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Real Estate > A4 > Flashcards

A4 Flashcards

0
Q

A licensed contractor is hired and paid in full directly by the owner of a commercial property. The general contractor fails to pay the subcontractors for the work they performed. The general contractor then files bankruptcy, and subcontractor files a mechanics lien within 125 days from the completion of his work. In this situation, which of the following is true regarding the subcontractor:

a. The lien is not valid because the owner did not hire the sub
b. The lien is no valid because it was not recorded within the required time period
c. The lien is not valid because the owner paid the general contractor in full
d. The lien is valid as long as a foreclosure action is taken within 100 days of recording the lien

A

b. The lien is not valid because it was not recorded within the required time period

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1
Q

How long does a subcontractor have to file a mechanic’s lien?

a. 60 days after completion of work
b. 60 days from contract date
c. 90 days after completion of work
d. 120 days after completion of work

A

d. 120 days after completion of work

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2
Q

which of the following would NOT be involved in a Deed of Trust?

a. Trustor
b. Trustee
c. Beneficiary
d. Vendor

A

d. Vendor

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3
Q

A defeasance clause in a Deed of Trust allows for:

a. The trustee to foreclose
b. Cancellation of the lender’s claim upon full note payment
c. Lender’s protection against forgery
d. non-assumability of a loan

A

b. Cancellation of the lender’s claim upon full note payment

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4
Q

If one was to research the county public records, one would always find:

a. Loans on the property
b. Adverse Possession
c. Easements
d. Mechanic’s liens

A

d. Mechanic’s liens

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5
Q

When a Deed of Trust is satisfied, the trustee sends out a:

a. Satisfaction of mortgage
b. Defeasance clause
c. Deed of reconveyance
d. Warranty deed

A

c. Deed of reconveyance

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6
Q

An owner hires a general contractor to build a commercial project. The owner pays the general in full, but the general fails to pay the subcontractors. Which of the following statements are true?

a. The subs can only look to the general for payment
b. The subs can file a mechanics lien against the property
c. The subs cannot file a mechanics lien
d. The subs must wait for the general to file the mechanics lien

A

b. The subs can file a mechanics lien against the property

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7
Q

Who would provide instructions regarding signing of the deed of reconveyance?

a. Trustor
b. Trustee
c. Beneficiary
d. Sheriff

A

c. Beneficiary

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8
Q

Naked legal title best describes the interest of:

a. Trustee under a trust deed
b. Trustee in an agreement for sale
c. Trustee in a mortgage
d. Beneficiary to owner

A

a. Trustee under a trust deed

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9
Q

What is NOT true regarding a mechanic’s lien?

a. General contractor has 120 days to file a lien
b. Subcontractor has 120 days to file a lien
c. A mechanics lien may be filed at any time
d. A mechanics lien is valid for six months

A

c. A mechanics lien may be filed at any time

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10
Q

Property taxes are what type of lien?

a. General
b. Specific
c. Inchoate
d. Incorporeal

A

b. Specific

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11
Q

Which of the following could NOT be part of a Deed of Trust?

a. Judicial foreclosure
b. Non-judicial foreclosure
c. Statutory forfeiture period
d. Reinstatement period

A

c. Statutory forfeiture period

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12
Q

An assignment of Rents Clause is for the benefit of the:

a. Trustor
b. Beneficiary
c. Trustee
d. Mortgagor

A

b. beneficiary

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13
Q

A mechanic’s lien must be placed on title by a general contractor within:

a. 90 days from the start of the job
b. 120 days after job is completed
c. 60 days from the start of the job
d. 60 days after completion

A

b. 120 days after the job is completed

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14
Q

When do you file a mechanic’s lien:

a. Beginning of work
b. Completion of work
c. Six months after completion
d. After obtaining a judgement

A

b. Completion of work

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15
Q

A mechanic’s lien may be filed by:

a. The utility company
b. Construction employee
c. The auto mechanic
d. The lumber supplier

A

d. The lumber supplier

16
Q

Mechanic’s lien takes priority:

a. Date recorded
b. Date work began
c. 90 days after work began
d. 6 months after work began

A

b. Date work began

17
Q

If you have been given notice of a possible future lien, this lien is probably for:

a. Recorded Judgement
b. Mechanic’s lien
c. Property insurance
d. Purchase money mortgage

A

b. Mechanic’s lien

18
Q

A general contractor does work for a tenant in a commercial leased space. The tenant fails to pay the contractor. Which of the following is true regarding the mechanic’s lien?

a. The contractor may not file a lien
b. The contractor will lien the entire building
c. The contractor can only lien the leasehold interest
d. The contractor must have the owner’s permission to file a lien

A

c. The contractor can only lien the leasehold interest

19
Q

A tenant hires a contractor to construct a patio roof. The tenant refuses to pay the amount owed, the mechanic may file a lien against:

a. Beneficiary
b. Mortgagor
c. Tenant’s Improvements
d. Owner

A

c. Tenant’s improvements

20
Q

Once originated, under the Deed of Trust, who owns the property?

a. Trustor
b. Trustee
c. Assignee
d. Beneficiary

A

a. Trustor

21
Q

Who pays the fee for recording a Deed of Reconveyance?

a. Beneficiary
b. Trustor
c. Trustee
d. Fiduciary

A

b. Trustor

22
Q

Which of the parties below would hold “naked title” in a deed of trust?

a. Trustee
b. Trustor
c. Beneficiary
d. Mortgagee

A

a. Trustee

23
Q

Who gives instructions to sign the deed of reconveyance?

a. Trustee
b. Beneficiary
c. Mortgagee
d. Mortgagor

A

b. Beneficiary

24
Q

When a mechanic’s lien is recorded and later results in a judgement, what is the lien priority of the judgement?

a. When the notice of completion is recorded
b. Same as a the mechanic’s lien
c. Day judgement is recorded
d. Day work is completed

A

b. Same as the mechanic’s lien

25
Q

Judgements in Arizona would be valid for what period of time?

a. 1 year
b. 2 years
c. 3 years
d. 5 years

A

d. 5 years

26
Q

What accompanies a deed of trust?

a. Mortgage
b. Note
c. Estoppel
d. UCC

A

b. Note

27
Q

A contractor starts work on May 1, 2000. He completes work on August 15, 2000 and records a mechanic’s lien on October 10, 2000. What is the effective date of the lien?

a. May 1st
b. August 15th
c. October 10th
d. December 1st

A

a. May 1st

28
Q

Seller sells a property to a buyer and has repairs done thirty days before the close of escrow. The buyer obtains a new FHA loan and closes escrow, after the closing the contractor files a mechanic’s lien. What is the status of the FHA loan?

a. Mechanic’s lien may not be recorded
b. FHA is in first position
c. FHA is in second position
d. Mechanic’s lien is in second position

A

c. FHA is in second position

Real Estate (14 decks)

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