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Question:

The holder of a note secured by a trust deed and entitled to the performance of the provisions in the trust deed is the ____

A beneficiary
explanation

The trust deed has three parties. The beneficiary is the lender entitled to the performance of the provision in the trust deed.

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Related Questions

The recipient of title to a property by deed is the ____

grantee.

Regardless of which type of deed is used (grant, quit claim, etc.), the person named as receiving title is the grantee.

Agent Seth is employed by Broker Rachel. Seth enters into an exclusive listing with a property owner to sell their property. At the same time, Agent Bethany, who is also employed by Rachel, works separately with a buyer to locate qualifying properties listed with other brokers. Agent Bethany shows her buyer a property that is the subject of an in-house listing. What does this do to Rachel’s agency status?

Rachel becomes a dual agent the moment Bethany’s buyer is exposed to a property that is the subject of an in-house listing.

When the agent of a buyer shows their buyer an in-house listing that is owned by the buyer’s employing broker, the broker becomes a dual agent. Here, the broker, through their agents, is concurrently representing both the buyer and the seller of the property the buyer is being exposed to. This relationship will be documented in the Agency Confirmation Provision included in transaction documents.

If the monthly rent on a particular duplex is $1,200 per month for each unit and the gross rent multiplier (GRM) is 12.5, what is its value?

$360,000.

The multiplier method for calculating a property’s value under the income approach has two steps when the multiplier is known, as is the case in this question.
Start by determining the total annual rents generated by an income-producing property.
$1,200 (rent per unit) x 2 (units) x 12 (months) = $28,800
Next, multiply the gross rents ($28,800) by the GRM given in the question
$28,800 (total rent) x 12.5 (GRM) = $360,000

A buyer enters into a purchase agreement with a seller conditioned on the buyer obtaining loan financing. The buyer contacts a lender who agrees to fund the loan. The buyer pays multiple points upfront to the lender. What does this do to the note rate on the mortgage?

The note rate will decrease and the principal amount will remain the same.

Points are a fee charged by a mortgage lender as prepaid interest. Payment of a point causes a reduction in the note rate on the mortgage. However, the payment of a point will have no effect on the principal balance of a mortgage. A point equals 1% of the amount of the mortgage.

The tenant who rents an apartment under a month-to-month rental agreement is the ____

lessee.

The tenant, regardless of the form of the rental or lease agreement, is known as the lessee.

Riley is hired to conduct an appraisal of a property. While analyzing the location of the property, Riley observes the property is situated behind other lots and is connected to the public street by a long and narrow driveway. This kind of lot is referred to as a (n) ____

Flag lot.

A flag lot is located behind other lots with a long and narrow access driveway to a public street. Thus, it resembles the shape of a flag with the road representing the pole and the lot representing the flag. Flag lots generally have a reduced value due to the lack of privacy that results from being surrounded by other homes. Flag lots also lack curb appeal. Similarly, answer Interior lot references a lot that is surrounded by lots on all three sides and does not feature a long driveway connecting it to a public street. An interior lot is the most common type of lot, and is usually rectangular in shape.

Martha is the escrow officer overseeing the closing of a purchase transition involving Seller Jason and Buyer Lena. A dispute arises between Jason and Lena regarding repairs agreed to be made to the property by Jason. Escrow fails to close. No mutually agreed to instructions are given to Martha concerning the disbursement of the funds in escrow. What should Martha do with the deposit held in escrow?

Deposit the funds with the court.

Unless escrow receives mutual instructions to disburse the funds held in escrow when escrow fails to close, escrow is to deposit the funds with the court. This relieves escrow of any further responsibility to account for the funds, called an interpleader. Thus, escrow can close out its trust account on this escrow file.

At the close of escrow for the sale of a property, the title insurance company obtained transfer tax stamps for the purchase price of $387,600. How much was the transfer tax charged?

$426.80.

At the close of escrow, a tax is paid to the county as part of the recording process. The basic tax rate is $0.55 per $500. For this problem, first determine the rate per $1,000.
$0.55 x 2 = $1.10 per $1,000
Remember, transfer tax is charged by rounding up to the next $500 increment. Therefore, in this problem, the value is rounded up to $388,000. Since the tax rate will be calculated on a per $1,000 basis, divide the rounded sales price by 1,000.
$388,000 / 1,000 = $388
Next, multiply this total by the $1.10 transfer tax stamp rate.
$388 x $1.10 = $426.80

An experienced salesperson arranged an employment contract calling for a 70/30 split of any commissions received. The salesperson completed a sale representing both the buyer and seller. The sales price was $650,000. The escrow instructions called for a 5% fee paid to the broker. How much did the salesperson receive from their broker?

$22,750.

In the second commission problem, the total fee paid to the broker is 5% of the sales price.
$650,000 x 0.05 = $32,500
In this scenario, the more experienced salesperson earned 70% of the $32,500 fee and represented both the buyer and the seller.
$32,500 x 0.7 = $22,750

Michael is hired to conduct an appraisal of a residential property. The neighbor’s property recently sold for $445,000. The neighbor’s house is of a similar age, size and condition as the owner’s house, except it has a fireplace worth $5,000 which the owner does not have. Adjusting for the difference in the improvements (the fireplace) between the owner’s and neighbor’s house would establish the value of the owner’s house at $440,000. This is an example of what appraisal approach?

Market comparison approach.

The market comparison approach is the most commonly used approach to establish the fair market value (FMV) of real estate. Applying the market comparison approach, the appraiser looks at the current selling prices of similar properties to help establish the comparable value of the property being appraised. Adjustments are made for any differences in the similar properties, such as amenities.

Palmer purchases and occupies a single family residence (SFR) as his primary residence. Seven years into his ownership, the city constructs a freeway two blocks away from his house. The new freeway increases traffic congestion in the area. Further, Palmer is able to hear the sound of the freeway while in his backyard. What is this situation an example of?

Economic obsolescence.

Economic obsolescence is a loss in value of a property due to external factors and not due to the condition of the property itself. In this question, the construction of the freeway close to the owner’s house — an external factor — contributed to a loss in the value of the property. Answer Functional obsolescence relates to a loss in the property’s value due to outdated style or non-usable space. Answer Physical deterioration refers to a loss in the property’s value due to wear and tear, which is not referenced in the scenario of the question.

Harvey has been hired to conduct a survey of raw land located outside of the city center. Public utilities have yet to be connected to the land. The land is a quarter of a section. How many acres is it?

160.

Under the Public Land Survey System (PLSS), a township contains 36 sections. A section contains 640 acres — nominally one square mile. A quarter section contains 160 acres. Note the question comments on the lack of public utilities. This comment has no relation to the answer and is included as a distraction. Ultimately, it is purely about the conversion of a section to an acre equivalent.

Samson would like to purchase a newly built home that is close to good schools for his children. He locates a two-story property that features a brick and wood façade. A kitchen and family room are located on the first floor. Multiple bedrooms are contained on the second floor. What property style best describes the house being considered by Samson?

Colonial.

The question describes a colonial style home — one of the most popular styles homes in the United States. Answer Ranch is only one story. Answer Contemporary refers to a wide range of homes built in recent decades. The contemporary style tends to feature open floor plans and concentrate on simple forms, free of elaborate ornamentation. Answer Walk-up refers to a multi-story apartment complex that doesn’t contain an elevator, and thus is the least appropriate of the answer selections.

Architect Franklin is studying a document related to the construction of a neighborhood. The documentation shows how the tract of land is divided into designated lots. It also displays the boundary and size of each lot of the development, as well as nearby streets and recorded easements. What type of document is Franklin most likely looking at?

A plat map.

A plat map shows how a tract of land is divided into lots. It also displays the size, boundary locations, nearby streets, flood zones, easements and rights of way which relate to the project. Answer. a plot plan is a tempting red-herring. A plot plan shows where a building and other site improvements will be located on an individual lot. In terms of scale, a plat map relates to a whole neighborhood or development. A plot plan refers to a single property.

An appraiser is hired to appraise a single family residence (SFR) in an older community. The appraiser observes an abandoned industrial plant next door with large tanks for the storage of chemicals and is concerned about contaminants. Of the following choices, which is the appraiser most likely to recommend first?

A toxic waste report from the environmental protection agency (EPA).

An appraiser ought to be primarily concerned about whether the property has been contaminated by a leak in any of the chemical storage tanks. A leak of chemicals poses serious health concerns for occupants of neighboring properties, and greatly impacts the value of the property being appraised. Here, a toxic waste report from the environmental protection agency (EPA) is the best way to acquire this information.