RE Finance CH12

A lien led by contractors due to the failure of an obligated party to pay for work of improvement is a c. mechanic’s lien.
The payoff of a construction loan is normally accomplished through a. a take-out loan.
In a ve-draw construction loan pay- ment schedule, mechanic’s liens are considered in (hint: see Figure 12.2) b. draw 5
The system of disbursements of construction funds upon presentation of receipted bills by contractors is called a b. voucher.
An agreement between borrower and permanent lender relative to future delivery of a take-out loan upon completion is called a c. take-out commitment.
A contract between borrower, contractor, and lender establishing the obligations and duties of each party during the period of construction is a b. building loan agreement
A construction loan may lose rst-lien position to mechanic’s lien claimants by c. eithercommencement of work prior to recording of a construction loan,commencement of work prior to recording of a combination loan
The largest number and volume of interim construction loans are generally made by a. local institutions.
The document that is led by the owner after a project is substantially completed is a d. Notice of Completion.
When a mechanic’s lien is led against a property, the threat of loss of title rests with the c. owner
The costs of a construction loan to a borrower are greater than a regular purchase money loan because d. the lender has more overhead and greater risks.
In California, construction loans can- not be made d. none of the above is correct.
The amount of a construction loan b. normally is paid out in various stages.
A subordination clause in a deed of trust is most likely to be found in the case of d. land loans
If a developer has signed a deed of trust covering all the lots in a subdivision, he or she will find that partial releases a. cannot be required unless provided for specifically in the deed of trust.
Which document separates a regular real estate loan from a construction loan? a. building loan agreement
Which of the following is a direct result of Proposition 13? d. Mello-Roos Community Facilities Act
A partial release clause is usually used in connection with a b. blanket loan
Major alterations to a rental housewere contracted for by the tenants.To disavow themselves from possible mechanic’s liens against their property, the owners should le and post a c. Notice of non-responsibility
Another name for an interim loan is d. short-term loan.

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