Question 1

An enforceable due-on-sale clause is correctly called a/an:

Accepted Answer

A)  acceleration clause 
B)  alienation clause 
C)  wrap around clause 
D)  prepay clause 
A)  acceleration clause 
B)  alienation clause 
C)  wrap around clause 
D)  prepay clause

Question 2

If a broker negotiated a third trust deed for $12,000 payable in five semi-annual installments, the maximum rate of commission allowed by the Mortgage Loan Brokerage Law would be:

Accepted Answer

A)  15% 
B)  10% 
C)  5% 
D)  no rate is established for third trust deeds 
A)  15% 
B)  10% 
C)  5% 
D)  no rate is established for third trust deeds

Question 3

A property is usually appraised in what phase of the financing process?

Accepted Answer

A)  application 
B)  analysis 
C)  processing 
D)  closing 
A)  application 
B)  analysis 
C)  processing 
D)  closing

Question 4

A lot is sold for $180,000, making a 20% profit over cost. What was the cost?

Accepted Answer

A)  $136,000 
B)  $144,000 
C)  $148,000 
D)  $150,000 
A)  $136,000 
B)  $144,000 
C)  $148,000 
D)  $150,000

Question 5

A clause in a trust deed that states that the lender's rights shall become secondary to a new trust deed is called:

Accepted Answer

A)  an alienation clause 
B)  a subordination clause 
C)  a submortgage 
D)  an escalation clause 
A)  an alienation clause 
B)  a subordination clause 
C)  a submortgage 
D)  an escalation clause

Question 6

In an ARM loan, the distance between the borrower's rate and the index is called the:

Accepted Answer

A)  cap 
B)  adjustment 
C)  margin 
D)  teaser 
A)  cap 
B)  adjustment 
C)  margin 
D)  teaser

Question 7

The Real Property Loan Law does not apply to first loans of $30,000 or more and second deed of trust loans of:

Accepted Answer

A)  $5,000 
B)  $17,500 
C)  $19,500 
D)  $20,000 
A)  $5,000 
B)  $17,500 
C)  $19,500 
D)  $20,000

Question 8

An owner sells and the buyer takes over the existing loan. To relieve the seller of primary liability, the buyer must:

Accepted Answer

A)  sign a non-recourse agreement 
B)  take title contingent upon the note and trust deed 
C)  take title subject to the note and trust deed 
D)  assume the note and trust deed 
A)  sign a non-recourse agreement 
B)  take title contingent upon the note and trust deed 
C)  take title subject to the note and trust deed 
D)  assume the note and trust deed

Question 9

If a real estate loan is paid off in advance of the due date, some lenders are legally allowed to charge a penalty. This is called what type of penalty?

Accepted Answer

A)  acceleration 
B)  alienation 
C)  prepayment 
D)  balloon 
A)  acceleration 
B)  alienation 
C)  prepayment 
D)  balloon

Question 10

For loans that under the California usury law, the maximum interest rate is:

Accepted Answer

A)  5% above the Federal Funds Rate 
B)  10% or 5% above the Federal Reserve Discount Rate, whichever is greater 
C)  10% or 5% above the Federal Reserve Discount Rate, whichever is lesser 
D)  10% above the Prime Rate 
A)  5% above the Federal Funds Rate 
B)  10% or 5% above the Federal Reserve Discount Rate, whichever is greater 
C)  10% or 5% above the Federal Reserve Discount Rate, whichever is lesser 
D)  10% above the Prime Rate

Question 11

Under a trust deed (deed of trust) the:

Accepted Answer

A)  trustor deeds to the beneficiary 
B)  trustee deeds to trustor 
C)  trustor deeds to trustee 
D)  trustee deeds to beneficiary 
A)  trustor deeds to the beneficiary 
B)  trustee deeds to trustor 
C)  trustor deeds to trustee 
D)  trustee deeds to beneficiary

Question 12

A real estate promissory note reads "$557.50 per month for 239 payments, then a final monthly payment of $2,011.19." This is an example of a/an:

Accepted Answer

A)  alienation payment 
B)  prepayment 
C)  balloon payment 
D)  amortized payment 
A)  alienation payment 
B)  prepayment 
C)  balloon payment 
D)  amortized payment

Question 13

Under the Real Property Loan Law, the maximum amount a borrower can pay for closing costs, excluding commission, regardless of the size of the loan, is:

Accepted Answer

A)  5% 
B)  $390 
C)  $700 
D)  $900 
A)  5% 
B)  $390 
C)  $700 
D)  $900

Question 14

A type of financing instrument in which the owner (vendor) retains the legal title until the buyer (vendee) fulfills the terms of the purchase contract:

Accepted Answer

A)  lease contract 
B)  installment sales contract 
C)  wraparound contract 
D)  junior lien contract 
A)  lease contract 
B)  installment sales contract 
C)  wraparound contract 
D)  junior lien contract

An enforceable due-on-sale clause is correctly called a/an:

If a broker negotiated a third trust deed for $12,000 payable in five semi-annual installments, the maximum rate of commission allowed by the Mortgage Loan Brokerage Law would be:

A property is usually appraised in what phase of the financing process?

A lot is sold for $180,000, making a 20% profit over cost. What was the cost?

A clause in a trust deed that states that the lender's rights shall become secondary to a new trust deed is called:

In an ARM loan, the distance between the borrower's rate and the index is called the:

The Real Property Loan Law does not apply to first loans of $30,000 or more and second deed of trust loans of:

An owner sells and the buyer takes over the existing loan. To relieve the seller of primary liability, the buyer must:

If a real estate loan is paid off in advance of the due date, some lenders are legally allowed to charge a penalty. This is called what type of penalty?

For loans that under the California usury law, the maximum interest rate is:

Under a trust deed (deed of trust) the:

A real estate promissory note reads "$557.50 per month for 239 payments, then a final monthly payment of $2,011.19." This is an example of a/an:

Under the Real Property Loan Law, the maximum amount a borrower can pay for closing costs, excluding commission, regardless of the size of the loan, is:

A type of financing instrument in which the owner (vendor) retains the legal title until the buyer (vendee) fulfills the terms of the purchase contract:

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Agency

Real Estate Contracts and Mandated Disclosures

Practical Real Estate Mathematics

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters

Exam 7: Introduction to Real Estate Finance

An enforceable due-on-sale clause is correctly called a/an:

If a broker negotiated a third trust deed for $12,000 payable in five semi-annual installments, the maximum rate of commission allowed by the Mortgage Loan Brokerage Law would be:

A property is usually appraised in what phase of the financing process?

A lot is sold for $180,000, making a 20% profit over cost. What was the cost?

A clause in a trust deed that states that the lender's rights shall become secondary to a new trust deed is called:

In an ARM loan, the distance between the borrower's rate and the index is called the:

The Real Property Loan Law does not apply to first loans of $30,000 or more and second deed of trust loans of:

An owner sells and the buyer takes over the existing loan. To relieve the seller of primary liability, the buyer must:

If a real estate loan is paid off in advance of the due date, some lenders are legally allowed to charge a penalty. This is called what type of penalty?

For loans that under the California usury law, the maximum interest rate is:

Under a trust deed (deed of trust) the:

A real estate promissory note reads "$557.50 per month for 239 payments, then a final monthly payment of $2,011.19." This is an example of a/an:

Under the Real Property Loan Law, the maximum amount a borrower can pay for closing costs, excluding commission, regardless of the size of the loan, is:

A type of financing instrument in which the owner (vendor) retains the legal title until the buyer (vendee) fulfills the terms of the purchase contract:

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Agency

Real Estate Contracts and Mandated Disclosures

Practical Real Estate Mathematics

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters