A5 Flashcards
When could a person receive legal title to the property under an Agreement for Sale?
a. Upon paying 30 percent of the price with 20 days notice to vendor
b. Upon the last payment
c. Upon paying 50 percent of the purchase price
d. When the agreement was recorded
b. Upon the last payment
A buyer buys a property under an Agreement for Sale with only 10 percent down. The buyer then leaves town abandons the property. Which of the following statements are true?
a. Seller must go through a foreclosure process
b. Buyer will forfeit their equity after a specific time period
c. Buyer will automatically lose their equity
d. Buyer has a 9-day reinstatement period
b. Buyer will forfeit their equity after a specific time period
Which of the following instruments contain the note and security in one document?
a. Agreement of sale
b. Exchange contract
c. Lease with first right to refuse
d. Purchase-money mortgage
a. agreement of sale
The forfeiture period on a land contract is:
a. A reinstatement period is agreed by the parties
b. A specific statutory period of time
c. 90 days after the constructive notice
d. 6 months after the actual notice
b. A specific statutory period of time
At a mortgage foreclosure sale, if the property is abandoned, the statutory time period of redemption can be cut to which of the following times?
a. 30 days
b. 60 days
c. 90 days
d. 120 days
a. 30 days
A commercial project was in foreclosure, and after the sale the mortgage did not receive enough money to satisfy the note. Which of the following statements are true?
a. The lender can sue the borrower for the deficiency judgement
b. The lender would not be able to sue for the deficiency judgement
c. The lender’s only recourse is the property
d. The lender would first have to honor the property homestead
a. The lender can sue the borrower for the deficiency judgement
A property has a first not and Deed of Trust for $20,000, and a second not and Deed of Trust for $10,000. The first is in default and the lender agrees to take back a quitclaim deed. What is the position of the $10,000 second?
a. The quitclaim deed eliminated the second
b. The second must be paid before the quitclaim can be given on the first
c. The second is now in first position
d. The $10,000 is still in second position
c. The second is now in first position
A buyer obtains a loan on a parcel of land secured by a Deed of Trust. Later the buyer moves a mobile home on the lot and defaults on the Deed of Trust. Which of the following ins true?
a. Lender may foreclose on the land and the mobile home
b. Lender may not foreclose under the homestead act
c. Lender may foreclose on the land only
d. Lender may foreclose on the mobile home only
c. Lender may foreclose on the land only
After a Deed of Trust Foreclosure sale, which of the following is true?
a. A deed of Reconveyance is given to the trustor
b. The note is marked paid and returned to the trustor
c. A trustee’s deed is given to the new owner
d. The trust deed is returned to the trustor
c. A trustee’s deed is given to the new owner
Which of the following would NOT be part of an agreement for sale?
a. Statutory notice
b. Account servicing agreement
c. Trustee notice
d. Forfeiture rights
c. Trustee notice
State usury law would set:
a. Interest rates
b. Rescission laws
c. Disclosure
d. Advertising restrictions
a. Interest rates
A land contract has an acceleration clause and is now in default. Which of the following is true?
a. No acceleration clause is allowed in a land contract
b. Vendor can forfeit the vendee’s equity immediately
c. Once the acceleration clause is exercised, a lender would foreclose as a mortgage
d. The vendee would have a 90-day reinstatement period
c. Once the acceleration clause is exercised, a lender would foreclose as a mortgage
A seller may accelerate payment on a land contract when the buyer defaults:
a. If foreclosed as a mortgage
b. If foreclosed as a Deed of Trust
c. If the seller uses the forfeiture provisions
d. If the loan has a subordination clause
a. If foreclosed as a mortgage
Who benefits from a non-disturbance clause in a loan?
a. Seller of the property
b. New buyer of the property
c. Tenant leasing the property
d. Broker who sells the property
c. Tenant leasing the property
What is the primary difference between an agreement for sale and a purchase money mortgage?
a. A purchase money mortgage contains the note and security all in one document
b. The purchase money mortgage is the evidence of the debt
c. The agreement for sale contains the note and security all in one document
d. The agreement for sale is used only when selling land
c. The agreement for sale contains the note and security all in one document
