Set 10

Question 1

T/F: The shorter the term of a loan, the more quickly principal is paid down and the faster equity builds.

Answer 1

True

The shorter the term of a loan, the more quickly principal is paid down and the faster equity builds.

Question 2

T/F: With a judgement lien, the debtor can go after both personal and real property

Answer 2

True, personal and real property

A judgment lien is a decision directed by the courts and can apply to whatever assets it deems appropriate.

Question 3

T/F: The Property Disclosure Act obligates the seller to make a specific investigation or inquiry in an effort to complete the disclosure statement.

Answer 3

False

The Act does not obligate the seller to make any specific investigation or inquiry in an effort to complete the disclosure statement.

Question 4

Does a trust deed (deed of trust) secure a loan or does it convey ownership?

Answer 4

Secures a loan

A deed conveys ownership; a deed of trust secures a loan.

Question 5

T/F: A deed conveys ownership; a deed of trust secures a loan.

Answer 5

True

A deed conveys ownership; a deed of trust secures a loan.

Question 6

Special warrenty deeds are also called _____

Answer 6

Limited Warranty deed

grantor warrants only against defects arising during the time he owned the property
not against defects arising before he owned property

Question 7

T/F: With a Special Warranty Deed (aka Limited Warranty deed) the grantor warrants against defects arising before he owned property

Answer 7

False

grantor warrants only against defects arising during the time he owned the property
not against defects arising before he owned property

Question 8

In a land contract (aka land installment contract), what is the for the seller who holds the title to the property as apposed to holding just a mortgage lien.

Is the seller called the “Vendor” or “Vendee”

Answer 8

Vendor

In land contract, seller called the vendor

Question 9

The system of ownership of real property in the United States is what?

A
Incorporeal
B   
Allodial
C
Command
D
Feudal

Answer 9

B
Allodial

“Allodial” is the modern form of ownership and is often contrasted with “feudal” in which land is held on the condition of rent or service due the government. For example, a medieval knight held property subject to coming to his baron’s service when called. Similarly, the baron’s land holdings were conditional on his raising an army and fighting for the king in times of conflict. Failure of any party to “perform as promised” was cause for holdings to be confiscated, often as a preliminary step to more extreme actions.

Question 10

T/F: To create a joint tenancy relationship in the ownership of real estate, there must be unities of
possession, time, interest, and title.

Answer 10

True

This essentially means that all parties to the agreement share equally in all aspects of the property, including the length of time it’s been held. That means if one party sells or transfers interest in a joint tenancy relationship, his or her place is taken by another in the same capacity.

Question 11

T/F: One advantage of a borrower getting private mortgage insurance is the borrower can purchase with a lower down payment

Answer 11

True

One advantage of a borrower getting private mortgage insurance is the borrower can purchase with a lower down payment

Question 12

T/F: One advantage of a borrower getting private mortgage insurance is the insurance is tax deductible

Answer 12

False

However, Private mortgage insurance does let the borrower purchase with a lower down payment