ASREB A 4 EXAM QUESTIONS AND
CORRECT ANSWERS
Which of the following statements describes the purpose for conveying bare legal title to
the trustee in a deed of trust? - Answer-Bare legal title allows the trustee to conduct
foreclosure proceedings without going to court.
An assignment of rents clause would most likely benefit which of the parties? - Answer-
beneficiary
When a person pays the entire principal balance at the end of a loan period, the loan
would be: - Answer-term
A term loan is: - Answer-interest only
When a loan is secured by a deed of trust, who holds the deed of trust document? -
Answer-beneficiary
In a lending agreement, who benefits from the term Quiet Enjoyment? - Answer-trustor
Which of the following listed below best describes the purpose of a trustee? - Answer-
foreclose in a deed of trust
Which circumstance would negate encroachment? - Answer-owner's permission
Which of the following would trigger the alienation clause? - Answer-sale of the property
A loan you obtain in installments and payoff at maturity is called: - Answer-construction
Mortgages would not contain: - Answer-subrogation clause
Once originated, under the Deed of Trust, who owns the property? - Answer-trustor
A defeasance clause in a Deed of Trust allows for: - Answer-Cancellation of the lender's
claim upon full note payment
The characteristics of a performance bond include: - Answer-Borrower pays, lender is
protected
CORRECT ANSWERS
Which of the following statements describes the purpose for conveying bare legal title to
the trustee in a deed of trust? - Answer-Bare legal title allows the trustee to conduct
foreclosure proceedings without going to court.
An assignment of rents clause would most likely benefit which of the parties? - Answer-
beneficiary
When a person pays the entire principal balance at the end of a loan period, the loan
would be: - Answer-term
A term loan is: - Answer-interest only
When a loan is secured by a deed of trust, who holds the deed of trust document? -
Answer-beneficiary
In a lending agreement, who benefits from the term Quiet Enjoyment? - Answer-trustor
Which of the following listed below best describes the purpose of a trustee? - Answer-
foreclose in a deed of trust
Which circumstance would negate encroachment? - Answer-owner's permission
Which of the following would trigger the alienation clause? - Answer-sale of the property
A loan you obtain in installments and payoff at maturity is called: - Answer-construction
Mortgages would not contain: - Answer-subrogation clause
Once originated, under the Deed of Trust, who owns the property? - Answer-trustor
A defeasance clause in a Deed of Trust allows for: - Answer-Cancellation of the lender's
claim upon full note payment
The characteristics of a performance bond include: - Answer-Borrower pays, lender is
protected
