General: Multiple Choice Ch. 13-16

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naderataei
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207161
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General: Multiple Choice Ch. 13-16
Updated:
2013-03-13 23:46:47
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Modern Real Estate Practice
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  1. All of the following are acceptable evidence of an owner's title EXCEPT

    A. a recorded deed
    B. a title insurance policy
    C. a certification of title
    D. an abstract of title and attorney's opinion
    A. a recorded deed
    (this multiple choice question has been scrambled)
  2. To serve as public notice, where is a deed recorded?

    A. the city where the owner lives
    B. the county or, in some states, the town where the property is located
    C. the state capital
    D. the largest city in the state
    B. the county or, in some states, the town where the property is located
    (this multiple choice question has been scrambled)
  3. 5 years ago, a lien was recorded against a parcel of property by a construction company. When the lien was recorded, a man was the owner of the property and a woman was an active partner in the construction company. The property is in county A, but the lien was recorded in county B. Now, the woman is trying to buy the property from the man. A title search in county A disclosed no liens against the property. Which of the following is TRUE?

    A. the woman has no notice of the lien
    B. the woman has both actual and constructive notice of the lien, because of her association with the construction company and the recorded lien
    C. the woman has constructive notice of the lien but not actual notice, because of the mistake in recording
    D. the woman has actual notice of the lien but not constructive notice, because of the mistake in recording
    D. the woman has actual notice of the lien but not constructive notice, because of the mistake in recording
    (this multiple choice question has been scrambled)
  4. A woman purchased property from a man. Shortly after closing, the woman discovered that there were serious flaws in the title that made it unlikely that the property could be resold in the future. What can she do now?

    A. because the title was flawed, the woman can legally void the sale, and the man must return any consideration
    B. the woman has no recourse
    C. because the man conveyed unmarketable title, the woman is entitled to a new title report
    D. because the woman has accepted the deed, her only recourse is to sue the man under any covenants contained in the deed
    D. because the woman has accepted the deed, her only recourse is to sue the man under any covenants contained in the deed
    (this multiple choice question has been scrambled)
  5. The reason that deeds and liens and other claims are recorded is to give

    A. direct notice
    B. constructive notice
    C. actual notice
    D. nominal notice
    B. constructive notice
    (this multiple choice question has been scrambled)
  6. A history of all recorded liens and encumbrances is revealed in the

    A. unrecorded documents
    B. abstract
    C. title insurance policy
    D. chain of title
    B. abstract
    (this multiple choice question has been scrambled)
  7. The person who prepares a certificate of title is the

    A. buyer
    B. broker
    C. abstractor
    D. seller
    C. abstractor
    (this multiple choice question has been scrambled)
  8. Which of the following would be covered in a standard title insurance policy?

    A. easements and restrictive covenants
    B. forged documents
    C. defects discoverable by physical inspection
    D. unrecorded liens
    B. forged documents
    (this multiple choice question has been scrambled)
  9. A title insurance policy that protects the interest of a mortgagee is referred to as a(n)

    A. lender's policy
    B. leasehold policy
    C. ALTA policy
    D. certificate of sale policy
    A. lender's policy
    (this multiple choice question has been scrambled)
  10. What is an effect of the Marketable Title Act in the states in which it has been adopted?

    A. established standardized forms for abstracts the title
    B. limits the time beyond which title records must be searched
    C. disqualifies use of an attorney's opinion of title as acceptable evidence of title
    D. provides a certification system for qualifying title insurance companies
    B. limits the time beyond which title records must be searched
    (this multiple choice question has been scrambled)
  11. States that recognize the lender as the owner of the mortgaged property are known as

    A. lien theory states
    B. recordation theory states
    C. subordination theory states
    D. title theory states
    D. title theory states
    (this multiple choice question has been scrambled)
  12. A document that indicates that a loan has been made is referred to as a

    A. mortgage deed
    B. promissory note
    C. deed of trust
    D. satisfaction
    B. promissory note
    (this multiple choice question has been scrambled)
  13. A woman defaults on her mortgage, and the lender forecloses. The lender's foreclosure suit is filed on March 15, and the sale is to be held on May 10. If the woman attempts to redeem the property on May 1, which of the following statements applies?

    A. the woman is exercising her statutory right of redemption
    B. the woman's attempt to redeem the property is too early; by statute, she must wait until after the sale
    C. the woman is exercising her equitable right of redemption
    D. the woman cannot redeem the property after a foreclosure suit is filed
    C. the woman is exercising her equitable right of redemption
    (this multiple choice question has been scrambled)
  14. A house is listed for $250,000. A man buys it for $230,000, with a 20% down payment. He borrows the balance on a fixed-rate mortgage at 6%. The lender charges 4 points. If there are no other closing costs involved, how much money does the man need at closing?

    A. $53,360
    B. $46,000
    C. $7,360
    D. $26,000
    A. $53,360

    Calculate down payment
    $230,000 x 20% = $46,000

    Determine points charge
    $230,000 x 80% x 4% = $7,360

    Total the 2 amounts
    $46,000 + $7,360 = $53,360
    (this multiple choice question has been scrambled)
  15. One afternoon, a client calls a real estate broker. "My lender just told me that my note and mortgage is negotiable instrument," says the client. "What does that mean?" Which of the following would be the broker's BEST response?

    A. "Uh-oh! That means we have to go back to the sellers and ask them to pay the points."
    B. "Oh no! That means the mortgage can't be assumed by the next person you sell to."
    C. "Don't worry. That means the mortgage can be sold by the lender, but you're not affected."
    D. "That's great! It means the lender is willing to negotiate on the interest rate."
    C. "Don't worry. That means the mortgage can be sold by the lender, but you're not affected."
    (this multiple choice question has been scrambled)
  16. A deed of trust involves all of the following terminology EXCEPT

    A. mortgagor
    B. borrower
    C. trustee
    D. lender
    A. mortgagor
    (this multiple choice question has been scrambled)
  17. One state is a lien theory state. A buyer purchases property from a seller and gives him a mortgage as part of the purchase price. Therefore, the buyer is the borrower, and the seller is the lender. All of the following statements are correct EXCEPT

    A. the buyer has given legal title to the seller
    B. the seller has only a lien interest in the property
    C. the buyer retains equitable title to the property
    D. if the buyer defaults on the loan, the seller must undergo a formal foreclosure proceeding to recover the security
    A. the buyer has given legal title to the seller
    (this multiple choice question has been scrambled)
  18. Where a trust deed is used, the lender is the

    A. trustor
    B. maker
    C. beneficiary
    D. trustee
    C. beneficiary
    (this multiple choice question has been scrambled)
  19. A mortgage company charges borrowers as 1.5% loan origination fee. A man buys a house for $210,000 and pays $50,000 in cash. He applies for a mortgage to cover the balance. What will the mortgage company charge as a fee if the asking price of the house was $235,000?

    A. $3,150
    B. $3,750
    C. $2,400
    D. $3,525
    C. $2,400
    (this multiple choice question has been scrambled)

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