Delivery of Deeds Flashcards
For a conveyance to be complete, there must be _______ ____ _____ _______ with the intent that it transfer title immediately.
delivery of the deed
For a conveyance to be complete there must be ______ of the ______ with the ________ that it ________ _______ ________.
delivery
deed
intent
transfer title immediately
________ can be to the grantee, or to an escrow agent to hold until payment is made.
Delivery
In order for a _____ _________ to be complete, the deed has to be delivered and you have to have the intent to transfer title immediately.
land conveyance
It is a lot like making a gift where you have to have the intent to make a present transfer.
Delivery of the deed
If you have an enforceable contract of sale and there is ______ ________ who happens to be the escrow agent of the grantor and the grantee the grantor cannot yank back the deed from the escrow agent.
escrow agent
If the __________ were to die before the escrow agent delivers the deed, then the delivery of the deed by the agent would be treated as if it _______ ________ the _______ ________.
grantor
occurred before the grantors death
To deliver a deed of land, it is _____ ______ _____ ____ _____ ____ _____ ________ to the grantee.
not necessary that the deed be handed over
“To ______ a ______ ____ ______, it is not necessary that the deed be ‘handed over’ to the grantee.
deliver a deed of land
__________ means no more than an act that evinces an intent to be immediately bound by a transfer.
delivery
Delivery means no more than an act that evinces an ______ to be ________ _______ by a _______.
intent
immediately bound
transfer
__________ can be physically handing over the deed, but it can also be the grantor’s declaration, express or implied, that he is bound by his deed.”
Delivery
Delivery can be ________ _______ ______ _____ ____, but it can also be the grantor’s declaration, express or implied, that he is bound by his deed.”
physically handing over the deed
Delivery can be physically handing over the deed, but it can also be the ________ ________, ______ or ________, that he is bound by his deed.”
grantors declaration
express or implied
If a grantor intends to pass title to or future interest in the grantee now, there has been delivery even though possession may be postponed until the grantor’s death. (_______ ______ ________)
inter vivos transfer
If a _______ intends to pass title to or future interest in the _______ now, there has been delivery even though possession may be postponed until the grantor’s death. (Inter Vivos Transfer).
grantor
grantee
If a grantor intends to ______ ______ to or ______ ________ in the grantee now, there has been delivery even though possession may be postponed until the grantor’s death. (Inter vivos Transfer)
pass title
future interest
You give up some of your ______ ______ _____ you have made a valid transfer. Grun dad created a life estate in himself and gave a vested remainder to the son.
rights right now
You give up some of your rights right now you have made a valid transfer. Grun dad created a ______ ________ in himself and gave a _______ _______ to the son.
life estate
vested remainder
If the grantor intends that no interest should arise until death, _____ _______ ______ _______ has taken place and the deed cannot take legal effect at death because the grantor intended it to be a will. Instruments need to be executed with two witnesses in accordance with the Statute of Wills. (Transfer at Death)
no delivery during life
If the grantor intends that no interest should _______ ______ ______, no delivery during life has taken place and the deed cannot take legal effect at death because the grantor intended it to be a will. Instruments need to be executed with two witnesses in accordance with the Statute of Wills. (Transfer at Death)
arise until death
If the grantor intends that no interest should arise until death, no delivery during life has taken place and the deed _______ take legal effect at death because the grantor intended it to be a _______. Instruments need to be executed with two witnesses in accordance with the Statute of Wills. (Transfer at Death).
cannot
will
If the grantor intends that no interest should arise until death, no delivery during life has taken place and the deed cannot take legal effect at death because the grantor intended it to be a will. Instruments need to be executed with _____ ________ in accordance with the Statute of Wills. (Transfer at Death)
two witnesses
Grun, we had a valid ______ but in Rosengrant we did not have a valid ________.
gift
transfer
A ________ physically handed over to a grantee and then immediately given to the grantor’s agent, to hold until the death of the grantor, does not constitute a valid delivery of the deed.
deed
A deed physically handed over to a grantee and then immediately given to the grantor’s agent, to hold until the death of the grantor, does not constitute a ______ ________ of the _______.
valid delivery of the deed
A deed physically handed over to a grantee and then immediately given to the grantor’s agent, to hold until the ______ of the grantor, does not constitute a valid delivery of the deed.
The Court seeks to preserve and promote the anti-fraud mechanisms present in the ______ _____ __________ (witnessing requirements).
death
statute of wills
Where a grantor delivers a deed under which he reserves a right of retrieval and attaches to that delivery the condition that the deed is to become operative only after the death of the grantors and further continues to use the property as if no transfer had occurred, the grantor’s actions are nothing more than an attempt to employ the deed as if it were a will.
True or False
True
Where a grantor delivers a deed under which he _________ a _______ of ________and attaches to that delivery the condition that the deed is to become operative only after the death of the grantors and further continues to use the property as if no transfer had occurred, the grantor’s actions are nothing more than an attempt to employ the deed as if it were a will.
reserves a right of retrieval
Where a grantor delivers a deed under which he reserves a right of retrieval and attaches to that delivery the condition that the deed is to become operative ________ ______ the ________ of the _______ and further continues to use the property as if no transfer had occurred, the grantor’s actions are nothing more than an attempt to employ the deed as if it were a will.
only after the death of the grantors
The Mortgagor is the bank giving the loan. True of False.
False.
Mortgagor is the borrower.
Mortgagee is the bank.
Lender
Mortgagee
Borrower
Mortgagor
Borrower gives Lender a note and a mortgage to get the money she needs to buy her home. True of False.
True
_________ gives ________ a note and a mortgage to get the money she needs to buy her home.
Borrower
Lender
Borrower gives Lender a ______ and a ________ to get the money she needs to buy her home.
note and mortgage
Note:
creates personal liability but is unsecured
_______: creates personal liability but is unsecured
note
_________: allows the Lender to sell (at a private sale or a judicially supervised sale, depending on the jurisdiction) the property and apply the proceeds to the amount owed in the event of the borrower’s default.
mortgage
Mortgage: allows the ______ to sell (at a private sale or a judicially supervised sale, depending on the jurisdiction) the property and apply the proceeds to the amount owed in the event of the borrower’s default.
lender
Mortgage: allows the lender to sell (at a ______ _______ or a ________ _________ _______, depending on the jurisdiction) the property and apply the proceeds to the amount owed in the event of the borrower’s default.
private sale
judicially supervised sale
Bank is the same as the _______ which is also the _________.
lender
mortgagee
________ is the mortgagor - ______________ is going to sign a note and the mortgage document to get the money they need from the bank.
borrower
borrower
Borrower is the mortgagor - borrower is going to sign a _______ and the _________ document to get the money they need from the bank.
note
mortgage
The bank has the borrower execute a note and a mortgage because they do ________ things.
different
The _______ says that the bank is giving the borrower 400K to buy the house and if they don’t pay that back the bank can go after the borrower.
note
The _________ essentially puts the house up as collateral for the loan and it allows the lender to sell the house at a foreclosure sale if the borrower defaults.
mortgage
The mortgage essentially puts the house up as collateral for the _______ and it allows the lender to sell the house at a _________ ______ if the borrower _______.
loan
foreclosure sale
defaults
The foreclosure sale might be either:
1.
2.
- private sale
- judicially supervised sale
depending on where you are.
The money obtained from the sale. First, the ________ of the sale are paid then the money goes to the _______ that holds the _______ ________ and if only 1 lender, then if there is any _____ it should go back to the borrower.
expenses
bank
first mortgage
equity
Unfortunately, the house doesn’t sell for the same amount that is owed 400K and only sells for 350$. The bank gets the other from the note. They would pursue a ________ ________ against the borrower and that judgment could be collected through garnishment of wages – money taken out of the borrowers check or in some instances creditors are able to use the assistance of the sheriff to levy and the sheriff goes and gets stuff from the borrower’s house and the stuff is sold to satisfy the debt.
deficiency judgment
Unfortunately, the house doesn’t sell for the same amount that is owed 400K and only sells for 350K. The bank gets the other from the note. They would pursue a deficiency judgment against the borrower and that judgment could be collected through ________ of ______– – money taken out of the borrowers check or in some instances creditors are able to use the assistance of the sheriff to _______ and the sheriff goes and gets stuff from the borrower’s house and the stuff is sold to satisfy the debt.
garnishment of wages
levy
The equity of redemption expires at the foreclosure sale.
A. True
B. False
True
There are two redemption periods:
1. There is a __________ ________ right to redeem (oneself by bringing his/her payments up to date within a reasonable time) from the mortgagee called the equity of redemption. The mortgagee cannot ask the mortgagor to waive the equity of redemption. The equity of redemption is extinguished by the foreclosure sale.
- About ½ of the States have passed statutes that give the mortgagor the ________ ______ to buy back the property from the foreclosure sale buyer within a specified time period ranging from three months to two years. The statutory right of redemption does not become operative until the borrower’s equity is extinguished at a foreclosure sale.
judicially created
statutory right
There are two redemption periods:
1. There is a judicially created right to redeem (oneself by brining ______________________________________) from the mortgagee called the equity of redemption. The mortgagee cannot ask the mortgagor to waive the equity of redemption. The equity of redemption is extinguished by the foreclosure sale.
his/her payments up to date within a reasonable time
There are two redemption periods:
There is a judicially created right to redeem (oneself by brining his/her payments up to date within a reasonable time) from the mortgagee called the _______ ______ ________. The mortgagee cannot ask the mortgagor to waive the equity of redemption. The equity of redemption is extinguished by the foreclosure sale.
equity of redemption
There are two redemption periods:
There is a judicially created right to redeem (oneself by brining his/her payments up to date within a reasonable time) from the mortgagee called the equity of redemption. The mortgagee cannot ask the mortgagor to waive the equity of redemption. The equity of redemption is extinguished by the _______ _______.
foreclosure sale
There are two redemption periods:
About ½ of the States have passed statutes that give the mortgagor the _______ ______ to buy back the property from the ________ ______ buyer within a specified time period ranging from three months to two years. The statutory right of redemption does not become operative until the borrower’s equity is extinguished at a foreclosure sale.
statutory right
foreclosure sale
There are two redemption periods:
About ½ of the States have passed statutes that give the mortgagor the statutory right to buy back the property from the foreclosure sale buyer within a specified time period ranging from ________ ______ to _____ _________. The statutory right of redemption does not become operative until the borrower’s equity is extinguished at a foreclosure sale.
three months to two years
There are two redemption periods:
About ½ of the States have passed statutes that give the mortgagor the statutory right to buy back the property from the foreclosure sale buyer within a specified time period ranging from three months to two years. The statutory right of redemption does not become operative until the borrower’s equity is extinguished at a _____________ __________.
foreclosure sale
There are potentially two redemption periods depending on where you live.
Everywhere there is the __________ created right to redeem yourself, which means the right to bring your payments up to date and save your house. Keep it from being sold at the foreclosure sale. The bank is not supposed to ask you to waive your _______ _____ _______. That is a right that you are supposed to have. But that right gets extinguished at the foreclosure sale.
judicially
equity of redemption
Image a sale with a gavel and they bang the gavel and say sold, when they say sold the _______ ____ __________ is extinguished. BUT about half the states have a new type of redemption called a Statutory right which is born when the gavel drops.
equity of redemption
States that have Statutory Redemption the person who just lost their house at the foreclosure sale has the opportunity to ______ ___ ____ from whomever bought it for a period as determined by statute could be as short as three months or as long as two years.
buy it back
Timeline for Mortgages
1) ?
2)
3)
4)
5)
Mortgage
________ for _______:
1) Mortgage
2) Default
3) Notice of Default
4) Equity of redemption ceases at foreclosure sale.
5) Statutory right to redeem born at foreclosure sale.
timeline for mortgages
Timeline for Mortgages
1)
2) ?
3)
4)
5)
Default
Timeline for Mortgages
1)
2)
3) ?
4)
5)
Notice of Default
Timeline for Mortgages
1)
2)
3)
4) ?
5)
Equity of Redemption ceases at foreclosure sale
Timeline for Mortgages
1)
2)
3)
4)
5) ?
Statutory right to redeem born at foreclosure sale
The _____ is the number one seller of foreclosed homes.
bank
The statutory right of redemption starts at the foreclosure sale.
A. True
B. False
A. True
_________ ____ ________: here the deed is given to a person (neutral third party) to hold in trust to secure payment of the debt to the lender. If the borrower defaults, the trustee has the power to sell the land without going to court.
deed of trust
_______ _____ ______ _______: a power of sale provision in a mortgage gives the lender the ability to sell the property without going to court, similar to a deed of trust, which makes the foreclosure sale more expeditious and inexpensive
power of sale mortgage
Problem:
Purchase Price: $100,000
Bank 1st Mortgage: $75,000
Seller 2nd Mortgage: $15,000
Down Payment (borrower): $10,000
If the Buyer defaults, and the house sells for $50,000, how are the proceeds to be distributed?
Bank with the 1st mortgage they are always going to get the first 50K because they have first priority.
In __________ __________ the sale is supervised by the courts and because the sale is supervised by the courts the courts have a relative level of comfort that all of the notice provisions, etc. were complied with. This means if the foreclosure sell brings less money than is owed probably going to be easier to get a deficiency judgment because the court has supervised the sale and they feel comfortable that everything was done properly.
judicial foreclosure
A _______ ________ where you would pursue getting the balance of what is owed from the borrower.
deficiency judgment
Foreclosure by ____ _______you have the benefit of it happening faster and less expensive way courts will scrutinize them more. If you are seeking a deficiency judgment and you are a lender who has utilized foreclosure by private sale
private sale
Foreclosure by private sale you have the benefit of it happening faster and less expensive way courts will scrutinize them more If you are seeking a deficiency judgment and you are a lender who has utilized foreclosure by private sale
The court is going to make sure you dotted I and crossed T provided proper notice, otherwise it is going to be disinclined to grant you that deficiency judgment because
They may feel like you didn’t do it the right way, why should you get more money.
If the bank wants to be sure they can get a deficiency judgment against the borrower pursing a judicial foreclosure is probably the best route because the court feels good that everything was done the right way and they don’t mind issuing the deficiency judgment.
True
The ___________ role on __________ is that of a fiduciary. The mortgagee has a duty to exert every reasonable effort to obtain a fair price. The court further holds that the measure of damages where due diligence is lacking is the difference e between the sale price and a “fair” price (not fair market value). The Court remands for a reassessment of damages.
mortgagee’s
foreclosure
The mortgagee’s role on foreclosure is that of a _____________. The mortgagee has a duty to exert every reasonable effort to obtain a fair price. The court further holds that the measure of damages where due diligence is lacking is the difference e between the sale price and a “fair” price (not fair market value). The Court remands for a reassessment of damages.
fiduciary
The Court seeks to ensure that, in the context of ________________, the mortgagee neither acts in bad faith nor fails in exercising due diligence with respect to protecting and preserving the mortgagor’s equity in foreclosed property.
foreclosure
The Court seeks to ensure that, in the context of foreclosure, the ________ neither acts in _____ _______ nor fails in exercising ____ _________ with respect to protecting and preserving the mortgagor’s equity in the foreclosed property.
mortgagee
bad faith
due diligence
All jurisdictions adhere to the rule that mere inadequacy of the foreclosure sale price will not invalidate a sale, absent fraud, unfairness, or other irregularity. True or False.
True
Just because you got less money than you wanted, you can’t assume that it will invalidate the foreclosure sale because it won’t unless you’ve got fraud, unfairness, or other irregularities. True or False.
True
If the foreclosure sale is defective, what are the borrower’s remedies?
If the sale has not taken place yet, the borrower could get an injunction to set aside the sell.
- only people that don’t have to put up money.
- People might worry that they might not get good title.
- The bank will say you can buy it, or you cannot buy it, but we are not fixing anything.
What doest this refer to?
Why the mortgagee (bank) frequently the only bidder at a foreclosure sale .
If you take property “subject to the mortgage” you are not obligated to pay the mortgage, but you can lose the property if the bank forecloses.
A. True
B. False
Answer. A. True
When you are obligated directly to pay the bank under someone else’s mortgage that is called __________ _______ __________.
assuming the mortgage
It is better to take ________ _______ __________ because you know your money is going directly to the bank as long as you pay, they are not going to foreclose.
assuming the mortgage
If you take _________ to the ___________, you are paying a random person, and if that person doesn’t pay the bank you are just out of luck.
subject
mortgage
Taking ________ _____ ____ _________ is dangerous and a bad idea.
subject to the mortgage
