California Real Estate Practice Exam

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Which two primary documents are involved in the payment of a loan?

  1. Warranty deed and title insurance

  2. Mortgage or deed of trust and a promissory note

  3. Lease agreement and bill of sale

  4. Credit report and mortgage application

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

A Warranty deed and title insurance would only be involved if the loan was for a real estate purchase. A lease agreement and bill of sale would not be involved in a loan payment, as they relate to renting and selling property. A credit report and mortgage application are part of the loan application process and do not involve the actual payment of the loan. The mortgage or deed of trust and promissory note are the two primary documents involved in the payment of a loan, as they outline the terms of the loan and the borrower's promise to repay it. Therefore, B is the correct answer.

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