Which of the Following Statements Best Describes Rights of Redemption

question 59

Multiple Choice

Which of the following statements best describes rights of redemption?

• A) A second lender lends the owner the additional funds and agrees to take over the servicing of the first loan.
• B) Some states provide the mortgagor and certain other categories of interested persons the right to reacquire the property within a statutory limited period,ranging from two months to two years after the sale.
• C) In this legal process,a mortgagee puts a piece of property up for sale to the public to raise cash to pay off a debt owed by the mortgagor to the mortgagee.
• D) A lender advances the funds as the development-the acquisition and improvement of a commercial property-progresses.

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Definitions:

Incontestability Clause

A provision in insurance policies that prevents the insurer from disputing the policy's validity after it has been in force for a specific period, usually two years, except under certain circumstances.

Material Misrepresentation

A false statement of a substantial fact that induces someone to enter into a contract or transaction.

Insurance Application

A formal request for coverage, providing necessary information for underwriting to evaluate and issue a policy.

Arbitration Clause

A provision in a contract that requires parties to resolve disputes through arbitration rather than through the court system.