ASREB A-4 Exam Questions AND Correct Answers
"Lis Pendens" is: - ✔✔A notice of pending court action
A blanket mortgage: - ✔✔Usually has a release clause,
covers more than one parcel of real estate
A buyer assuming and agreeing to pay a mortgage: -
✔✔Becomes personally liable for the debt, May be held
for the deficiency between the foreclosure price and the
outstanding mortgage balance, Usually must be
approved by the lender
A certificate of occupancy is normally issued at what
phase of construction? - ✔✔When the project is
completed
A defeasance clause is in a mortgage for the protection
of the: - ✔✔Borrower
, A document which requires verification and recordation
for it to have validity is a: - ✔✔Mechanics lien
A lender agrees to reduce the interest rate on a loan but
specifies in the agreement with the borrower that the
lender shall receive 2% of all gross income from the
property on which the loan was placed. This is an
example of a: - ✔✔Participation loan
A mechanic's lien, once filed, is a valid lien on the
subject property for how long? - ✔✔6 months
A monetary judgement by the court is: - ✔✔An
involuntary lien on the personalty and realty of the
subject debtor
A negative amortization loan would be a loan: -
✔✔Where principal balance increases
"Lis Pendens" is: - ✔✔A notice of pending court action
A blanket mortgage: - ✔✔Usually has a release clause,
covers more than one parcel of real estate
A buyer assuming and agreeing to pay a mortgage: -
✔✔Becomes personally liable for the debt, May be held
for the deficiency between the foreclosure price and the
outstanding mortgage balance, Usually must be
approved by the lender
A certificate of occupancy is normally issued at what
phase of construction? - ✔✔When the project is
completed
A defeasance clause is in a mortgage for the protection
of the: - ✔✔Borrower
, A document which requires verification and recordation
for it to have validity is a: - ✔✔Mechanics lien
A lender agrees to reduce the interest rate on a loan but
specifies in the agreement with the borrower that the
lender shall receive 2% of all gross income from the
property on which the loan was placed. This is an
example of a: - ✔✔Participation loan
A mechanic's lien, once filed, is a valid lien on the
subject property for how long? - ✔✔6 months
A monetary judgement by the court is: - ✔✔An
involuntary lien on the personalty and realty of the
subject debtor
A negative amortization loan would be a loan: -
✔✔Where principal balance increases
