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, general
C.   Voluntary, general
D.   Involuntary, specific
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.   The tree in her yard that has limbs spreading across the neighboring property
B.   Her existing mortgage
C.   The picket fence around her front yard
D.   Her utility bills
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.   Describes the home requiring the loan
B.   Conveys legal title to the property to the lender
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.   Both mechanic's and materialman's liens are junior liens.
B.   Mechanic's liens supersede all other liens.
C.   Materialman's liens supersede all other liens.
D.   Neither mechanic's or materialman's liens are junior liens.
Question #5
What information is listed on the promissory note?
A.   Legal description of the collateral property
B.   Loan amount and schedule of repayment
C.   Appraised value of property pledged as collateral
D.   Title history of the collateral property
Question #6
Which of the following describes a mechanic’s lien?
A.   It's a voluntary statutory lien.
B.   It's an involuntary general lien.
C.   It's a specific involuntary lien.
D.   It's a general equitable 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 specific
B.   Involuntary and general
C.   Voluntary and general
D.   Involuntary and specific
Question #8
The mortgage and the deed of trust are ______ that pledge property as collateral for a loan.
A.   Title documents
B.   Security instruments
C.   Amortization plans
D.   Promissory notes

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