Barney Fletcher Principles of Real Estate: Section 4
Study Guide questions with verified answers
acceleration clause Ans✓✓✓ clause that specifies that is the borrower
fails to keep the covenants of the mortgage or trust deed, the entire
loan balance is due and payable upon demand
ad valorem taxes Ans✓✓✓ taxes levied by various state and local
governments and are based on the value of the property being taxed
Adjustable Rate Mortgage (ARM) Ans✓✓✓ a loan that allows for a
change in rates
alienation clause/due-on-sale clause Ans✓✓✓ clause that provides
that upon alienation of the property by the mortgagor, the mortgagee
may demand the balance of the debt be paid first
alienation Ans✓✓✓ the clause in a security instrument that prevents
the assumption of a loan is known as ______
All of the other owners, jointly and severally Ans✓✓✓ Several people
buy a piece of property jointly. If one of the owners does not pay his
portion of the note, who is responsible to the lender for the payment?
amortized mortgage Ans✓✓✓ a systematic method of repaying a loan
by making regular, equal payments (usually monthly) so that the loan
,itself, and all interest on the loan, is reduced to zero by the loan's
maturity date
amount to be financed; finance charge; annual percentage rate (APR);
total of all payments to be made over the term of the mortgage
Ans✓✓✓ What four main disclosures must be made before a
contractual relationship can be created between a borrower and a
lender?
An agricultural loan for $30,000 Ans✓✓✓ Which of the following loans
would be exempt from the truth in lending act?
A. A loan to purchase 4 residential units -- one of which will be occupied
by the owner
B. An agricultural loan for $30,000
C. A loan with 10 installments
D. A personal loan for $20,000
an estoppel Ans✓✓✓ the certificate that shows the unpaid balance of
a mortgage and the amount of unpaid interest associated with that
debt is referred to as ______
annual percentage rate Ans✓✓✓ the relationship of the total finance
charge to the total amount to be financed; compiled by folding all of
the finance charges into the interest rate
, appraisal Ans✓✓✓ a supportable estimate of the value of a parcel of
real estate as of a specific date for a specified purpose
As a credit to the buyer only Ans✓✓✓ When a buyer obtains a loan for
the purpose of financing the purchase of real property, how does the
amount of the loan obtained appear on the Closing Disclosure?
A. As a credit to the buyer and a debit to the seller
B. As a debit to the seller and a credit to the buyer
C. As a credit to the seller, only
D. As a credit to the buyer, only
assemblage Ans✓✓✓ process of merging separate lots into one
ownership
assumption of mortgage Ans✓✓✓ When a buyer assumes personal
liability for full repayment of the debt, there is a(n) ______
balloon mortgage Ans✓✓✓ a mortgage in which the final payment is
larger than any previous payment
bare legal title Ans✓✓✓ title limited to only those rights that are
necessary to carry out the terms of the trust
Study Guide questions with verified answers
acceleration clause Ans✓✓✓ clause that specifies that is the borrower
fails to keep the covenants of the mortgage or trust deed, the entire
loan balance is due and payable upon demand
ad valorem taxes Ans✓✓✓ taxes levied by various state and local
governments and are based on the value of the property being taxed
Adjustable Rate Mortgage (ARM) Ans✓✓✓ a loan that allows for a
change in rates
alienation clause/due-on-sale clause Ans✓✓✓ clause that provides
that upon alienation of the property by the mortgagor, the mortgagee
may demand the balance of the debt be paid first
alienation Ans✓✓✓ the clause in a security instrument that prevents
the assumption of a loan is known as ______
All of the other owners, jointly and severally Ans✓✓✓ Several people
buy a piece of property jointly. If one of the owners does not pay his
portion of the note, who is responsible to the lender for the payment?
amortized mortgage Ans✓✓✓ a systematic method of repaying a loan
by making regular, equal payments (usually monthly) so that the loan
,itself, and all interest on the loan, is reduced to zero by the loan's
maturity date
amount to be financed; finance charge; annual percentage rate (APR);
total of all payments to be made over the term of the mortgage
Ans✓✓✓ What four main disclosures must be made before a
contractual relationship can be created between a borrower and a
lender?
An agricultural loan for $30,000 Ans✓✓✓ Which of the following loans
would be exempt from the truth in lending act?
A. A loan to purchase 4 residential units -- one of which will be occupied
by the owner
B. An agricultural loan for $30,000
C. A loan with 10 installments
D. A personal loan for $20,000
an estoppel Ans✓✓✓ the certificate that shows the unpaid balance of
a mortgage and the amount of unpaid interest associated with that
debt is referred to as ______
annual percentage rate Ans✓✓✓ the relationship of the total finance
charge to the total amount to be financed; compiled by folding all of
the finance charges into the interest rate
, appraisal Ans✓✓✓ a supportable estimate of the value of a parcel of
real estate as of a specific date for a specified purpose
As a credit to the buyer only Ans✓✓✓ When a buyer obtains a loan for
the purpose of financing the purchase of real property, how does the
amount of the loan obtained appear on the Closing Disclosure?
A. As a credit to the buyer and a debit to the seller
B. As a debit to the seller and a credit to the buyer
C. As a credit to the seller, only
D. As a credit to the buyer, only
assemblage Ans✓✓✓ process of merging separate lots into one
ownership
assumption of mortgage Ans✓✓✓ When a buyer assumes personal
liability for full repayment of the debt, there is a(n) ______
balloon mortgage Ans✓✓✓ a mortgage in which the final payment is
larger than any previous payment
bare legal title Ans✓✓✓ title limited to only those rights that are
necessary to carry out the terms of the trust
