Champions-Law of Contracts Course Exam NEWEST ACTUAL
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
What is not available to Lin? - CORRECT ANSWER Lin can
terminate the contract, but she will forfeit her earnest money - This is
not true.
What should Barbara do to make sure she is fulfilling her fiduciary
responsibilities to Lin? - CORRECT ANSWER Barabar should
keep Lin informed of her option as well as the approaching deadlines.
What additional amendments, contingencies, or addenda may be used
if Lin and the seller decide to proceed with the sale at the lower sales
price? - CORRECT ANSWER Barbara must submit an
amendment that reflects the new, lower sales price.
Gerald and Finn are selling their classic 1959 mid century modern
home. What form must they complete when they list their property? -
,CORRECT ANSWER Addendum for Seller's disclosure of
information on lead paint hazards.
Sellers can _______________, the oil, gas, and minerals associated with
their property. - CORRECT ANSWER Sell, reserve, divide, all of
the above.
Which of the following is NOT considered a common addenda form? -
CORRECT ANSWER Exclusive right to sell (not common)
Servicing - CORRECT ANSWER Sending monthly payment
statements and collecting monthly payments, maintaining payment
records and following up on delinquencies.
What is a closing in real estate? - CORRECT ANSWER
Consummation of a contractual real estate transaction in which all
appropriate documents are signed and the proceeds of the loan are
disbursed by the lender.
Promissory Note - CORRECT ANSWER Borrower's
unconditional promise to pay
Underwriting - CORRECT ANSWER The detailed process of
evaluating a borrower's loan application to determine the risk involved
for the lender.
Foreclosure - CORRECT ANSWER A legal procedure whereby
property used as security for a debt is sold to satisfy the debt in the
event of default in payment of the mortgage note or default of other
terms in the note.
What is capacity? - CORRECT ANSWER Capacity is measure
of the borrower's ability to repay the debt and is demonstrated through
current earnings and job stability.
,PMI (Private Mortgage Insurance) - CORRECT ANSWER
Insurance that protects the lender in case the borrower defaults and is
unable to repay the loan. Generally a borrower must pay PMI if their
equity is less than 20% of the home's value.
MIP - CORRECT ANSWER Mortgage Insurance Premium
VHAP - CORRECT ANSWER Texas Veterans Loan Assistance
Program - a loan program for veterans.
RMLOs in Texas are licensed through:
a. Texas Real Estate Commission
b. National Mortgage Bankers Association
c. Texas Department of Savings and Mortgage Lending
d. Texas Savings and Loan Board - CORRECT ANSWER is
mandated by the SAFE Act.
The Dodd-Frank Act - CORRECT ANSWER Transferred rule
making authority for the SAFE Act to the CFPB, effective July 21, 2011.
ECOA - CORRECT ANSWER Equal Credit Opportunity Act,
federal law prohibiting discrimination in credit/lending
Gift Deed - CORRECT ANSWER A transfer of ownership made
for love and affection. Creditors of the donor could still use the
property for payment of the grantor's debts if it can be shown that the
donor was insolvent and transferred the property to evade creditors.
Special Warranty Deed - CORRECT ANSWER A deed in which
the grantor warrants, or guarantees, the title only against defects
arising during the period of his or her tenure and ownership of the
property and not against defects existing before that time, generally
using the language, "by, through, or under the grantor but not
otherwise."
, General Warranty Deed - CORRECT ANSWER A deed in which
the grantor fully warrants good, clear title to the premises. Used in
most real estate deed transfers, a general warranty deed offers the
greatest protection of any deed.
Bargain and Sale Deed - CORRECT ANSWER A deed that
carries with it no warranties against liens or other encumbrances but
that does imply that the grantor has the right to convey title. The
grantor may add warranties to the deed at his or her discretion
codicil - CORRECT ANSWER an addition to a will
Assemblage or plottage - CORRECT ANSWER The
combination of two or more properties into one
Gene made a will naming his oldest daughter as executor. His other
children are noted as heirs. In this circumstance, Gene is referred to
as the _______. - CORRECT ANSWER Testator
The key to determining whether a conveyance is voluntary is the
____________. - CORRECT ANSWER Absence of force
Much to her six children's dismay, single mom Nancy died without
making a will. Who will inherit her estate? - CORRECT ANSWER
Her children......standard succession laws apply.
The SAFE Act mandated the term ________. - CORRECT ANSWER
Residential Mortgage Loan Originator
The ________ ensures that all consumers are given an equal chance to
obtain credit; passed 1974 - CORRECT ANSWER Equal Credit
Opportunity Act (ECOA)
__________________ is the evidence an individual has of his or her right to
possess land. It is most often transferred
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
What is not available to Lin? - CORRECT ANSWER Lin can
terminate the contract, but she will forfeit her earnest money - This is
not true.
What should Barbara do to make sure she is fulfilling her fiduciary
responsibilities to Lin? - CORRECT ANSWER Barabar should
keep Lin informed of her option as well as the approaching deadlines.
What additional amendments, contingencies, or addenda may be used
if Lin and the seller decide to proceed with the sale at the lower sales
price? - CORRECT ANSWER Barbara must submit an
amendment that reflects the new, lower sales price.
Gerald and Finn are selling their classic 1959 mid century modern
home. What form must they complete when they list their property? -
,CORRECT ANSWER Addendum for Seller's disclosure of
information on lead paint hazards.
Sellers can _______________, the oil, gas, and minerals associated with
their property. - CORRECT ANSWER Sell, reserve, divide, all of
the above.
Which of the following is NOT considered a common addenda form? -
CORRECT ANSWER Exclusive right to sell (not common)
Servicing - CORRECT ANSWER Sending monthly payment
statements and collecting monthly payments, maintaining payment
records and following up on delinquencies.
What is a closing in real estate? - CORRECT ANSWER
Consummation of a contractual real estate transaction in which all
appropriate documents are signed and the proceeds of the loan are
disbursed by the lender.
Promissory Note - CORRECT ANSWER Borrower's
unconditional promise to pay
Underwriting - CORRECT ANSWER The detailed process of
evaluating a borrower's loan application to determine the risk involved
for the lender.
Foreclosure - CORRECT ANSWER A legal procedure whereby
property used as security for a debt is sold to satisfy the debt in the
event of default in payment of the mortgage note or default of other
terms in the note.
What is capacity? - CORRECT ANSWER Capacity is measure
of the borrower's ability to repay the debt and is demonstrated through
current earnings and job stability.
,PMI (Private Mortgage Insurance) - CORRECT ANSWER
Insurance that protects the lender in case the borrower defaults and is
unable to repay the loan. Generally a borrower must pay PMI if their
equity is less than 20% of the home's value.
MIP - CORRECT ANSWER Mortgage Insurance Premium
VHAP - CORRECT ANSWER Texas Veterans Loan Assistance
Program - a loan program for veterans.
RMLOs in Texas are licensed through:
a. Texas Real Estate Commission
b. National Mortgage Bankers Association
c. Texas Department of Savings and Mortgage Lending
d. Texas Savings and Loan Board - CORRECT ANSWER is
mandated by the SAFE Act.
The Dodd-Frank Act - CORRECT ANSWER Transferred rule
making authority for the SAFE Act to the CFPB, effective July 21, 2011.
ECOA - CORRECT ANSWER Equal Credit Opportunity Act,
federal law prohibiting discrimination in credit/lending
Gift Deed - CORRECT ANSWER A transfer of ownership made
for love and affection. Creditors of the donor could still use the
property for payment of the grantor's debts if it can be shown that the
donor was insolvent and transferred the property to evade creditors.
Special Warranty Deed - CORRECT ANSWER A deed in which
the grantor warrants, or guarantees, the title only against defects
arising during the period of his or her tenure and ownership of the
property and not against defects existing before that time, generally
using the language, "by, through, or under the grantor but not
otherwise."
, General Warranty Deed - CORRECT ANSWER A deed in which
the grantor fully warrants good, clear title to the premises. Used in
most real estate deed transfers, a general warranty deed offers the
greatest protection of any deed.
Bargain and Sale Deed - CORRECT ANSWER A deed that
carries with it no warranties against liens or other encumbrances but
that does imply that the grantor has the right to convey title. The
grantor may add warranties to the deed at his or her discretion
codicil - CORRECT ANSWER an addition to a will
Assemblage or plottage - CORRECT ANSWER The
combination of two or more properties into one
Gene made a will naming his oldest daughter as executor. His other
children are noted as heirs. In this circumstance, Gene is referred to
as the _______. - CORRECT ANSWER Testator
The key to determining whether a conveyance is voluntary is the
____________. - CORRECT ANSWER Absence of force
Much to her six children's dismay, single mom Nancy died without
making a will. Who will inherit her estate? - CORRECT ANSWER
Her children......standard succession laws apply.
The SAFE Act mandated the term ________. - CORRECT ANSWER
Residential Mortgage Loan Originator
The ________ ensures that all consumers are given an equal chance to
obtain credit; passed 1974 - CORRECT ANSWER Equal Credit
Opportunity Act (ECOA)
__________________ is the evidence an individual has of his or her right to
possess land. It is most often transferred
