RE - Set 07 Flashcards
TRUSTOR
The borrower under a deed of trust.
FULLY AMORTIZED NOTE
A note that is fully repaid at maturity by periodic reduction of the principal; usually paid in equal monthly installments.
HOLDER IN DUE COURSE
A person who has obtained a negotiable instrument (promissory note, check) in the ordinary course of business before it is due, in good faith and for value, without knowledge that it has been previously dishonored and without notice of any defect or setoff at the time it is negotiated.
PARTIALLY AMORTIZED INSTALLMENT NOTE
A promissory with repayment that is not sufficient to amortize the loan over its term; usually contains a balloon payment at the end.
TRUST DEED
A document in which title to a property is transferred to a third party trustee as security for a debt owed by the trustor (borrower) to the beneficiary (lender).
TRUSTEE
Holds bare legal title to property as a neutral third party where there is a deed of trust used as security for a loan.
NET LEASE
A lease where the tenant pays such costs as taxes, insurance, and repairs, as well as a set amount for rent. A triple net lease is one in which the tenant pays all expenses of operating the property as well as a set amount for rent.
REVERSIONARY RIGHTS
The lessor (landlord) grants the right of possession to the lessee (tenant) but retains the right to retake possession after the leases’s term has expired.
ASSIGNEE
Party to whom a lease is assigned or transferred.
UNLAWFUL DETAINER ACTION
A lawsuit filed with the court against a tenant who remains in unlawful possession of rental property after breaching the terms of a lawful lease.
DEPRECIATION
Loss in value from any cause.
NEGOTIABLE INSTRUMENT
Any written instrument that may be transferred by endorsement or delivery.
PROMISSORY NOTE
A written promise or order to pay money; evidence of a debt.
PLEDGE
The transfer of property to a lender as a security for re-payment of a debt. The lender takes possession of the property.
SECURITY
Evidence of obligations to pay money.
OFFER
A presentation or proposal for acceptance to form a contract.
POWER OF ATTORNEY
A written instrument giving a person legal authority to act on behalf of another person.
MINOR
Someone under 18 yrs of age.
VOIDABLE
An agreement which is valid and enforceable on its face, but may be rejected by one or more of the parties.
POWER OF SALE
A clause in a trust deed or mortgage that gives the holder the right to sell the property in the event of default by the borrower.
GRADUATED PAYMENT ADJUSTABLE MORTGAGE (GPAM)
A loan in which the monthly payment that is graduated by a certain percentage each year for a specific number of years and then levels off for the remaining term of the loan.
PURCHASE MONEY LOAN
A trust deed created as evidence of a debt at the time of the sale of real property.
ANNUAL PERCENTAGE RATE (APR)
The relationship of the total finance charge to the total amount to be financed as required under the Truth in Lending Act.
JUNIOR TRUST DEED
Any trust deed that is recorded after a first trust deed, and whose priority is less than the first trust deed.
MORTGAGEE
The lender under a mortgage.
EQUITABLE TITLE
The interest held by the trustor or vendee.
