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Real Estate > 3. Five (5) Ways To Obtain Realty > Flashcards

3. Five (5) Ways To Obtain Realty Flashcards

0
Q

CASH

A

Given deed on closing - should always obtain CLTA (California Land Title)

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1
Q

Five ways to obtain realty

A

Cash … Mortgage …Deed of Trust/Trust Deed

Vendor/Owner Will Carry (OWC) … By Will

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2
Q

MORTGAGE

A

Non negotiable security instrument on realty

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3
Q

LIEN THEORY

A

Used in Midwest, East, and Southern states
Law considers that a mortgage creates a lien against real property
pledged in the mortgage to secure payment of a debt

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4
Q

NOTE

A

Negotiable instrument on realty

Typically FHA, VA, or conventional conforming or non-conforming loans

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5
Q

MORTGAGOR

A

Becomes borrower payer, the one getting a loan on their realty from a lender

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6
Q

MORTGAGEE

A

Becomes a payer, the one giving a loan on the borrower’s realty

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7
Q

CLAUSES IN A MORTGAGE

A

Acceleration … Alienation … Foreclosure … Prepayment … Insurance … Impound … Defeasance Clause … Foreclosure (court Action) … Equitable Right of Redemption … Statutory Redemption Period

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8
Q

ACCELERATION

A

In the event of realty default, whole amount of principal and interest may be declared due and payable

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9
Q

ALIENATION

A

Balance of realty debt becomes immediately due and payable if property sold or transferred

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10
Q

FORECLOSURE

A

Legal procedure whereby realty used as security for debt is sold to satisfy debt

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12
Q

PREPAYMENT

A

Terms upon which Mortgagor may pay entire or stated amount of mortgage principal at some time prior to due date with or without penalty

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13
Q

INSURANCE

A

Indemnification on your realty against loss from specific hazard or peril

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14
Q

IMPOUND

A

Establishing an account for purpose of paying annual tax and insurance bills

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15
Q

DEFEASANCE CLAUSE

A

States when payments are completed, mortgagee removes lien by a satisfaction piece

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16
Q

FORECLOSURE (Court Action)

A

Allows the mortgagee to foreclose with a sheriff’s deed

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17
Q

EQUITABLE RIGHT of REDEMPTION

A

A definite period in which a Mortgagor can make up late payments on their realty

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18
Q

STATUTORY REDEMPTION PERIOD

A

Original Mortgagor may reclaim realty if full back payments are made within so many days after foreclosure (each state is different)

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19
Q

DEED OF TRUST/TRUST DEED … components

Security instrument on realty

A

Title Theory … Note … Trustor … Beneficiary … Trustee … Trustee’s Deed … Deed of Reconveyance … Equitable Right of Redemption …
Clauses in a Trust Deed

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20
Q

TITLE THEORY

A

Used in the far west states

Law considers that a trust deed conveys title of realty to a trustee until the note is paid off

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21
Q

NOTE

A

Negotiable instrument on realty

Typically FHA,VA, or conventional conforming or non-conforming loans

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22
Q

TRUSTOR

A

Becomes borrower and payer, the one getting a loan on realty

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23
Q

BENEFICIARY

A

Becomes payee, the one giving a loan on realty

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24
Q

TRUSTEE

A

Impartial holder of title on a trust deed (title only)

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25
Q

TRUSTEE’S DEED

A

A deed issued after a foreclosure

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26
Q

DEED OF RECONVEYANCE

A

A deed issued by the trustee
States loan is paid in full
Gives all rights and privileges back to Trustor

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27
Q

EQUITABLE RIGHT OF REDEMPTION

A

Period in which a trustor can make up late payments on a note

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28
Q

Trust Deed … clauses

A

Acceleration … Alienation … Foreclosure … Prepayment … Insurance … Impound

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29
Q

ACCELERATION

A

In the event of realty default, whole amount of principal and interest may be declared due and payable at once

30
Q

FORECLOSURE

A

Legal procedure whereby property used as security for debt is sold to satisfy debt in event of default

31
Q

PREPAYMENT

A

Terms upon which Trustor may pay entire or stated amount of mortgage principal at some time prior to due date

32
Q

INSURANCE

A

Indemnification against loss from specific hazard or peril

33
Q

IMPOUND

A

Establishing account for purpose of paying annual tax and insurance bills without having to come up with lump sum

34
Q

VENDOR/OWNER WILL CARRY (OWC)

A

real estate purchased without a lender originated loan or cash
the following terms are synonymous and are the security instrument: Land contract
Installment contract
Contract for deed

35
Q

VENDOR/OWNER WILL CARRY (OWC) components

A

Note or PMA … Vendor … Vendee … Clause of a Purchase Money Agreement (PMA)

36
Q

NOTE or PMA

A

Purchase money agreement
Negotiable instrument on realty
Owner carries loan, no lender

37
Q

VENDOR

A

Must be the seller

Retains legal title only

38
Q

VENDEE

A

MUST be the Buyer

Has equitable title and bundle of rights

39
Q

PURCHASE MONEY AGREEMENT (PMA) … clauses

A

Defeasance clause … Equitable Right of Redemption … Acceleration … Alienation … Foreclosure … Prepayment … Insurance … Impound

40
Q

DEFESANCE CLAUSE

A

Notification clause in a mortgage
States when payments are completed, mortgagee removes lien
Removed by satisfaction piece
If Mortgagor defaults, mortgagee asks for foreclosure through court

41
Q

EQUITABLE RIGHT OF REDEMPTION

A

A definite period in which a Mortgagor can make up late payments on mortgage

42
Q

ACCELERATION

A

In the event of realty default, whole amount of principal and interest may be declared due and payable at once

43
Q

ALIENATION

A

Balance of realty debt becomes immediately due and payable if property sold

44
Q

FORECLOSURE

A

Legal procedure whereby property used as security for debt is sold to satisfy debt in event of default

45
Q

PREPAYMENT

A

Terms upon which Mortgagor may pay entire or stated amount of mortgage principal at some time prior to due date

46
Q

INSURANCE

A

Indemnification against loss from specific hazard or peril

47
Q

IMPOUND

A

Establishing account for purpose of paying annual tax and insurance bills without having to come up with lump sum

48
Q

BY WILL … components

A

Devise … Divisor … Devisee … Testate … Intestate … Testator … Testatrix … Nuncupative Will … Holographic Will … Valid Will … Administrator … Administratrix … Executor … Executrix …
Bequest/Legacy … Legator … Legatee … Codicil … Heir … Law of Descent and Distribution

49
Q

DEVISE

A

Giving of realty in valid will

50
Q

Clauses in a Trust Deed - ALIENATION

A

Balance of realty debt becomes immediately due and payable if property sold without permission of the note holder

51
Q

DEVISOR

A

The deceased person giving realty in valid will

52
Q

DEVISEE

A

The name of the person receiving realty in a valid will

53
Q

TESTATE

A

The name of the person who dies leaving a valid will

54
Q

INTESTATE

A

The name of the person who dies without leaving a valid will

55
Q

TESTATOR

A

The name of the male person who makes a valid will

56
Q

By Will - TESTATRIX

A

The name of a female who makes a valid will

57
Q

NUNCUPATIVE WILL

A

Oral will or “death bed” - usually not valid

58
Q

HOLOGRAPHIC WILL

A

Will made without witnesses - usually not valid

59
Q

VALID WILL

A

Will made with witnesses; witnesses are known to have given an attestation

60
Q

ADMINISTRATOR

A

Male appointed by court to carry out affairs of testator/testatrix

61
Q

ADMINISTRATRIX

A

Female appointed by court to carry out affairs of testator/testatrix

62
Q

EXECUTOR

A

Male named in will to carry out instructions of Will

63
Q

EXECUTRIX

A

Female named in will to carry out instructions of Will

64
Q

BEQUEST/LEGACY

A

Gift of personal property in valid will

65
Q

LEGATOR

A

Person giving personal property in valid will

66
Q

LEGATEE

A

Person receiving personal property in valid will

67
Q

CODICIL

A

Any change in valid will before death

68
Q

HEIR

A

Person acquiring personal property or realty when ancestor dies intestate

69
Q

LAW of DESCENT and DISTRIBUTION

A

Chain of inheritance established by each state when an ancestor dies intestate

70
Q

DISTRIBUTOR

A

Person giving personal property or realty under the law of descent and distibution

71
Q

DISTRIBUTEE

A

Person receiving personal property or realty under the law of descent and distribution

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