Mortgagor

Borrower who pledges real estate.

Mortgagee

The Lender

Default 

The borrower who fails to live up to the provisions of a mortgage is said to be in default. 

Acceleration Clause 

Allows the mortgagee (the lender) to declare the whole debt due and payable in case of default. 

Defeasance Clause

Provides that when the debt is paid, the mortgagee has no further claim on the property. 

Estoppel Certificate 

The Borrower's statement of the remaining debt and interest rate.

Reduction Certificate

The Lender's acknowledgment that the debt has been paid down to a certain amount. 

Usury 

The charging of a higher rate of interest

than is legally allowed. 

(remember unusual, as in unusual - usury, 

First Mortgage

The first one placed against the property in public record. 

Second Mortgage or Junior Lien

Any mortgage that comes after the first. 

Note: Priority os set by the date pf recording, unless one lender agrees to subordinate a loan to another. 

Subordination Agreement

The priority of mortgage liens are changed and the first lender subordinates their lien. 

Subject To

Purchaser is not obligated to pay outstanding debt. 

Alienation Clause 

(re-sale or due-on-sale clause)

Gives the lender the choice of either declaring the entire debt to be immediately due and owing or permitting the buyer to assume the loan. 

Foreclosure

When a borrower defaults in making payments or fulfilling any of the obligations set forth in the mortgage. The lender can ask the court to order a foreclosure sale. 

Sheriff's Sale

Public Auction of a foreclosed home. 

Sheriff's Deed

Given to the successful bidder of a sheriff's sale and delivered within 10 days.

Bidder must pay cash, 20% at the auction and the rest within 10 days.

The defaulting borrow can redeem the property within those 10 days if it is paid in full. 

Deed in Lieu of Foreclosure

"friendly foreclosure"

Agreement rather than a civil action. 

Deficiency Judgement 

When there is unpaid interest after a foreclosure, the mortgagee seeks a personal judgement against the signer of the note for an unpaid balance. 

REO

Real Estate Owned

Properties acquired by lenders through foreclosure. 

ESTOPPEL CERTIFICATE

Borrowers statement of how much is left on a mortgage.  

CONSTRUCTIVE NOTICE

information one can find out by investigation 

Bureau of Subdivided Land Sales

The Real Estate Sales Full Disclosure Act required prior approval and registration with the:

SERVIENT ESTATE

tract over which and easement runs. 

Portfolio Loan

loan not meant for resale on the secondary market. The lender keeps an services the loans

Actual Notice

information someone actually knows

Alienation Clause

Transfer of Title without Grantors Consent: foreclosure, government condemnation, etc. 

Index

guide to national mortgage trends

used for adjustable rate mortgages

GRADUATE, REAL ESTATE INSTITUTE, GRI

Designated award for advanced study

Open

The seller owes a commission to the listing agent no matter who sells the property 

Exclusive-right-to-sell

he seller owes a commission only to whichever broker produces an acceptable buyer 

Exclusive agency

The owner retains the right to sell without paying a commission to the one agent hired

The seller who wishes to cancel a listing

The amount of commission split that the listing broker intends to offer a cooperating broker who finds a successful buyer must be revealed to the... 

SELLER

A comparative market analysis should take into consideration the

Recent sales prices of nearby homes

An offer is not legally considered accepted until

The other party has been notified of the acceptance

Jim takes out a mortgage loan to buy his first home, then discovers the next day that he could find a loan with a more favorable rate at another lending institution.

He has how long to cancel the first loan?

He may not rescind the mortgage

George signs a contract agreeing to sell his house to Debby. He later changes his mind and refuses to sell. He offers her a few thousand dollars to void the contract, but because she wants that particular house she sues for...

Specific performance

In order to be legally enforceable, which contracts must be in writing according to the statute of frauds?

Leases for more than three years

In most cases, the store that rents space in a shopping mall is on what type of lease?

Percentage

The buyer of foreclosed real estate at public auction receives the property free of...

Any liens junior to the one being foreclosed

Prepayment penalties for those who want to pay their mortgage loans off earlier than scheduled are limited in New Jersey to...

No charge

NJHMFA

Material Fact 

In New Jersey, real estate brokers and salespeople are responsible for disclosing to a buyer any defects of a material nature that affect the physical condition of the property. Material information is any physical condition of the property that a reasonable person attaches importance to or an agent knows and a buyer would want to know.

Crops are considered to be what kind of property?

Personal

To the seller's agent, the buyer is properly described

as a _____________.

Customer