Finance and Property Tax Flashcards
Which of the following instruments contain the note and security in one document?
A: Lease with first right of refusal
B: Exchange contract
C: Agreement for sale
D: Purchase- money mortgage
C: Agreement for sale
All of the following are true regarding a deed of trust EXCEPT:
A: Lender is the beneficiary
B: Conveys legal title to the trustor
C: Conveys bare, naked title to the trustee
D: Buyer is the trustor
B: Conveys legal title to the trustor
The redemption period on a deed of trust following the trustee’s sale is:
A: 30 days
B: Does not exist
C: 6 months
D: 90 days
B: Does not exist
A trustee under a deed of trust would not be involved in which of the following circumstances?
A: Issuance of the Deed of Reconveyance
B: Loan paid in full
C: Collection of monthly loan payments
D: Trustor is delinquent
C: Collection of monthly loan payments
At mortgage foreclosure sale, if the property is abandoned, the statutory period of redemption can be cut to which of the following times?
A: 120 days
B: 30 days
C: 90 days
D: 60 days
B: 30 days
To be negotiable, an instrument must fulfill all of the following requirements except:
A: It must be filed and given an approval number by the Uniform Commercial Code (UCC)
B: It must be in writing
C: It must be signed by the maker
D: It must be made payable from one person to another
A: It must be filed and given an approval number by the Uniform Commercial Code (UCC)
Before the mortgage foreclosure is held the mortgagor can redeem the property. This is called:
A: Statutory period of redemption
B: Deed in lieu of foreclosure
C: Reinstatement period
D: Equitable period of redemption
D: Equitable period of redemption
A non-recourse loan would not provide:
A: Deficiency judgement
B: Loan repayment
C: Foreclosure
D: Loan documents
A: Deficiency judgement
Which of the following authorizes the use of the “Power of Sale” in a deed of trust?
A: Court
B: Trustor
C: Beneficiary
D: Trustee
B: Trustor
Annual loan payments are:
A: Added to expenses to arrive at gross operating income
B: Considered an annual operating expense
C: Subtracted from gross income to get net operating income
D: Called annual debt service
D: Called annual debt service
If real property is sold at a tax sale and the delinquent taxpayer has abandoned the property, which type of lien would be in second position upon expiration of the statutory redemption period?
A: Real property tax lien
B: Judgement lien recorded third
C: IRS lien recorded third
D: Mechanics lien recorded second
A: Real property tax lien
A promissory note is:
A: Acts as the debt and security as one
B: valid once recorded
C: Evidence of the debt
D: Security for the debt
C: Evidence of the debt
Depending on the “class” of real property, (i.e. residential, commercial, railroad, mines etc.), a tax assessment ratio is applied to the property’s full cash value by the County Assessor in order to determine:
A: The market value of a given property
B: The affidavit of value of a given property
C: The annual real estate tax on the subject property
D: The assessed valuation of the subject property
D: The assessed valuation of the subject property
The purpose of “acknowledging” a trust deed in Arizona is:
A: Complies with the Statute of Frauds
B: Complies with the defeasance law
C: Allows it to be recorded
D: Shows the intent of the buyer
D: Shows the intent of the buyer
A factor which does not contribute to the value of real estate is:
A: Demand
B: Supply
C: Utility
D: Cost
D: Cost
The formal name for a “due on sale” clause is:
A: Acceleration clause
B: Alienation clause
C: Blanket clause
D: Santa Clause
B: Alienation clause
Property taxes prorated on a closing statement are:
A: Based on the one half of the current year
B: Based on the prior year
C: Based on the current year
D: Based on the following year
B: Based on the prior year
A deed of trust is paid in full. Who signs the deed of reconveyance?
A: Mortgagor
B: Trustee
C: Trustor
D: Beneficiary
B: Trustee
In an agreement for sale, the seller is the:
A: Beneficiary
B: Vendee
C: Mortgagee
D: Vendor
D: Vendor
Lenders require a veteran to provide a:
A: Military appraisal
B: Certificate of eligibility
C: Certificate of honorable service
D: Copy of honorable discharge
B: Certificate of eligibility
A CAP rate is based on what type of income?
A: Scheduled
B: Gross
C: Net
D: Effective
C: Net
The three classic approaches to value in real estate appraisal are:
A: Income cost and interest
B: Cost income and market
C: Market cost and interest
D: Market income and interest
B: Cost income and market
A mortgage is paid in full. What loan clause requires the lender’s action?
A: Defeasance
B: Reconveyance deed
C: Subrogation
D: Laches
A: Defeasance
When a mortgage is in default what type of action would the lender take?
A: Notice or Reinstatement
B: Court Action
C: Non Judicial Foreclosure
D: Notice of Trustee Sale
B: Court Action
What is it called when the note and security instrument are in one document?
A: Wraparound
B: Land Contract
C: Purchase money mortgage
D: Deed of trust
B: Land Contract
Once the assessed valuation is determined, it can then be used to determine the annual tax on a given real property by first dividing the assessed valuation by 100 and multiplying the result by the tax rate, which is set annually by:
A: The County Treasurer
B: The Governor
C: The County Assessor
D: The County Board of Supervisors
D: The County Board of Supervisors
When it becomes necessary to foreclose on a Deed of Trust:
A: Debtor has 60 day Redemption Period
B: Trustor files Lis Pendens
C: Trustee would order Beneficiary to foreclose
D: Notice of Sale is sent to Debtor
D: Notice of Sale is sent to Debtor
The rate of interest to be paid on past due property taxes is:
A: 12%
B: 16%
C: The rate is currently dictated by the money market
D: 7%
B: 16%
When a promissory note is created between the lender and the borrower, what would not be listed in the note?
A: Annual percentage rate
B: Property description
C: Points charged for the loan
D: Interest rate
C: Points charged for the loan
Payment in full of a promissory note terminates a mortgage lien, but county records need to be updated by recording a “_____.”
A: Lien rest in peace
B: Lien termination piece
C: Peaceable lien
D: Satisfaction piece
D: Satisfaction piece
The right of the mortgagor to regain title is called:
A: Redemption
B: Hypothecate
C: Reversion
D: Reinstatement
A: Redemption
Which of the following instruments contain the note and security in one document?
A: Agreement for sale
B: Lease with first right of refusal
C: Exchange contract
D: Purchase money mortgage
A: Agreement for sale
Fannie Mae is active in the:
A: Loan origination markets
B: Primary mortgage market
C: Secondary mortgage market
D: Federal Reserve market
C: Secondary mortgage market
The supply and cost of money can be most effectively controlled by:
A: Federal Reserve System
B: Stock prices
C: Supply and demand
D: FHA interest rates
A: Federal Reserve System
How does an alienation clause benefit a lender?
A: leases will terminate upon foreclosure
B: Loan is not assumable
C: Lender may collect the rents if payments are not made
D: Loan has a pre pay penalty
B: Loan is not assumable
Buyer purchases property under an Agreement for Sale with 10% down and leaves town abandoning the property. What is true?
A: Seller must go through a foreclosure process
B: Buyer will forfeit his equity after a specific time period
C: Buyer will automatically lose his equity
D: Buyer has a 90 day reinstatement period
B: Buyer will forfeit his equity after a specific time period
