Mod 2 Flashcards
If a contract was valid upon its crease but has passed the statute of limitations, the contract is now considered
Unenforceable
As a buyer in a coop apartment you will not receive a
Deed
It’s personal property, not real property or RE
This limits the amount the interest rate can increase or decrease over the life of the mortgage
A life cap
A limit on the amount that payments can increase or decrease during any one adjustment. It’s called
Period rate cap
Period & payments
A federal law requiring lenders to fully disclose in writing the terms and conditions of a mortgage including the annual percentage rate and other charges is called
Truth in Lending Law
When a lender commits to the borrower or originator a specific rate for a specific time ata specific cost, this is called
Rate Lock
The IRS requires the escrow agent in charge of the closing of a RE transaction to report the sale on form 1099-s which lists
The sellers name, SS#, and gross sale proceeds
An oral agreement
Is a contract that is binding in a court of law
If a church, school, or hospital wishes to relocate to an area zoned explicitly for residential use, they can do so by
Conditional use
If an agent acts in a way that prevents disclosure of something it’s called
Concealment
The party that accepts the endorsed note from the original payee without knowledge of any defects is know as
Holder in due course
A broker Seeking to collect a commission on a month-to-month rental that was earned for their negotiation in the matter, needs to prove what in order to legally collect
Prove an oral agreement was reached
Seller financing in regards yo a loan is also know as
Purchase money mortgage
The payment change date
The date when a new monthly payment
amount takes effect on an ARM or Graduates payment mortgage
If a person would not pay more free property than the price of a reasonably close alternative you’re most likely describing
Substitution
If a homeowner obtains a home equity line of credit, they have obtained
A mortgage loan
In a loan closing without the proper signature on the note, this is not created
Indebtedness
What is agency terminated by the laws of agency
Upon death or incapacitation of the principal by operation of law
What is a grantor
A person conveying an interest in real property
An ironclad merger clause is a contract provision stating that
No prior agreement or contemporaneous oral agreement will have any force or effect
Method of attachment, adaptability of the attached item, relationship of the parts, intent of the person attaching the item, and agreement between parties are
The standard 5 tests used by courts for a fixture
The worth of a greater value property is reduced by the proximity of many lesser value properties of the same type is known as
Regression
This is issued to the holder of a certificate of sale after the one year redemption period has passed under the terms of the mortgage foreclosure proceeding
A sheriff’s deed
Mark the seller did not disclose the special assessment. This is
Fraud
If a borrower is given a loan were the personal residence Is used as security, other than the first trust deed used to purchase a property, and rescinds within three days, this type of loan would be covered under which law
Federal Truth in Lending
3 day right to rescind
Sep housing units for more than 1 family that secure only a single mortgage are called
Multi dwelling units
When some performance by one or both parties remains to be done
An executory contract
This is given by a commercial bank or other financial institutions for a certain time and certain amount
Line of credit
What is considered to be an encumbrance
Easment
A lease
A mortgage
(Encumbrances of a fee simple title)
What does the real estate settlement procedures act cover
RESPA
One to four family mortgage loans
Including equity loans
An escrow analysis is performed by the lender to ensure
The correct amount of money is being collected
When Jackie checks her payment statements for her mortgage, she notices that there is an amount of the principle that has not yet been repaid. This amount is called the
Remaining balance
Usually clouds on the title to real property cannot be removed except by
Deed
Release
Court Action
