MRES Massachusetts Real Estate Salesperson Exam - Set 2 - Part 2
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 21: A buyer expects to gain ownership the moment a sales contract is signed, but learns that ownership actually transfers later when the deed is delivered. Until then the seller still holds what?
Question 22: A developer combines several adjoining small lots into one large parcel, and the assembled tract is worth more than the lots were separately. What is this added value called?
Question 23: A homebuyer obtains a new mortgage directly from a local bank that originates the loan. The market in which a borrower gets a loan from a lender is known as which market?
Question 24: After a bank makes home loans, it sells those loans to large investors so it can free up money to lend again. The market where existing loans are bought and sold is known as which market?
Question 25: At a closing the borrower signs two documents: one is the borrower's personal promise to repay the debt, and the other pledges the property as security. Which document is the promise to repay?
Question 26: A borrower pledges her home as security for a mortgage loan but continues to live in it and keep possession. The act of pledging property as collateral without giving up possession is called what?
Question 27: A study guide explains that in Massachusetts a mortgage gives the lender legal title to the property as security, while the borrower keeps the right to redeem. Which theory does Massachusetts follow?
Question 28: A mortgage contains a clause letting the lender demand the entire unpaid balance at once if the borrower defaults on the payments. Which clause is this?
Question 29: A mortgage includes a clause allowing the lender to demand full repayment if the borrower sells or transfers the property. Which clause is this?
Question 30: A borrower finishes paying off her mortgage, and a clause requires the lender to release its claim and return clear title. Which clause obligates the lender to do this?
Question 31: A loan agreement addresses whether the borrower may pay the balance off early and whether a fee applies for doing so. Which clause governs this?
Question 32: A lender compares the amount of a loan to the appraised value of the property securing it, expressed as a ratio. What is this ratio called?
Question 33: At closing a borrower pays the lender an upfront fee to permanently lower the interest rate on the mortgage. Each such fee equals one percent of the loan amount. What are these fees called?
Question 34: A buyer makes a small down payment on a conventional loan, so the lender requires insurance that protects the lender if the borrower defaults. Which type of insurance is this?
Question 35: A lender quotes a monthly housing payment that combines four parts: principal, interest, property taxes, and insurance. This combined payment is commonly abbreviated by which term?
Question 36: An owner's home is worth far more than the remaining balance on her mortgage, and the difference belongs to her. What is this difference called?
Question 37: Before approving a loan, an underwriter examines the borrower's income and existing debts to judge whether the borrower can afford the new payment. Which of the three Cs is being evaluated?
Question 38: A buyer signs a written instrument that states the loan amount, the interest rate, the payment schedule, and her unconditional promise to repay the lender. Which instrument has she signed?
Question 39: Massachusetts criminal law makes it an offense for a lender to knowingly charge interest and expenses exceeding a set annual rate, unless the lender notifies the Attorney General. This law addresses what?
Question 40: A borrower obtains a standard loan that is neither insured nor guaranteed by any government agency, relying instead on the borrower's creditworthiness and the property. Which type of loan is this?
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