Selling Real Property Flashcards
Executory Period
period b/w K signing and closing; burden of damage usually on seller w/ exceptions. See Brush Grocery Kart (“Hail Alley”)
Residential P
Single family homes and condos
Commercial P
ranches, malls, undeveloped land
Commercial P
ranches, malls, undeveloped land
Insurable Title
one which a title insurance company would be willing to insure at normal rates. Less protection than marketable title.
Record Title
Title that appears in public land records
Caveat Venditor
Let the SELLER beware
Caveat Venditor
Let the SELLER beware
Poltergeist
ghost or supernatural being responsible for shit being thrown around
Poltergeist
ghost or supernatural being responsible for shit being thrown around
Promissory Note
contract by which the borrower promises to repay the loan on certain terms and conditions
Mortgage
gives the lender the right to use a special remedy if the borrower defaults
Foreclosure
When lender sells P and uses sale proceeds to pay off loan
Mortgagor
Borrower of a Mortgage
Mortgagee
Lender of a mortgage
What are the traditional instruments used to secure repayment?
Mortgage, deed of trust, and installment land K
What are the traditional instruments used to secure repayment?
Mortgage, deed of trust, and installment land K
Lien Theory
Mortgage only conveys security interest (mortgagee has right to foreclose- not as the transfer of title). BOTH title and possession remain with mortgagor until and unless foreclosure occurs. CA uses this.
Mortgage
gives the lender the right to use a special remedy if the borrower defaults (foreclosure). 2 party transaction.
Lien Theory
Mortgage only conveys security interest (mortgagee has right to foreclose- not as the transfer of title). BOTH title and possession remain with mortgagor until and unless foreclosure occurs. CA uses this.
Deed of Trust
Legal title is vested in the trustee. 3 party transaction.
The borrower (the trustor) gives a deed of trust to a third party (the trustee) for the benefit of the lender (the beneficiary).
If the trustor defaults, the trustee will sell the property through foreclosure and give the sales proceeds to the beneficiary to repay the loan.
Deed of Trust
Legal title is vested in the trustee. 3 party transaction.
The borrower (the trustor) gives a deed of trust to a third party (the trustee) for the benefit of the lender (the beneficiary).
If the trustor defaults, the trustee will sell the property through foreclosure and give the sales proceeds to the beneficiary to repay the loan.
Judicial Foreclosure
File a complaint, prove his case, and receive a judgment authorizing him to foreclose on the property. Gov official sells P at a public auction.
Nonjudicial foreclosure
mortgage must expressly provide for a “power of sale” allowing mortgagee to foreclose on themselves and conduct a sale w/o judicial involvement. (saves time and money)
Nonjudicial foreclosure
mortgage must expressly provide for a “power of sale” allowing mortgagee to foreclose on themselves and conduct a sale w/o judicial involvement. (saves time and money)
Reinstatement
Allows for a mortgagor to quick pay missed payments o avoid foreclosure. Many states allow the mortgage to be paid in full before sale occurs.
Statutory right of redemption
After foreclosure and mortgagor comes up with money. They must pay sale price, plus interest and cost.
Statutory right of redemption
After foreclosure and mortgagor comes up with money. They must pay sale price, plus interest and cost.
Installment Land K
Alternative to a mortgage. Buyer promises to pay x amt over x period of time. Buyer allowed possession but seller retains title UNTIL all payments are made
