California Real Estate Practice Exam

The two primary documents dealing with payment of a loan are what?

1. The title and the lease

2. The mortgage or deed of trust and a promissory note

3. The eviction notice and the lease

4. The appraisal and the inspection report

The correct answer is: The mortgage or deed of trust and a promissory note

The title and the lease (A) are not primary documents dealing with payment of a loan. While the title is a document that shows ownership of a property, the lease is a document that outlines the terms of a rental agreement and does not involve payment of a loan. The eviction notice and the lease (C) are also not primary documents dealing with payment of a loan. An eviction notice is a legal document used to initiate the process of removing a tenant from a property and it also does not involve payment of a loan. The appraisal and the inspection report (D) are not primary documents dealing with payment of a loan either. An appraisal is a professional opinion of the value of a property, while an inspection report is a document that details the condition of a property. These documents may be requested when applying for a loan, but they do not specifically deal with the payment of the loan