Real Estate Chapter 8-9

What is a binder?

• Used to verbally express intention to buy or sell property

• A short, temporary purchase contract until a more formal contract is developed

• A title title and deed

• A long binding purchase contract

What is a real estate lien note?

• Promissory Note

• Whole note

• Permission note

• Tax note

Which clause in the mortgage doesn't protect the lender?

• Acceleration Clause

• Condemnation Clause

• Independent Clause

• Acceleration Clause

How many parties are apart of a Deed of trust?

• 1

• 2

• 3

• 4

Which of the following is not included in the terms of a contract?

• possession

• loan condition

• buyer default

• insurance

What is the job of an real estate agent?

• to practice law

• to determine the business details of the transaction

• to remodel the home

• to determine the value of the home

Which of the following is not a covenant to a mortgage?

• pay taxes

• provide insurance

• make improvements

• keep premises in good repair

True or False: a single property can be used as collateral for more than one mortgage

• True

• False

True or False: a mortgage is a separate agreement from a promissory note

• True

• False

what is the order of debt priorities in the priority system?

• 1. 1. first mortgage/senior mortgage

  2. 2. second mortgage/junior mortgage

  3. 3. subordination

  4. 4. chattel liens

  5. 5. foreclosure/power of sale

• 1. 1. foreclosure/power of sale

  2. 2. chattel liens

  3. 3. subordination

  4. 4. second mortgage/junior mortgage

  5. 5. first mortgage/senior mortgage