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58 Cards in this Set

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  • Back
A licensed contractor is hired and paid in full directly by the owner of a commercial property. The general contractor fails to pay the subcontractors for the work they performed. The general contractor then files bankruptcy, and subcontractor files a mechanics lien within 125 days from the completion of his work. In this situation, which of the following is true regarding the subcontractor:

a. The lien is not valid because the owner did not hire the subcontractor
b. The lien is not valid because it was not recorded wihtin the required time period
c. The lien is not valid because the owner paid the general contractor in full
d. The lien is valid as long as a foreclosure action is taken within 100 days of recording the lien
b. The lien is not valid because it was not recorded within the required time period
How long does a subcontractor have to file his mechanics lien?

a. 60 days after completion
b. 60 days from contract date
c. 90 days after completion
d. 120 days after completion
120 days after completion
Which of the following woudl not be involved in a Deed of Trust?

a. Trustor
b. Trustee
c. Beneficiary
d. Vendor
d. Vendor
A defeasance clause in a Deed of Trust allows for:

a. The trustee to foreclose
b. Cancellation of the lender's claim upon full note payment
c. Lender's protection against forgery
d. Non-assumability of a loan
b. Cancellation of the lender's claim upon full note payment
If one was to research the county public records, one would always find:

a. Loans on the property
b. Adverse possession
c. Easements
d. Mechanics liens
d. Mechanics liens
When a Deed of Trust is satisfied, the trustee sends out a:

a. Satisfaction of mortgage
b. Defeasance clause
c. Deed of reconveyance
d. Warranty deed
c. Deed of reconveyance
An owner hires a general contractor to build a commercial project. The owner pays the general in full, but the general fails to pay the sub-contractors. Which of the following statements are true?

a. The subs can only look to the general for payment
b. The subs can file a mechanics lien against the property
c. The subs cannot file a mechanics lien
d. The subs must wait for the general to file the mechanics lien
b. The subs can file a mechanis lien
Who would instruct the signing of the deed of reconveyance?

a. Trustor
b. Trustee
c. Beneficiary
d. Sheriff
c. Beneficiary
Naked legal title best describes the interest of:

a. Trustee under a trust deed
b. Trustee in an agreement for sale
c. Trustee in a mortgage
d. Beneficiary to owner
a. Trustee under a trust deed
What is not true regarding a mechanics lien?

a. General contractor has 120 days to file a lien
b. Sub-contractor has 120 days to file a lien
c. A mechanics lien may be filed at any time
d. A mechanics lien is valid for six months
c. A mechanics lien may be filed at any time
Property taxes are what type of lien?

a. General
b. Specific
c. Inchoate
d. Incorporeal
b. Specific
Which of the following could not be part of a Deed of Trust:

a. Judicial
b. Non-judicial foreclosure
c. Statutory forfeiture period
d. Reinstatement period
c. Statutory forfeiture period
An Assignment of Rent Clause is for the benefit protection of the:

a. Trustor
b. Beneficiary
c. Trustee
d. Mortgagor
b. Beneficiary
A mechanics lien is placed on title by a general contractor:

a. 90 - days from the start of the job
b. 120 days after job is completed
c. 60 days from the start of the job
d. 60 days after completion
b. 120 days after job is completed
When do you file a mechanics lien:

a. Beginning of work
b. Completion of work
c. Six months after completion
d. After obtaining a judgment
b. Completion of work
A mechanics lien may be filed by:

a. The utility company
b. Construction employee
c. The auto mechanic
d. The lumber supplier
d. The lumber supplier
Mechanics lien take priority:

a. Date recorded
b. Date work began
c. 90 days after work began
d. 6 months after work began
b. Date work began
If you have been given notice of a possible future lien, this lien is probably:

a. Property taxes
b. Mechanics lien
c. Property insurance
d. Purchase money mortgage
b. Mechanics lien
A general contractor does work for a tenant in a commercial leased space. The tenant fails to pay the contractor. Which of the following is true regarding the mechanics lien?

a. The contractor may not file a lien
b. The contractor will lien the entire building
c. The contractor can only lien the leasehold interest
d. The contractor must have the owners permission to file a lien
c. The contractor can only lien the leasehold interest
A tenant hires a mechanic to contstruct a patio roof. The tenant refuses to pay the amount owed; the mechanic may file a lien against:

a. Beneficiary
b. Mortgagor
c. Tenant's improvements
d. Owner
c. Tenant's improvements
Once originated, under the Deed of Trust, who owns the property?

a. Trustor
b. Trustee
c. Assignee
d. Beneficiary
a. Trustor
Who pays the fee for recording a Deed of Reconveyance?

a. Beneficiary
b. Trustor
c. Trustee
d. Fiduciary
b. Trustor
Which of the parties below would hold "naked title" in a deed of trust?

a. Trustee
b. Trustor
c. Beneficiary
d. Mortgagee
a. Trustee
Contractor starts work on May 1, 2000. He completes work on August 15, 2000 and records a mechanics lien on October 10, 2000. What is the effective date of the lien?

a. May 1st
b. August 15th
c. October 10th
d. December 1st
b. August 15th
An Assignment of Rent Clause is for the benefit protection of the:

a. Trustor
b. Beneficiary
c. Trustee
d. Mortgagor
b. Beneficiary
A mechanics lien is placed on title by a general contractor:

a. 90 - days from the start of the job
b. 120 days after job is completed
c. 60 days from the start of the job
d. 60 days after completion
b. 120 days after job is completed
When do you file a mechanics lien:

a. Beginning of work
b. Completion of work
c. Six months after completion
d. After obtaining a judgment
b. Completion of work
A mechanics lien may be filed by:

a. The utility company
b. Construction employee
c. The auto mechanic
d. The lumber supplier
d. The lumber supplier
Mechanics lien take priority:

a. Date recorded
b. Date work began
c. 90 days after work began
d. 6 months after work began
b. Date work began
If you have been given notice of a possible future lien, this lien is probably:

a. Property taxes
b. Mechanics lien
c. Property insurance
d. Purchase money mortgage
b. Mechanics lien
A general contractor does work for a tenant in a commercial leased space. The tenant fails to pay the contractor. Which of the following is true regarding the mechanics lien?

a. The contractor may not file a lien
b. The contractor will lien the entire building
c. The contractor can only lien the leasehold interest
d. The contractor must have the owners permission to file a lien
c. The contractor can only lien the leasehold interest
A tenant hires a mechanic to contstruct a patio roof. The tenant refuses to pay the amount owed; the mechanic may file a lien against:

a. Beneficiary
b. Mortgagor
c. Tenant's improvements
d. Owner
c. Tenant's improvements
Once originated, under the Deed of Trust, who owns the property?

a. Trustor
b. Trustee
c. Assignee
d. Beneficiary
a. Trustor
Who pays the fee for recording a Deed of Reconveyance?

a. Beneficiary
b. Trustor
c. Trustee
d. Fiduciary
b. Trustor
Which of the parties below would hold "naked title" in a deed of trust?

a. Trustee
b. Trustor
c. Beneficiary
d. Mortgagee
a. Trustee
Contractor starts work on May 1, 2000. He completes work on August 15, 2000 and records a mechanics lien on October 10, 2000. What is the effective date of the lien?

a. May 1st
b. August 15th
c. October 10th
d. December 1st
b. August 15th
Seller sells a property to a buyer and has repairs done thirty days before the close of escrow. The buyer obtains a new FHA loan and closes escrow, after the closing the contractor files a mechanics lien. What is the status of the FHA loan?

a. Mechanics lien may not be recorded
b. FHA is in first position
c. FHA is in second position
d. Mechanics lien is in second position
c. FHA is in second position
All of the following would be a lien on a real property except:

a. Lease for years
b. First mortgage
c. Property taxes
d. Property assessment
a. Lease for years
If a lender is doing business in a lien theory state, which of the following is true?

a. Legal title is held by the beneficiary
b. Legal title is held by the mortgage
c. Legal title is held by mortgagor
d. Legal title is held by the trustor
c. Legal title is held by mortgagor
When a loan is secured by a deed of trust, who holds the deed of trust document?

a. Mortgagee
b. Mortgagor
c. Trustor
d. Beneficiary
d. Beneficiary
Which of the following would not be part of a deed of trust?

a. Alienation
b. Defeasance
c. Acceleration
d. Habendum
d. Habendum
Seller of a property has repair work on a home and doesn't pay the general contractor. The new buyer of the property obtains a new FHA loan that is recorded. The mechanic, not being paid by the seller, files a mechanics lien on the property. Which of the following statements is true?

a. The mechanics lien is void
b. The mechanics lien is valid and has priority over the FHA loan.
c. The mechanics lien is valid but is subordinate to the FHA loan.
d. The seller must pay the mechanics lien
b. The mechanics lien is valid and has priorty over the FHA loan.
Mr. Brown wants to purchase land with a mortgage and later on erect a building on the property. What clause should he put in the mortgage?

a. Subrogation
b. Subordination
c. Alienation
d. Acceleration
b. Subordination
A loan you obtain in installments and payoff at maturity is called:

a. Amortized
b. Variable Rate
c. Construction
d. Take Out
c. Construction
An owner puts up a fence that violates deed resctrictions, what remedy would the association take?

a. Take action in court
b. Call the local police
c. Remove the fence
d. File for forcible detainer
a. Take action in court
When a loan is assumed, which of the following is true?

a. New buyer is primarily responsible if a default occurs
b. Original maker of the loan is primarily responsible in case of default
c. Neither is responsible if the buyer qualified for the loan.
d. The new buyer would have no responsibility if the loan were in default
b. Original maker of the loan is primarily responsible in case of default
When a person pays the entire principal balance at the end of a loan period, the loan would be:

a. Reverse annuity
b. Amortized
c. Blanket
d. Term
d. Term
In order for a junior lien to have priorty, the primary lien holder would sign which of the following:

a. Subrogation
b. Defeasement
c. Subordination
d. Habendum
b. Defeasement
When a mortgage is created, it must also have which of the following:

a. Deed
b. Note
c. Deed of trust
d. Purchase contract
b. Note
A term loan is:

a. Principal and interest
b. Principal only
c. Principal, interest, taxes, insurance
d. Interest only
d. Interest only
Which of the following is true regarding a long loan term?

a. Low interest rate
b. Lower total costs
c. Higher total costs
d. Higher interest rate
c. Higher total costs
Mortgages would not contain:

a. Acceleration clause
b. Subrogation clause
c. Subordination clause
d. Defeasance clause
b. Subrogation clause
The document used to verify a mortgage assumption is called:

a. Estoppel
b. Reduction certificate
c. Certificate of sale
d. Satisfaction price
b. Reduction certificate
A mortgage that contains release clauses is called:

a. Package
b. Blanket
c. Open-end
d. Subordination
b. Blanket
The evidence of debt and the promise to pay is called the:

a. Mortgage
b. Note
c. Deed of trust
d. Pledge
b. Note
If the mortgagor has the right to obtain legal title after payment in full, this is referred to as a(n):

a. Lien theory state
b. Title theory state
c. Equity state
d. Recordation state
b. Title theory state
To have a mortgage you must have a:

a. Lien
b. Note
c. Judgment
d. Purchase contract
b. Note
When a loan is called all due and payable the loan has a:

a. Defeasance clause
b. Subordination
c. Alienation
d. Subrogation
c. Alienation