A typical outline for questions covering “Settlement or Transfer of Ownership” on the Real Estate exam includes:

Ø       Sources of financing (institutional, seller financing, loan assumption, other sources of financing.

Ø       Types of loans (security for loans, repayment methods, forms of financing, secondary mortgage markets, other types of mortgage loans).

Ø       Terms and conditions for financing (loan application requirements, loan origination costs, lender requirements, conditional approval, provisions of federal regulations).

Ø       Common clauses and terms in mortgage instruments (prepayment, interest rates, release, due on sale, subordination, escalation, acceleration, default, foreclosure and redemption rights, non-recourse provision, rescission).