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AZ Real Estate > Chapter 4 > Flashcards

Chapter 4 Flashcards

1
Q

A blanket mortgage

A. Usually has a release clause
B. Covers more than one parcel of real estate
C. Covers both personal and real property
D. Both A and B

A

D. Both A and B

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2
Q

Lis pendens is a(n)

A. Type of special assessment levied under the tax laws
B. Intermediate license status
C. Notice of pending court action
D. Pending contract

A

C. Notice of pending court action

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3
Q

A mechanic’s lien, once filed, is a valid lien on the subject for how long?

A. 990 days
B. 60 days
C. 6 months
D. 1 year

A

C. 6 months

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4
Q

The act of extinguishing a debt by regular payments is:

A. Depreciation
B. Amortization
C. Prepayments
D. Acceleration

A

B. Amortization

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5
Q

A defeasance clause is in a mortgage for the protection of the

A. Lender
B. Borrower
C. Seller
D. Broker

A

B. Borrower

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6
Q

Which of the following is a security instrument in a real estate transaction?

A. Note
B. Trust deed
C. Easement
D. Estoppel

A

B. Trust deed

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7
Q

Generally, the priority of a lien is, in the absence of fraud, created as of the date it was

A. Signed
B. Acknowledged
C. Recorded
D. Certified

A

C. Recorded

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8
Q

An encumbrance is anything that burdens

A. Possession of property
B. Title to property
C. Zoning ordinances
D. Police power of the state

A

B. Title to property

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9
Q

The type of mortgage where the lender pays the borrower based on the equity of the house is called a

A. Reverse mortgage
B. Blanket mortgage
C. Package mortgage
D. Budget loan

A

A. Reverse mortgage

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10
Q

Deed restrictions are placed on real property to

A. Force conformity to building codes
B. Limit the use of the subject property by the grantee
C. Force conformity to city ordinances
D. Carry out the role of the planning commission

A

B. Limit the use of the subject property by the grantee

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11
Q

When a person wishes to enforce a judgment they would seek a

A. Lawsuit
B. Right of redemption
C. Notice of completion
D. Writ of execution

A

D. Writ of execution

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12
Q

A negative amortization loan would be a loan

A. Where the loan balance declines each month
B. With principal payments only
C. With private mortgage insurance
D. Where principal balance increases

A

D. Where principal balance increases

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13
Q

Which of the following defines an encumbrance?

A. Down payment in a property
B. Total sum of money invested in a property
C. Structure or improvement on the property
D. Limitation that is attached to the property

A

D. Limitation that is attached to the property

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14
Q

In a blanket mortgage, which special clause would you most likely find?

A. Acceleration clause
B. Release clause
C. Alienation clause
D. Subrogation clause

A

B. Release clause

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15
Q

Arizona state law provides for which of the following regarding a mechanic’s lien?

A. Extension of time for filing the lien by agreement
B. A 20-day preliminary notice
C. Filing within 60 days for the original contractor
D. Priority over mortgages and other liens, including property tax liens

A

B. A 20-day preliminary notice

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16
Q

A monetary judgement by the court is a(n)

A. Involuntary lien on the personalty and realty of the subject debtor
B. Voluntary lien on the personalty and realty of the subject
C. Involuntary lien against the realty only of the subject debtor
D. Voluntary lien against the personalty only of the subject debtor

A

A. Involuntary lien on the personalty and realty of the subject debtor

17
Q

Work on a new dwelling was started on July 1st. On August 1st, the builder recorded a mortgage. On September 1st, work was completed. On October 25th, the general contractor, not having been paid, files a mechanic’s lien. This lien has an effective date of

A. July 1st
B. August 1st
C. September 1st
D. October 25th

A

A. July 1st

18
Q

What is the borrowing instrument that permits additional sums of money to be loaned by the same security device?

A. Subordination clause
B. Partial advance
C. Obligatory advance
D. Open end mortgage

A

A. July 1st

19
Q

The primary difference in buying property subject to the mortgage instead of assumption of the mortgage is in the

A. Quality of title conveyed
B. Obligation of the mortgagor
C. Obligation of the vendee
D. Time for foreclosure

A

C. Obligation of the vendee

20
Q

A lender a agrees to reduce the interest rate on a loan but specifies in the agreement with the borrower that the lender shall receive 2% of all gross income from the property on which loan was placed. This is an example of a

A. Package loan
B. Participation loan
C. Subrogation loan
D. Subordination loan

A

A. Package loan

B. Participation loan

AZ Real Estate (20 decks)

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