Real Estate Principles Exam 2 with correct answers 100% 2025/2026

Real Estate Principles Exam 2 with correct answers 100% 2025/2026 promissory note - Correct Answer a contract between a borrower and lender; also referred to as a real estate lien note - components: obligor, oblige (lender, borrower), principal, acceleration clause, signature mortgage instrument - Correct Answer a separate agreement from the promissory note, provides collateral (the home) to the lender to back up the promise to repay the loan plus interest made in the note by the borrower mortgage covenants - Correct Answer promises borrower makes to the lender, including: to pay taxes, to provide insurance, to keep premises in good repair, to otherwise preserve and maintain the premises Acceleration Clause - Correct Answer used to permit the lender to demand that balance be paid in full immediately alienation clause - Correct Answer gives the lender the right to call the entire loan balance due if the mortgage property is sold or otherwise conveyed (alienated) by the borrower; also called a due-on-sale clause condemnation clause - Correct Answer when all or part of the property is taken by action of eminent domain, any money so received is used to reduce the principal remaining on the note mortgage satisfaction - Correct Answer Full payment of a mortgage loan. Standard practice is lender returns promissory note to borrower along with a document called a satisfaction - assumption, novation, estoppel (borrow reaffirms principle and interest rate obligations) debt priorites - Correct Answer 1. first mortgage/senior mortgage 2. second mortgage/junior mortgage 3. subordination (voluntary