### Is a leasehold mortgage placed on the property itself? - [ ] Yes, it is placed on the actual property. - [x] No, it is placed on the leasehold interest of the tenant. - [ ] Both the property and the leasehold interest. - [ ] It depends on the agreement. > **Explanation:** A leasehold mortgage is specifically a lien on the leasehold interest of the tenant and not on the actual property itself. ### What is the primary security in a leasehold mortgage? - [ ] The building constructed on the property. - [x] The leasehold interest of the tenant. - [ ] The personal assets of the tenant. - [ ] The income generated by the property. > **Explanation:** The primary security in a leasehold mortgage is the leasehold interest the tenant holds under the long-term lease agreement. ### Who retains ownership of the land in a leasehold mortgage arrangement? - [x] The lessor (property owner) - [ ] The lessee (tenant) - [ ] The mortgage lender - [ ] The federal government > **Explanation:** The ownership of the land is retained by the lessor (property owner), while the mortgage is secured by the leasehold interest of the tenant. ### If a tenant defaults on a leasehold mortgage, what can the lender claim? - [ ] The entire property - [ ] The remaining lease payments - [x] The tenant's leasehold interest - [ ] None of the above > **Explanation:** If the tenant defaults on a leasehold mortgage, the lender can only claim the tenant’s leasehold interest. ### What duration of leases typically qualifies for leasehold mortgages? - [ ] Short-term leases - [x] Long-term leases - [ ] Month-to-month leases - [ ] Sub-leases > **Explanation:** Leasehold mortgages are typically associated with long-term leases, often spanning decades. ### Can a leasehold mortgage have priority over the ground lease? - [ ] Always - [ ] Never - [x] Only if specifically arranged - [ ] It depends on the jurisdiction > **Explanation:** A leasehold mortgage can only have priority over the ground lease if it is specifically arranged and agreed upon in a subordination agreement. ### When could a leasehold mortgage be in a subordinate position? - [x] When the lease was contracted before the mortgage - [ ] When the lease is shorter than the loan term - [ ] When the property is commercial - [ ] When the loan amount is less than $1M > **Explanation:** A leasehold mortgage would be subordinate to the lease if the lease was contracted before the mortgage agreement. ### Who is responsible for the repayment of a leasehold mortgage? - [ ] The lessor (property owner) - [x] The lessee (tenant) - [ ] Both the lessor and lessee - [ ] The lender > **Explanation:** The responsibility for repaying a leasehold mortgage lies with the lessee (tenant) who secured the loan. ### Why might a tenant consider securing a leasehold mortgage? - [ ] To pay for short-term expenses - [ ] To fund personal investments - [x] To finance property improvements or developments - [ ] To increase property taxes > **Explanation:** Tenants typically secure leasehold mortgages to finance property improvements or developments such as building constructions or significant renovations. ### What happens to a leasehold mortgage if the tenant sells their leasehold interest? - [ ] The mortgage is automatically terminated. - [x] The new leaseholder inherits the mortgage. - [ ] The lessor must pay off the mortgage. - [ ] The mortgage remains with the original tenant. > **Explanation:** If a tenant sells their leasehold interest, the new leaseholder typically inherits the leasehold mortgage obligations, subject to lender approval.