LCDC TEST EXAM 3 2026 QUESTION
COLLECTION TREATMENT PLANNING AND
CASE MANAGEMENT MODULE SOLVED ITEMS
AND RESPONSE KEY
◉ Condemnation is the act of seizing private property from citizens.
What gives the government the right to do this? Answer: eminent
domain
◉ The PHYSICAL characteristics of land are that land is
indestructible, non-homogenous, and: Answer: immobile
◉ Which statement BEST defines the term contingency? Answer:
stipulation that must be satisfied before the contract can be
performed
◉ If a borrower is behind on payments, the acceleration clause gives
the lender the ability to: Answer: call the entire loan balance due
immediately
◉ A metes and bounds legal description always returns to: Answer:
the point of beginning
,◉ What should a license holder do if a client instructs them to do
something that would discriminate against a protected class?
Answer: advise the client they cannot legally discriminate against
certain groups
◉ What is a novation? Answer: the substitution of one contract for
another
◉ A married couple bought a home ten years ago for $400,000.
Their neighborhood has rapidly grown in popularity, and they were
able to sell their home this year for $950,000. How much of that
money will they be required to pay capital gains tax on? Answer:
$50,000
◉ Which element of a valid contract states that the contract cannot
require any illegal activities or outcomes? Answer: lawful objective
◉ Deanna wants to sue her real estate agent, but finds out that she
has no legal recourse because too many years have passed since the
offending incident. What is this an example of? Answer: statute of
limitations
◉ Pedro bought his house for $370,000. The assessed value is
$290,000. If the tax rate for Pedro's county is 2.375%, what will he
pay in ad valorem taxes this year? Answer: $6,887.50
, ◉ A potentially valid contract in which at least one party has the
option to rescind is described as: Answer: voidable
◉ When you're talking about mortgages, what is another name for
an origination fee? Answer: points
◉ Both parties involved in an agency agreement agree to end the
agreement early. What is this called? Answer: mutual rescission
◉ What does a standard title insurance policy do?* Answer: protects
against any defects discovered in the title after closing
◉ Which term describes the transfer of property from the current
owner to another party by sale or gift?* Answer: voluntary
alienation
◉ In the sales comparison approach to property valuation, what
does the principle of substitution state?* Answer: The value of a
property is only what a consumer would pay to acquire a
comparable property.
◉ Who can require a buyer to purchase homeowners insurance?
Answer: lender
COLLECTION TREATMENT PLANNING AND
CASE MANAGEMENT MODULE SOLVED ITEMS
AND RESPONSE KEY
◉ Condemnation is the act of seizing private property from citizens.
What gives the government the right to do this? Answer: eminent
domain
◉ The PHYSICAL characteristics of land are that land is
indestructible, non-homogenous, and: Answer: immobile
◉ Which statement BEST defines the term contingency? Answer:
stipulation that must be satisfied before the contract can be
performed
◉ If a borrower is behind on payments, the acceleration clause gives
the lender the ability to: Answer: call the entire loan balance due
immediately
◉ A metes and bounds legal description always returns to: Answer:
the point of beginning
,◉ What should a license holder do if a client instructs them to do
something that would discriminate against a protected class?
Answer: advise the client they cannot legally discriminate against
certain groups
◉ What is a novation? Answer: the substitution of one contract for
another
◉ A married couple bought a home ten years ago for $400,000.
Their neighborhood has rapidly grown in popularity, and they were
able to sell their home this year for $950,000. How much of that
money will they be required to pay capital gains tax on? Answer:
$50,000
◉ Which element of a valid contract states that the contract cannot
require any illegal activities or outcomes? Answer: lawful objective
◉ Deanna wants to sue her real estate agent, but finds out that she
has no legal recourse because too many years have passed since the
offending incident. What is this an example of? Answer: statute of
limitations
◉ Pedro bought his house for $370,000. The assessed value is
$290,000. If the tax rate for Pedro's county is 2.375%, what will he
pay in ad valorem taxes this year? Answer: $6,887.50
, ◉ A potentially valid contract in which at least one party has the
option to rescind is described as: Answer: voidable
◉ When you're talking about mortgages, what is another name for
an origination fee? Answer: points
◉ Both parties involved in an agency agreement agree to end the
agreement early. What is this called? Answer: mutual rescission
◉ What does a standard title insurance policy do?* Answer: protects
against any defects discovered in the title after closing
◉ Which term describes the transfer of property from the current
owner to another party by sale or gift?* Answer: voluntary
alienation
◉ In the sales comparison approach to property valuation, what
does the principle of substitution state?* Answer: The value of a
property is only what a consumer would pay to acquire a
comparable property.
◉ Who can require a buyer to purchase homeowners insurance?
Answer: lender
