CRAM Exam 2 Questions with Correct Answers Graded A+
Which remedies are available when a seller breaches a contract?
A. A suit for specific performance
B. Buyer gets deposit returned
C. A or B but not both
D. Notifying FREC - Answers C. A or B but not both
What term refers to a right of a mortgagor to stop a foreclosure process by paying the entire balance,
interest and so on?
A. Equity of estoppel
B. Right of redemption
C. Right of defeasance
D. Equity of disposition - Answers B. Right of redemption
Which type of mortgage is known as seller financing?
A. Package mortgage
B. Term mortgage
C. Second mortgage
D. Purchase money mortgage - Answers D. Purchase money mortgage
Where are the interest rate, payment, and other terms of a loan found?
A. Note
B. Lease
C. Satisfaction
,D. Mortgage - Answers A. Note
Which statement is correct in a lien-theory state such as Florida?
A. The borrower will obtain title only after the loan is paid
B. Foreclosure will take place much quicker than in title theory states
C. The borrower conveys title to the lender using a deed of trust
D. The mortgage serves as a lien against the property - Answers D. The mortgage serves as a lien against
the property
Which of the following is a characteristic of an amortized or level payment mortgage?
A. The early payments are mostly interest
B. The early payments are mostly principal
C. Each monthly payment increases and the balance decreases
D. With each monthly payment, the interest increases and the balance decreases - Answers A. The early
payments are mostly interest
Which term refers to the process of sand deposits building up over time, causing an increase in land?
A. Reliction
B. Accretion
C. Erosion
D. Alluvion - Answers B. Accretion
Which estate or tenancy is the most comprehensive?
A. Fee sample
B. Life estate
C. Estate for years
, D. Free sample estate - Answers A. Fee sample
Which term refers to the government's right to limit or control the actions of citizens in the form of such
things as zoning codes and building codes?
A. Police power
B. Eminent domain
C. Escheat
D. Taxation - Answers B. Taxation
Which process is used by the government to take private land for public use?
A. Escheat
B. Encroachment
C. Condemnation
D. Acknowledgment - Answers C. Condemnation
Which term refers to the interest that is charged when banks borrow from the federal reserve?
A. Prime rate
B. Discount points
C. Usury rate
D. Discount rate - Answers D. Discount rate
If a lender charges 8% interest plus 2 points, what is the approximate yield on the loan?
A. 9.00%
B. 8.50%
C. 8.25%
D. 8.13% - Answers C. 8.25%
Which remedies are available when a seller breaches a contract?
A. A suit for specific performance
B. Buyer gets deposit returned
C. A or B but not both
D. Notifying FREC - Answers C. A or B but not both
What term refers to a right of a mortgagor to stop a foreclosure process by paying the entire balance,
interest and so on?
A. Equity of estoppel
B. Right of redemption
C. Right of defeasance
D. Equity of disposition - Answers B. Right of redemption
Which type of mortgage is known as seller financing?
A. Package mortgage
B. Term mortgage
C. Second mortgage
D. Purchase money mortgage - Answers D. Purchase money mortgage
Where are the interest rate, payment, and other terms of a loan found?
A. Note
B. Lease
C. Satisfaction
,D. Mortgage - Answers A. Note
Which statement is correct in a lien-theory state such as Florida?
A. The borrower will obtain title only after the loan is paid
B. Foreclosure will take place much quicker than in title theory states
C. The borrower conveys title to the lender using a deed of trust
D. The mortgage serves as a lien against the property - Answers D. The mortgage serves as a lien against
the property
Which of the following is a characteristic of an amortized or level payment mortgage?
A. The early payments are mostly interest
B. The early payments are mostly principal
C. Each monthly payment increases and the balance decreases
D. With each monthly payment, the interest increases and the balance decreases - Answers A. The early
payments are mostly interest
Which term refers to the process of sand deposits building up over time, causing an increase in land?
A. Reliction
B. Accretion
C. Erosion
D. Alluvion - Answers B. Accretion
Which estate or tenancy is the most comprehensive?
A. Fee sample
B. Life estate
C. Estate for years
, D. Free sample estate - Answers A. Fee sample
Which term refers to the government's right to limit or control the actions of citizens in the form of such
things as zoning codes and building codes?
A. Police power
B. Eminent domain
C. Escheat
D. Taxation - Answers B. Taxation
Which process is used by the government to take private land for public use?
A. Escheat
B. Encroachment
C. Condemnation
D. Acknowledgment - Answers C. Condemnation
Which term refers to the interest that is charged when banks borrow from the federal reserve?
A. Prime rate
B. Discount points
C. Usury rate
D. Discount rate - Answers D. Discount rate
If a lender charges 8% interest plus 2 points, what is the approximate yield on the loan?
A. 9.00%
B. 8.50%
C. 8.25%
D. 8.13% - Answers C. 8.25%
