REAL ESTATE 101 2025 QUESTIONS
WITH ANSWERS VERIFIED BY
EXPERTS
Types of Liens - CORRECT ANSWER>>>Mortgage Lien, Mechanics Lien, Judgment Lien,
Income Tax Lien, Real Estate Tax Lien
Mortgage Lien - CORRECT ANSWER>>>Can lose your home; voluntary and equitable
Mechanics Lien - CORRECT ANSWER>>>Protects provider of materials and/or labor;
involuntary and equitable
Judgment Lien - CORRECT ANSWER>>>Any unpaid debt that's not a mortgage; involuntary
and equitable
Income Tax Lien - CORRECT ANSWER>>>Don't pay taxes
Real Estate Tax Lien - CORRECT ANSWER>>>Superior Tax Lien
Priority of Liens - CORRECT ANSWER>>>"1st in time, first in line"
Exception: real estate tax liens are ALWAYS paid first
Judgments - CORRECT ANSWER>>>Formal decision of a court on the respective rights and
claims of the parties to an action or suit
After judgment has been entered and recorded with the county recorder it becomes a general lien
on the property of the defendant
Real Estate Contracts - CORRECT ANSWER>>>Land contract, Option contract, express
contract, implied contract, bilateral contract, unilateral contract
Listing Agreement - CORRECT ANSWER>>>Broker is hired to find a buyer for the owners of
real estate under their conditions
Land Contract - CORRECT ANSWER>>>Owner finances the loan
Option Contract - CORRECT ANSWER>>>The right to buy in the future
Express Contracts - CORRECT ANSWER>>>An oral or written contract in which the parties
state the contract's terms and express their intentions in words
Implied Contracts - CORRECT ANSWER>>>A contract under which the agreement of the
parties is demonstrated by their actions and conduct
Bilateral Contracts - CORRECT ANSWER>>>only one party is bound to act
, Unilateral Contracts - CORRECT ANSWER>>>where all parties to the instrument are legally
bound to act as prescribed
Consideration - CORRECT ANSWER>>>That received by the grantor in exchange for a deed or
something of value to show you are serious about purchasing
Novation - CORRECT ANSWER>>>substituting a new obligation for an old one or substituting
new parties to an existing obligation
Statute of limitations - CORRECT ANSWER>>>That law pertaining to the period of time
within certain actions must be brought to court
Earnest Money - CORRECT ANSWER>>>Money deposited by a buyer under the terms of a
contract, to be forfeited if the buyer defaults but applied to purchase price if sale is closed
Equitable Title - CORRECT ANSWER>>>seller still has legal interest in house until deed is
transferred
Contingencies - CORRECT ANSWER>>>conditions that must be fulfilled before contract
becomes binding
approval for loan, selling old house first, certain items go with the house
Title - CORRECT ANSWER>>>the right and evidence of ownership of land
Voluntary alienation - CORRECT ANSWER>>>transferring property by gift or sale
Granting Clause - CORRECT ANSWER>>>words in a deed of conveyance that state the
grantor's intention to convey the property at the present time
Recordation - CORRECT ANSWER>>>recording documents in the courthouse
Types of Deeds - CORRECT ANSWER>>>General warranty deed, Special warranty deed,
quitclaim deed, deed in trust, trustee's deed, deed in lieu of foreclosure
General warranty deed - CORRECT ANSWER>>>absolute protection for buyer, since the
beginning of time
Special warranty deed - CORRECT ANSWER>>>guarantees legal title since you bought it
Quitclaim deed - CORRECT ANSWER>>>gives no guarantees
Deed in trust - CORRECT ANSWER>>>transfers ownership from owner to trustee
Trustee's Deed - CORRECT ANSWER>>>conveyance from trustee to third party
WITH ANSWERS VERIFIED BY
EXPERTS
Types of Liens - CORRECT ANSWER>>>Mortgage Lien, Mechanics Lien, Judgment Lien,
Income Tax Lien, Real Estate Tax Lien
Mortgage Lien - CORRECT ANSWER>>>Can lose your home; voluntary and equitable
Mechanics Lien - CORRECT ANSWER>>>Protects provider of materials and/or labor;
involuntary and equitable
Judgment Lien - CORRECT ANSWER>>>Any unpaid debt that's not a mortgage; involuntary
and equitable
Income Tax Lien - CORRECT ANSWER>>>Don't pay taxes
Real Estate Tax Lien - CORRECT ANSWER>>>Superior Tax Lien
Priority of Liens - CORRECT ANSWER>>>"1st in time, first in line"
Exception: real estate tax liens are ALWAYS paid first
Judgments - CORRECT ANSWER>>>Formal decision of a court on the respective rights and
claims of the parties to an action or suit
After judgment has been entered and recorded with the county recorder it becomes a general lien
on the property of the defendant
Real Estate Contracts - CORRECT ANSWER>>>Land contract, Option contract, express
contract, implied contract, bilateral contract, unilateral contract
Listing Agreement - CORRECT ANSWER>>>Broker is hired to find a buyer for the owners of
real estate under their conditions
Land Contract - CORRECT ANSWER>>>Owner finances the loan
Option Contract - CORRECT ANSWER>>>The right to buy in the future
Express Contracts - CORRECT ANSWER>>>An oral or written contract in which the parties
state the contract's terms and express their intentions in words
Implied Contracts - CORRECT ANSWER>>>A contract under which the agreement of the
parties is demonstrated by their actions and conduct
Bilateral Contracts - CORRECT ANSWER>>>only one party is bound to act
, Unilateral Contracts - CORRECT ANSWER>>>where all parties to the instrument are legally
bound to act as prescribed
Consideration - CORRECT ANSWER>>>That received by the grantor in exchange for a deed or
something of value to show you are serious about purchasing
Novation - CORRECT ANSWER>>>substituting a new obligation for an old one or substituting
new parties to an existing obligation
Statute of limitations - CORRECT ANSWER>>>That law pertaining to the period of time
within certain actions must be brought to court
Earnest Money - CORRECT ANSWER>>>Money deposited by a buyer under the terms of a
contract, to be forfeited if the buyer defaults but applied to purchase price if sale is closed
Equitable Title - CORRECT ANSWER>>>seller still has legal interest in house until deed is
transferred
Contingencies - CORRECT ANSWER>>>conditions that must be fulfilled before contract
becomes binding
approval for loan, selling old house first, certain items go with the house
Title - CORRECT ANSWER>>>the right and evidence of ownership of land
Voluntary alienation - CORRECT ANSWER>>>transferring property by gift or sale
Granting Clause - CORRECT ANSWER>>>words in a deed of conveyance that state the
grantor's intention to convey the property at the present time
Recordation - CORRECT ANSWER>>>recording documents in the courthouse
Types of Deeds - CORRECT ANSWER>>>General warranty deed, Special warranty deed,
quitclaim deed, deed in trust, trustee's deed, deed in lieu of foreclosure
General warranty deed - CORRECT ANSWER>>>absolute protection for buyer, since the
beginning of time
Special warranty deed - CORRECT ANSWER>>>guarantees legal title since you bought it
Quitclaim deed - CORRECT ANSWER>>>gives no guarantees
Deed in trust - CORRECT ANSWER>>>transfers ownership from owner to trustee
Trustee's Deed - CORRECT ANSWER>>>conveyance from trustee to third party
