RE - Set 07

Question 1

TRUSTOR

Answer 1

The borrower under a deed of trust.

Question 2

FULLY AMORTIZED NOTE

Answer 2

A note that is fully repaid at maturity by periodic reduction of the principal; usually paid in equal monthly installments.

Question 3

HOLDER IN DUE COURSE

Answer 3

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.

Question 4

PARTIALLY AMORTIZED INSTALLMENT NOTE

Answer 4

A promissory with repayment that is not sufficient to amortize the loan over its term; usually contains a balloon payment at the end.

Question 5

TRUST DEED

Answer 5

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).

Question 6

TRUSTEE

Answer 6

Holds bare legal title to property as a neutral third party where there is a deed of trust used as security for a loan.

Question 7

NET LEASE

Answer 7

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.

Question 8

REVERSIONARY RIGHTS

Answer 8

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.

Question 9

ASSIGNEE

Answer 9

Party to whom a lease is assigned or transferred.

Question 10

UNLAWFUL DETAINER ACTION

Answer 10

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.

Question 11

DEPRECIATION

Answer 11

Loss in value from any cause.

Question 12

NEGOTIABLE INSTRUMENT

Answer 12

Any written instrument that may be transferred by endorsement or delivery.

Question 13

PROMISSORY NOTE

Answer 13

A written promise or order to pay money; evidence of a debt.

Question 14

PLEDGE

Answer 14

The transfer of property to a lender as a security for re-payment of a debt. The lender takes possession of the property.

Question 15

SECURITY

Answer 15

Evidence of obligations to pay money.

Question 16

OFFER

Answer 16

A presentation or proposal for acceptance to form a contract.

Question 17

POWER OF ATTORNEY

Answer 17

A written instrument giving a person legal authority to act on behalf of another person.

Question 18

MINOR

Answer 18

Someone under 18 yrs of age.

Question 19

VOIDABLE

Answer 19

An agreement which is valid and enforceable on its face, but may be rejected by one or more of the parties.

Question 20

POWER OF SALE

Answer 20

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.

Question 21

GRADUATED PAYMENT ADJUSTABLE MORTGAGE (GPAM)

Answer 21

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.

Question 22

PURCHASE MONEY LOAN

Answer 22

A trust deed created as evidence of a debt at the time of the sale of real property.

Question 23

ANNUAL PERCENTAGE RATE (APR)

Answer 23

The relationship of the total finance charge to the total amount to be financed as required under the Truth in Lending Act.

Question 24

JUNIOR TRUST DEED

Answer 24

Any trust deed that is recorded after a first trust deed, and whose priority is less than the first trust deed.

Question 25

MORTGAGEE

Answer 25

The lender under a mortgage.

Question 26

EQUITABLE TITLE

Answer 26

The interest held by the trustor or vendee.