Study Principles 2 Flash Cards

 
Pile Management Card
Principles 2

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The testator must be of sound mind at the time he or she executes the will, as determined by the tests of capacity endorsed by the probate courts in the testator's jurisdiction T/F?
False
When a person dies intestate (without having left a valid will), the decedent's real estate and personal property pass to his or her heirs according to the wishes of the closest living relative T/F?
False
Person who grants deed in trust is the
Trustor
General Warranty Deed is a written instrument by which an owner of real estate intentionally conveys to a purchaser his or her right, title, or interest in parcel of real estate
True
A will does NOT supersede community property laws in Texas T/F?
True
Granting clause states the grantor's intention to transfer title to grantee at this time and defines type of ownership interest being given T/F?
True
Person who has died and left a will is said to have died testate
True
deed without warranty contains no warranties against encumbrances T/F?
True
In addition to voluntary alienation by gift or sale title to property can be transferred by involuntary alienation, that is, without the owner's consent T/F?
True
In respect to deeds, the seller is referred to as the grantee, and the buyer is called the grantor T/F?
False
In Texas grantor's spouse must sign deed in order to release marital and homestead rights T/F?
True
Special warranty deeds generally should NOT contain the words "remise, release, alienate, and convey" in the granting clause T/F?
True
Valid deed can be signed by an attorney-in-fact acting under a power of attorney rather than the grantor T/F?
True
Under the ten-year statute for adverse possession, a deed or chain of title in support of the claim is NOT necessary T/F?
True
Principle of adverse possession protects an owner who does NOT use his or her land or does NOT inspect it for a number of years from losing title to another person who has some claim to the land, takes possession, and uses it T/F?
False
Deed in which grantor fully warrants good clear title to premises
warranty clause
Lien that arises because of actions permitted by a person, such as when signing a deed of trust or mortgage
voluntary alienation
Deed executed by trustee conveying land held in trust
trustee's deed
Right to or ownership of land or evidence of ownership of land
title
Person who makes last will and testament
testator
Having made and left a valid will
testate
Deed in which grantor warrants, or guarantees, title only against defects arising during period of his or her tenure and ownership of property and not against defects existing before that time, generally using language, "by, through or under grantor but not otherwise
special warranty deed
Conveyance by which grantor transfers whatever interest he or she has in real estate, without warranties or obligations
quitclaim deed
Legal process by which court determines who will inherit decedent's property and what estate's assets are; literally means "to prove
probate
Document providing for transfer of title to property owned by deceased
last will and testament
Person signing a document swears before a notary that information in document is true and correct and signs document in presence of notary
jurat
Act of transferring property to another
involuntary alienation
Condition of a property owner who dies without leaving a valid will
intestate
Will that is written, dated, and signed in testator's handwriting but is not witnessed
holographic will
One who might inherit or succeed to an interest in land under state law of descent when owner dies without leaving a valid will
heir
Part of deed beginning with the words "to have and to hold," following granting clause and defining extent of ownership grantor is conveying
habendum clause
Words in deed of conveyance that state grantor's intention to convey property at present time
granting clause
Deed in which the grantor fully warrants good clear title to the premises
general warranty deed
Written instrument disposing of property on death of maker. Testator must be of legal age and sound mind, and not subject to undue influence
formal will
Title passes when grantor delivers deed and grantee accepts it. The deed may be delivered personally or through a third-party escrow agent
delivery and acceptance
Deed that carries with it no warranties against liens or other encumbrances but that does imply that grantor has right to convey title
deed without warranty
Form of deed by which real estate is conveyed to a trustee
deed in trust
Written instrument that, when executed and delivered, conveys title to or an interest in real estate
deed
Person who has died
decedent
Supplement or an addition to a will, executed with the same formalities as a will, that normally does not revoke the entire will
codicil
Transfer of personal property to a legatee in accordance with a will
bequest
Deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title
bargain and sale deed
Actual, visible, hostile, notorious, exclusive, and continuous possession of another's land under a claim of title
adverse possession
A formal declaration made before a duly authorized officer by a person who has signed a document attesting that he or she executed the instrument and that it was his or her free and voluntary act
acknowledgment
Which technique finances more than one property?
Blanket Loan
Money supply decreases and the economy slows if the Federal Reserve (the Fed).....?
Sells Government Securities
A party other than borrower pays interest in advance to lender and loan rate is reduced for first couple of years in a
Loan Buydown
Under which financing technique would no payment be due until property is sold, borrowers move from the home for longer than 12 months, all borrowers have died, or the borrower defaults?
Reverse Annuities Mortgages (RAMS)
To determine applicable interest rate at time of adjustment on an adjustable-rate mortgage, which of the following is added to the index rate?
Margin
Truth-in-Lending Act, Regulation Z, applies to all real estate loans secured by a
Residence
Which secondary market entity issues pass-through certificates that are guaranteed by entity and backed by full faith and credit of the United States?
Ginnie Mae
The true yearly rate of interest describes
APR
Which secondary market entity provides a secondary market for conventional loans primarily?
Freddie Mac
A seller has an assumable $80,000 loan and is selling a property for $125,000. If the seller makes a $125,000 loan to the purchaser but continues making the payments on the original loan himself, what type of loan did the seller make to the purchaser?
Wraparound Loan
Which financing technique includes NOT only real estate but also all personal property and appliances installed on the premises?
Package Mortgage
With which financing technique would seller retain lien right if he or she finances part of the selling price, yet permit title to pass to buyer?
Purchase Money Mortgage
Veterans are permitted to borrow up to what amount for 20 years under the Texas Veterans Home Improvement Loan Program?
$25,000
In order to be eligible for a loan under the Texas Veteran's Housing Assistance Program, the loan applicant must
HAVE LISTED TEXAS AS THE HOME OF RECORD AT THE TIME OF ENTRY INTO THE MILITARY OR HAVE BEEN A LEGAL RESIDENT OF TEXAS FOR AT LEAST ONE YEAR PRECEDING THE FILING OF THE LOAN APPLICATION AND AT THE TIME APPLICATION WAS MADE
Closing costs on equity loans may NOT exceed
3%
Financing technique that often results in negative amortization?
Graduated Payment Mortgages
Agency that purchases a number of mortgage loans and assembles them into one or more packages of loans for resale to investors
warehousing agency
Specific credit terms, such as down payment, monthly payment, amount of finance charges, or term of loan
trigger terms
Created in 1946 to administer a program to provide low-interest, long-term loans to Texas veterans for purchase of land
Texas Veterans Land Board
Texas governmental agency that has financing programs to help low-income and moderate-income families acquire housing
Texas Department of Housing and Community Affairs
Mortgage loan in which lender, in exchange for loan with favorable interest rate, participates in profits (if any) mortgagor receives when property is eventually sold.
shared-appreciation mortgage
Market for purchase and sale of existing mortgages, designed to provide greater liquidity for mortgages
secondary mortgage market
Transaction in which an owner sells his or her improved property and, as part of same transaction, signs a long-term lease to remain in possession of the premises.
sale-and-leaseback
Mortgage that enables homeowners age 62 and older to borrow against equity in their homes, receiving monthly payments to help meet living costs
reverse-annuity mortgage
Law requiring credit institutions to inform borrowers of true cost of obtaining credit; commonly called Truth-in-Lending Act.
Regulation Z
Note secured by mortgage or trust deed given by buyer, as mortgagor, to seller, as mortgagee, as part of purchase price of real estate or a mortgage given as part of buyer's consideration for purchase of real property
purchase-money mortgage
method of financing in which the Loan that finances purchase of home also finances purchase of certain items of personal property such as washer, dryer, refrigerator, stove, and other specified appliances
package mortgage
Mortgage loan that is expandable by increments up to maximum dollar amount, full loan being secured by same original mortgage
open-end mortgage
Securities that are secured by pools of mortgages and are used to channel funds from securities markets to housing markets
mortgage-backed securities
Loan in which mortgagor makes lower monthly payments for first few years of loan; usually based on an artificially low payment schedule, resulting in negative amortization or deferred interest
graduated-payment mortgage
Corporation within HUD that participates in secondary market. It sells mortgage-backed securities that are backed by pools of FHA and VA loans. Chartered as the Government National Mortgage Association (GNMA)
* Ginnie Mae
Corporation established to purchase primarily conventional mortgage loans in secondary mortgage market
Freddie Mac
Central banking system designed to manage nation's economy
Federal Reserve System (the "Fed")
Privately owned corporation that participates in secondary market by buying conventional, FHA, and VA loans
Fannie Mae
Line of credit made against equity in borrower's home
equity loan
Contract for sale of real estate wherein purchase price is paid in periodic installments by purchaser, who is in possession of property even though title is retained by seller until final payment
contract for deed
Short-term loan usually made during the construction phase of a building project
construction loan
Mortgage on which cash payment, usually measured in points, has been made to lender to reduce interest rate a borrower must pay
buy-down mortgage
Mortgage covering more than one parcel of real estate, providing for each parcel's partial release from mortgage lien on repayment of definite portion of debt
blanket mortgage
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