ASREB STATE TEST A-5 QUESTIONS AND ACCURATE
ANSWERS
When could a person receive legal title to the property under an Agreement for Sale?
Upon paying 30 percent of the price with 20 days notice to vendor
Upon the last payment
Upon paying 50 percent of purchase price
When the agreement was recorded - Answers - Upon the last payment
A buyer buys a property under an Agreement for Sale with only 10 percent down. The
buyer then leaves town and abandons the property. Which of the following statements is
true?
Seller must go through a foreclosure process
Buyer will forfeit their equity after a certain time period
Buyer will automatically lose their equity
Buyer has 9-day reinstatement period - Answers - Buyer will forfeit their equity after a
certain time period
Which of the following instruments contain the note and security in one document?
Agreement for sale
Exchange contract
Lease with first right to refuse
Purchase-money mortgage - Answers - Agreement for Sale
The forfeiture period on a land contract is:
A reinstatement period as agreed by the parties
A specific statutory period of time
90 days after construction notice
6 months after actual notice - Answers - A specific statutory period of time
A commercial project was in foreclosure, and after the sale the mortgagee did not
receive enough money to satisfy the note. Which of the following statements are true?
The lender can sue the borrower for deficiency judgment
The lender would not be able to sue for deficiency judgment
The lender's only recourse is the property
The lender would first have to honor the property homestead - Answers - The lender
can sue the borrower for deficiency judgment
A property has a first note and Deed of Trust for $20,000, and a second note and Deed
of Trust for $10,000. The first is in default, and the lender agrees to take back a
quitclaim deed. What is the position of the $10,000 second?
The quitclaim deed eliminated the second
ANSWERS
When could a person receive legal title to the property under an Agreement for Sale?
Upon paying 30 percent of the price with 20 days notice to vendor
Upon the last payment
Upon paying 50 percent of purchase price
When the agreement was recorded - Answers - Upon the last payment
A buyer buys a property under an Agreement for Sale with only 10 percent down. The
buyer then leaves town and abandons the property. Which of the following statements is
true?
Seller must go through a foreclosure process
Buyer will forfeit their equity after a certain time period
Buyer will automatically lose their equity
Buyer has 9-day reinstatement period - Answers - Buyer will forfeit their equity after a
certain time period
Which of the following instruments contain the note and security in one document?
Agreement for sale
Exchange contract
Lease with first right to refuse
Purchase-money mortgage - Answers - Agreement for Sale
The forfeiture period on a land contract is:
A reinstatement period as agreed by the parties
A specific statutory period of time
90 days after construction notice
6 months after actual notice - Answers - A specific statutory period of time
A commercial project was in foreclosure, and after the sale the mortgagee did not
receive enough money to satisfy the note. Which of the following statements are true?
The lender can sue the borrower for deficiency judgment
The lender would not be able to sue for deficiency judgment
The lender's only recourse is the property
The lender would first have to honor the property homestead - Answers - The lender
can sue the borrower for deficiency judgment
A property has a first note and Deed of Trust for $20,000, and a second note and Deed
of Trust for $10,000. The first is in default, and the lender agrees to take back a
quitclaim deed. What is the position of the $10,000 second?
The quitclaim deed eliminated the second
