A1-A9 Flashcards
Under certain conditions a utility may acquire an easement by:
Eminent Domain
A property owner erected a block wall on the property. The block wall became real property… how?
Annexation
A property is held in joint tenancy and one of the parties dies testate, which of the following is true?
Goes to the Joint tenant survivor
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?
Joint Tenancy
When a person receives real estate through a will, this is called?
Devise
What type of deed would have three promises and two warranties?
General Warranty
When a document is recorded, what type of notice is given:
Constructive
What best describes the purpose of a trustee
Foreclose in a deed of trust
If a lender is doing business in a lien theory state, what is true?
Legal title is held by the mortgagor
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
A land contract
When the note and security instrument are in one document, this is best described as
Land Contract
When a loan is sold from one lender to another lender, it is
Assigned
In the sale of a mortgage document, what is the relationship of the parties
Assignor to Assignee
Is a local bank considered a secondary market?
No
FNMA, GNMA and Foreign Governments are considered to be in the secondary market.
When a wraparound is created, who is responsible for the underlying loans?
Vendor
When figuring the capital gain from the sale of a property, what would lower your gain/
Capital Improvements
When a buyer is using 100% leverage in a transaction, what type of loan would they least likely be interested in?
Short term loan
What is a FHA203K?
allows you to wrap your renovation costs into your mortgage
What type of loan would have a PMI (Private Mortgage Insurance)
Conventional
Conventional loans require a 5% down payment. PMI can be removed once loan-to-value ratio (LTV) reaches 80%
What is MIP?
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)
What type of loan has the highest loan to value ratio?
VA
Who pays the discount points on a VA loan?
Agreement of Parties
What charge would be paid at closing on a high risk conventional loan?
PMI
What concept applies to both FHA and VA lending?
Or more clause
When a buyer obtains a new VA loan, who pays for the document preparation fee?
Seller
If interest rates rise, what effect would this have on commercial property with a long term fixed rate lease?
Property Value would decrease
If at the end of a lease, the tenant is allowed to remain for an indefinite length of time, this is best described as
Estate at will
A clause in a lease that would allow adjustments of payments either up or down would be called what?
An escalator
