Selling Real Property

Question 1

Executory Period

Answer 1

period b/w K signing and closing; burden of damage usually on seller w/ exceptions. See Brush Grocery Kart (“Hail Alley”)

Question 2

Residential P

Answer 2

Single family homes and condos

Question 3

Commercial P

Answer 3

ranches, malls, undeveloped land

Question 4

Commercial P

Answer 4

ranches, malls, undeveloped land

Question 5

Insurable Title

Answer 5

one which a title insurance company would be willing to insure at normal rates. Less protection than marketable title.

Question 6

Record Title

Answer 6

Title that appears in public land records

Question 7

Caveat Venditor

Answer 7

Let the SELLER beware

Question 8

Caveat Venditor

Answer 8

Let the SELLER beware

Question 9

Poltergeist

Answer 9

ghost or supernatural being responsible for shit being thrown around

Question 10

Poltergeist

Answer 10

ghost or supernatural being responsible for shit being thrown around

Question 11

Promissory Note

Answer 11

contract by which the borrower promises to repay the loan on certain terms and conditions

Question 12

Mortgage

Answer 12

gives the lender the right to use a special remedy if the borrower defaults

Question 13

Foreclosure

Answer 13

When lender sells P and uses sale proceeds to pay off loan

Question 14

Mortgagor

Answer 14

Borrower of a Mortgage

Question 15

Mortgagee

Answer 15

Lender of a mortgage

Question 16

What are the traditional instruments used to secure repayment?

Answer 16

Mortgage, deed of trust, and installment land K

Question 17

What are the traditional instruments used to secure repayment?

Answer 17

Mortgage, deed of trust, and installment land K

Question 18

Lien Theory

Answer 18

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.

Question 19

Mortgage

Answer 19

gives the lender the right to use a special remedy if the borrower defaults (foreclosure). 2 party transaction.

Question 20

Lien Theory

Answer 20

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.

Question 21

Deed of Trust

Answer 21

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.

Question 22

Deed of Trust

Answer 22

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.

Question 23

Judicial Foreclosure

Answer 23

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.

Question 24

Nonjudicial foreclosure

Answer 24

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)

Question 25

Nonjudicial foreclosure

Answer 25

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)

Question 26

Reinstatement

Answer 26

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.

Question 27

Statutory right of redemption

Answer 27

After foreclosure and mortgagor comes up with money. They must pay sale price, plus interest and cost.

Question 28

Statutory right of redemption

Answer 28

After foreclosure and mortgagor comes up with money. They must pay sale price, plus interest and cost.

Question 29

Installment Land K

Answer 29

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