A1-A9

Question 1

Under certain conditions a utility may acquire an easement by:

Answer 1

Eminent Domain

Question 2

A property owner erected a block wall on the property. The block wall became real property… how?

Answer 2

Annexation

Question 3

A property is held in joint tenancy and one of the parties dies testate, which of the following is true?

Answer 3

Goes to the Joint tenant survivor

Question 4

J&R owen property and R dies. R’s children try but can’t obtain the title from J. What type of title did J&R hold?

Answer 4

Joint Tenancy

Question 5

When a person receives real estate through a will, this is called?

Answer 5

Devise

Question 6

What type of deed would have three promises and two warranties?

Answer 6

General Warranty

Question 7

When a document is recorded, what type of notice is given:

Answer 7

Constructive

Question 8

What best describes the purpose of a trustee

Answer 8

Foreclose in a deed of trust

Question 9

If a lender is doing business in a lien theory state, what is true?

Answer 9

Legal title is held by the mortgagor

Question 10

Seller does not give title to the buyer, but the buyer has use of the land. Title will be delivered when the debt is paid in full. This is called

Answer 10

A land contract

Question 11

When the note and security instrument are in one document, this is best described as

Answer 11

Land Contract

Question 12

When a loan is sold from one lender to another lender, it is

Answer 12

Assigned

Question 13

In the sale of a mortgage document, what is the relationship of the parties

Answer 13

Assignor to Assignee

Question 14

Is a local bank considered a secondary market?

Answer 14

No

FNMA, GNMA and Foreign Governments are considered to be in the secondary market.

Question 15

When a wraparound is created, who is responsible for the underlying loans?

Answer 15

Vendor

Question 16

When figuring the capital gain from the sale of a property, what would lower your gain/

Answer 16

Capital Improvements

Question 17

When a buyer is using 100% leverage in a transaction, what type of loan would they least likely be interested in?

Answer 17

Short term loan

Question 18

What is a FHA203K?

Answer 18

allows you to wrap your renovation costs into your mortgage

Question 19

What type of loan would have a PMI (Private Mortgage Insurance)

Answer 19

Conventional

Conventional loans require a 5% down payment. PMI can be removed once loan-to-value ratio (LTV) reaches 80%

Question 20

What is MIP?

Answer 20

Mortgage insurance premium (MIP), is an insurance policy used in FHA loans if your down payment is less than 20%. (for the life of the loan)

Question 21

What type of loan has the highest loan to value ratio?

Answer 21

VA

Question 22

Who pays the discount points on a VA loan?

Answer 22

Agreement of Parties

Question 23

What charge would be paid at closing on a high risk conventional loan?

Answer 23

PMI

Question 24

What concept applies to both FHA and VA lending?

Answer 24

Or more clause

Question 25

When a buyer obtains a new VA loan, who pays for the document preparation fee?

Answer 25

Seller

Question 26

If interest rates rise, what effect would this have on commercial property with a long term fixed rate lease?

Answer 26

Property Value would decrease

Question 27

If at the end of a lease, the tenant is allowed to remain for an indefinite length of time, this is best described as

Answer 27

Estate at will

Question 28

A clause in a lease that would allow adjustments of payments either up or down would be called what?

Answer 28

An escalator