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ASREB Real Estate > Finance and Property Tax > Flashcards

Finance and Property Tax Flashcards

1
Q

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

A

C: Agreement for sale

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2
Q

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

A

B: Conveys legal title to the trustor

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3
Q

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

A

B: Does not exist

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4
Q

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

A

C: Collection of monthly loan payments

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5
Q

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

A

B: 30 days

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6
Q

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

A: It must be filed and given an approval number by the Uniform Commercial Code (UCC)

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7
Q

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

A

D: Equitable period of redemption

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8
Q

A non-recourse loan would not provide:

A: Deficiency judgement
B: Loan repayment
C: Foreclosure
D: Loan documents

A

A: Deficiency judgement

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9
Q

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

A

B: Trustor

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10
Q

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

A

D: Called annual debt service

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11
Q

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

A: Real property tax lien

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12
Q

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

A

C: Evidence of the debt

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13
Q

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

A

D: The assessed valuation of the subject property

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14
Q

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

A

D: Shows the intent of the buyer

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15
Q

A factor which does not contribute to the value of real estate is:

A: Demand
B: Supply
C: Utility
D: Cost

A

D: Cost

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16
Q

The formal name for a “due on sale” clause is:

A: Acceleration clause
B: Alienation clause
C: Blanket clause
D: Santa Clause

A

B: Alienation clause

17
Q

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

A

B: Based on the prior year

18
Q

A deed of trust is paid in full. Who signs the deed of reconveyance?

A: Mortgagor
B: Trustee
C: Trustor
D: Beneficiary

A

B: Trustee

19
Q

In an agreement for sale, the seller is the:

A: Beneficiary
B: Vendee
C: Mortgagee
D: Vendor

A

D: Vendor

20
Q

Lenders require a veteran to provide a:

A: Military appraisal
B: Certificate of eligibility
C: Certificate of honorable service
D: Copy of honorable discharge

A

B: Certificate of eligibility

21
Q

A CAP rate is based on what type of income?

A: Scheduled
B: Gross
C: Net
D: Effective

A

C: Net

22
Q

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

A

B: Cost income and market

23
Q

A mortgage is paid in full. What loan clause requires the lender’s action?

A: Defeasance
B: Reconveyance deed
C: Subrogation
D: Laches

A

A: Defeasance

24
Q

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

A

B: Court Action

25
Q

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

A

B: Land Contract

26
Q

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

A

D: The County Board of Supervisors

27
Q

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

A

D: Notice of Sale is sent to Debtor

28
Q

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%

A

B: 16%

29
Q

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

A

C: Points charged for the loan

30
Q

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

A

D: Satisfaction piece

31
Q

The right of the mortgagor to regain title is called:

A: Redemption
B: Hypothecate
C: Reversion
D: Reinstatement

A

A: Redemption

32
Q

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

A: Agreement for sale

33
Q

Fannie Mae is active in the:

A: Loan origination markets
B: Primary mortgage market
C: Secondary mortgage market
D: Federal Reserve market

A

C: Secondary mortgage market

34
Q

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

A: Federal Reserve System

35
Q

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

A

B: Loan is not assumable

36
Q

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

A

B: Buyer will forfeit his equity after a specific time period

ASREB Real Estate (18 decks)

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