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Unit 11: Review Questions Flashcards
An example of a constructive notice is:a. a recorded deedb.
a property tax lienc. an unrecorded mechanic's liend. an occupant in the property
- a recorded deed
In real estate finance, an abstract is a(n):a. synopsis of the
recorded history of a propertyb. title insurance policyc. plot plan of a parcel of landd. opinion of title
- synopsis of the recorded history of a property
Which of the following amounts is the interest charged on a new $100,000 loan at 7% issued on March 20th, if the first
payment is not due until May 31? (Use 360 days):a.
$797.22b. $19.44c. $7,000.00d. $360.00
- $797.22
All of the following items are categorized as actual notices
except a(n):a. encroachmentb. tenant in possessionc.
recorded liend. unrecorded lien
- unrecorded lien
A standard title insurance policy insures against:a.
unrecorded liensb. rights of parties in possession of subject propertyc. water rightsd. errors in matters of record
- errors in matters of record
In a loan closing, the borrower is usually charged with all of
the following items EXCEPT:a. the loan amountb. the
prorated interestc. the title insurance premiumd. the recording fees
- the loan amount
An abstract of title is:a. a title insurance policyb. a historical
review of a property's titlec. a transfer of ownershipd. a survey of the property
- a historical review of a property's title
In California, real estate transfer disclosures include
disclosures for all of the following categories EXCEPT:a.
age and condition of the structureb. occupants with AIDSc.soil contaminationd. deed restrictions
- occupants with AIDS
- 2 months
If the property taxes and insurance premiums are due in November and a new loan closes on the following first day of January, how many months' impounds will be charged to the borrower?a. 6 monthsb. 9 monthsc. 3 monthsd. 2 months
The two-point discount on the sale of a $175,000 home
subject to a new $150,000 loan is:a. $350b. $300c.
$3,000d. $3,500
- $3,000
Disclosures for possible geological hazards include all of
the following events EXCEPT:a. floodingb. landslidesc.
tornadoesd. earthquakes
- tornadoes
Property surveys sometimes discover problems in all of the
following categories EXCEPT:a. legal descriptionsb.
easementsc. restrictionsd. encroachments
- restrictions
Which of the following amounts is the interest adjustment on a new $100,000 loan at 9% interest, with payments to start on March 1, if the closing is on January 15?a. $750b.$1,085c. $1,125d. $1,500
- $1,125
In order to remove a cloud from a property's title, the owner
must file a(n):a. suit to quiet titleb. eviction suitc. suit to
foreclosed. lis pendens suit
- suit to quiet title
Prior to closing a real estate loan, every borrower must
receive all of the following items EXCEPT:a. an estimate of
costsb. a title insurance policyc. an estimate of the amount of the monthly installmentsd. information relevant under Regulation Z, RESPA, and ECOA
- a title insurance policy
Title insurance guarantees the validity and accuracy of
the:a. homeowner's insurance policyb. borrower's loan
applicationc. real estate transfer disclosuresd. title search
- title search
- prepayment penalties
- impound fund balance on assumed loan
Which of the following items is usually charged to the seller?a. proration of prepaid insurance premiumsb.loan origination feesc. lender's title policyd. prepayment penalties
Which of the following items is usually charged to the buyer?a. documentary transfer taxb. owner's title policy premiumc. impound fund balance on assumed loand.proration of unpaid property taxes
A fault in a title can be corrected by:a. a surveyb. a suit to
quiet titlec. a title insurance policyd. a sale's recession
- a suit to quiet title
In the real estate lending business, assignment refers to:a.
sale of a loan on the secondary marketb. transferring the servicing of a loanc. changing the interest rate on a loand.substitution of one borrower for another
- sale of a loan on the secondary market
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