Term
| Introduction to Deeds, Promissory Notes, and Mortgages |
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Definition
The Three most important documents in a real estate sale are the deed, the promissory note, and mortgage, or deed of trust.
A deed is a document which conveys an ownership interest in real property and provides evidence of title to that property.
A promissory note is a written personal obligation to repay the sum of money owed.
A mortgage or deed of trust is the document used to pledge the real property to secure the promise to repay the amount borrowed under the terms of the promissory note. |
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Term
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Definition
| A deed is a document that conveys ownership interest in real property that is evidence of title to that propety. The required clauses of the deed reflect the rights conveyed and the warranties made by the grantor to the grantee. The grantor can use the deed to expand or restrict certain rights regarding the use of land or to impose obligations upon the grantee. |
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Term
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Definition
A deed has four major parts or clauses:
1) The premises
2) The habendum
3)The covenants
4) The execution clause |
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Term
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Definition
The premises is the first required clause or portion of the deed and includes:
1) the date and identification of the parites,
2) the granting clause
3) the legal description
4) The recital
5) The under and subject clause
6) The appurtenances clause. |
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Term
| Concluding portions of the deed |
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Definition
Everything after the premises so (numbered as if premises was number 1):
2) Habendum
3) covenants
4) execution clauses |
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Term
| Types of deeds- how are they classified and what are they generally |
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Definition
Deeds are classified based on the warranties that are included or on the identity of the grantor
1) general warranty deed
2) special warranty deed
3) quitclaim deed
4) sheriff's deed
5) fidcuiary's deed
6) corporate deed
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Term
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Definition
| the highest level of assurance to the buyer |
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Term
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Definition
| the grantor gives a limited warranty, which extends to the grantor's interest only |
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Term
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Definition
| grantor makes no assurances concerning the quality and content of the title |
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Term
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Definition
| used to transfer the property sold at a judicial sale |
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Term
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Definition
| used when real estate has been in the possession of a trustee, guardian, executor, or administrator |
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Definition
| is a special form of deed used when a corporation transfers real estate. Increase attention to execution and signature requirements for corporations is mandatory. |
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Term
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Definition
| In a title theory state, also called an escrow jurisdiction, the lender or a third party holds equitable title to the real estate in the name of the borrower under the terms of a deed of trust |
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Term
| Lien Theory Jursidictions |
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Definition
| In a lien theory state, the borrower holds title to the property, adn the lender places a lien on the property through use of the mortgage document. |
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Term
| Residential Mortgage Loan Document |
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Definition
Two documents are used in mortgage finacing:
1) a promissory note, which is a personal promise to repay a debt
2) A mortgage or deed of trust, which secures the repayment the money borrowed. |
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Definition
| Whether in a title or lien theory jurisidictionm the loan documentation begins with the borrower's personal promise to repay the money borrowed. |
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Term
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Definition
| A mortgage or deed of trust is the document that pledges the real property to secure the promise to repay the amount borrowed under the terms of the promissory note. In lien theory states, the mortgage pledges the real estate as the collateral for the amount borrowed. the mortgage becomes a lien against the real estate. |
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Term
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Definition
| The Federal National Mortgage Association (FNMA), commonly referred to as "Fannie Mae," was founded in 1938 with the original purpose of directly infusing federal funds into banks to enhance their aiblity to make mortgage loans. |
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Term
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Definition
| Federal Home Loan Mortgage Corporation (FHLMC)- Over time, the methods FNMA has used have changed and become almost identical to the process utlitzed by the Federal Home Loan Mortgage (FHLMC), commonly referred to as Freddie Mac. |
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