Glossary of Ch. 48 Management 3540 Business law
Other Decks By This User
- Listing agreement
- An agreement with a realtor to be the seller's agent for the purpose of selling the property.
- Exclusive listing
- A seller of real estate gives realtor the exclusive right to sell property.
If seller finds the buyer, full commission is still owed to the realtor.
If seller changes mind after the buyer has been found, full commission is still owed.
- Cash on closing contract
- Purchase price is paid in full at closing; title is transferred immediately.
- Installment land contract or contract for deed
- Seller finances purchase and retains title and deed until consideration is paid in full.
- Grantor and grantee
- Grantor: transfers interest in land
Grantee: receives interest in land
- Warranty deed
- Title is guaranteed
- Quitclaim deed
- title is not guaranteed
- Requirements for a valid deed:
- Written deed transferring described property, signed, notarized and delivered.
- Fee simple absolute ownership interest
- Entire ownership of land
- Fee simple defeasible ownership interest
- Entire ownership, subject to a condition
- List the partial interests
- Right to use a portion of real estate without owning it
- Right to enter land and remove something from it
- Revocable, temporary right to use real estate
- Life estate ownership interest
- Right to exclusive possession of real estate based on the life of a specified person
- Future interest ownership interest
- An ownership interest in land which becomes tangible in the future
- Abstract of title and title opinion
- Summary of transactions pertaining to the land since title came from the government.
- Title opinion
- Lawyer's opinion on marketability of the title after examining abstract
- Title insurance
- Insurance company guarantees good title
- Parties in real estate financing
- Mortgagor: assigns a mortgage.
Mortgagee: receives and holds a mortgage
- Title theory
- title and possession in mortgage
- Lien theory
- Title and possession in mortgagor
- A lien on real estate where the mortgagee personally exercises foreclosure rights
- Deed of trust
- a lien on real estate where a third party, the trustee, exercises foreclosure rights.
- Requirements for a valid mortgage
- Signed, notarized, delivered writing, just as with deeds
- Open in mortgage (line of credit)
- Mortgage secures future advances
- Second mortgage
- Lower in priority and usually later in time than the first.
May also have 3rd and 4th mortgages
- Acceleration clause in a mortgage
- Allows declaration that entire balance is due if there is a default
- Due on sale clause in a mortgage
- Allows acceleration if interest in land is sold
- Power of sale clause in a mortgage
- Allows private foreclosure
- Points sale clause in a mortgage
- Loan origination fees where one point equals one percent of the loan amount
- Prepayment privileges in a mortgage
- Allows early payment without penalty
- Creditor's rights
Private or judicial foreclosure
Deficiency judgment- sue debtor for any unpaid balance
- Debtor's rights
- Equity of redemption- right to repurchase the real estate prior to foreclosure.
Statutory redemption- right to repurchase after foreclosure
Statutory notice of foreclosure sale- right to 20 day notice in both newspaper and mail
- List the priorities of mortgages and deeds
- Race statute
- Race statute
- First to record a mortgage or deed wins
- Notice statute
- One who has notice of another's interest prior to receiving an interest in the land cannot defeat the other's interest.
Recording is one way to prove interest
- Notice race
- First to record without notice of another's interest wins
You must Login or Register to add cards