Law of contract

B

A buyer is purchasing a home and wants to assume a seller's existing FHA loan. The sales price is $170,000. The seller's existing loan balance is $128 00 What downpayment ( seller's equity) is required for the loan assumption? (A) $5,950 (B) $42,000

General Warranty Deed

A deed in which the grantor fully warrants good clear title to the premises.

Bargain and sale deed

A deed that carries with it no warranties against liens or other encumbrances, but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion.

Probate

A legal process by which a court determines who will inherit a descendant's property and what the estate's assets are; literally means, "to prove."

3 business days

A lender must provide the Home Loan Toolkit to a borrower within how many days of the loan application?

20 business days

A loan servicer must acknowledge receipt of a borrower's inquiry within how many business days?

Title by Descent

A person who inherits property through intestate ( without will)

Title by Devise

A person who inherits property through a will receives

Torrens System

A property owner obtains a certificate of title that is recorded in the public records

nuncupative

A will that cannot be used to transfer ownership of real property

nuncupative will

A will that cannot be used to transfer ownership of real property.

Deed

A written instrument that, when executed and delivered, conveys title to or an interest in real estate.

Mortgage banker

A(n)————is generally a person, corporation, or firm, not otherwise in banking, that provides its own funds for mortgage financing.

Alienation

Any change in the ownership of real property

Alienation

Any transfer of ownership

alienation.

Any transfer of ownership is called..———-?

Short Sale

A—— may take place when a seller is unable to sell his or her property at or above what the seller owes the lender.

Real estate lien note

A———— is the borrower's unconditional promise to repay, and includes the amount borrowed, payment amount, due date and rate of interest.

C

Because they are considered an abusive practice,————- are prohibited by RESPA. (a) Temporary loans (b) Refinance transactions (c) Kickbacks (d) Controlled business arrangements

approved rural area.

For property to qualify for the USDA Rural Housing Program, the home must be located in an.....

Testator

Gene made a will naming his oldest daughter as executor. His other children are noted as heirs. In this circumstance. Gene is referred to as the.

Marketable Title

Good or clear title, reasonably free from the risk of litigation over possible defects.

USDA

Government loans are divided into three categories: FHA, VA, and———?

D

If someone claims an interest in the purchaser's property after issuing a title insurance policy, a title company will defend the title under which of the following circumstance? (a) A charge by property owners or condominium association (b) A mortgage or deed of trust (c) A judgment, tax, or special assessment (d) Any of the above Correct answer: d

Lien theorv state

In a(n)———-a mortgage is an actual transfer of ownership from the borrower to the lender.

Her children

Much to her six children's dismay, single mom Nancy died without making a will. Who will inherit her estate?

Quitclaim Deed

No guarantees, warranties, or covenants

Bargain and sale deed

Offers the least amount of protection, giving no guarantees or warrantees. The grantor implies ownership or the right to sell.

Processing

The building of a file that will be used to make an underwriting decision is called:

Erosion

The gradual loss of land over time is called

patent

The original conveyance of land by the sovereign is usually done with this document

Foreclosure

The process by which a lender exercises its power of sale under a mortgage that is in default is known

condemnation

The process by which the government exercises its right of eminent domain

Special Warranty Deed

The seller will defend to through the seller's period of ownership, used by executors and trustees

Avulsion

The sudden loss of land due to the actions of water

Avulsion

The sudden loss of land due to the actions of water

secondary market

The———- exists for the purchase and sale of existing mortgages to investors.

Title by Descent

Title to real property held by those who inherited the property without a will

Quitclaim Deed

Used to fix a cloud on the title, having no guarantees, warrantees, or covenants

Gift Deed

Used to make a gift of property to a grantee who is usually a close friend or relative

Deed of Trust & Promissory Note

When the buyer closes, If the buyer is financing the property, the buyer will sign

Community Reinvestment Act (CRA)

ensure banks and insurance companies serve the needs of the community in which they were chartered to do business. It prohibits redlining.

Equal Credit Opportunity Act. ECO act

ensuring that all consumers are given an equal chance to obtain credit.

Probate

the official proving of a will

convenant

A binding agreement: A written agreement between two or more parties in which a pledge is made to perform specified acts with regard to property; usually, found in such real estate documents as deeds, mortgages, leases, and contracts for deed.

Special Warranty Deed

A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time, generally using the language, "by, through, or under the grantor but not otherwise."

compensation

Condemnation requires—————- by the government entity taking the property.

Title by Devise

Inheritance by will

reservation

Something retained by the seller; for example, minerals or life estate

TILA-RESPA

The Dodd-Frank Consumer Protection Act directed the Bureau to combine which two disclosures?

B

The T-47 Affidavit must be signed in the presence of a———-? (a) Broker (b) Notary (c) Surveyor (d) TREC committee advisor

General Warranty Deed

The best deed offering protection all the way to the sovereignty of the soil

absence of force

The key to determining whether a conveyance is voluntary is the....?

A & C

The major functions of a title company are: (A) Title Insurance (B) Authorize Payoff of Their Loan (C) Escrow Service

"The primary market

The market where buyers and mortgage lenders come together to create and negotiate a mortgage transaction is called?

Truth in Lending Act

The———-is a U.S. federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs.

SAFE Mortgage Licensing Act

The————. was designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed MLO and for the establishment of a nationwide mortgage licensing system and registry for the residential mortgage industry.

SAFE Act

This act is designed to enhance consumer protection and reduce fraud by ensuring that RMLOs receive training and are licensed or certified. It established the NMLSR.

Consumer Financial Protection Bureau (CFPB)

This agency is responsible for enforcing federal consumer financial law and has the authoritv to oversee banks, credit unions, and non-bank businesses related to mortgages, payday lenders, and private education lenders.

Abstract Title

Under this system of title, the purchaser does not receive a physical title.

D

When the seller closes, the seller will: (A) Sign a deed (B) Authorize Payoff of Their Loan (C) Provide Title Insurance (D) all of the above

C

Which of the following closings would be covered by RESPA? (a) An office building (b) A mobile home (c) A condominium (d) An industrial facility

A house purchased with financing

Which of the following transactions is regulated by RESPA?

Section 8

Which section of RESPA prohibits kickbacks, unearned fees, and referral fees?

Section 10

Which section of RESPA sets limits on the amounts a lender may require a buyer to put in an escrow account for taxes and insurance?

Title Theory State

actual transfer of ownership from the borrower to the lender.

front-end ratio

compares the total annual PITI expenditures for housing with the loan applicant's gross annual income to assess the borrower's ability to pay the mortgage

back-end ratio

compares the total of all monthly PITI expenditures plus auto loans and other debts with gross monthly income

condemnation

compensation by the government entity taking the property.

Holographic Will

handwritten will

FHA (Federal Housing Administration)

mortgage insurance program that protects the lender from loss in the event of default by the borrower by insuring the full amount of the loan.

Quitclaim Deed

transfers only whatever interest the grantor has in the property and does not warrant that the grantor has any interest

Correspondent Lender

————— are small lenders who have the funds necessary to extend loans at their own risk, usually selling their loan larger wholesale lender.

Underwriting

————— is the process of approving or denying a loan based on an evaluation of the property, the applicant's creditworthiness and ability to repav the debt.