Conveyancing/Recordables

Question 1

Promissory Note / Note

Answer 1

The “Note” is the promise to pay, it says that the borrower is using the house, and the land that it is on as collateral of the loan amount.

The closing agent will point out the Note amount, the Interest Rate, the date of first and final payment, along with the late penalty. Grace period for most notes is 15 days, payments are due on the 1st, and subject to a __% late fee after day 15.

Question 2

Mortgage

Answer 2

If the “Note” is the Promise to Pay, the Mortgage are the terms and conditions of what happen if you don’t -

Most Mortgages have the same standard Language, The mortgage gives the lender the judicial authority to foreclose in the event of non-payment, It also requires a borrower to have the property insured, with the lender being named as a loss payee on the HOI (Home Owner’s Policy, also referred to as Hazard Insurance) Mortgages have a Due on Sale clause, stating upon sale of the property, the mortgage needs to be paid off before any proceeds can be given to the fee holder.

Question 3

Warranty Deed

Answer 3

Instrument of Conveyance that conveys the highest rights of ownership. There are 5 Warranties that are implied with a Warranty Deed.