Business Law Chapter 34

Equity increases as the owner pays off the mortgage and as the property increases in value.

• true

• false

The Veterans Administration guarantees loans to qualified veterans.

• true

• false

Title to real property passes to the buyer when the deed is recorded in the proper public office.

• true

• false

The government has the right to buy private land for public use, with or without the owner's consent.

• true

• false

An easement does not qualify as a property right.

• true

• false

The difference between market value and debt in the property is called

• easement

• equity

• interest

• escrow

The written instrument by which the borrower pledges real property to the lender as security for a loan is the

• general warranty deed

• purchase and sale agreement

• lease

• mortgage

A mortgage with a fixed interest rate and increasing monthly payments is a

• fixed-rate mortgage

• balloon mortgage

• graduated-payment mortgage

• variable-rate mortgage

A type of co-ownership in which a person's heirs inherit that person's share of a property is known as

• tenancy by the entirety

• tenancy in common

• joint tenancy

• adverse possession

A deed that transfers a seller's interest in property but does not warrant that the seller owns any interest is a

• general warranty deed

• mortgage deed

• quitclaim deed

• special warranty deed