CA Real Estate Finance Course » 2021 » Sec 7 Unit 1 Exam

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Question #1
Sean hasn’t paid his property tax. The tax collector places a lien on his property. How is this lien classified?
A.   Voluntary, specific
B.   Involuntary, specific
C.   Involuntary, general
D.   Voluntary, general
Question #2
Stacy is preparing to sell her home, but learns she can’t transfer the property until she removes an encumbrance. Which of these is encumbering her property?
A.   Her existing mortgage
B.   Her utility bills
C.   The picket fence around her front yard
D.   The tree in her yard that has limbs spreading across the neighboring property
Question #3
Krista is obtaining a loan to buy a home. Her loan agreement consists of one document called a note and one called a deed of trust. What's the role of the note?
A.   Conveys legal title to the property to the lender
B.   Describes the home requiring the loan
C.   Lists the names of the mortgagor and mortgagee
D.   States who owes money to whom, how much, and how it will be repaid
Question #4
Which of the following statements about liens is true?
A.   Materialman's liens supersede all other liens.
B.   Mechanic's liens supersede all other liens.
C.   Neither mechanic's or materialman's liens are junior liens.
D.   Both mechanic's and materialman's liens are junior liens.
Question #5
What information is listed on the promissory note?
A.   Appraised value of property pledged as collateral
B.   Legal description of the collateral property
C.   Loan amount and schedule of repayment
D.   Title history of the collateral property
Question #6
Which of the following describes a mechanic’s lien?
A.   It's a general equitable lien.
B.   It's a voluntary statutory lien.
C.   It's a specific involuntary lien.
D.   It's an involuntary general lien.
Question #7
Jessica hasn't paid the roofing company that replaced the roof on her home. The contractor placed a mechanic’s lien on her property, which is a(n) ______ lien.
A.   Voluntary and general
B.   Involuntary and specific
C.   Involuntary and general
D.   Voluntary and specific
Question #8
The mortgage and the deed of trust are ______ that pledge property as collateral for a loan.
A.   Security instruments
B.   Title documents
C.   Promissory notes
D.   Amortization plans

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