Trust Deeds

A clause in a trust deed, which states that the lender's rights shall be secondary to a subsequent trust deed, is called:

A subordination clause;

On a trust deed loan, the beneficiary's consent should be obtained for which of the following:

All of the above.

Which of the following notices could be important to the filing of a mechanic's lien:

All of the above.

A release clause in a mortgage:

Allows portions of the property, given as security, to be released from the mortgage lien upon performance of a specified act.

Crawford has been burning rubbish on his own property, but the neighbors have complained and have secured a court order, ordering Mr. Crawford to stop the offending practice. That court order would be classified as:

An injunction.

If a seller wanted to relieve himself of the primary liability for payment of a trust deed and note, he must find a buyer who is willing to:

Assume the trust deed and note liability;

When an agent has sold a single-family residence and is helping the buyer obtain a first trust deed loan from a bank and a second trust deed loan to be carried back by the seller, the agent will often record a "Request for Notice of Default." Such action is usually taken for the protection of the:

Beneficiary of the second loan.

An "open-end" provision in a mortgage would benefit the borrower the most if he:

Borrowed additional money.

Which of the following best describes the period of time in which a lis pendens action is effective:

In any of the above situations.

A lis pendens:

May affect title to real property based on the results of the lawsuit.

One document, which requires verification and recording for its validity, is a:

Mechanic's lien.

The difference between judgment liens and mechanic's liens is:

Mechanic's liens may take priority earlier than the date they are recorded;

In the field of real estate, a "prepayment penalty" is sometimes:

Required from a trustor who makes advance payments on his home loan;

A homeowner failed to make payments on his trust deed loan for two successive months and a notice of default has been recorded. He has:

Rights of reinstatement;

If there is no special agreement to the contrary, the mortgage usually having priority is the one:

That is recorded first;

The Irwins made an offer to purchase the Greys property. As part of the offer, the Irwins agreed to take title "subject to" an existing VA loan which the Greys obtained when they purchased the property in the approximate amount of $39,000. If the Greys sell to the Irwins under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on the VA loan:

The Greys will be primarily liable;

A trustor defaults on his loan and refuses to reinstate the deed of trust. The most expedient thing for the beneficiary to do is to institute a:

Trustee's sale;

The right or power to sell a property in the event of a default under the terms of the trust deed is given by:

Trustor to the trustee

When there has been a default of a note and trust deed, the trustor is given a period of time to redeem the property. During this time, the right of possession belongs to the:

Trustor;

If a lender accepts a deed in lieu of foreclosure from a trustor, the lender:

Will assume any junior liens.

When a deed of trust is foreclosed by court sale, the action:

Would allow the trustor a redemption period;

The document which is used to convey the title to real property from the trustee to the trustor when the trust deed is terminated is:

A reconveyance deed;

A trust deed can have a provision that allows future loans on the property to have priority. This would be called:

A subordination clause;

An order from a court to a designated official to sell property in order to pay a judgment is called:

A writ of execution;

The one who loans the money on a parcel of real property and secures that loan by means of a trust deed is known as the:

Beneficiary

When the term "beneficiary statement" is used by those in real estate finance, it identifies a statement made:

By the lender, as to the current balance due to pay off a real estate loan;

The basic protection of a lender on a purchase-money second trust deed would be:

Equity of the borrower;

The clause in a trust deed or mortgage which permits the mortgagee to declare the entire unpaid sum due upon default by a mortgagor is called a (an):

None of the above.

A trustee has legally begun the process to sell property secured by a trust deed. After the notice of default is recorded, the trustee must wait at least three months before:

Publishing the notice of sale;

In a trust deed, the trustor

Signs a note for the amount borrowed;

A carpenter installed hardwood floors in a new house, and when he was not paid for his work, filed a mechanic's lien. The priority for his claim is:

The date construction of the new house was begun.

Which of the following would impair the security of a trust deed recorded on real property:

The trust deed is recorded after a work of improvement was commenced and a mechanic's lien is recorded on the work;