Real Estate 101 - Real Estate Principles » Fall 2021 » Chapter 9 Quiz
Need help with your exam preparation?
Get Answers to this exam for $6 USD.
Get Answers to all exams in [ Real Estate 101 - Real Estate Principles ] course for $25 USD.
Existing Quiz Clients Login here
Question #1
With what type of clause does the entire balance of the loan become due and payable when an owner is alienating, transferring, or conveying a property?
A.
Alienation clause
B.
Transfer clause
C.
Conveyance clause
D.
None of the answers are correct
Question #2
The practice of purchasing real estate using a small amount of your own money and a large portion of borrowed funds is known as:
A.
alienation.
B.
amortization.
C.
hypothecation.
D.
Ieverage.
Question #3
Moneys collected in advance from borrowers to assure the payment of recurring costs are known as:
A.
safety accounts.
B.
impound accounts.
C.
none of the answers are correct.
D.
accumulation accounts.
Question #4
Which of the following liens are NOT eliminated by a foreclosure sale?
A.
State, county or city taxes
B.
Federal tax liens
C.
All answers are correct
D.
State, county, or city assessments
Question #5
Another term for the trustee is:
A.
borrower.
B.
escrow company.
C.
lender.
D.
third party.
Question #6
A clause in a financial instrument that allows a lender to demand immediate payment of the entire note balance is known as a(n):
A.
assumption clause.
B.
damage clause.
C.
demand clause.
D.
acceleration clause.
Question #7
What document does a trustee record after being notified by the lender of the trustor’s nonpayment?
A.
Notice of Default
B.
Notice of Foreclosure
C.
Request for Notice
D.
Notice of Deficiency
Question #8
What do we call a borrower who secures a loan through a trust deed?
A.
Trustor
B.
Trustee
C.
Holder in due course
D.
Beneficiary
Question #9
What provision in an instrument of finance would permit a change in the priority of liens on a property?
A.
MPR provision
B.
Subordination clause
C.
Acceleration clause
D.
Alienation clause
Question #10
What type of loan allows the interest rate to "fluctuate" depending on money market conditions?
A.
Adjustable rate mortgage
B.
Fixed rate mortgage
C.
Reverse annuity mortgage
D.
Graduated payment mortgage
Question #11
Should the trustor default, the trustee may have to sell the property for the:
A.
beneficiary.
B.
trustee.
C.
title insurance company.
D.
trustor.
Question #12
Which of the following is NOT a party to a trust deed?
A.
Grantor
B.
Beneficiary
C.
Trustor
D.
Trustee
Question #13
The trustor is also known as the:
A.
third party.
B.
Iender.
C.
escrow.
D.
borrower.
Question #14
The trustee issues a "reconveyance deed" when the promissory note is:
A.
expired.
B.
recorded.
C.
in default.
D.
paid in full.
Question #15
A person who takes a negotiable instrument from another with no knowledge of defect is called a(n):
A.
assignee.
B.
attorney-in-fact.
C.
holder in due course.
D.
Iimited note holder.
Question #16
Which of the following is FALSE concerning the Annual Percentage Rate (APR)?
A.
It is expressed as a weekly rate.
B.
It is expressed as a percentage rate.
C.
It includes all credit costs.
D.
It is expressed as an annual rate.
Question #17
The "nominal interest rate" is:
A.
the current interest rate.
B.
the effective interest rate.
C.
stated in the note.
D.
compounded daily.
Question #18
The basic instrument used to evidence an obligation or debt is a:
A.
Iand contract.
B.
trust deed.
C.
promissory note.
D.
mortgage
Question #19
The 1% loan fee on FHA loans is usually paid by the:
A.
broker.
B.
seller.
C.
lender.
D.
buyer.
Question #20
A lender charges an origination fee, which includes points. One “point” is equal to:
A.
1% of the loan amount.
B.
100% of the loan amount.
C.
10% of the loan amount.
D.
.01% of the loan amount.
Need help with your exam preparation?
Get Answers to this exam for $6 USD.
Get Answers to all exams in [ Real Estate 101 - Real Estate Principles ] course for $25 USD.
Existing Quiz Clients Login here