing real estate agent is an employee of

The size of each payment required to amortize an adjustable interest rate mortgage (ARM)may remain constant even though the adjustable interest rate may increase from time to time.

When a home buyer agrees to continue to make monthly payments to the seller's existing mortgage lender,a(n)occurs.

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.

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

Monthly payments on home mortgages often include,PITI,Principal,Interest,Property Taxes,and .

Money borrowed and secured with a home equity loan can only be used for home improvements.

Houses owned by institutional lenders through foreclosure are referred to as

The document that constitutes a power to foreclose upon collateral and apply its value to satisfaction of the underlying debt,is called

A two party instrument stating on its face "Pay to Tom Smith" is:

A debtor fails for several months to pay creditor money due on a loan secured by a mortgage.Which of the following may happen?

One advantage of a non-judicial foreclosure to the buyer is the debtor lacks the right of redemption.

A foreclosure is a process by which secured real property is confiscated at the direction of the unpaid creditor and sold to the highest bidder

It is generally believed and a common saying that the most important factor in selecting a home is price,price,price. Test Bank

Introduction to Law

Our Constitution

The Court System

Attorney Client Relationship

Administrative Law

Crimes: Public Wrongs

Torts: Private Wrongs

Contracts: Enforceable Agreements

Family Law

Owning and Operating Motor Vehicles

Renters and Landlords

Employee and Employer Rights and Duties

Wills, Trusts, and Probate Laws Appendices Glossary Indexes

Filters

Exam 12: Home Ownership

The forced sale of real property following a court proceeding is called a:

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

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

A due on sale clause

The listing real estate agent is an employee of

The size of each payment required to amortize an adjustable interest rate mortgage (ARM)may remain constant even though the adjustable interest rate may increase from time to time.

When a home buyer agrees to continue to make monthly payments to the seller's existing mortgage lender,a(n)occurs.

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.

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

Monthly payments on home mortgages often include,PITI,Principal,Interest,Property Taxes,and .

Money borrowed and secured with a home equity loan can only be used for home improvements.

Houses owned by institutional lenders through foreclosure are referred to as

The document that constitutes a power to foreclose upon collateral and apply its value to satisfaction of the underlying debt,is called

A two party instrument stating on its face "Pay to Tom Smith" is:

A debtor fails for several months to pay creditor money due on a loan secured by a mortgage.Which of the following may happen?

One advantage of a non-judicial foreclosure to the buyer is the debtor lacks the right of redemption.

A foreclosure is a process by which secured real property is confiscated at the direction of the unpaid creditor and sold to the highest bidder

It is generally believed and a common saying that the most important factor in selecting a home is price,price,price. Test Bank

Introduction to Law

Our Constitution

The Court System

Attorney Client Relationship

Administrative Law

Crimes: Public Wrongs

Torts: Private Wrongs

Contracts: Enforceable Agreements

Family Law

Owning and Operating Motor Vehicles

Renters and Landlords

Employee and Employer Rights and Duties

Wills, Trusts, and Probate Laws Appendices Glossary Indexes

Filters