Financing / Conveyancing Documents Flashcards
Contract of Sale
Binding contract between the seller and buyer promising to deliver deed
What is required for a contract of sale?
Requires property description, something about price, and parties’ names
What are the two ways an oral agreement will be enforced?
- Partial Performance
2. Estoppel
Partial Performance
Buyer moves onto the property before the deed changes hands or buyer pays part of the price upfront
Estoppel
buyer relies on the oral argeement and buys a lot of supplied to fix the property or forms contracts with others to work on property
Credit Quartet
- Interest Rate
- Term or duration of payment
- Amortization
- Amount of the purchase that is borrowed
Promissory Note
Buyers promise to pay the lender for the loan - pay certain amounts on certain dates. Must contain elements (1)unconditional promise to pay a certain amount on a certain date or on demand (2) Must be signed by the maker but does not need to confine payment to a specific payee
Acceleration Clause
Upon default lender can accelerate the indebtedness Acceleration allows for the entire note to become due on default so the lender can sue on the entire balance and not have to sue one late payment at a time.
Deed
An instrument in which the title legally is transferred from seller to buyer. It describes the estate that is conveyed, way in which it is held, and the limitations upon that grant.
Quitclaim Deed
Seller transfers whatever interest he has in the property to the buyer without making an gurantees about what that interest is
Elements of a Deed
- Granting Clause
- Property Description
- Grantee Clause
- Habendum
Granting Clause
Conveys property identifies the grantor
Property Description
Identifies the land conveyed by play reference, metes and bounds, or other description
Grantee Clause
identifies the recipients
Habendum
“to said grantees and their heirs” establishing the FSA
