Unit 4: Mortgage & Contract for Deed

Question 1

In a mortgage, who holds legal title?

Answer 1

The buyer

Question 2

In a mortgage, who is given a lien against the property?

Answer 2

The lender

Question 3

In a mortgage, who are the 2 parties?

Answer 3

1. Buyer - Borrower - Mortgagor

2. Bank - Lender - Mortgagee

Question 4

What are the other names for contract for deed?

Answer 4

Land contract and installment land contract

Question 5

In a contract for deed, when does the buyer receive the deed?

Answer 5

After the final payment.

Question 6

In a contract for deed, who are the 2 parties?

Answer 6

1. Buyer - Vendee

2. Seller - Vendor

Question 7

In a contract for deed, who holds equitable title?

Answer 7

The buyer until the final payment has been made

Question 8

How long does a buyer have to record the contract for deed?

Answer 8

Within 4 months

Question 9

What is the consequence for the buyer who does not record the contract for deed?

Answer 9

Civil penalty, equal to 2% of the principal amount

Question 10

What is the remedy for default in a contract for deed?

Answer 10

Termination which allows the seller to regain the equitable title

Question 11

How many days does a buyer have equitable redemption after a default?

Answer 11

60 days from receipt of default notice