Mod 2

Question 1

If a contract was valid upon its crease but has passed the statute of limitations, the contract is now considered

Answer 1

Unenforceable

Question 2

As a buyer in a coop apartment you will not receive a

Answer 2

Deed

It’s personal property, not real property or RE

Question 3

This limits the amount the interest rate can increase or decrease over the life of the mortgage

Answer 3

A life cap

Question 4

A limit on the amount that payments can increase or decrease during any one adjustment. It’s called

Answer 4

Period rate cap

Period & payments

Question 5

A federal law requiring lenders to fully disclose in writing the terms and conditions of a mortgage including the annual percentage rate and other charges is called

Answer 5

Truth in Lending Law

Question 6

When a lender commits to the borrower or originator a specific rate for a specific time ata specific cost, this is called

Answer 6

Rate Lock

Question 7

The IRS requires the escrow agent in charge of the closing of a RE transaction to report the sale on form 1099-s which lists

Answer 7

The sellers name, SS#, and gross sale proceeds

Question 8

An oral agreement

Answer 8

Is a contract that is binding in a court of law

Question 9

If a church, school, or hospital wishes to relocate to an area zoned explicitly for residential use, they can do so by

Answer 9

Conditional use

Question 10

If an agent acts in a way that prevents disclosure of something it’s called

Answer 10

Concealment

Question 11

The party that accepts the endorsed note from the original payee without knowledge of any defects is know as

Answer 11

Holder in due course

Question 12

A broker Seeking to collect a commission on a month-to-month rental that was earned for their negotiation in the matter, needs to prove what in order to legally collect

Answer 12

Prove an oral agreement was reached

Question 13

Seller financing in regards yo a loan is also know as

Answer 13

Purchase money mortgage

Question 14

The payment change date

Answer 14

The date when a new monthly payment

amount takes effect on an ARM or Graduates payment mortgage

Question 15

If a person would not pay more free property than the price of a reasonably close alternative you’re most likely describing

Answer 15

Substitution

Question 16

If a homeowner obtains a home equity line of credit, they have obtained

Answer 16

A mortgage loan

Question 17

In a loan closing without the proper signature on the note, this is not created

Answer 17

Indebtedness

Question 18

What is agency terminated by the laws of agency

Answer 18

Upon death or incapacitation of the principal by operation of law

Question 19

What is a grantor

Answer 19

A person conveying an interest in real property

Question 20

An ironclad merger clause is a contract provision stating that

Answer 20

No prior agreement or contemporaneous oral agreement will have any force or effect

Question 21

Method of attachment, adaptability of the attached item, relationship of the parts, intent of the person attaching the item, and agreement between parties are

Answer 21

The standard 5 tests used by courts for a fixture

Question 22

The worth of a greater value property is reduced by the proximity of many lesser value properties of the same type is known as

Answer 22

Regression

Question 23

This is issued to the holder of a certificate of sale after the one year redemption period has passed under the terms of the mortgage foreclosure proceeding

Answer 23

A sheriff’s deed

Question 24

Mark the seller did not disclose the special assessment. This is

Answer 24

Fraud

Question 25

If a borrower is given a loan were the personal residence Is used as security, other than the first trust deed used to purchase a property, and rescinds within three days, this type of loan would be covered under which law

Answer 25

Federal Truth in Lending

3 day right to rescind

Question 26

Sep housing units for more than 1 family that secure only a single mortgage are called

Answer 26

Multi dwelling units

Question 27

When some performance by one or both parties remains to be done

Answer 27

An executory contract

Question 28

This is given by a commercial bank or other financial institutions for a certain time and certain amount

Answer 28

Line of credit

Question 29

What is considered to be an encumbrance

Answer 29

Easment
A lease
A mortgage

(Encumbrances of a fee simple title)

Question 30

What does the real estate settlement procedures act cover

RESPA

Answer 30

One to four family mortgage loans

Including equity loans

Question 31

An escrow analysis is performed by the lender to ensure

Answer 31

The correct amount of money is being collected

Question 32

When Jackie checks her payment statements for her mortgage, she notices that there is an amount of the principle that has not yet been repaid. This amount is called the

Answer 32

Remaining balance

Question 33

Usually clouds on the title to real property cannot be removed except by

Answer 33

Deed
Release
Court Action