P3-90 quiz

1. Question

Which statement best defines ABANDONMENT in real property?

A) Leaving a property vacant for more than 30 days.

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B) Voluntary relinquishment of all right, title, claim and possession, with the intention of not reclaiming it.

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C) Loss of property due to unpaid taxes.

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D) Transfer of title to a lender through foreclosure.

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2. Question

In the glossary, what does ABATEMENT refer to?

A) An increase in a property’s assessed value for tax purposes.

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B) A permanent reduction in the loan’s interest rate.

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C) A waiver of the loan’s prepayment penalty.

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D) The suspension or cessation in whole or in part of a continuing charge, such as rent.

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3. Question

Which choice best describes ABSOLUTE TITLE?

A) Title that is exclusive to the person who has it, with no other right, interest, or claim in the same property.

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B) Title held by two or more owners as joint tenants.

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C) Title subject to an outstanding tax lien.

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D) Title that is contingent on the approval of a lender.

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4. Question

What is an ABSTRACT OF TITLE?

A) The legal description of a parcel prepared by a surveyor.

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B) A title insurance policy insuring against future defects.

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C) A written history of title transactions or conditions bearing on the title to a parcel, summarizing all subsequent instruments of public record.

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D) A summary of a borrower’s credit history.

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5. Question

Who is an ABUTTING OWNER?

A) Any owner within the same subdivision.

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B) An owner of land which abuts or adjoins another parcel.

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C) A tenant who occupies a neighboring property.

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D) A lender holding a lien on adjacent property.

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6. Question

What does an ACCELERATION CLAUSE in a mortgage most commonly provide?

A) The right to prepay the loan without penalty.

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B) Automatic reduction of the interest rate after five years.

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C) Conversion of a fixed-rate loan to an ARM.

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D) That the entire principal becomes immediately due and payable in the event of default.

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7. Question

In real property law, what does ACCESS (EASEMENT OF) mean?

A) The right of the owner of land adjoining a road or highway to go and return from the land to the highway without obstruction.

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B) The right to cross any neighboring property at will.

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C) The right to park vehicles on a public street indefinitely.

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D) The right to build a structure over a public sidewalk.

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8. Question

What is an ACCIDENT AND HEALTH PREMIUM in connection with a mortgage?

A) A premium for standard homeowners insurance.

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B) A premium for private mortgage insurance (PMI).

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C) An insurance premium paid monthly that insures payment of the mortgage if the borrower becomes disabled.

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D) A life insurance premium that pays off the loan at death.

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9. Question

Which option best describes ACCRUED INTEREST?

A) Interest paid in advance at closing.

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B) Interest earned for the period of time that has elapsed since interest was last paid.

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C) Interest forgiven by the lender at payoff.

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D) Interest that will not be charged until the final year of the loan.

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10. Question

In the law of contracts and descents, to ACQUIRE property means to:

A) Lease the property from another owner.

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B) Place a lien on the property.

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C) Appraise the property for tax purposes.

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D) Become owner of property; to make property one’s own.

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11. Question

Which of the following is the correct definition of an ACRE?

A) 43,560 square feet; 4,840 square yards; 160 square rods.

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B) 40,000 square feet only.

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C) 50,000 square feet.

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D) 10,000 square feet.

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12. Question

What is meant by ADD-ON INTEREST in an installment loan?

A) Interest charged only on the declining balance of the loan.

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B) Interest charged only during the final year of the loan term.

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C) The full amount of interest calculated on the original principal for the loan term, added to principal as part of the face amount of the note.

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D) Interest that is waived if the loan is prepaid.

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13. Question

Which statement best describes an ADJUSTABLE RATE MORTGAGE (ARM)?

A) A mortgage with a fixed interest rate for the entire term.

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B) A mortgage that permits the lender to adjust its interest rate periodically based on a specified index.

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C) A mortgage in which the interest rate can only decrease over time.

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D) A mortgage that requires interest-only payments until maturity.

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