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

A mortgage is a real right over property that secures a debt. The debtor retains ownership and possession of the property, but the creditor has the right to have the property seized and sold if the debtor defaults on the obligation.

Question 2

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

Accepted Answer

Conventional mortgage

Answer

A conventional mortgage is created by contract between the parties. A legal mortgage is created by operation of law (e.g., in favor of a minor over the property of a tutor), and a judicial mortgage results from the filing of a money judgment.

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

The effect of recordation of a mortgage ceases ten years after the date of the act of mortgage. To continue its effect against third parties, the mortgage must be reinscribed by filing a notice of reinscription before the ten-year period lapses.

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 pact de non alienando is a contractual agreement by which the mortgagor agrees not to sell or encumber the mortgaged property to the prejudice of the mortgagee. This allows the mortgagee to proceed with foreclosure via executory process directly against the original mortgagor, even if the property has been sold to a third party.

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

Executory process is an accelerated foreclosure procedure. To use it, the creditor must have an act of mortgage in authentic form that contains a confession of judgment, which is the debtor's pre-emptive agreement to the entry of a judgment against them if they default.

LA Notary - Louisiana Notary Exam Practice Test

LA Notary - Louisiana Notary Exam Practice Test

Free LA-Notary Mortgages and Security Devices Questions and Answers