Question 1

In the automatic form of trusteeship, the trustee is named in the deed of trust but is not personally notified of the appointment.

Accepted Answer

A) True 
 B)False

Question 2

With regard to a deed of trust, the trustee

Accepted Answer

A)  can be the beneficiary. 
B)  receives recorded title. 
C)  receives equitable title. 
D)  receives naked title. 
A)  can be the beneficiary. 
B)  receives recorded title. 
C)  receives equitable title. 
D)  receives naked title.

Question 3

A deed of trust lien, when paid in full, is released by the recording of a reconveyance deed.

Accepted Answer

A) True 
 B)False

Question 4

Under a deed of trust on real property, the trustee is

Accepted Answer

A)  the owner of record of the property covered by the deed of trust. 
B)  empowered to foreclose, upon notice of default, by a trustee's sale of the property. 
C)  the equitable owner of the property. 
D)  the holder of the grant deed. 
A)  the owner of record of the property covered by the deed of trust. 
B)  empowered to foreclose, upon notice of default, by a trustee's sale of the property. 
C)  the equitable owner of the property. 
D)  the holder of the grant deed.

Question 5

In a deed of trust, if the borrower defaults, the lender can take possession of the property and collect the rents.

Accepted Answer

A) True 
 B)False

Question 6

The beneficiary's right, upon default, to take physical possession and collect income generated by the property is called

Accepted Answer

A)  assignment of rents. 
B)  reconveyance. 
C)  power of sale. 
D)  the trustee has the right, not the beneficiary. 
A)  assignment of rents. 
B)  reconveyance. 
C)  power of sale. 
D)  the trustee has the right, not the beneficiary.

Question 7

Mortgages are the same as trust deeds in that foreclosure is the cure for default.

Accepted Answer

A) True 
 B)False

Question 8

The borrower under a deed of trust is called the

Accepted Answer

A)  trustor. 
B)  beneficiary. 
C)  trustee. 
D)  grantor. 
A)  trustor. 
B)  beneficiary. 
C)  trustee. 
D)  grantor.

Question 9

The title that the borrower grants to the trustee is referred to as "naked title".

Accepted Answer

A) True 
 B)False

Question 10

A trust deed can be used to secure a mortgage.

Accepted Answer

A) True 
 B)False

Question 11

Choose the one most appropriate answer for each.
-title that the borrower grants to the trustee;also known as naked title.

Accepted Answer

A) accepted form 
B) assignment of rents 
C) automatic form 
D) bare title 
E) beneficiary
F)deed of trust
G)default
H)foreclosure
I)junior claims
J)naked title
K)no statutory redemption
L)power of sale
M)public trustee
N)reconveyance deed
O)release deed
P)request for reconveyance
Q)trust
R)trustee
S)trustee's deed
T)trustor 
A) accepted form 
B) assignment of rents 
C) automatic form 
D) bare title 
E) beneficiary
F)deed of trust
G)default
H)foreclosure
I)junior claims
J)naked title
K)no statutory redemption
L)power of sale
M)public trustee
N)reconveyance deed
O)release deed
P)request for reconveyance
Q)trust
R)trustee
S)trustee's deed
T)trustor

Question 12

A trustor's relationship to a beneficiary is most nearly the same as a

Accepted Answer

A)  grantor to a grantee. 
B)  beneficiary to a trustee. 
C)  buyer to a seller. 
D)  mortgagor to a mortgagee. 
A)  grantor to a grantee. 
B)  beneficiary to a trustee. 
C)  buyer to a seller. 
D)  mortgagor to a mortgagee.

Question 13

Choose the one most appropriate answer for each.
-transfers title from the trustee to the trustor

Accepted Answer

A) accepted form 
B) assignment of rents 
C) automatic form 
D) bare title 
E) beneficiary
F)deed of trust
G)default
H)foreclosure
I)junior claims
J)naked title
K)no statutory redemption
L)power of sale
M)public trustee
N)reconveyance deed
O)release deed
P)request for reconveyance
Q)trust
R)trustee
S)trustee's deed
T)trustor 
A) accepted form 
B) assignment of rents 
C) automatic form 
D) bare title 
E) beneficiary
F)deed of trust
G)default
H)foreclosure
I)junior claims
J)naked title
K)no statutory redemption
L)power of sale
M)public trustee
N)reconveyance deed
O)release deed
P)request for reconveyance
Q)trust
R)trustee
S)trustee's deed
T)trustor

Question 14

A mortgage can be foreclosed judicially.

Accepted Answer

A) True 
 B)False

Question 15

The trustee of a deed of trust

Accepted Answer

A)  may be the beneficiary. 
B)  may bid at the foreclosure sale. 
C)  has naked title. 
D)  always knows of his appointment. 
A)  may be the beneficiary. 
B)  may bid at the foreclosure sale. 
C)  has naked title. 
D)  always knows of his appointment.

Question 16

In a real estate transaction financed with a deed of trust, the real property is conveyed by the deed of trust.

Accepted Answer

A) True 
 B)False

Question 17

When default is declared on a loan secured by deed of trust, which of the following is true?

Accepted Answer

A)  The trustee must sell the property at a private sale. 
B)  The successful bidder at the trustee's sale receives a trustee's deed at the time of sale. 
C)  The defaulting borrower has a one year period of redemption after the trustee's sale. 
D)  After a year, the successful bidder at the trustee's sale receives a trustee's deed. 
A)  The trustee must sell the property at a private sale. 
B)  The successful bidder at the trustee's sale receives a trustee's deed at the time of sale. 
C)  The defaulting borrower has a one year period of redemption after the trustee's sale. 
D)  After a year, the successful bidder at the trustee's sale receives a trustee's deed.

Question 18

Choose the one most appropriate answer for each.
-usually not allowed once the foreclosure sale takes place

Accepted Answer

A) accepted form 
B) assignment of rents 
C) automatic form 
D) bare title 
E) beneficiary
F)deed of trust
G)default
H)foreclosure
I)junior claims
J)naked title
K)no statutory redemption
L)power of sale
M)public trustee
N)reconveyance deed
O)release deed
P)request for reconveyance
Q)trust
R)trustee
S)trustee's deed
T)trustor 
A) accepted form 
B) assignment of rents 
C) automatic form 
D) bare title 
E) beneficiary
F)deed of trust
G)default
H)foreclosure
I)junior claims
J)naked title
K)no statutory redemption
L)power of sale
M)public trustee
N)reconveyance deed
O)release deed
P)request for reconveyance
Q)trust
R)trustee
S)trustee's deed
T)trustor

Question 19

If the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser with a ______________________________.

Accepted Answer

The answer of If the borrower defaults, the trustee has...

Question 20

The instrument which conveys naked title to a trustee is the

Accepted Answer

A)  notice of default. 
B)  reconveyance deed. 
C)  guardian's deed. 
D)  trust deed. 
A)  notice of default. 
B)  reconveyance deed. 
C)  guardian's deed. 
D)  trust deed.

Exam 9: Deed of Trust

In the automatic form of trusteeship, the trustee is named in the deed of trust but is not personally notified of the appointment.

With regard to a deed of trust, the trustee

A deed of trust lien, when paid in full, is released by the recording of a reconveyance deed.

Under a deed of trust on real property, the trustee is

In a deed of trust, if the borrower defaults, the lender can take possession of the property and collect the rents.

The beneficiary's right, upon default, to take physical possession and collect income generated by the property is called

Mortgages are the same as trust deeds in that foreclosure is the cure for default.

The borrower under a deed of trust is called the

The title that the borrower grants to the trustee is referred to as "naked title".

A trust deed can be used to secure a mortgage.

Choose the one most appropriate answer for each. -title that the borrower grants to the trustee;also known as naked title.

A trustor's relationship to a beneficiary is most nearly the same as a

Choose the one most appropriate answer for each. -transfers title from the trustee to the trustor

A mortgage can be foreclosed judicially.

The trustee of a deed of trust

In a real estate transaction financed with a deed of trust, the real property is conveyed by the deed of trust.

When default is declared on a loan secured by deed of trust, which of the following is true?

Choose the one most appropriate answer for each. -usually not allowed once the foreclosure sale takes place

If the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser with a ______________________________.

The instrument which conveys naked title to a trustee is the

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