Understanding Liens on Property

what are liens against a property

• Liens are a type of insurance policy for homeowners.

• Liens are temporary permits for property renovations.

• Liens are agreements between landlords and tenants.

• Liens are money owed to something on a property

Answer explanation

Liens are legal claims against a property for money owed, often due to unpaid debts or obligations. This makes the correct choice "Liens are money owed to something on a property." The other options do not accurately describe liens.

what is a title research

• Title research involves assessing the physical condition of a property.

• Title research is the process of examining the legal ownership and history of a property title.

• Title research is a method for determining property value.

• Title research is the process of marketing a property for sale.

Answer explanation

Title research is specifically about examining the legal ownership and history of a property title, making it essential for understanding property rights and any potential claims against the property.

Most common types of home loans

• Fixed-rate mortgage, Adjustable-rate mortgage (ARM), FHA loan, VA loan, USDA loan

• Balloon mortgage

• Interest-only mortgage

• Reverse mortgage

Answer explanation

The most common types of home loans include Fixed-rate mortgage, Adjustable-rate mortgage (ARM), FHA loan, VA loan, and USDA loan. These options cater to various borrower needs and financial situations.

What is a cash buyer

• A cash buyer is someone who can buy a property without needing a mortgage.

• A cash buyer is someone who invests in stocks instead of real estate.

• A cash buyer is a person who only buys cash registers.

• A cash buyer is someone who buys properties on credit.

Answer explanation

A cash buyer is defined as someone who can purchase a property outright without needing a mortgage, making them a strong contender in real estate transactions. This distinguishes them from those who rely on loans or credit.

What are the main legal documents needed so you don't get sued for wholesaling.

• Bill of sale, loan agreement, property title.

• Lease agreement, partnership contract, insurance policy.

• Sales contract, rental agreement, warranty deed.

• Purchase agreement, assignment contract, disclosure statement.

Answer explanation

The correct choice, 'Purchase agreement, assignment contract, disclosure statement,' includes essential legal documents for wholesaling. These protect against lawsuits by ensuring clear terms and obligations in the transaction.

What is ARV when it comes to real estate

• After Repair Value (ARV)

• Annual Rental Value

• Average Real Value

• Asset Recovery Value

Answer explanation

ARV stands for After Repair Value, which is the estimated value of a property after it has been renovated. This term is crucial for real estate investors to assess potential profits from property flips.

What is a letter of intent

• A letter of intent is a formal contract that is legally binding.

• A letter of intent is a summary of a completed agreement.

• A letter of intent is a type of business invoice.

• A letter of intent is a document that expresses a party's intention to enter into a formal agreement.

Answer explanation

A letter of intent is not a binding contract or a completed agreement; rather, it indicates a party's intention to formalize an agreement in the future, making the correct choice the one that defines this purpose.

What is a investor

• A financial advisor who manages other people's investments.

• A person who only saves money in a bank account.

• Someone who avoids any financial risks.

• An investor is someone who puts money into financial schemes, shares, or property with the expectation of achieving a profit.

Answer explanation

An investor is defined as someone who puts money into financial schemes, shares, or property with the expectation of achieving a profit, making this the correct choice. The other options do not accurately describe an investor.

What are leads in real estate

• Leads in real estate are potential clients interested in buying, selling, or renting properties.

• Leads are the financial documents required for a property purchase.

• Leads refer to the real estate agents themselves.

• Leads are properties that are currently for sale.

Answer explanation

Leads in real estate refer to potential clients who are interested in buying, selling, or renting properties. This distinguishes them from financial documents, agents, or properties for sale.

What is MLS in real estate

• MLS in real estate refers to Multiple Listing Service.

• MLS refers to a property management service.

• MLS stands for Master Listing System.

• MLS is a type of real estate agent.

Answer explanation

MLS in real estate stands for Multiple Listing Service, which is a database that real estate agents use to share information about properties for sale. This option correctly defines MLS, unlike the other choices.