A-4: Encumbrances

Question 1

Which of the following relates to a mechanic’s lien: statute of limitations, records ruin is required, a statutory lien, all of these

Answer 1

All of these

Question 2

What is the difference between the actual value of a property and the value of liens against a the property?

Answer 2

Owner’s equity

Question 3

Which of the following applies to a buyer assuming a mortgage: becomes personally liable for the debt, may be held liable for the deficiency between the foreclosure price and outstanding mortgage balance, usually must be approved by the lender, all of these

Answer 3

All of these

Question 4

When a loan is secured by a deed of trust, who holds the deed of trust document?

Answer 4

Beneficiary

Question 5

A UCC would be used in a transaction that included which of the following: personal property of a business, commercial real property, rolling options via bulk sale, a lease on real estate

Answer 5

Personal property of a business