REE4204 FINAL EXAM QUESTIONS AND
ANSWERS
A policy that insures the title received by the grantee against deficiencies that may
have been in existence at the time the title was transferred is known as - ✔✔title
insurance
Which of the following is NOT a characteristic of title insurance? - ✔✔The
policy is transferable to a new owner
Which of the following parties to a transaction is most interested in having in
having a title insurance policy for the property? - ✔✔Lender
Which of the following is not a proper way to ensure the quality of a legal title? -
✔✔A loan of guarantee
If the mortgagor fails to make payments or defaults on other terms of the
mortgage agreement, the mortgagee can begin - ✔✔foreclosure proceedings
Which of the following is FALSE concerning Mortgage-backed bonds
(MBB)? - ✔✔Maturity is not fixed at issuance
In a lending transaction between the lender and the borrower, which of the following
is TRUE? - ✔✔The borrower signs both the promissory note and the mortgage in
order to receive money from the lender
ANSWERS
A policy that insures the title received by the grantee against deficiencies that may
have been in existence at the time the title was transferred is known as - ✔✔title
insurance
Which of the following is NOT a characteristic of title insurance? - ✔✔The
policy is transferable to a new owner
Which of the following parties to a transaction is most interested in having in
having a title insurance policy for the property? - ✔✔Lender
Which of the following is not a proper way to ensure the quality of a legal title? -
✔✔A loan of guarantee
If the mortgagor fails to make payments or defaults on other terms of the
mortgage agreement, the mortgagee can begin - ✔✔foreclosure proceedings
Which of the following is FALSE concerning Mortgage-backed bonds
(MBB)? - ✔✔Maturity is not fixed at issuance
In a lending transaction between the lender and the borrower, which of the following
is TRUE? - ✔✔The borrower signs both the promissory note and the mortgage in
order to receive money from the lender
