P3-90 quiz

1. Question

Which statement best defines ABANDONMENT in real property?

A) Leaving a property vacant for more than 30 days.
B) Voluntary relinquishment of all right, title, claim and possession, with the intention of not reclaiming it.
C) Loss of property due to unpaid taxes.
D) Transfer of title to a lender through foreclosure.

2. Question

In the glossary, what does ABATEMENT refer to?

A) An increase in a property’s assessed value for tax purposes.
B) A permanent reduction in the loan’s interest rate.
C) A waiver of the loan’s prepayment penalty.
D) The suspension or cessation in whole or in part of a continuing charge, such as rent.

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.
B) Title held by two or more owners as joint tenants.
C) Title subject to an outstanding tax lien.
D) Title that is contingent on the approval of a lender.

4. Question

What is an ABSTRACT OF TITLE?

A) The legal description of a parcel prepared by a surveyor.
B) A title insurance policy insuring against future defects.
C) A written history of title transactions or conditions bearing on the title to a parcel, summarizing all subsequent instruments of public record.
D) A summary of a borrower’s credit history.

5. Question

Who is an ABUTTING OWNER?

A) Any owner within the same subdivision.
B) An owner of land which abuts or adjoins another parcel.
C) A tenant who occupies a neighboring property.
D) A lender holding a lien on adjacent property.

6. Question

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

A) The right to prepay the loan without penalty.
B) Automatic reduction of the interest rate after five years.
C) Conversion of a fixed-rate loan to an ARM.
D) That the entire principal becomes immediately due and payable in the event of default.

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.
B) The right to cross any neighboring property at will.
C) The right to park vehicles on a public street indefinitely.
D) The right to build a structure over a public sidewalk.

8. Question

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

A) A premium for standard homeowners insurance.
B) A premium for private mortgage insurance (PMI).
C) An insurance premium paid monthly that insures payment of the mortgage if the borrower becomes disabled.
D) A life insurance premium that pays off the loan at death.

9. Question

Which option best describes ACCRUED INTEREST?

A) Interest paid in advance at closing.
B) Interest earned for the period of time that has elapsed since interest was last paid.
C) Interest forgiven by the lender at payoff.
D) Interest that will not be charged until the final year of the loan.

10. Question

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

A) Lease the property from another owner.
B) Place a lien on the property.
C) Appraise the property for tax purposes.
D) Become owner of property; to make property one’s own.

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.
B) 40,000 square feet only.
C) 50,000 square feet.
D) 10,000 square feet.

12. Question

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

A) Interest charged only on the declining balance of the loan.
B) Interest charged only during the final year of the loan term.
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.
D) Interest that is waived if the loan is prepaid.

13. Question

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

A) A mortgage with a fixed interest rate for the entire term.
B) A mortgage that permits the lender to adjust its interest rate periodically based on a specified index.
C) A mortgage in which the interest rate can only decrease over time.
D) A mortgage that requires interest-only payments until maturity.

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