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38 Cards in this Set

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Listing agreement
An agreement with a realtor to be the seller's agent for the purpose of selling the property.
Exclusive listing
A seller of real estate gives realtor the exclusive right to sell property.
If seller finds the buyer, full commission is still owed to the realtor.
If seller changes mind after the buyer has been found, full commission is still owed.
Cash on closing contract
Purchase price is paid in full at closing; title is transferred immediately.
Installment land contract or contract for deed
Seller finances purchase and retains title and deed until consideration is paid in full.
Grantor and grantee
Grantor: transfers interest in land
Grantee: receives interest in land
Warranty deed
Title is guaranteed
Quitclaim deed
title is not guaranteed
Requirements for a valid deed:
Written deed transferring described property, signed, notarized and delivered.
Fee simple absolute ownership interest
Entire ownership of land
Fee simple defeasible ownership interest
Entire ownership, subject to a condition
List the partial interests
Easements
Profits
Licenses
Easements
Right to use a portion of real estate without owning it
Profits
Right to enter land and remove something from it
Licenses
Revocable, temporary right to use real estate
Life estate ownership interest
Right to exclusive possession of real estate based on the life of a specified person
Future interest ownership interest
An ownership interest in land which becomes tangible in the future
Abstract of title and title opinion
Summary of transactions pertaining to the land since title came from the government.
Title opinion
Lawyer's opinion on marketability of the title after examining abstract
Title insurance
Insurance company guarantees good title
Parties in real estate financing
Mortgagor: assigns a mortgage.
Mortgagee: receives and holds a mortgage
Title theory
title and possession in mortgage
Lien theory
Title and possession in mortgagor
Mortgage
A lien on real estate where the mortgagee personally exercises foreclosure rights
Deed of trust
a lien on real estate where a third party, the trustee, exercises foreclosure rights.
Requirements for a valid mortgage
Signed, notarized, delivered writing, just as with deeds
Open in mortgage (line of credit)
Mortgage secures future advances
Second mortgage
Lower in priority and usually later in time than the first.

May also have 3rd and 4th mortgages
Acceleration clause in a mortgage
Allows declaration that entire balance is due if there is a default
Due on sale clause in a mortgage
Allows acceleration if interest in land is sold
Power of sale clause in a mortgage
Allows private foreclosure
Points sale clause in a mortgage
Loan origination fees where one point equals one percent of the loan amount
Prepayment privileges in a mortgage
Allows early payment without penalty
Creditor's rights
Acceleration
Private or judicial foreclosure
Deficiency judgment- sue debtor for any unpaid balance
Debtor's rights
Equity of redemption- right to repurchase the real estate prior to foreclosure.
Statutory redemption- right to repurchase after foreclosure
Statutory notice of foreclosure sale- right to 20 day notice in both newspaper and mail
List the priorities of mortgages and deeds
Race statute
Notice statute
Notice-Race
Race statute
First to record a mortgage or deed wins
Notice statute
One who has notice of another's interest prior to receiving an interest in the land cannot defeat the other's interest.
Recording is one way to prove interest
Notice race
First to record without notice of another's interest wins