MGMT 170 EXAM QUESTIONS AND ANSWERS LATEST UPDATE 2025-2026
real estate - Answers land and all things "permanently" attached thereto
real property - Answers ownership rights associated with real estate
personal property - Answers movable things and intangibles
fixtures - Answers are personal property until they are attached to a building, then they become
a part of the real property
statute of fraud - Answers requires that almost every agreement relating to real property be in
writing in order to be enforceable in a court of law (England 1677)
property rights and estates in real estate - Answers ownership possessory and use rights.
Fee Simple Absolute - Answers the most complete form of ownership
Life estate - Answers lasts only for the life of the named person
future estate - Answers can be a remainder interest or reversion interest
easement - Answers non-ownership, non-possessory right to use or access land owned or
leased by someone else. They are very limited in nature
leasehold estate/lease - Answers Real Property can be Leased by the Landlord / Lessor to the
Tenant / Lessee for a particular purpose for a particular period of time. Leases over One Year
must be in Writing to be Enforceable under the Statute of Frauds.
title - Answers determines ownerhip of the real property and is evidenced by a deed
deed - Answers a document that grantor transfers title to real property from a grantor to a
grantee. The strongest is a general warranty deed, the weakest is a quitclaim deed.
Certain deed restrictions are not enforceable under non-discrimination laws
security interests - Answers a borrower signs a mortgage (or deed of trust) as the mortgagor (or
Trustor) in favor of a lender who is the mortgagee (or beneficiary) pledging real estate owned by
the borrower to secure the repayment of a loan
recording act - Answers all states have statutory rules to resolve the priority of claims relating to
real property and to give the public constructive notice of recorded items
abstract of title - Answers historical summary of the publicly recorded documents that affect
title to real property
title insurance - Answers method of assuring title to real property used in CA and all other states.
2 kinds: owner's policy and lender's policy (can be CTLA or ALTA)
, mechanic's lien - Answers may be recorded by unpaid contractors, workers and materials
providers to secure payment for their work on real estate and in CA may be recorded up to 90
days after the work is completed of the materials are supplied
promissory note - Answers documents a loan between a borrower and a lender. Must include
the parties, loan amount, interest rate, and maturity date. usually includes clauses relating to
amortization, assumability or "due on sale", recourse or non-recourse, prepayment or lockout,
assignment, default and acceleration
mortgage - Answers 2 party security interest in real property to secure the prepayment of a real
estate loan that is given by a borrower / mortgagor to a lender / mortgagee
deed of trust - Answers 3 party security interest in real property to secure the repayment of a
real estate loan that is given by a borrower / trustor to an independent trustee to secure the
repayment of a real estate loan for the benefit of a lender / beneficiary. Used in CA and most
other states where it is available, bc preffed over a 2 party
senior vs junior mortgage - Answers determined by state recording statutes that determine
lender priority (unless that prior recorded mortgage contains a subordination clause)
purchase money loan - Answers loan made to a borrower to purchase real estate
construction loan - Answers loan for the construction of a building or improvements loan draws
are made against a max loan amount, are secured by a mortgage or deed of trust against the
real property, usually with recourse to the developer
default - Answers failure to perform any of the terms of conditions of the loan or mortgage. Can
lead to acceleration of the loan and foreclosure of the property
most common mortgage default - Answers failure to pay interest and principal when due
foreclosure - Answers with a deed of trust, can be judicial (in court) or non-judicial and involves
a lender ultimately taking title to real property or forcing a sale of the property to satisfy the
unpaid mortgage balance.
when are junior mortgages extingushed? - Answers when senior mortgage lender forecloses on
a property, but the debt secured by those junior mortgages is generally unaffected by the
foreclosure
deficiency judgement - Answers any loan balance remaining after a judicial foreclosure sale can
become a personal judgment against the borrower is the loan is recourse. CA law generally
protects homeowners from deficiency judgement
workouts and extension agreements - Answers usually preffed by lenders over foreclosure, and
involve negotiations with the borrower to extend the maturity date, inc amortization periods, or
to temporarily reduce the mortgage payments, rather than permanently lowering the interest
real estate - Answers land and all things "permanently" attached thereto
real property - Answers ownership rights associated with real estate
personal property - Answers movable things and intangibles
fixtures - Answers are personal property until they are attached to a building, then they become
a part of the real property
statute of fraud - Answers requires that almost every agreement relating to real property be in
writing in order to be enforceable in a court of law (England 1677)
property rights and estates in real estate - Answers ownership possessory and use rights.
Fee Simple Absolute - Answers the most complete form of ownership
Life estate - Answers lasts only for the life of the named person
future estate - Answers can be a remainder interest or reversion interest
easement - Answers non-ownership, non-possessory right to use or access land owned or
leased by someone else. They are very limited in nature
leasehold estate/lease - Answers Real Property can be Leased by the Landlord / Lessor to the
Tenant / Lessee for a particular purpose for a particular period of time. Leases over One Year
must be in Writing to be Enforceable under the Statute of Frauds.
title - Answers determines ownerhip of the real property and is evidenced by a deed
deed - Answers a document that grantor transfers title to real property from a grantor to a
grantee. The strongest is a general warranty deed, the weakest is a quitclaim deed.
Certain deed restrictions are not enforceable under non-discrimination laws
security interests - Answers a borrower signs a mortgage (or deed of trust) as the mortgagor (or
Trustor) in favor of a lender who is the mortgagee (or beneficiary) pledging real estate owned by
the borrower to secure the repayment of a loan
recording act - Answers all states have statutory rules to resolve the priority of claims relating to
real property and to give the public constructive notice of recorded items
abstract of title - Answers historical summary of the publicly recorded documents that affect
title to real property
title insurance - Answers method of assuring title to real property used in CA and all other states.
2 kinds: owner's policy and lender's policy (can be CTLA or ALTA)
, mechanic's lien - Answers may be recorded by unpaid contractors, workers and materials
providers to secure payment for their work on real estate and in CA may be recorded up to 90
days after the work is completed of the materials are supplied
promissory note - Answers documents a loan between a borrower and a lender. Must include
the parties, loan amount, interest rate, and maturity date. usually includes clauses relating to
amortization, assumability or "due on sale", recourse or non-recourse, prepayment or lockout,
assignment, default and acceleration
mortgage - Answers 2 party security interest in real property to secure the prepayment of a real
estate loan that is given by a borrower / mortgagor to a lender / mortgagee
deed of trust - Answers 3 party security interest in real property to secure the repayment of a
real estate loan that is given by a borrower / trustor to an independent trustee to secure the
repayment of a real estate loan for the benefit of a lender / beneficiary. Used in CA and most
other states where it is available, bc preffed over a 2 party
senior vs junior mortgage - Answers determined by state recording statutes that determine
lender priority (unless that prior recorded mortgage contains a subordination clause)
purchase money loan - Answers loan made to a borrower to purchase real estate
construction loan - Answers loan for the construction of a building or improvements loan draws
are made against a max loan amount, are secured by a mortgage or deed of trust against the
real property, usually with recourse to the developer
default - Answers failure to perform any of the terms of conditions of the loan or mortgage. Can
lead to acceleration of the loan and foreclosure of the property
most common mortgage default - Answers failure to pay interest and principal when due
foreclosure - Answers with a deed of trust, can be judicial (in court) or non-judicial and involves
a lender ultimately taking title to real property or forcing a sale of the property to satisfy the
unpaid mortgage balance.
when are junior mortgages extingushed? - Answers when senior mortgage lender forecloses on
a property, but the debt secured by those junior mortgages is generally unaffected by the
foreclosure
deficiency judgement - Answers any loan balance remaining after a judicial foreclosure sale can
become a personal judgment against the borrower is the loan is recourse. CA law generally
protects homeowners from deficiency judgement
workouts and extension agreements - Answers usually preffed by lenders over foreclosure, and
involve negotiations with the borrower to extend the maturity date, inc amortization periods, or
to temporarily reduce the mortgage payments, rather than permanently lowering the interest
