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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
TRUSTEE'S DEED
A deed issued after a foreclosure
26
DEED OF RECONVEYANCE
A deed issued by the trustee States loan is paid in full Gives all rights and privileges back to Trustor
27
EQUITABLE RIGHT OF REDEMPTION
Period in which a trustor can make up late payments on a note
28
Trust Deed ... clauses
Acceleration ... Alienation ... Foreclosure ... Prepayment ... Insurance ... Impound
29
ACCELERATION
In the event of realty default, whole amount of principal and interest may be declared due and payable at once
30
FORECLOSURE
Legal procedure whereby property used as security for debt is sold to satisfy debt in event of default
31
PREPAYMENT
Terms upon which Trustor may pay entire or stated amount of mortgage principal at some time prior to due date
32
INSURANCE
Indemnification against loss from specific hazard or peril
33
IMPOUND
Establishing account for purpose of paying annual tax and insurance bills without having to come up with lump sum
34
VENDOR/OWNER WILL CARRY (OWC)
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
VENDOR/OWNER WILL CARRY (OWC) components
Note or PMA ... Vendor ... Vendee ... Clause of a Purchase Money Agreement (PMA)
36
NOTE or PMA
Purchase money agreement Negotiable instrument on realty Owner carries loan, no lender
37
VENDOR
Must be the seller | Retains legal title only
38
VENDEE
MUST be the Buyer | Has equitable title and bundle of rights
39
PURCHASE MONEY AGREEMENT (PMA) ... clauses
Defeasance clause ... Equitable Right of Redemption ... Acceleration ... Alienation ... Foreclosure ... Prepayment ... Insurance ... Impound
40
DEFESANCE CLAUSE
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
EQUITABLE RIGHT OF REDEMPTION
A definite period in which a Mortgagor can make up late payments on mortgage
42
ACCELERATION
In the event of realty default, whole amount of principal and interest may be declared due and payable at once
43
ALIENATION
Balance of realty debt becomes immediately due and payable if property sold
44
FORECLOSURE
Legal procedure whereby property used as security for debt is sold to satisfy debt in event of default
45
PREPAYMENT
Terms upon which Mortgagor may pay entire or stated amount of mortgage principal at some time prior to due date
46
INSURANCE
Indemnification against loss from specific hazard or peril
47
IMPOUND
Establishing account for purpose of paying annual tax and insurance bills without having to come up with lump sum
48
BY WILL ... components
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
DEVISE
Giving of realty in valid will
50
Clauses in a Trust Deed - ALIENATION
Balance of realty debt becomes immediately due and payable if property sold without permission of the note holder
51
DEVISOR
The deceased person giving realty in valid will
52
DEVISEE
The name of the person receiving realty in a valid will
53
TESTATE
The name of the person who dies leaving a valid will
54
INTESTATE
The name of the person who dies without leaving a valid will
55
TESTATOR
The name of the male person who makes a valid will
56
By Will - TESTATRIX
The name of a female who makes a valid will
57
NUNCUPATIVE WILL
Oral will or "death bed" - usually not valid
58
HOLOGRAPHIC WILL
Will made without witnesses - usually not valid
59
VALID WILL
Will made with witnesses; witnesses are known to have given an attestation
60
ADMINISTRATOR
Male appointed by court to carry out affairs of testator/testatrix
61
ADMINISTRATRIX
Female appointed by court to carry out affairs of testator/testatrix
62
EXECUTOR
Male named in will to carry out instructions of Will
63
EXECUTRIX
Female named in will to carry out instructions of Will
64
BEQUEST/LEGACY
Gift of personal property in valid will
65
LEGATOR
Person giving personal property in valid will
66
LEGATEE
Person receiving personal property in valid will
67
CODICIL
Any change in valid will before death
68
HEIR
Person acquiring personal property or realty when ancestor dies intestate
69
LAW of DESCENT and DISTRIBUTION
Chain of inheritance established by each state when an ancestor dies intestate
70
DISTRIBUTOR
Person giving personal property or realty under the law of descent and distibution
71
DISTRIBUTEE
Person receiving personal property or realty under the law of descent and distribution

Real Estate (12 decks)

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