Module 3 Flashcards
What do you call the buyer and seller named on a contract
Parties
A description of such certainty and accuracy that one can go to the ground and identify the land.
Legal description
A bank, mortgage company, or other lending institution that finances the purchase of a property for a buyer
Third party financing
A loan that is insured or guaranteed by the US government and made by lenders
Government loan
Loans made with real estate as security and not involving government participation in the form or insuring of guaranteeing the loan
Conventional loan
A loan with equal regular payments of principal and interest because the interest does not change over the term of the loan
Fixed-rate mortgage
When the buyer assumes and agrees to pay the seller’s existing mortgage
Loan assumption
A loan provided by the seller to the buyer for the purchase of the seller’s property
Seller financing
Personal property that is included in the sale of real property
Non-realty items
what are part of the property and convey to the buyer
Accessories
If a seller wishes to retain certain fixtures or accessories, they must be
excluded
Third party financing comes from lenders like
banks, mortgage companies, and other lending institutions
Buyer approval on the Third Party Financing Addendum is contingent upon the lender’s requirement related to Buyer’s
assets, income, and credit history
The original borrower is not necessarily released from on-going liability for repayment.
Seller Liability
The Seller Financing Addendum is used when
the seller finances the transaction
