Florida Real Estate Exam--Chapter 12
Lien Theory State - ANS- -Borrower keeps title and leander places a lien against property
-Florida is a lien Theory state
Title Theory State - ANS- -AKA Deed of Trust State
-Borrower gives title to lender, who is beneficiary during loan.
-Naked Title held by 3rd party
-lender can sell property on default without courts
Naked Title - ANS- a third party holds Naked Title to property in Title Theory States
Deed of Reconveyance - ANS- issued upon full payment of the loan to return to title to
trustor
Promissory Note - ANS- -the promise to repay debt
-defines the payment terms, interest rate, date of repayment, prepayment penalties, etc
-Personal Property of Lender and ethe Note can be sold to another financing company
2 parts of a Mortgage - ANS- 1) Pledge-promise to pay
2) Collateral
Mortgage - ANS- loan secured by real property
2 types of security instruments for a real estate loan - ANS- 1) Mortgage
2) Note
Mortgage - ANS- security interest of the lender in the property
Promissory Note - ANS- promise to repay the mortgage by the mortgagor
When a lender decides to sue--they sue - ANS- the Note
Hypothecation - ANS- alternate term used when one pledges to secure a loan with
something of value.
Mortgagor - ANS- the borrower
Mortgagee - ANS- the lender
Satisfied - ANS- When the loan backed by a mortgage is paid in full
Lien Theory State - ANS- -Borrower keeps title and leander places a lien against property
-Florida is a lien Theory state
Title Theory State - ANS- -AKA Deed of Trust State
-Borrower gives title to lender, who is beneficiary during loan.
-Naked Title held by 3rd party
-lender can sell property on default without courts
Naked Title - ANS- a third party holds Naked Title to property in Title Theory States
Deed of Reconveyance - ANS- issued upon full payment of the loan to return to title to
trustor
Promissory Note - ANS- -the promise to repay debt
-defines the payment terms, interest rate, date of repayment, prepayment penalties, etc
-Personal Property of Lender and ethe Note can be sold to another financing company
2 parts of a Mortgage - ANS- 1) Pledge-promise to pay
2) Collateral
Mortgage - ANS- loan secured by real property
2 types of security instruments for a real estate loan - ANS- 1) Mortgage
2) Note
Mortgage - ANS- security interest of the lender in the property
Promissory Note - ANS- promise to repay the mortgage by the mortgagor
When a lender decides to sue--they sue - ANS- the Note
Hypothecation - ANS- alternate term used when one pledges to secure a loan with
something of value.
Mortgagor - ANS- the borrower
Mortgagee - ANS- the lender
Satisfied - ANS- When the loan backed by a mortgage is paid in full
