Real estate participants Flashcards
The holder of a note secured by a trust deed and entitled to the performance of the provisions in the trust deed is the:
a. mortgagor.
b. trustee.
c. beneficiary.
d. trustor.
c — The trust deed has three parties. The **beneficiary **is the lender entitled to the performance of the provision in the trust deed.
The seller under a land sales contract sale is the:
a. grantor.
b. grantee.
c. beneficiary.
d. vendor
d — A land sales contract transaction is classified as a vending process. Under a land sales contract, the seller retains title to the property until all or a prescribed part of the purchase price has been paid. The owner of real estate is almost always the “or” party. Thus, the seller is the vendor
The property owner who has given another party the option to purchase their property at a later date is the:
a. optionor.
b. optionee.
c. vendor.
d. vendee
a — The option process has similar rules as a land sales contract transaction. The optionor is the property owner. Further, the optionor is the only party obligated by the terms of the option if the optionee chooses to exercise the option and purchase the property.
The borrower of mortgage funds is the:
a. trustee.
b. beneficiary.
c. mortgagor.
d. mortgagee.
c —The borrower of mortgage funds is the property owner. Here, the borrower is described as the mortgagor. Thus, the borrower gives the lender a mortgage in exchange for funds.
The buyer under a land sales contract is the:
a. vendor.
b. beneficiary.
c. vendee.
d. trustee.
c — In a land sales contract sale, the buyer doesn’t obtain title to a property until the terms of the contract has been fulfilled. Here, the buyer is the vendee.
The person who transfers property by a grant deed is the:
a. grantor.
b. grantee.
c. trustee.
d. vendor.
a — The grantor is the person who signs the deed to transfer the property to another, the grantee.
A party to a note and trust deed with the authority to sell the property on instructions from the beneficiary is the:
a. lender.
b. borrower.
c. court appointee.
d. trustee.
d — A trustee is named by the lender (beneficiary) to act as an intermediary in the event of a nonjudicial foreclosure.
The tenant who rents an apartment under a month-to-month rental agreement is the:
a. trustee.
b. vendee.
c. lessee.
d. lessor.
c — The tenant, regardless of the form of the rental or lease agreement, is known as the lessee.
The entity that lends mortgage money to a borrower for the purpose of purchasing property is the:
a. mortgagor.
b. mortgagee.
c. trustee.
d. vendor.
b — The lender of mortgage funds takes the “ee” position since there are only the two parties to the loan. Thus, the mortgagee is the lender who receives a mortgage from the borrower in exchange for the funds.
The person who holds an option to purchase property is the:
a. trustor.
b. optionor.
c. optionee.
d. beneficiary
c — The person who holds the option to purchase real estate does not own it. Thus, they are the optionee.
One who borrows money secured by a note and trust deed from a lender is the:
a. trustor.
b. trustee.
c. mortgagee.
d. beneficiary.
a —The owner of the property is the borrower who takes out funds secured by a note and trust deed Thus, trustor is the correct answer.
The owner of a rental property is the:
a. vendor.
b. lender.
c. lessor.
d. lessee.
c — The owner of a rental property is the lessor. Note the “or” convention which denotes the owner of the real estate.
The recipient of title to a property by deed is the:
a. vendee.
b. lessee.
c. optionee.
d. grantee
d — Regardless of which type of deed is used (grant, quit claim, etc.), the person named as receiving title is the grantee.
