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Test Bank For Real Estate Finance And Investments, 14th Edition - Document preview page 1

Test Bank For Real Estate Finance And Investments, 14th Edition - Page 1

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Test Bank For Real Estate Finance And Investments, 14th Edition

Prepare for your exam efficiently with Test Bank For Real Estate Finance And Investments, 14th Edition, featuring a range of test questions and solutions.

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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 1 preview image11.Which type of deed offers the grantee the most protection?A.Quitclaim deedB.Special warranty deedC.General warranty deedD.Officer's deed2.What term BEST describes a person that owns a property and is conveying title tothe property toanother person?A.MortgagorB.GrantorC.MortgageeD.Grantee3.What type of estate lasts for an indefinite period of time?A.Freehold estateB.Estate from year to yearC.Leasehold estateD.Estate for years4.Which of the following is NOT a good method of title assurance?A.Seller provides a warranty in the deed.B.An attorney searches recorded documents.C.Title insurance is purchased.D.Seller provides aquitclaim deed.5.Which of the following documents conveys title to a property at the time the purchaser completesthe performance of the obligation called for in the document?A.Junior mortgageB.Package mortgageC.Purchase-money mortgageD.Land contract
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 3 preview image6.What legal document conveys title from one person to another?A.MortgageB.NoteC.DeedD.Title7.An historical summary of the publicly recorded documents that affect theownership of a propertyis know as a(n):A.EstateB.DeedC.Abstract of titleD.Lien8.Which of the following is NOT true in regard to a tax sale?A.An accurate and complete description of the property is required to beposted for possiblepurchasers before the sale.B.The property owner may not have had a court appearance through due process, thus creatinga cloud on the title.C.The line of authority for the sale may not be clear.D.The purchaser isusually expected to pay all delinquent taxes at the time of sale.9.A reversion and a remainder are similar in that:A.Both can be sold or mortgagedB.Both cause the property to go back to the grantor after the saleC.Neither is anactual interest in the propertyD.Neither is considered a future estate10.Which of the following is FALSE concerning Mechanic's Liens?A.Gives the right to attach a lien on real estateB.Can get money through forcing judicial saleC.Lasts even after the bill for labor and materials has been paidD.Might not be disclosed by the public records11.The term real estate refers to the ownership rights associated with the physical land andimprovements.TrueFalse
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 4 preview image12.A fee simple estates is a type of freehold estate.TrueFalse13.As compared to other types of deeds, a general warranty deed provides the most comprehensivewarranties about the quality of the title to the property.TrueFalse14.After a house is purchased, contractors cannot ask the new owner of the house to pay any billsthat were outstanding before the house was sold.TrueFalse15.A reciprocal easement agreement allows two or more parties toaccess each other's property.TrueFalse
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 5 preview image1Key1.Which type of deed offers the grantee the most protection?A.Quitclaim deedB.Special warranty deedC.General warranty deedD.Officer's deedBrueggeman-Chapter 01 #12.What term BEST describes a person that owns a property and is conveying title to the propertyto another person?A.MortgagorB.GrantorC.MortgageeD.GranteeBrueggeman-Chapter 01 #23.What type ofestate lasts for an indefinite period of time?A.Freehold estateB.Estate from year to yearC.Leasehold estateD.Estate for yearsBrueggeman-Chapter 01 #34.Which of the following is NOT a good method of titleassurance?A.Seller provides a warranty in the deed.B.An attorney searches recorded documents.C.Title insurance is purchased.D.Seller provides a quitclaim deed.Brueggeman-Chapter 01 #4
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 6 preview image5.Which of the followingdocuments conveys title to a property at the time the purchasercompletes the performance of the obligation called for in the document?A.Junior mortgageB.Package mortgageC.Purchase-money mortgageD.Land contractBrueggeman-Chapter 01 #56.What legal document conveys title from one person to another?A.MortgageB.NoteC.DeedD.TitleBrueggeman-Chapter 01 #67.An historical summary of the publicly recorded documents thataffect the ownership of aproperty is know as a(n):A.EstateB.DeedC.Abstract of titleD.LienBrueggeman-Chapter 01 #78.Which of the following is NOT true in regard to a tax sale?A.An accurate and completedescription of the property is required to be posted for possiblepurchasers before the sale.B.The property owner may not have had a court appearance through due process, thuscreating a cloud on the title.C.The line of authority for the sale may not be clear.D.The purchaser is usually expected to pay all delinquent taxes at the time of sale.Brueggeman-Chapter 01 #8
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 7 preview image9.A reversion and a remainder are similar in that:A.Both can be sold or mortgagedB.Both cause theproperty to go back to the grantor after the saleC.Neither is an actual interest in the propertyD.Neither is considered a future estateBrueggeman-Chapter 01 #910.Which of the following is FALSE concerning Mechanic's Liens?A.Gives the right to attach a lien on real estateB.Can get money through forcing judicial saleC.Lasts even after the bill for labor and materials has been paidD.Might not be disclosed by the public recordsBrueggeman-Chapter 01 #1011.The term real estate refers to the ownership rights associated with the physical land andimprovements.FALSEBrueggeman-Chapter 01 #1112.A fee simple estates is a type of freehold estate.TRUEBrueggeman-Chapter 01 #1213.As compared to other types of deeds, a general warranty deed provides the mostcomprehensive warranties about the quality of the title to the property.TRUEBrueggeman-Chapter 01 #1314.After a house is purchased, contractors cannot ask the new owner of the house to pay anybills that were outstanding before the house was sold.FALSEBrueggeman-Chapter 01 #1415.A reciprocal easement agreement allows two or more parties to access each other's property.TRUEBrueggeman-Chapter 01 #15
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 9 preview image1SummaryCategory#ofQuestionsBrueggeman-Chapter0115
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 10 preview image21.Which of the following situations is NOT a common cause for the use of a purchase-moneymortgage?A.The buyer cannot come up with the down payment needed to qualify for a mortgage.B.The seller wants to receive the gain from the sale ininstallments.C.Third-party mortgage financing is too expensive of unavailable.D.The seller desires to artificially raise the price of the property by receiving a higher-than-marketinterest rate.2.Which of the following is NOT aminimum mortgage requirement?A.Description of the propertyB.Covenant of warrantyC.Prepayment clauseD.Covenant of seizing3.A mortgage is BEST defined as a legal document that:A.creates an obligation to repay a loanunder specific terms.B.names real estate as the security or collateral for the repayment of a loan.C.defines a possessory interest in real estate.D.conveys ownership of a property to its purchaser.4.Which of the followingsolutions is LEAST likely to be acceptable to a mortgagee when discussingalternatives to foreclosing a property?A.Permanently extending the amortization period.B.Finding someone else to assume the mortgage.C.Providing a temporary grace period during which principal and interest are not paid.D.Permanently reducing the interest rate.5.Which of the following terms refers to an owner's right to redeem a property after foreclosure?A.Equity of redemptionB.Statutory redemptionC.AttachmentD.Execution
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 11 preview image6.In jurisdiction where a deed of trust is used to finance real estate, there are three parties to theloan secured by the deed of trust. Which of the following is NOT one of those threeparties?A.BorrowerB.TrusteeC.Holder of the noteD.Grantor7.A senior mortgage holder is owed a mortgage balance of $140,000 and brings a foreclosure suitwhich includes all junior claimants in the suit. If the seniormortgage holder purchases theproperty for $140,000 at the foreclosure sale, what happens to the claim of the junior claimants?A.The liens of the junior claimants are unaffected and the debt is due upon sale.B.The liens of the juniorclaimants are extinguished, but the debt owed to the junior claimants isunaffected.C.The liens of the junior claimants and the debt owed to them are extinguished.D.The liens of the junior claimants are unaffected, but the debt owed to them isextinguished.8.A property is encumbered as follows:First mortgage, A $250,000Second mortgage, B $40,000Third mortgage, C $10,000How much can mortgagee B pay for the property at a foreclosure sale without having to raiseadditional funds?A.$290,000B.$40,000C.$300,000D.$50,0009.Which of the following types of bankruptcy is filed with the end result of liquidating the debtor'sassets?A.Chapter 7B.Chapter 11C.Chapter 13D.Chapter 17
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 12 preview image10.Which of the following types of bankruptcy is available to a business to reorganize andrehabilitate the debtor?A.Chapter 7B.Chapter 11C.Chapter 13D.Chapter 1711.Which of the following terms refers to the prohibition of thecommencement or continuation ofcollection proceedings during a bankruptcy proceeding?A.Preferential transferB.Deficiency judgmentC.Automatic stayD.Extension12.A mortgage agreement provides the lender with ________interests.A.UnsecuredB.SecuredC.NonpossesoryD.Possesory13.What is usually executed at the same time as a mortgage and creates the obligation to repay theloan in accordance with its terms?A.Recording actsB.Ownership interestsC.Method of paymentD.Promissory note14.The Acceleration Clause says notice of all, but which of the following, must be given to themortgager?A.Acceleration of debt secured by the mortgage has taken placebecause of defaultB.Action required to cure defaultC.Time by which default must be curedD.Default
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 13 preview image15.Which of the following is not an alternative to foreclosure?A.Restructuring the mortgage loanB.Transfer of themortgage to a new ownerC.RedemptionD.Prepackaged bankruptcy16.Which of the following default is least often used for foreclosure?A.Failure to fulfill financial obligationB.Failure to pay taxesC.Failure to payinsurance premiums when dueD.Failure to keep the security in repair17.Which of the following statements is true about foreclosure?A.In judicial foreclosure, property subject to attachment and execution is limited to the mortgagedpropertyB.If the sale of the mortgaged property realizes a price above the claims of the mortgage andexpense of the sale, the balance goes to the mortgagorC.Redemption can be accomplished by paying 95% of the debt, interest and costs due tomortgageD.None of the above18.When Seller financing is not used?A.The seller desires to take advantage of the installment method of reporting the gain from saleB.The buyer does not qualify for long term mortgage creditbecause of low down payment ordifficulty meeting monthly paymentsC.Third-party mortgage financing is less expensive or easily availableD.The seller desires to artificially raise the price of the property by offering a lower-than-marketinterest rate on the mortgage19.A remainder cannot be mortgaged.TrueFalse20.A fee simple estates is a type of freehold estate.TrueFalse
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 14 preview image21.A clause which specifies that the mortgagor will pay all property taxes and otherchargesassessed against the property, even if theses charges have priority over the mortgage is typicallyincluded in a mortgage.TrueFalse22.A clause which specifies that the mortgagee will obtain and maintain property insurance istypically included in a mortgage.TrueFalse23.Under lien theory, title and the right to possession pass from the mortgagor to the mortgageewhen the mortgage is executed.TrueFalse24.A due on sale clause which specifies that the mortgage can accelerate the debt if the property issold without the mortgagee's permissions is a typical clause in a mortgage document.TrueFalse25.It is a federal law that a mortgage must be recorded to be valid.TrueFalse26.A mortgagedefault can result from failure to pay property taxes.TrueFalse27.A technical default can result from failure to keep the property in repair.TrueFalse28.When a purchaser takes a property "subject to" an existing mortgage, thepurchaser becomespersonally liable for repaying the debt.TrueFalse29.When a deed is given in lieu of foreclosure of the mortgage, the mortgagor no longer has anobligation to pay the mortgage note.TrueFalse30.Junior liens are eliminated by a voluntary conveyance of a property to the mortgagee.TrueFalse
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 15 preview image31.If a property encumbered by a mortgage is sold at a foreclosure sale for an amount less than thevalue of the mortgage, the mortgagor is not obligated to pay themortgagee the remainingbalance.TrueFalse32.A purchaser at a tax sale receives a deed to the property at the time of the sale.TrueFalse33.The process of confirming a plan of reorganization under Chapter 11, even if one or more creditorclasses dissent, is known as a "cramdown."TrueFalse34.If a debtor, under Chapter 7 bankruptcy, is not behind on his mortgage payments, he does nothave the give up the property.TrueFalse35.Unless stated otherwise, theborrower is personally liable for payment of all amounts due underthe terms of the note.TrueFalse
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Test Bank For Real Estate Finance And Investments, 14th Edition - Page 16 preview image2Key1.Which of the following situations is NOT a common cause for the use of a purchase-moneymortgage?A.The buyercannot come up with the down payment needed to qualify for a mortgage.B.The seller wants to receive the gain from the sale in installments.C.Third-party mortgage financing is too expensive of unavailable.D.The seller desires to artificially raise the price of the property by receiving a higher-than-market interest rate.Brueggeman-Chapter 02 #12.Which of the following is NOT a minimum mortgage requirement?A.Description of the propertyB.Covenant of warrantyC.Prepayment clauseD.Covenant of seizingBrueggeman-Chapter 02 #23.A mortgage is BEST defined as a legal document that:A.creates an obligation to repay a loan under specific terms.B.names real estate as the security orcollateral for the repayment of a loan.C.defines a possessory interest in real estate.D.conveys ownership of a property to its purchaser.Brueggeman-Chapter 02 #34.Which of the following solutions is LEAST likely to beacceptable to a mortgagee whendiscussing alternatives to foreclosing a property?A.Permanently extending the amortization period.B.Finding someone else to assume the mortgage.C.Providing a temporary grace period during whichprincipal and interest are not paid.D.Permanently reducing the interest rate.Brueggeman-Chapter 02 #4
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Real Estate Finance And Investments...

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