Land Contracts

Question 1

Seller financed mechanism which allows the buyer (vendee) to assume possession and the seller (vendor) to retain legal title (security for the premises) to the premises until the buyer has paid all of the purchase price in regular installments during a fixed time period to the seller.

Answer 1

Land Contract

Question 2

Seller is the _______ in a land contract.

Answer 2

vendor

Question 3

Seller is the vendor in a ______ _________.

Answer 3

land contract

Question 4

The seller ________ _____ ______, and it gets paid in regular installments during a fixed period of time to the seller.

Answer 4

finances the property

Question 5

_____________ lot like eviction. If someone is 30 days late on their payment on a land contract, they are going to get evicted, and the money will be kept by the seller as liquidated damages they are not getting their money back.

Answer 5

forfeiture

Question 6

If they don’t pay under a land contract under traditional land contract law – _________.

Answer 6

forfeiture

Question 7

___________ is not a foreclosure sale. It’s just like you messed the contract up – get out

Answer 7

forfeiture

Question 8

When I sell the property to you, and you finance with the bank I have been paid in full, I am the seller, I leave the equation. Now the bank has a mortgage and if you don’t pay the bank, the bank forecloses at which point there is a __________ ________.

Answer 8

foreclosure sale

Question 9

The bank forecloses and there is a foreclosure sale, and the bank has to behave as a ________ on behalf of the borrower and they have to exercise good faith and due diligence.

Answer 9

fiduciary

Question 10

Goal of the__________ _______ is to make sure the bank gets paid back and if there is any equity to return that to the borrower.

Answer 10

foreclosure sale

Question 11

Sellers like ________ _________ because they retain legal title to the property through the whole land contract until the entire thing has been paid in full and they are getting large amounts of interest.

Answer 11

land contract

Question 12

Why would a purchaser want to utilize a land contract rather than a traditional mortgage?

Answer 12

Impediment could be the down payment.

Can’t get financing with the bank.

Question 13

_______ _________ were a way to become homeowner in an era where it was impossible.

Answer 13

land contracts

Question 14

Movement is away from traditional _________ and more toward __________.

Answer 14

forfeiture

foreclosure

Question 15

If a forfeiture would result in the inequitable disposition of property and an exorbitant monetary loss, ________ can and should intervene.

Answer 15

equity

Question 16

If a _____________ would result in the inequitable disposition of property and an exorbitant monetary loss, equity can and should intervene.

Answer 16

forfeiture

Question 17

A forfeiture, under a land contract, is the same as a foreclosure under a mortgage.
A. True
B. False

Answer 17

B. False

Question 18

Exam: modern trend is foreclosure look for facts in bean v. walker – if you see opposite facts where they miss the first payment = forfeiture. Foreclosure if they have paid half of their principal down.

Answer 18

KNOW!!

Question 19

The _________ ______ is to treat installment land contracts as analogous to conventional mortgages, requiring the seller to seek judicial sale upon the purchaser’s default. Under this approach, forfeiture clauses are unenforceable.

Answer 19

modern trend

Question 20

The modern trend is to treat installment land contracts as analogous to conventional mortgages, requiring the seller to seek judicial sale upon the purchaser’s default. Under this approach,_________ clauses are unenforceable.

Answer 20

forfeiture