PROPERTY LAW MULTIPLE CHOICE
EXAMPREP 2026 SOLVED
QUESTIONS FULL SOLUTION SET
◉ Which of the following place the debtor in a position of having to pay
the entire outstanding balance of his or her loan upon violation?
Due on sale clause - if you have a mortgage on a home that you
purchase, if you sell the land, you have to pay off the land. Mortgage
means you pay until you die. As soon as you sell the property, you have
to pay all the loan.
Due on encumbrance clause - The entire mortgage is due if you take out
more debt.
Acceleration clause - If you get too far in arrears, then they can make
you pay everything.
All of the above
None of the above. Answer: All of the above
◉ Since power of sale foreclosure is simpler and faster than judicial
foreclosure, a lender has no reason to take the judicial route. True or
False?. Answer: False
◉ Judicial foreclosures are more easily challenged on procedural than
on substantive grounds. True or False. Answer: True
◉ Buyers purchase a house for $200,000. They make a down payment
of $20,000 take out a 1st mortgage loan of $150,000 with OneBank, and
, get a purchase-money 2nd mortgage from Seller for $30,000. WHICH
OF THE FOLLOWING IS TRUE?
If Buyers default while owing $100,000, and the property is sold at a
foreclosure sale for $100,00, the Sellers will receive nothing from the
sale to satisfy their purchase money mortgage.
If Buyers default while owing $100,000, and the property is sold at a
foreclosure sale for $125,00, the Sellers will receive nothing from the
sale to satisfy their purchase money mortgage
Both of the above.
None of the above.. Answer: If Buyers default while owing $100,000,
and the property is sold at a foreclosure sale for $100,00, the Sellers will
receive nothing from the sale to satisfy their purchase money mortgage.
◉ In a notice of intent to accelerate, a mortgage lender informs a
defaulting borrower, B, that she has 30 days to make up her last three
monthly mortgage payments, all past due, totaling $3,150, including
allowable costs. She owes $100,000 on the mortgage loan, including the
missed payments. Which of the following is true?
B's cost to reinstate her loan is $100,000 - to reinstate the loan, it's
actually 3,150.
B's cost to exercise her right of equitable redemption is $3,150.
EXAMPREP 2026 SOLVED
QUESTIONS FULL SOLUTION SET
◉ Which of the following place the debtor in a position of having to pay
the entire outstanding balance of his or her loan upon violation?
Due on sale clause - if you have a mortgage on a home that you
purchase, if you sell the land, you have to pay off the land. Mortgage
means you pay until you die. As soon as you sell the property, you have
to pay all the loan.
Due on encumbrance clause - The entire mortgage is due if you take out
more debt.
Acceleration clause - If you get too far in arrears, then they can make
you pay everything.
All of the above
None of the above. Answer: All of the above
◉ Since power of sale foreclosure is simpler and faster than judicial
foreclosure, a lender has no reason to take the judicial route. True or
False?. Answer: False
◉ Judicial foreclosures are more easily challenged on procedural than
on substantive grounds. True or False. Answer: True
◉ Buyers purchase a house for $200,000. They make a down payment
of $20,000 take out a 1st mortgage loan of $150,000 with OneBank, and
, get a purchase-money 2nd mortgage from Seller for $30,000. WHICH
OF THE FOLLOWING IS TRUE?
If Buyers default while owing $100,000, and the property is sold at a
foreclosure sale for $100,00, the Sellers will receive nothing from the
sale to satisfy their purchase money mortgage.
If Buyers default while owing $100,000, and the property is sold at a
foreclosure sale for $125,00, the Sellers will receive nothing from the
sale to satisfy their purchase money mortgage
Both of the above.
None of the above.. Answer: If Buyers default while owing $100,000,
and the property is sold at a foreclosure sale for $100,00, the Sellers will
receive nothing from the sale to satisfy their purchase money mortgage.
◉ In a notice of intent to accelerate, a mortgage lender informs a
defaulting borrower, B, that she has 30 days to make up her last three
monthly mortgage payments, all past due, totaling $3,150, including
allowable costs. She owes $100,000 on the mortgage loan, including the
missed payments. Which of the following is true?
B's cost to reinstate her loan is $100,000 - to reinstate the loan, it's
actually 3,150.
B's cost to exercise her right of equitable redemption is $3,150.
