Segment 3

Question 1

Vendor

Answer 1

•seller; who disposed of a thing in consideration of money

-used in a land contract

Question 2

Vendes

Answer 2

•purchaser; buyer under a contract of sale (land contract)

Question 3

Legal Title

Answer 3

Interest in prop held by the rightful owner. The sellers interest in prop under land contract

Question 4

Land Contract

Answer 4

•rather than borrowing money from lender or bank, buyer makes payments to real estate owner/seller, until price paid in full/part
- often used when prop sold on small down payment

Question 5

Administrator/Executor

Answer 5

Admin: male appointed by court to carry out affairs of testator

Exe: male named in will you carry out instructions of will

Question 6

Law of Descent and Distribution

Answer 6

Chain of inheritance established by each state when ancestor died intestate

Question 7

Bequest/Legacy
Legator
Legatee

Answer 7

Bequest: gift of personal prop in valid will
Legator: person giving personal prop in valid will
Legatee: person receiving personal prop in valid will

Question 8

Codicil

Answer 8

Any change in a valid will before death

Question 9

Restate/Intestate

Answer 9

Testate: leaves a valid will
Intestate: without leaving a valid will

Question 10

Nuncupative Will/Holographic Will

Answer 10

Nun: oral Will “death bed will” usually not valid

Holo: will made without witnesses, usually not valid

Question 11

Valid Will

Answer 11

Will made with witnesses

Question 12

Devise

Devisor/Devisee

Answer 12

Gift of real property by Will

Devisor: deceased person giving realty in valid will

Devisee: name of person receiving realty in valid will

Question 13

Heir

Answer 13

Person acquiring personal property or realty when ancestor died intestate

Question 14

Probate

Answer 14

Judicial proceeding of proving validity of a Will and executor authorized to distribute estate prop
•when there is no Will, an administrator is appointed to distribute estate to heirs

Question 15

Impound/Escrow Account

Answer 15

Set up by your mortgage lender, to pay certain property related expenses

• prop taxes
• prop insurance premiums

Question 16

Alienation

Answer 16

Full balance of realty debt becomes due and payable upon sale of prop

Question 17

5 Ways to Obtain Realty

Answer 17

1) Cash
2) Mortgage
3) Deed of Trust/trust deed
4) Vendor/ Owner Will Carry (OWC)
5) By Will

Question 18

Beneficiary

Answer 18

Becomes payee, the one giving a loan on realty

•receives distributions from trust, Will or life insurance policy

Question 19

Trustor

Answer 19

Becomes borrower and payer, the one getting a loan on realty
•deeds his prop to trustee to be held as security until he has performed his obligation to lender under terms of deed of trust

Question 20

Trustee

Answer 20

Impartial holder of title on a trust deed (title only) with duty to protect, preserve and enhance value and best use of trust prop

Question 21

Trustee’s Deed

Answer 21

Deed issued after a foreclosure

Question 22

Deed of Reconveyance

Answer 22

• deed issued by trustee
• states loan is paid in full
• gives all rights and privileges back to trustor

Question 23

Promissory Note

Answer 23

Financial instrument, borrowers personal promise to repay debt in accordance with agreed terms
-the amount of debt, time died, method of payment and interest rate
•lender can sure to collect remaining balance

Question 24

Lien

Answer 24

A charge one person has on prop of another as security for a debt or obligation
•legal right or claim against prop by creditor
•homes/cars so creditors, banks/credit unions can collect what is owed

Question 25

Hypothecation

Answer 25

To give a thing as security without the necessity of giving up possession of it/collateral to secure a loan
Ex: mortgage lending

Question 26

Mortgagee

Answer 26

Becomes payee, the one giving a loan on the borrowers realty

Question 27

Mortgagor

Answer 27

Becomes borrower payer, the one getting a loan on their realty from a lender