ASREB Exam prep A-4 (gray packet) Questions and Answers 100% Pass

ASREB Exam prep A-4 (gray packet) Questions and Answers 100% Pass Recording easements do what? - Place an encumbrance on the property To pledge real property as collateral is called: - Hypothecate A mechanics lien is an: - Encumbrance These are liens on real property: - 1. First mortgage 2. Property takes 3. Property assessment (Not lease for years) What lien would be ahead of a lenders first mortgage? - Property taxes When a debt will be paid off by making constant level payments, this is called: - Amortized loan This best describes the purpose of a trustee: - Foreclosure in a deed of trust 2100% Pass Guarantee Olivia West, All Rights Reserved © 2025 If a lender is doing business in a lien theory state, this is true: - Legal title is held by mortgagor When a loan is secured by a deed of trust, who holds the deed of trust document? - Beneficiary This is NOT part of a deed of trust: - Habendum A buyer is buying a business that includes real and personal property, the type of loan he needs to obtain is: - Package This is NOT a security instrument: - Note (Security instruments are deed of trust, mortgage, agreement for sale) When a lender agrees to change lien positions, this is called: - Subordination An open end loan would: - Allow for sums of money to be loaned as a project progresses When a note and deed of trust are paid in full, the lender is required to issue a release of lien. This is called: - Defeasance Which of the following liens has a different process than any other lien, and no money has been loaned? - Mechanics lien 3100% Pass Guarantee Olivia West, All Rights Reserved © 2025 Seller of a property has repair work on a home and doesn't pay the contractor. The new buyer obtains a new FHA loan that is recorded. The contractor files a mechanics lien on the property. What will happen? - The mechanics lien is valid and has priority over the FHA loan When a homeowner sells their property to a lender but the seller remains in the property and receives regular payments from the lender this is best defines as: - Reverse annuity These 2 terms are NOT synonymous: - Lessee / landlord This would trigger an alienation clause: - Sale of the pro