FREE LA-Notary Mortgages and Security Devices Questions and Answers

Question 1

A mortgage is best defined as a:

Accepted Answer

Nonpossessory right created over property to secure the performance of an obligation.

Answer

Transfer of ownership of a property to a creditor as security for a debt.

Answer

Personal promise to repay a loan, evidenced by a promissory note.

Answer

Court order seizing property to satisfy a judgment.

Question 2

A mortgage established by a written agreement between a debtor and a creditor is known as a:

Accepted Answer

Conventional mortgage

Answer

Legal mortgage

Answer

Judicial mortgage

Answer

Tacit mortgage

Question 3

To maintain its effectiveness against third parties, a mortgage inscription must generally be reinscribed within what period of time from the date of the act?

Accepted Answer

10 years

Answer

5 years

Answer

20 years

Answer

30 years

Question 4

A clause in a mortgage that allows the mortgagee to foreclose on the property without making a subsequent owner a party to the lawsuit is called:

Accepted Answer

A pact de non alienando

Answer

A due-on-sale clause

Answer

A confession of judgment

Answer

An in rem clause

Question 5

For a creditor to use executory process to foreclose on a mortgage, the act of mortgage must contain which of the following?

Accepted Answer

A confession of judgment.

Answer

The signature of two witnesses and a notary.

Answer

A waiver of the homestead exemption.

Answer

A description of the property by municipal address only.

Question 6

Bank A records a mortgage on a property on June 1st. Bank B records a mortgage on the same property on June 15th. If the property is sold at a foreclosure sale, which bank has priority for payment from the proceeds?

Accepted Answer

Bank A, because its mortgage was recorded first.

Answer

Bank B, because its mortgage is more recent.

Answer

They share the proceeds proportionally.

Answer

The bank with the larger loan amount has priority.

Question 7

A person sells an immovable property to a buyer on credit, but the act of sale does not explicitly create a mortgage. What security device automatically arises in favor of the seller to secure the unpaid portion of the purchase price?

Accepted Answer

A vendor's privilege

Answer

A judicial mortgage

Answer

A chattel mortgage

Answer

A right of redemption