Real Estate Principals and Practices

Prepared by:

Jan E. Beran, Esq.

1. Relationship between Note and Mortgage and Note and Deed of Trust
2. Promissory Note
1. Parties
1. Borrower: Obligor, Maker
2. Lender: Obligee, Holder
2. Elements (CLOaC) & Signed by Maker
3. Principal
4. Acceleration Clause
3. Mortgage
1. Parties
1. Borrower: Mortgagor
2. Lender: Mortgagee
2. Provisions/requirements
1. CLOaC
2. Words of Conveyance
1. Title Theory
2. Lien Theory
3. Intermediate Theory
3. Defeasance Clause
4. Deed of Trust
1. Parties
1. Borrower: Trustor
2. Lender: Beneficiary
3. Trustee
2. General Provisions/requirements
1. Conveyance in Trust
2. Power of Sale
5. Common Clauses
1. General Covenants
1. Taxes
2. Against Removal
3. Insurance
4. Against Waste (Good Repair or Preservation)
2. Alienation
3. Condemnation
4. Assignment of Rents
6. Satisfaction, Partial Release and Reconveyance
7. Assumption and Assignment
1. "Subject to"
2. Assumption
3. Assignment/Novation
8. Esstopel
9. Debt Priorities
10. Foreclosure Process
1. Judicial Foreclosure
2. Non-judicial foreclosure (Power of Sale)
3. Strict Foreclosure
11. Entry and Possession/Deed in lieu of Foreclosure
12. Equitable Mortgage
13. Warranty Deed as a Security Interest
14. Choice between security instruments
1. Advantages/Disadvantages of Mortgage
2. Advantages/Disadvantages of Deed of Trust
3. Advantages/Disadvantages of Seller Financing Instruments