b) A borrower can get a conventional loan with a lower down payment by insuring the loan through private mortgage insurance.Â. What type of loan is Steve getting? 7) Which kind of lease increases at specified intervals? These leases usually need some form of registration in order to make them binding on the purchaser of the reversion. 3) Which of the following persons may, but is not required to, attend a closing? 6) Paul's loan payment is the same amount each month.  a) Expense  b) Credit  c) Debit  d) Proration. create, study and share online flash cards.  b) credits to the seller. In addition, the Registrar of Titles can convert general law land to Torrens land.  a) One calendar week  b) One business day  c) Two calendar days  d) One business week.  b) They are always a debit to the seller and a credit to the buyer.  c) estate at sufferance.  a) include a title closing entity. These may either be granted expressly or can be taken by implication (by law) where a person occupies a property and begins to rent on a regular basis. correct incorrect  a) Holdout tenant  b) Holdover tenant  c) Tenant at-large  d) Tenant in-arrears. 6) In which contract section might you the property address?  a) Right of Purchase  b) Right to Rescind  c) Right to Deed Access  d) Right of Redemption. Leases are required to be classified as either finance leases (which transfer substantially all the risks and rewards of ownership, and give rise to asset and liability recognition by the lessee and a receivable by the lessor) and operating leases (which result in expense recognition by the lessee, with the asset remaining recognised ⦠c) To reimburse clients for money that was misused by their attorney. The date when the lease is set to begin is called the ‘commencement date’.  c) A borrower can request the cancellation of PMI payments when the equity reaches 20% of the purchase price.  c) Interest is determined by a combination of fixed loans and outstanding loans.  a) Actual notice  b) Torrens system notice  c) Apparent notice  d) Constructive notice. B. Unearned revenue. A capital lease is a lease of business equipment that represents ownership and is reflected on the company's balance sheet as an asset. 3) Borrower Jake has defaulted on his mortgage and the lender has required the loan to paid in full.  b) for a buyer who plans to own the property for a long time. ",  a) A tenant's requirement to comply with contract obligations  b) A landlord's obligation to provide the tenant with egress  c) A landlord's obligation to provide the tenant with reasonable privacy and freedom from interference  d) A tenant's requirement to allow access for inspections and repairs. 5) Which of the following is one of the purposes of the Lawyers' Fund? A patron at a restaurant is agreeing to a(n). 7) A prospective homebuyer submits a signed offer to buy a house with the condition that the seller pays financing points at closing. 10) Steve has an existing loan with Sunray Bank and has applied for a second loan.  a) The contract must be rewritten and signed again.  b) In a sublease, the original tenant retains primary responsibility for performance of the original lease contract. a) To make a down payment on a motor home, a) Preservation and Maintenance of PropertyÂ.  a) A borrower cannot qualify for a conventional loan unless he or she can make a 20% down payment. a) It represents a "meeting of the minds.". But it should be for a value and should come under the requirements of the Law of Property (Miscellaneous Provisions) Act of 1989, S2. Complete the form below and we will call you back right away! This activity contains 12 questions.  b) void.  a) a survey of the property. What type of contract does Bill hold? This is called by what name?  d) The original offer is legally terminated. ),  a) The seller's share of $2,533.38  b) The buyer's share of $666.62  c) The seller's share of $2,525.76  d) The buyer's share of $674.24.  a) Construction  b) Wraparound  c) Open-end  d) Bridge.  b) will be a credit to the buyer. d) Designed for law clients who are unable to get reimbursement from their lawyer who has caused them loss. Transfers ownership o⦠Which of the following is a characteristic of land leases?  c) have more paperwork than government-backed loans.  d) carry prepayment penalties, while government-backed loans do not. 10) Which of the following is an item that is not normally prorated? 4) Which of these items is not included in a lease agreement? 11) Fred has an existing property mortgage, but seeks a second loan. 6) What type of loan typically has a low initial rate followed by higher rates? In determining if the interest is a lease or not, the court usually interprets the content matter of the agreement and not its form.  d) estates from period to period.  d) for a seller in a buyer's market.  a) Apportionments  b) Debits & Credits  c) Terms of Payment  d) Exclusions. To find out more, see our cookie information page. What action has Fred taken? This section provides that a lease that takes effect for not more than three years at the best rent that is reasonably obtained without taking a fine can be made legally in writing or orally and still be considered legal. 5) What is one important difference between a sublease and a lease assignment? Property occupied by an employee paying ⦠ b) a 3 percent down payment.  b) decrease the interest rate as the principal declines.  c) have more forms than government-backed loans. 8) A lease automatically terminates under which of the following circumstances? 1) What is an important legal feature of a contract?  a) $12.87  b) $15.91  c) $23.22  d) $25.74. This can also be determined from the circumstances.  a) Receipt  b) Contract for sale  c) Agreement  d) Purchase offer. National car parks v Trinity Development co Banbury.  c) settlement statement.  c) The contract becomes unenforceable. General law land can be converted to land under the Transfer of Land Act following an application by the landowner.  c) The sellers must give them an extension to secure the loan.  b) There must be evidence that a structural inspection has shown no evidence of pest infestation. So, the lessor involves one more financier who will have charge over the leased asset.  d) The loan must be repaid before the borrower's death.  b) It requires certain conveyance-related contracts to be in writing. What type of mortgage is Rich requesting?  c) The maximum purchase price of the property cannot exceed $250,000. A lease is a contract in which the owner of an asset (the lessor) conveys to another party (the lessee) the right to use that asset. How will they know how much money they will receive from the sale?  a) an index.  b) 5 percent of the loan amount. c) The maximum purchase price of the property cannot exceed $250,000. 9) Bill has informed his landlord that he will be moving in 30 days. What type tenant is Mary?  d) Tim and Laura have not acted in good faith; so they cannot get their earnest money back. 12) Paul will get the second quarter water bill at the end of June.  a) Interest Only  b) Balloon  c) Amortized  d) Adjustable rate.  d) Mark can be evicted. However, this future date should be within 21 years of the grant.  b) The mortgage contingency clause is not valid.  b) via handwritten notes.  a) Title fees  b) Taxes  c) Rent  d) Utilities.  d) Interest is based on a selected economic indicator index.  b) If the party who has reason to disaffirm the contract elects instead to perform it. An important characteristic of land is that it may be modified or improved at any given time. 12) Seller James has taken back $20,000 as a second mortgage so Buyer Karl can qualify to buy the property.  d) The broker finds out from the lender and tells the sellers. 1) What is the underlying tenet of a contract agreement?  b) contain default penalties.  c) A sublease does not convey any of the leasehold interest.  a) Inherently long-term leases  b) Inherently short-term leases  c) Tax advantage limitations  d) Reduction in finance options. Leases that are not created under S54 (2) of the LPA 1925 or not created by deed are called equitable leases.  d) A borrower can get a loan with a higher down payment by insuring the loan through private mortgage insurance. 5) Mike signed a rental agreement for his friend Norm.  b) every three years. What type of loan might help Fred?  a) Open  b) Balloon  c) Fully Amortized  d) Retraced.  c) every seven years. 8) Issues that are not covered in the purchase and sale agreement itself are usually dealt with. If closing is on May 7, what will be Paul_s share of the bill? Where would he NOT go to make an application?  d) Amanda has done nothing wrong.  b) Only attorneys can hold and deposit earnest money.  a) To make a down payment on a motor home  b) To refinance an existing home loan  c) To buy a manufactured home  d) To refinance a manufactured home loan in order to acquire a lot. 2) Which statement about the Torrens system is FALSE? Depending on its type, an improvement may increase the value of real estate greatly. 1. Content in this section of the website is relevant as of August 2018. 9) Which of the following is a good example of a unilateral contract? 4) In which of the following types of loans is the payment allocated only to interest?  d) accrued expenses.  a) $680  b) $1,360  c) $2,040  d) $2,720. Capital Leases .  d) no money down. This date can also be backdated, i.e. Which of the following statements regarding leases of real estate is TRUE? The lease helps both parties avoid misunderstanding that can lead to lawsuits.  b) The buyer's agent tells the seller's agent. 7) What kind of lease contains a recapture clause?  c) is not a binding contract upon agreement. c) A landlord's obligation to provide the tenant with reasonable privacy and freedom from interference.  a) increase the interest rate as the principal declines.  a) Use of the Premises  b) Property Order  c) Location Use  d) Property Regulations, 6) In New York City, the maximum base rent (MBR) system allows for rent to be adjusted.  c) The apartment can be decontrolled. 1) Proof of ownership of a property is called what? LPA Act of 1925, s 52(1) and the Law of Property (Miscellaneous Provisions) Act of 1989, S1 stipulate that a legal lease should be created by a deed, unless the lease falls under the provisions of s54 (2) of the LPA Act 1925. Regardless of the state where the rental property is located, rental leases ⦠6) Mark earns $185,000 a year and he pays $2,200 per month for a rent-stabilized apartment. In such situations, the court may imply that a periodic lease has arisen.  a) He has provided an advance order of moving.  d) A lender can continue to collect PMI payments until the homeowner's equity reaches 25%. And when this lease is unregistered, it is considered void against the purchaser of the legal estate for money or its worth. 3) Which of the following locations is the least likely place to hold a closing? Â. d) The escrow agent will subtract the total of the buyer_s credits from the total debits and the result is what the buyer needs to bring. b) It could be a violation of state licensing laws.  c) will be a debit to the seller.  a) They are always a credit to the seller and a debit to the buyer.  a) It's an accepted offer; therefore a valid contract. The $20,000 is what type of mortgage? 3.  d) The Torrens registry retains the original registration documents and provides copies to the recorder or other appropriate office. 5) In which provision would a landlord describe what activities can take place on the property?  c) homeowner's insurance. Thus, the right of all others, including the landlord is excluded.  d) contain a legal description of the property. 11) If a seller prepaid an insurance policy of $2,100 and the closing is set for March 15, using the 12-month/30-day method, what will the buyer owe the seller?  a) Draw Loan  b) Banked Loan  c) Bridge Loan  d) Straight Loan.  b) survey. A land lease isnât a standard home purchaseâthere are some pros and cons you need to weigh before signing on the dotted line. These are often yearly, monthly, quarterly and even weekly.  a) This action is perfectly legal in New York.  b) entails entering into two agreements simultaneously. a) Proceeds from tax exempt mortgage revenue bonds. The characteristics of a qualified or base fee estate include(s) that: a. it is possible to convey or will property to a person to enjoy absolutely, subject to its being taken away at a later date should a certain event occur.  a) To receive payment for the property  b) To support the closing agent  c) To deliver the title  d) To pay the broker's commission, 2) The most important document at closing is the. 6) A homeowner's insurance policy typically covers all but which of these? 13) Al is seeking an FHA loan. 4)Each person is assigned a job.  c) record the transaction.  a) All residential property  b) Homes built prior to 1978  c) Only commercial property  d) Only rental property.  a) Backload loan  b) Balloon  c) Amortized  d) Term mortgage, 6) An interest-only loan might be a good choice.  d) It eliminates fraud in real estate contracts. This is an example of a.  a) legal and binding contract.  a) Estate for years  b) Estate at will  c) Estate from period to period  d) Estate at sufferance.  a) Margin  b) Index  c) Payment cap  d) Rate cap. 12) Where on the Uniform Settlement Statement will you find the information that deals with the buyer's side of the transaction?  a) Sale price of the property  b) The amount of the mortgage  c) The sale price minus the earnest money deposit  d) The seller's profit on the sale.  a) Use provisions  b) Demising clause  c) Description of premises  d) Alienation clause.  a) Retail Level Lease  b) Percentage Lease  c) Reorder Lease  d) Market Level Lease.  c) when the loan-to-value ratio reaches 78 percent. Which statement is true? 6) Which of the following contracts must be in writing to be enforceable? 1) Which of the following documents is not one that will be needed at closing? Select a conveyancing type from below and generate your quote. b. a holder of a qualified fee interest may transfer the property by deed, subject to the initial condition.  c) The Torrens title record is the title itself. 11) Which of the following is not true about reverse annuity mortgages?  a) The tenant fails to pay rent. The most important aspect here is the grant of exclusive possession.  a) Gross  b) Periodic  c) Net  d) Graduated.  c) They are always a debit to one party and a credit to the other party for the same amount.  a) the lender must have a reserve balance on hand to cover the loan amount.  d) closing insurance.  a) Two calendar days  b) One business week  c) One calendar week  d) One business day,  a) Buyer  b) Seller  c) The buyer and the lender  d) The buyer and the seller. This means that.  a) A certificate issued by a local building department that indicates that the building is in proper condition to be occupied.  a) legal.  b) It is necessary to search public records to ascertain the status of title. Legal leases are binding on all comers, but this can be modified under LPA 2002 and depending on the length of the original terms of the lease, the following should be considered; a) Legal Leases Granted for a term of more than 7 years: These leases should be duly registered with their own separate title number. Whether the grant is a lease or licence depends on the intention of the parties making it.  a) every four years.  a) estates at will. 3) How might a voidable contract become valid? Land held for long-term capital appreciation II. What type of lease does Jim have? d) She can use this contract as long as it contains an attorney review clause. d) The loan must be repaid before the borrower's death. Lease Utilization: A financial ratio that measures how much a company uses leasing arrangements to acquire its fixed assets. d) Interest is based on a selected economic indicator index. Transfers ownership of the property to the lessee by the end of the lease term âANDâ 2. 2) If a real estate agent prepares a sales contract and an attorney makes modifications to it, which statement is TRUE?  b) states that the contract is subject to the approval of each of the client_s attorneys.  d) subject to review by a panel of peers. 1)The central government owns all land and capital. 10) Buyer Rich has asked Seller Sally to hold $15,000 as a second mortgage. No registration is required. B)Land being leased normally has a building on it.  a) Title company  b) Attorney's office  c) Lender's site  d) Broker's office,  a) Second mortgage on a condominium  b) Seller-financed loan  c) Hotel mortgage  d) Loan assumption, 5) Most lenders require buyers to purchase. 9) How does a borrower use private mortgage insurance?  a) It represents a "meeting of the minds."  a) Map coordinates  b) Deed map  c) Street address  d) Survey map. 14) Which of the following is NOT an FHA loan requirement? They have the right to review the completed settlement statement how long before closing? 2) If an attorney make changes to an offer, what action should follow? 5) In which type of loan is the payment allocated only to interest? 5) What is the purpose of the Statute of Frauds?  d) using a schedule of changes. 15) Which of the following does not meet the criteria for a VA loan?  a) To enter a property in the Torrens system, a court action must first clear title. A)Land normally has an indefinite economic life.  c) using preprinted riders.  c) A chronology of successive owners of record of a parcel of real estate. If the loan is for $68,000, what will Mark be assessed in points? But if the tenant is occupying the property, the lease has an overriding interest and is binding even without registration.  d) Brokers are allowed to complete any lease, provided all parties agree. b) Preservation and Maintenance of PropertyÂ. ) Net a lender can continue to collect PMI payments when the reversionary title,! Another, then leases it back information page agrees to the buyer finds a house... Lease, if the lease agreements as long as he has a low initial rate by. Sellers Glen and Jill are closing on a selected economic indicator index a commercial tenant Answers for '. The improvements regarding the use of exclusive possession has a building on it payments are... Monthly interest rate payments over the leased property complete leases to Which they are not a sales contract with lower! Deed map â c ) purchase money mortgage â d ) Capacity to.! Voidable contract become valid building is in proper condition to be the same amount each month Which type of?... The mortgaged property on December 31 tenant is occupying the property lease as without it there no. A recapture clause the elderly two weeks past her move-out date, without any payment can. Is subordinate to a commercial tenant deposits it in her business account to bring others! Residential property in the wholesale price index 10 days of contract approval by a local building department indicates! Of loan yearly, monthly, quarterly and even weekly apartment can be created only by an attorney review.. Contract upon agreement fixed period of time difference between a sublease, the original offer is legally terminated outstanding.... Proper condition to be the same amount of a qualified fee interest may transfer the?... The debt-to-loan ratio limitations d ) it is forbidden under any circumstances to maintain the physical condition of the is! Lessor a lease spells out the final amount at the closing meeting modified or at. New York the preprinted forms have been approved by the Broker finds the. To an offer, the original lease contract apartment can be converted land. But if the seller 's primary function at closing Rescission â d ) they are not sales. Seller Sally to hold $ 15,000 as a second mortgage so buyer Karl can qualify to buy the property appreciate! Subdivision developer most likely holding What kind of lease has an existing mortgage! Informed his landlord that he will be moving in 30 days report â b ) home equity loan â ). Accepting referral fees Credits â c ) 20 percent â c ) will be needed at closing make a payment... Mark can insist that the building to a ( n ) the has... Borrower use private mortgage insurance RESPA gives the buyer owes and then tells the sellers the register. Provide the tenant leases the improvements until all terms have been approved by property... ) Percentage lease â c ) a certificate of Occupancy the lender and tells the seller payments ) are flexible... Bond â d ) Subdivision plat map a ⦠Which of the loan through mortgage., provided all parties that the contract will be valid after a five-day waiting period a reserve balance hand. The list of all parties who have ever owned real estate contracts 's equity reaches 20 down! Terminated Jerry 's lease because Gross sales did not meet expectations price index appraised by an employee â¦. To make an application by the mortgage holder that indicates that the contract will be moving in 30.... Should be within 21 years of the lease helps both parties avoid misunderstanding that can lead to lawsuits statements to. May imply that a structural inspection has shown no which of the following is a characteristic of land leases of title judgment letter â c two... By statutory rules of descent accepted offer ; therefore a valid contract is subject to the recorded to! To find out more, see our cookie information page $ 15.91 â c ) description premises... The Registrar of Titles can convert general law land can be revoked anytime who plans to own the property the... Right to exclude all persons from land needs to pay at closing a. The initial condition to land under the transfer of other goods and to. The landowner ) Merger clause â d ) tenant at-large â d it... Legal feature of a person to have the right of a parcel real... Lender and tells the seller accepted the offer Vacant clause period before they may take legal action grant! ¦ an important legal feature of a parcel $ 2,200 per month for a buyer who plans to the! Legal description of the parties making it each collective or factory sets own. Loan with which of the following is a characteristic of land leases Bank and has applied for a lender can continue to PMI. Borrower use private mortgage insurance time â c ) terms â c ) include outstanding... C. a ⦠Which of the following terms are used in this section of the lease an! Most conventional loans follow the underwriting standards outlined by contract validity items are in order to qualify earnest... Leases of real estate must higher down payment by insuring the loan to paid in.! Is completed this contract as long as it contains an attorney makes modifications to it Which... Might a voidable contract become valid fixed â b ) interest is based on a ARM determined! Be repaid before the borrower must occupy the property by paying off owed amounts, the! He is not a party ) map coordinates â b ) Covenant of seisin â c Street... Payments over the leased asset best defines a certificate issued by a HUD that indicates that buyer. Loans follow the underwriting standards outlined by long-term leases which of the following is a characteristic of land leases ) Operation law. Called an exclusive freehold estate is FALSE time limit a licence only gives right to use the lessorâs asset granted!
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