Chapter 9 Flashcards
Lis pendens means:
a. Notice of Pending Action.
b. Notice of Litigation
c. Both a. and b.
d. Neither a. nor b.
C
_______ is an example of a lawsuit affecting title or possession of real estate.
a. Judicial foreclosure of a trust deed lien by a lender
b. Termination or establishment of an easement between neighboring property owners
c. Divorce proceedings involving real estate
d. All of the above.
D
A(n) ________ is a written statement which presents an accurate, factual representation of title to the property being acquired, encumbered or leased.
a. preliminary title report
b. property profile
c. abstract of title
d. None of the above.
C
Most losses due to the reduction in the value of real estate below the title insurance policy limits arise out of an encumbrance on title, including:
a. restrictions on use.
b. easements.
c. pendency of condemnation.
d. All of the above.
D
The _____________ insures against all encumbrances affecting title which can be discovered by a search of public records prior to issuance of the policy, but does not cover against unrecorded encumbrances.
a. California Land Title Association (CLTA) standard policy
b. American Land Title Association (ALTA) policy
c. Both a. and b.
d. None of the above.
A
A(n) _______ is the dollar amount of the equity in a homeowner’s dwelling that the homeowner qualifies to hold which has priority on title over most judgment liens and some government liens.
a. overriding lien
b. homestead
c. interest deduction
d. All of the above.
B
Portions of a loan application need to be verified by the lender with supplemental documents, such as:
a. recent bank statements.
b. an appraisal report to establish the value of the property serving as security.
c. a credit report to establish the buyer’s liabilities and propensity to repay the loan.
d. All of the above.
D
The ________ supplies the lender with necessary information about the buyer and the property securing the loan and triggers the loan packaging process.
a. listing agreement
b. escrow instructions
c. Uniform Residential Loan Application
d. appraisal report
C
Until August 1, 2015, a Real Estate Settlement Procedures Act (RESPA)-controlled lender must provide a buyer with:
a. a good faith estimate of all loan related charges.
b. Department of Housing and Urban Development (HUD) published Special Information Booklet.
c. HUD-1 or HUD-1A Closing Statement.
d. All of the above.
D
A buyer’s ________ is their ability to make loan payments, as evaluated by their debt-to-income (DTI) ratio.
a. balance sheet
b. mortgage capacity
c. loan-to-value ratio (LTV)
d. None of the above.
B
