Segment 3 Flashcards
Vendor
•seller; who disposed of a thing in consideration of money
-used in a land contract
Vendes
•purchaser; buyer under a contract of sale (land contract)
Legal Title
Interest in prop held by the rightful owner. The sellers interest in prop under land contract
Land Contract
•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
Administrator/Executor
Admin: male appointed by court to carry out affairs of testator
Exe: male named in will you carry out instructions of will
Law of Descent and Distribution
Chain of inheritance established by each state when ancestor died intestate
Bequest/Legacy
Legator
Legatee
Bequest: gift of personal prop in valid will
Legator: person giving personal prop in valid will
Legatee: person receiving personal prop in valid will
Codicil
Any change in a valid will before death
Restate/Intestate
Testate: leaves a valid will
Intestate: without leaving a valid will
Nuncupative Will/Holographic Will
Nun: oral Will “death bed will” usually not valid
Holo: will made without witnesses, usually not valid
Valid Will
Will made with witnesses
Devise
Devisor/Devisee
Gift of real property by Will
Devisor: deceased person giving realty in valid will
Devisee: name of person receiving realty in valid will
Heir
Person acquiring personal property or realty when ancestor died intestate
Probate
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
Impound/Escrow Account
Set up by your mortgage lender, to pay certain property related expenses
- prop taxes
- prop insurance premiums
Alienation
Full balance of realty debt becomes due and payable upon sale of prop
5 Ways to Obtain Realty
1) Cash
2) Mortgage
3) Deed of Trust/trust deed
4) Vendor/ Owner Will Carry (OWC)
5) By Will
Beneficiary
Becomes payee, the one giving a loan on realty
•receives distributions from trust, Will or life insurance policy
Trustor
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
Trustee
Impartial holder of title on a trust deed (title only) with duty to protect, preserve and enhance value and best use of trust prop
Trustee’s Deed
Deed issued after a foreclosure
Deed of Reconveyance
- deed issued by trustee
- states loan is paid in full
- gives all rights and privileges back to trustor
Promissory Note
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
Lien
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
Hypothecation
To give a thing as security without the necessity of giving up possession of it/collateral to secure a loan
Ex: mortgage lending
Mortgagee
Becomes payee, the one giving a loan on the borrowers realty
Mortgagor
Becomes borrower payer, the one getting a loan on their realty from a lender
