State Test

Question 1

Tenants in Common

Answer 1

Tenants in common may transfer their interest to any person at any time.
This may be made by a conveyance such as a deed or by will or intestate succession.

Question 2

beneficiary’s statement

Answer 2

a statement by the beneficiary (lender) of the balance due to pay off the loan in full

Question 3

trustOR

Answer 3

Borrower

Question 4

TrustEE

Answer 4

3rd party

Question 5

mortgage loan

Answer 5

loan that is obtained by a borrower using real estate as the collateral or the security

Question 6

jointly & severally

Answer 6

obligated both together and individually

Question 7

promissory notes

Answer 7

evidence that money is owed by one person to another.

Question 8

trust deed

Answer 8

the security for the note. not a contract but rather a conveyance of the naked legal title with the power of sale from the truster to the trustee. is an encumbrance
when there is a default on a trust deed a trustee’s sale would be the recommended procedure

Question 9

default

Answer 9

occurs when property is used for an illegal purpose, the refusal of the borrower adequately maintain & delinquent loan payments

Question 10

security interest

Answer 10

the lender’s (creditor’s) right to foreclose against the borrower’s property if the loan is not repaid.

Question 11

personal property can become

Answer 11

real property and can be:

• Alienated
• Hypothecated

Question 12

Alienated

Answer 12

transfered

Question 13

hypothecated

Answer 13

used as security for a loan

Question 14

open end mortgage

Answer 14

an extension of credit from the lender to the borrower, allowing them at a later time to borrow additional funds

Question 15

fully amortized loan

Answer 15

as the equal monthly payments are made, the amount credited to principal will increase while the amount credited to interest will decrease. However the principal amount will not increase by a constant amount.

Question 16

soil pipe is commonly used in

Answer 16

sewer lines

Question 17

selling a property “As Is”

Answer 17

is permissible but only when all disclosure requirements are met including the Transfer Disclosure Statement to disclose all known defects.

Question 18

Secondary Mortgage Market

Answer 18

is where existing loans are bought and sold.

Question 19

method used when an appraising a special purpose property

Answer 19

a church or court house, the cost approach is most commonly used

Question 20

Value

Answer 20

Demand, utility, Scarcity & Transferability DUST

Question 21

Bill of Sale

Answer 21

includes the inventory of the stock, the trade name & a list of fixtures & equipment.

Question 22

Perscription

Answer 22

refers to an easement, which is the right to use the property of another.

Question 23

The return from real property should be

Answer 23

higher than from bonds, first trust deeds & first mortgages

Question 24

Easement

Answer 24

an interest which can be protected against interference by a third persons, capable of being created by a conveyance, considered a non-possessory interest. not an estate but a non-possessory interest one has to use land belonging to another.

Question 25

lease (leasehold)

Answer 25

a personal interest in real property known as a less-than-freehold estate (chattel real)

Question 26

Devise

Answer 26

the transfer of real property under a will.

Question 27

When a buyer makes a low down payment &/or lengthens the life of the loan

Answer 27

the financing costs increase because of higher interest cost.

Question 28

fee simple title

Answer 28

of indefinite duration, can be transferred with or without consideration and is transferable by will or intestate succession.

Question 29

Encumberance

Answer 29

may be defined as anything/action which burdens or affects the title such as easements, restrictions, encroachments or trust deeds, mortgages, judgments. anything which affects or limits the fee simple title to property.

Question 30

encroachements

Answer 30

non-money encumbrances

Question 31

judgements

Answer 31

money encumbrances

Question 32

Appropriation

Answer 32

giving certain rights by a judicial governmental body.

Percolation

Question 33

the ability of the soil to absorb & drain water

Estoppel

Answer 33

a principle of law that bars people from asserting certain rights

Question 34

eminent domain

Answer 34

the right of the state to take property for public use

Question 35

Zoning

Answer 35

A city’s general plan for which areas will be used for which types of development.

Question 36

percentage lease

Answer 36

when the rent is computed on the gross sales of a business occupying real property / is tied to a percentage of the gross receipts of a business.

Question 37

landlord/tenant arrangement is called

Answer 37

less-than-freehold estate (sale-leaseback results in this)

Question 38

when the tenant has the use of the property for a specified period of time which may be days,weeks,months or years

Answer 38

estate for years

Question 39

the remedy of unlawful detainer action is used by offended

Answer 39

Lessors

Question 40

A mortgage is what type of property

Answer 40

personal property

Question 41

examples of appurtenances

Answer 41

easement, mineral rights (real property)

Question 42

Growing trees are _____ property

Answer 42

real