Gen Knowledge Need To Study

Question 1

What is conveyance?

Answer 1

When title transfers from owner to buyer

Question 2

What is reconveyance?

Answer 2

When borrower takes out loan they don’t have free and clear rights to the title. When they pay off loan, lender must reconvey property back to borrower

Question 3

What is pre payment penalty

Answer 3

Agreement with lender to keep loan for x amt of time or face penalty for early payoff through sale or refinance

Question 4

What is due on sale

Answer 4

Pay outstanding debt if you sell property

Question 5

What is demand feature

Answer 5

Lender demands full payment usually because of default

Question 6

Mortgage acceleration

Answer 6

Paying off loan faster then required by terms of mortgage agreement

Question 7

Exculpatory clause

Answer 7

Part of agreement that relieves one party from contract

Question 8

Defeasance clause

Answer 8

If borrower defaults on loan, this clause allows lender to take property without foreclosure

Question 9

Contract for deed

Answer 9

Complete finance agreement and sales contract in one document