AZ Real Estate State Exam ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
Deed of Trust A deed to real property, which serves the same purpose as a mortgage, involving
three parties instead of two. The third party holds naked title for the benefit of the
lender. Beneficiary (Lender), Trustor (Borrower), Trustee (Third Party)
, promissory note a written contract with a promise to pay a supplier a specific sum of money at a
definite time
Trustor Person who creates a trust, holds the assets
Trustee 3rd party involved in deed of trust, holds legal title until loan is paid off
Reconveyance Clause Is the method used to transfer title for a property following full payment of a loan.
Reconveyance is typically used with a deed of trust.
Acceleration Clause The clause in a mortgage or deed of trust that can be enforced to make the entire
debt due immediately if the borrower defaults on payment
power of sale clause A clause that allows the trustee to sell trust deed property, without court
supervision, when terms of the trust deed are not kept.
Judicial Foreclosure Foreclosure by court action
Non-Judicial Foreclosure foreclosure that does not require court proceedings or a judgment of foreclosure
- the result of the power of sale clause in a deed of trust
Sherriff's Deed Used when property is sold due to tax foreclosure. Conveys the foreclosed
party's interest in the title.
Trustee's Deed A deed given to a buyer of real property at a trustee's sale
Statutory redemption Gives mortgager right to redeem property sold at foreclosure. Can buyback
property for price paid at earlier
Deed in Lieu of Foreclosure a deed that a borrower gives lender to AVOID foreclosure proceedings.
Constitutes full satisfaction of debt
ANSWERS
Deed of Trust A deed to real property, which serves the same purpose as a mortgage, involving
three parties instead of two. The third party holds naked title for the benefit of the
lender. Beneficiary (Lender), Trustor (Borrower), Trustee (Third Party)
, promissory note a written contract with a promise to pay a supplier a specific sum of money at a
definite time
Trustor Person who creates a trust, holds the assets
Trustee 3rd party involved in deed of trust, holds legal title until loan is paid off
Reconveyance Clause Is the method used to transfer title for a property following full payment of a loan.
Reconveyance is typically used with a deed of trust.
Acceleration Clause The clause in a mortgage or deed of trust that can be enforced to make the entire
debt due immediately if the borrower defaults on payment
power of sale clause A clause that allows the trustee to sell trust deed property, without court
supervision, when terms of the trust deed are not kept.
Judicial Foreclosure Foreclosure by court action
Non-Judicial Foreclosure foreclosure that does not require court proceedings or a judgment of foreclosure
- the result of the power of sale clause in a deed of trust
Sherriff's Deed Used when property is sold due to tax foreclosure. Conveys the foreclosed
party's interest in the title.
Trustee's Deed A deed given to a buyer of real property at a trustee's sale
Statutory redemption Gives mortgager right to redeem property sold at foreclosure. Can buyback
property for price paid at earlier
Deed in Lieu of Foreclosure a deed that a borrower gives lender to AVOID foreclosure proceedings.
Constitutes full satisfaction of debt
