Legal Aspects of Real Estate Chapter 11
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What conveys title rights in a property over to an assigned trustee?
A right of assignment
A subordination clause
A deed of trust
A release of deed - CORRECT ANSWER - A deed of trust
What was passed by Congress in 1977 to prevent redlining and to encourage banks and thrifts to
help meet the credit needs of all segments of their communities, including low-and moderate-
income neighborhoods?
The Economic Recovery Act
The Equal Opportunity Act
The Tax Relief Act
The Community Reinvestment Act - CORRECT ANSWER - The Community
Reinvestment Act
What type of clause requires a borrower to pay a penalty or late charge for any payments that are
considered to be late?
A graduated payment clause
A late payment penalty clause
A lender clause
A pay off clause - CORRECT ANSWER - A late payment penalty clause
What type of mortgage loan covers more than one piece of property?
A bridge loan
A blanket loan
, An open-end loan
A multiple property loan - CORRECT ANSWER - A blanket loan
What involves the transfer of an interest in land as security for a loan or other obligation?
A deed
A mortgage
A transaction
A lease - CORRECT ANSWER - A mortgage
What refers to all calendar days except Sundays and holidays specified in 5 U.S.C. 6103 or the
observed legal holiday?
A weekday
A business day
A nautical day
A bank day - CORRECT ANSWER - A business day
What type of foreclosure allows a property to be sold by court order after sufficient public
notice?
A strict foreclosure
A judicial foreclosure
A non-judicial foreclosure
A specific foreclosure - CORRECT ANSWER - A judicial foreclosure
What type of prepayment clause prohibits the borrower from paying the mortgage loan in full
before a specific date?
A lienholder clause
A lender clause
A due-on-sale clause
A lock-in clause - CORRECT ANSWER - A lock-in clause
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What conveys title rights in a property over to an assigned trustee?
A right of assignment
A subordination clause
A deed of trust
A release of deed - CORRECT ANSWER - A deed of trust
What was passed by Congress in 1977 to prevent redlining and to encourage banks and thrifts to
help meet the credit needs of all segments of their communities, including low-and moderate-
income neighborhoods?
The Economic Recovery Act
The Equal Opportunity Act
The Tax Relief Act
The Community Reinvestment Act - CORRECT ANSWER - The Community
Reinvestment Act
What type of clause requires a borrower to pay a penalty or late charge for any payments that are
considered to be late?
A graduated payment clause
A late payment penalty clause
A lender clause
A pay off clause - CORRECT ANSWER - A late payment penalty clause
What type of mortgage loan covers more than one piece of property?
A bridge loan
A blanket loan
, An open-end loan
A multiple property loan - CORRECT ANSWER - A blanket loan
What involves the transfer of an interest in land as security for a loan or other obligation?
A deed
A mortgage
A transaction
A lease - CORRECT ANSWER - A mortgage
What refers to all calendar days except Sundays and holidays specified in 5 U.S.C. 6103 or the
observed legal holiday?
A weekday
A business day
A nautical day
A bank day - CORRECT ANSWER - A business day
What type of foreclosure allows a property to be sold by court order after sufficient public
notice?
A strict foreclosure
A judicial foreclosure
A non-judicial foreclosure
A specific foreclosure - CORRECT ANSWER - A judicial foreclosure
What type of prepayment clause prohibits the borrower from paying the mortgage loan in full
before a specific date?
A lienholder clause
A lender clause
A due-on-sale clause
A lock-in clause - CORRECT ANSWER - A lock-in clause
