Deck 25: Mortgages of Land and Real Estate Transactions

Question 1

A mortgage that permits repayment of the debt at any time without notice or penalty is called

A) a conventional mortgage.
B) a closed mortgage.
C) an open mortgage.
D) an insured mortgage.
E) a partial mortgage.

Answer 1

C

Question 2

A mortgagee is the holder of the and the mortgagor the holder of the _ .

A) legal title; equitable title
B) foreclosure; redemption
C) equity of redemption; title
D) legal title; equity
E) equitable title; legal title

Answer 2

A

Question 3

A borrower who conveys the interest in land as security for a loan is called

A) a mortgagee.
B) a mortgagor.
C) a pledgor.
D) a lender.
E) a insured.

Answer 3

B

Question 4

A mortgagee is

A) an unsecured creditor
B) a subsequent creditor.
C) a general creditor.
D) a secured creditor.
E) a preferred creditor.

Question 5

A lender who accepts an interest in land as security for a loan is called

A) a insured.
B) a lender.
C) a pledgor.
D) a mortgagee.
E) a mortgagor.

Question 6

Upon a sale of property, the document that sets out the debits and credits that must be adjusted to arrive at the proper amount to be paid on closing is called the

A) requisitions.
B) draft deed.
C) charge/mortgage.
D) statement of adjustments.
E) charge.

Question 7

A creditor who has no security other than the debtor's promise to pay is

A) a preferred creditor.
B) a general creditor.
C) a mortgagee.
D) a secured creditor.
E) an preferential creditor.

Question 8

Under the land titles system, mortgages are referred to as

A) equitable guarantees.
B) charges.
C) pledges.
D) land rights.
E) equitable title.

Question 9

An interest in land recognized by the common law is

A) equity of payment.
B) the equity of redemption.
C) foreclosure.
D) a legal title.
E) an equitable title.

Question 10

The date for completing the sale of a real estate transaction is known as

A) the mortgage date.
B) the closing date.
C) the equitable date.
D) the discharge date.
E) the final date.

Question 11

An order by a court that ends the right of the mortgagor to redeem the mortgage within a fixed time is called

A) a writ.
B) a foreclosure.
C) an injunction.
D) the equity of redemption.
E) damages.

Question 12

A clause that states that in the event of a default, the whole amount of the principal of the mortgage, plus accrued interest immediately falls due is

A) an acceleration clause.
B) a demand payment clause.
C) a payment clause.
D) an immediate payment clause.
E) a quick payment clause.

Question 13

A conveyance of a interest in land as security for a debt, with the condition that if the debt is repaid the conveyance becomes void is called

A) a mortgagee.
B) a mortgage.
C) a mortgagor.
D) a pledge.
E) a security.

Question 14

Which of the following is not a typical stage in a real estate transaction?

A) the submission of requisitions by the purchaser's solicitor
B) acceptance of the offer
C) preparation of documents including a Statement of Adjustments by the seller
D) cleaning the premises
E) the submission of an offer to purchase

Question 15

Which of the following is not a covenant of the mortgagor?

A) to keep the property adequately insured in the name of the mortgagee
B) to keep the premises in a reasonable repair
C) to pay the taxes on the land the buildings
D) to pay the debt and accrued interest, at the stipulated times
E) to execute the necessary discharge of the mortgage upon payment in full

Question 16

The right of the mortgagee, given by a statute or the terms of the mortgage, to sell the property upon default is called

A) legal sale.
B) a power of sale.
C) sale by court.
D) an equitable right to sell.
E) an equitable sale.

Question 17

Michael misses a mortgage payment and receives a letter from the bank advising him that he owes $155,000 plus interest and costs. The bank has most likely

A) invoked the acceleration clause in the mortgage contract.
B) misrepresented Michaels position.
C) breached the mortgage contract.
D) made a mistake.
E) invoked an exemption clause in the mortgage contract.

Question 18

In a foreclosure, even after the final day for redemption, the mortgagee may successfully sue the mortgagor for the debt,

A) until the period prescribed in the Statute of Limitations runs out.
B) after the property has been sold to another party.
C) until the six month period has expired.
D) only if the mortgagor has sufficient funds to pay the debt.
E) until the one month period has expired.

Question 19

The right of a mortgagor to redeem the property upon the payment of the debt in full is called

A) the right in equity.
B) the equity.
C) the equity of redemption.
D) the foreclosure.
E) the equitable right.

Question 20

When there is a mortgage on land, the is the borrower, and the is the lender.

A) mortgage broker; mortgagor
B) debtor; land owner
C) mortgagor; mortgagee
D) creditor; bank
E) mortgagee; mortgagor

Question 21

What is a charge?

Question 22

In a real estate transaction, the offer to purchase is prepared by the vendor.

Question 23

Who is a general creditor?

Question 24

In a real estate transaction, the statement of adjustments is prepared by the purchaser.

Question 25

Under the land titles system, a mortgages is called

A) a Charge.
B) an equity of redemption.
C) a pledge.
D) mort.
E) a foreclosure.

Question 26

In a real estate transaction, the draft deed is usually prepared by the vendor.

Question 27

What is a mortgage?

Question 28

A second mortgage is a mortgage of the equity of redemption.

Question 29

A mortgagee is an unsecured creditor.

Question 30

Which of the following is not true regarding second mortgages?

A) A second mortgagee ranks behind the first in priority.
B) A second mortgage does not convey the legal title to the mortgagee.
C) A mortgagor who wishes to give a second mortgage can only give an interest in the equity of redemption.
D) A second mortgagee's interest is in the fee simple.
E) In the event of a default and sale of the property, the second mortgagee is paid to the extent that there is a surplus after paying of the first mortgage.

Question 31

If a mortgagee does not register the mortgage, the mortgagee:

A) cannot enforce the mortgage against the property if it is sold
B) loses the right to have a court supervised sale
C) loses the right to foreclose on the property
D) loses the right to sue the mortgagor
E) all of the above

Question 32

Which of the following is not true regarding a Charge and Mortgage?

A) The remedy for a default under a Charge is the sale of the land that is charged.
B) Under the land titles system, mortgages are called charges.
C) A Charge is a lien upon the land.
D) A Charge is conveyance of the legal title.
E) A mortgage is the conveyance of the legal title as security for a debt.

Question 33

Under the land titles system, mortgages are referred to as charges.

Question 34

A mortgage is the money that a bank advances to a borrower to purchase a home.

Question 35

If a purchaser of property assumes an existing mortgage obligation of the vendor mortgagor, and the purchaser defaults on payments to the mortgagee, the mortgagee can:

A) sue the vendor mortgagor
B) sue the purchaser
C) take foreclosure proceedings against the land
D) A and B
E) A, B and C

Question 36

A third mortgage is a mortgage of the equity of redemption.

Question 37

An order by the court that ends the mortgagor's right to redeem within a fixed time is referred to as

A) pledge.
B) foreclosure.
C) equity of redemption.
D) acceleration clause.
E) redemption.

Question 38

A second mortgage is a mortgage of the fee simple.

Question 39

A discharge of a mortgage acknowledges that

A) the mortgage has reached maturity.
B) the mortgage debt has been paid off in full.
C) the mortgagee is prepared to renew the mortgage.
D) the mortgagor has assigned the mortgage to a third party.
E) the mortgage has been rejected by the mortgagee.

Question 40

The court orders that a foreclosing mortgagee is entitled to a court supervised sale. The land is sold, but the proceeds of sale are not enough to satisfy what is owed to the first mortgagee. The first mortgagee can sue the mortgagor for the shortfall.

Question 41

What is a reverse mortgage? Why might a reverse mortgage be an advantage to an older person?

Question 42

Where the vendor accepts an offer to purchase his or her property, what are five of the matters that the purchaser will have to investigate before closing?

Question 43

Distinguish between a first and second mortgage?

Question 44

Explain why mortgagee rarely take possession of homes in the event of a default.

Question 45

What is the equity of redemption and who does it benefit?

Question 46

What is an accelleration clause?

Question 47

What is the difference and relationship between a first and second mortgage?

Question 48

What are the basic terms included in an agreement of purchase and sale?

Question 49

Who is a mortgagee?

Question 50

What is an acceleration clause and what is its purpose?

Question 51

Explain the concept of a mortgage.