ASREB A-4 EXAM QUESTIONS
AND CORRECT ANSWERS
A buyer assuming and agreeing to pay a mortgage: - Answer-Becomes personally liable
for the debt, May be held for the deficiency between the foreclosure price and the
outstanding mortgage balance, Usually must be approved by the lender
To pledge something as collateral as in a mortgage is best defined as: - Answer-
Hypothecation
A trust deed is signed by the: - Answer-Trustor
If a lender releases an original borrower from his liability for a mortgage, the substitution
must be evidenced by an agreement called a/an: - Answer-Novation
Which of the following is in the proper order of occurrence? - Answer-Lis pendens,
judgement, execution
All of the liens listed below are voluntary EXCEPT a/an: - Answer-Attachment
When a person wishes to enforce a judgement they would exercise: - Answer-Writ of
execution
If a property owner would like to eliminate a nuisance, which of the following actions
would apply? - Answer-Abatement
A negative amortization loan would be a loan: - Answer-Where principal balance
increases
When the buyer assumes the sellers loan "subject to", which of the following is true? -
Answer-The seller remains liable for the loan
When a loan is secured by a deed of trust, who holds the deed of trust document? -
Answer-Beneficiary
When a loan is secured by a mortgage, who holds the mortgage? - Answer-Mortgagee
Which of the following is filed with the Arizona Secretary of State? - Answer-The UCC-1
financing statement
, A UCC would be used in a transaction that included: - Answer-Personal property of a
business
In a business opportunity sale, the equipment would be conveyed using: - Answer-Bill of
sale
When a lender makes a real estate loan, all of the following would be required EXCEPT:
- Answer-Filing of a U.C.C.
The term " underwriting" of a loan means: - Answer-Evaluation of lender risk
The Chattel Security Agreement: - Answer-Creates the lien on the personal propety
Which of the following is an "interim" loan? - Answer-Construction loan
The characteristics of a performance bond include: - Answer-Borrower pays, lender is
protected
A certificate of occupancy is normally issued at what phase of construction? - Answer-
When the project is completed
Permanent finance payments would include which of the following? - Answer-Principal
and Interest
Who benefits from the assignment of rents clause? - Answer-Beneficiary
Which of the following cannot be a trustee? - Answer-C.P.A.
Payoff on a deed of trust lien is received by the: - Answer-Beneficiary
Who cannot file a mechanics lien? - Answer-Cleaning crew
When a deed of trust is paid off, how many days does the trustee have to convey the
deed of reconveyance to the trustor? - Answer-30 days
During a closing it shows that the HOA assessment dues are 12 months past due. Who
is liable to pay? - Answer-Seller
A title company is employed by a lender to collect payments on a deed of trust, what is
the title company called? - Answer-Servicing agent
Which of the following defines an encumbrance? - Answer-A limitation that is attached
to the property
AND CORRECT ANSWERS
A buyer assuming and agreeing to pay a mortgage: - Answer-Becomes personally liable
for the debt, May be held for the deficiency between the foreclosure price and the
outstanding mortgage balance, Usually must be approved by the lender
To pledge something as collateral as in a mortgage is best defined as: - Answer-
Hypothecation
A trust deed is signed by the: - Answer-Trustor
If a lender releases an original borrower from his liability for a mortgage, the substitution
must be evidenced by an agreement called a/an: - Answer-Novation
Which of the following is in the proper order of occurrence? - Answer-Lis pendens,
judgement, execution
All of the liens listed below are voluntary EXCEPT a/an: - Answer-Attachment
When a person wishes to enforce a judgement they would exercise: - Answer-Writ of
execution
If a property owner would like to eliminate a nuisance, which of the following actions
would apply? - Answer-Abatement
A negative amortization loan would be a loan: - Answer-Where principal balance
increases
When the buyer assumes the sellers loan "subject to", which of the following is true? -
Answer-The seller remains liable for the loan
When a loan is secured by a deed of trust, who holds the deed of trust document? -
Answer-Beneficiary
When a loan is secured by a mortgage, who holds the mortgage? - Answer-Mortgagee
Which of the following is filed with the Arizona Secretary of State? - Answer-The UCC-1
financing statement
, A UCC would be used in a transaction that included: - Answer-Personal property of a
business
In a business opportunity sale, the equipment would be conveyed using: - Answer-Bill of
sale
When a lender makes a real estate loan, all of the following would be required EXCEPT:
- Answer-Filing of a U.C.C.
The term " underwriting" of a loan means: - Answer-Evaluation of lender risk
The Chattel Security Agreement: - Answer-Creates the lien on the personal propety
Which of the following is an "interim" loan? - Answer-Construction loan
The characteristics of a performance bond include: - Answer-Borrower pays, lender is
protected
A certificate of occupancy is normally issued at what phase of construction? - Answer-
When the project is completed
Permanent finance payments would include which of the following? - Answer-Principal
and Interest
Who benefits from the assignment of rents clause? - Answer-Beneficiary
Which of the following cannot be a trustee? - Answer-C.P.A.
Payoff on a deed of trust lien is received by the: - Answer-Beneficiary
Who cannot file a mechanics lien? - Answer-Cleaning crew
When a deed of trust is paid off, how many days does the trustee have to convey the
deed of reconveyance to the trustor? - Answer-30 days
During a closing it shows that the HOA assessment dues are 12 months past due. Who
is liable to pay? - Answer-Seller
A title company is employed by a lender to collect payments on a deed of trust, what is
the title company called? - Answer-Servicing agent
Which of the following defines an encumbrance? - Answer-A limitation that is attached
to the property
