TREES REAL ESTATE PRACTICE TEST 2026
CORE QUESTIONS AND ACCURATE
ANSWERS REAL ESTATE TRANSACTIONS
GUIDE
◉ Which of the following statements is not true concerning title
insurance
Answer: Premiums are payable annually
◉ The natural formation of land is known as
Answer: Accretion
◉ Recording of a deed provides what
Answer: Constructive notice
◉ Amelia arrowhead owns a home by herself. She is a what
Answer: Tenant is severalty
◉ A deed of trust is what
Answer: A transfer of legal title to a trustee as security for the note
,◉ To subordinate means to regulate one's position of priority. To
accelerate means what
Answer: To demand the payoff of the loan when the borrower
defaults
◉ The borrower executing a deed of trust is known as what
Answer: The trustor
◉ A mortgage loan which is not paid in full by the end of the term
and requires a larger final payment is called what
Answer: Balloon mortgage loan
◉ Miss Gains, seller, has agreed to finance part of the purchase price,
in lieu of receiving cash. This transaction created is called what
Answer: Purchase money loan
◉ A loan with low payments initially that increase each year until it
commences to amortize is known as
Answer: A graduated payment loan
◉ A conventional loan is not which of the following
Answer: It is made by Fannie Mae
, ◉ FHA loans are what
Answer: Insured by the federal government
◉ Which of the following statements is untrue about VA loans
Answer: They are available to non-owner occupants
◉ Assume a veteran was a VA loan at 11 1/2%. If a lender is wanting
an 11 7/8% return, then which of the following statements is most
appropriate
Answer: The veteran can pay the lender three discount points
◉ FNMA is the largest participant in which market
Answer: Secondary
◉ Regulation Z affects all persons who advertise. If you were writing
an ad to insert in the local newspaper which of the following would
NOT be legal under the provisions of the regulation without further
disclosures being required
Answer: Only 5% down with a mortgage loan interest rate of 12%
◉ A mortgage where the borrower is required to pledge his home
and all his furniture and appliances at security is known as what
Answer: A package loan
CORE QUESTIONS AND ACCURATE
ANSWERS REAL ESTATE TRANSACTIONS
GUIDE
◉ Which of the following statements is not true concerning title
insurance
Answer: Premiums are payable annually
◉ The natural formation of land is known as
Answer: Accretion
◉ Recording of a deed provides what
Answer: Constructive notice
◉ Amelia arrowhead owns a home by herself. She is a what
Answer: Tenant is severalty
◉ A deed of trust is what
Answer: A transfer of legal title to a trustee as security for the note
,◉ To subordinate means to regulate one's position of priority. To
accelerate means what
Answer: To demand the payoff of the loan when the borrower
defaults
◉ The borrower executing a deed of trust is known as what
Answer: The trustor
◉ A mortgage loan which is not paid in full by the end of the term
and requires a larger final payment is called what
Answer: Balloon mortgage loan
◉ Miss Gains, seller, has agreed to finance part of the purchase price,
in lieu of receiving cash. This transaction created is called what
Answer: Purchase money loan
◉ A loan with low payments initially that increase each year until it
commences to amortize is known as
Answer: A graduated payment loan
◉ A conventional loan is not which of the following
Answer: It is made by Fannie Mae
, ◉ FHA loans are what
Answer: Insured by the federal government
◉ Which of the following statements is untrue about VA loans
Answer: They are available to non-owner occupants
◉ Assume a veteran was a VA loan at 11 1/2%. If a lender is wanting
an 11 7/8% return, then which of the following statements is most
appropriate
Answer: The veteran can pay the lender three discount points
◉ FNMA is the largest participant in which market
Answer: Secondary
◉ Regulation Z affects all persons who advertise. If you were writing
an ad to insert in the local newspaper which of the following would
NOT be legal under the provisions of the regulation without further
disclosures being required
Answer: Only 5% down with a mortgage loan interest rate of 12%
◉ A mortgage where the borrower is required to pledge his home
and all his furniture and appliances at security is known as what
Answer: A package loan
