Real estate law Chapter9 Overview

Real estate law Chapter9 Overview - MANAGEMENT 4803 LEGAL...

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MANAGEMENT 4803 LEGAL ASPECTS OF REAL ESTATE COLLEGE OF MANAGEMENT GEORGIA INSTITUTE OF TECHNOLOGY PROFESSOR LUCIEN J. DHOOGE OVERVIEW OF CHAPTER 9 Chapter 9 is primarily concerned with the legal aspects of financing of real estate acquisitions. The first section of Chapter 9 covers terminology associated with real estate financing. A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or payment of a debt. There are several types of mortgages including purchase money (carry-back), reverse annuity and equitable mortgages. However, the most common mortgage is that created by the recording of a deed of trust. A deed of trust is a document in which the debtor (otherwise known as mortgagor) deeds the property to an independent third party to hold for the benefit of a creditor (otherwise known as a mortgagee) as security for a loan. The loan is usually memorialized in a promissory note. A promissory note is a written promise of a debtor to pay a specified sum of money to a payee at a time stated therein or upon demand of a named person. Residential lending is subject to extensive federal regulation. Among the federal statutes governing residential lending are the Fair Housing Act, Equal Credit Opportunity Act, Community Reinvestment Act and the Home Mortgage Disclosure Act. Of particular importance is the Truth in Lending Act which requires disclosure of finance charges, annual percentage rate of interest and the principal amount financed in all residential real estate lending transactions. Another federal statute, the Real Estate Settlement Procedures Act, also places limitations upon lending
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Real estate law Chapter9 Overview - MANAGEMENT 4803 LEGAL...

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