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Unformatted text preview: ed under a blanket deed of trust with release clause, as the developer sells one of the lots, the developer pays off an amount of at least 1/100th of the total amount, but it may be as much as 110 to 120 percent of that fractional figure, dependent upon lender requirements. The lender will release the parcel or lot from the mortgage, thus giving the person purchasing the lot clear title. Without the release clause capability, the developer would have to sell all 100 lots before clear title could be issued for any of the lots. Effect – As specified portions of the loan are paid, specific parcels are released from the blanket encumbrance, if a release clause is in existence. A deed of partial reconveyance is used to effect this. Use in Subdivisions – A responsible land promoter will usually secure a special release clause from the lender if the separate subdivided parcels encumbered under the blanket trust deed were originally part of one large parcel. (Protects individual smaller parcel buyers in case of a defaulting developer and/or promoter.) Income Tax liens – Involuntary blanket encumbrances may be placed on properties of an individual by the federal government for nonpayment of income tax. 9-42 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 9: FIXED RATE MORTGAGE AND ALTERNATIVE MORTGAGE INSTRUMENTS
A blanket trust deed is one loan instrument covering two or more parcels. Borrower may pledge more than one parcel as security for a loan. REAL PROPERTY SALES CONTRACT
“An agreement wherein one party (the seller) agrees to convey title to real property to another party (the purchaser), upon the satisfaction of specified conditions set forth in the contract and which does not require conveyance of title within one year from the date of formation of the contract” (Civil Code Section 2985) Also called land contract, agreement of sale, conditional sales contract, installment sal...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10