Closing the Sale by lonyoo

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									        Property Rights

   Dr. Jim Burton
   Marketing & Real Estate
   Richards College of Business
           Overview

   Real Estate Terms
   Types of Estates
   Title
   Mortgage Instruments
   FNMA Uniform Mortgage
   Non-standard Clauses
   Other Financing
   Mortgage Default
      Real Estate Terms

   Real Estate - physical
    land/improvements
   Real Property - ownership rights
   Personal Property
   Estate - possessory right, use
   Easement - nonpossessory right
        Types of Estates

   Freehold - indefinite term,
    Owner
   Leasehold - definite term (use)
   Fee Simple - Freehold/Owner
   Life Estate
   Reversion - right to regain
   Remainder - future right to
    regain
                 Title

   Title Abstract - owners history
   Deeds - General warranty,
    Limited warranty, & quit claim
   Title Insurance
   Recording - priority of claims
    • Taxes
    • Date of Recording
    • Mechanics Liens
    Mortgage Instruments

 Note
 Deed to Secure Debt

 Deed of Trust

 Title Theory

 Lien Theory
FNMA Uniform Mortgage

   Payments
   Tax/Insurance Escrow
   Late Charges
   Maintain Property
   Inspection
   Personal Liability
   Due-on-Sale Clause
    Non-standard Clauses

 Acceleration
 Lender in possession

 Release

 Appraisal waiver

 ARM rider

 Assumption vs “subject to”
       Other Financing

   Purchase Money Note
   Package Mortgage
   Land Contract
   Junior Mortgages
   Wraparound Mortgage
       Mortgage Default

 Default - Payment or Other
 Workouts:
    • Restructure
    • Transfer to new owner
    • Transfer to Mortgagee
    • “Friendly” Foreclosure
    • Bankruptcy
        Foreclosure

 Judicial - sue, judgement, &
  take property.
 Redemption - until sale is
  confirmed, pay debt, interest
  & costs.
 Junior liens may be lost.
           Bankruptcy

   Chapter 7 - discharge all debts
   Chapter 11 - reorganize
    business debt
   Chapter 13 - wage earner debt
    reorganization

								
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