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Unformatted text preview: Legal Aspects of Real Estate Lesson 13 Cumulative Quiz 1. A lien is: A. a financial encumbrance and a nonpossessory interest 2. Which document makes a property collateral for repayment of a debt? A. Deed of trust B. Mortgage C. Promissory note D. Either A or B D 3. The lender in a deed of trust is the: A. beneficiary 4. What type of clause in a security instrument is necessary to be able to foreclose nonjudicially? C. Power of sale 5. A borrower fails to make a monthly payment on a mortgage. The lender demands that the borrower repay the entire loan balance immediately, pursuant to the: A. acceleration clause 6. A late payment penalty is allowed under state law only if the payment is how many days overdue? B. 10 7. A construction loan receives higher priority than the deed of trust used to purchase the land where the house will be constructed, despite the fact that the deed of trust was recorded first. The deed of trust must contain a/an: D. subordination clause 8. Which of the following is not related to a judicial foreclosure? A. Lis pendens B. Sheriff's sale C. Statutory redemption period D. Trustee's sale D 9. In California, a borrower has the right to reinstate a: A. deed of trust B. mortgageB....
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- Spring '11